Dropping Pound, More Favourable Visas, to Spark Rise in Chinese Tourist Numbers to UK
After a 46 per cent rise in travellers from China last year, analysts expect the UK could be set for another bumper year post-Brexit.
More Chinese travellers are expected to flock to Britain during the coming peak holiday season, thanks to the likely ongoing weak pound and easier travel rules, according to market watchers.
The 30-year low in the currency means the Brexit vote on June 23 to leave the European Union makes British goods and services far cheaper for foreign tourists, music to the ears of Chinese buyers of luxury goods, particularly.
Chinese travellers are the world’s biggest buyers of high-end goods with an acute awareness of best prices. They are equally well-known for following currency fluctuations to seek out deals.
“The weak sterling will stimulate Chinese travellers to spend more in Britain,” said Zeng Guang, an analyst at Guosen Securities in a report.
The UK has always been one of the favourite destinations of Chinese mainland travellers, with 270,000 trips made there last year, a 46 per cent rise on the previous year, according to the Office for National Statistics, the UK’s largest independent producer of official statistics.
Their spending in the country reached £586 million, an 18 per cent increase. In a further drive to attract more Chinese visitors, the British government is also planning more favourable visa policies.
Daniel Meesak, chief operating officer at China Outbound Tourism Research Institute agreed, but added it is highly likely the British government will continue rolling out favourable visa policies in the hope of growing Chinese tourist numbers.
The latest moves were a two-year visa for Chinese nationals, introduced early this year, and a cut in visa fees.
However, Meesak has fears Britain might also have to increase value-added tax after the country leaves the European Union, meaning foreign buyers would have to pay duty and value-added tax when they cross the border between Britain and Europe.
This need, he added, might actually deter some from going to the UK, because they would have to pay taxes on items bought on the continent.
However, over the long term, the experts agreed the benefits are likely to outweigh the negatives for Chinese visitors to Britain, especially those from the higher-spending middle classes.
京公网安备 11010502048770号
