The United Kingdom can lose up to 10 billion British pounds in tourism spending due to Brexit and the planned abolition of the VAT refund system for travelers after January 1st, 2021, according to data presented by the Tax-Free market firm Planet.
This constitutes another blow to thousands of UK retail outlets, some of which derive 60% of their sales from international tourists.
In addition, there will also be dire consequences for the leisure and hospitality sectors as tourists who used to choose to travel to the UK, in 2021, will opt for trips to France, Italy, Spain, and other EU countries instead.
The United Kingdom retail sector employs almost 3 million workers, generates over 400 billion pounds turnover, and represents more than 5% of the country’s GDP.
As Planet points out, the decision to abolish the refund of tourist VAT is an anti-incentive for consumers to travel to the UK and spend their money in the country. As a result, it threatens hundreds of thousands of jobs and households that have already been hit hard by the health crisis.
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations, Greek travel market, Greek tourism statistics, Greek tourism report
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