Airports in new rallying cry against tourist tax with Heathrow blaming tax for fall in sales

Some of the country’s busiest airports have urged the Government to commission more research into a ‘disastrous’ tourist tax.

Hundreds of businesses have called on the Chancellor to reverse removing VAT-free shopping for international visitors.

Bosses of Heathrow, Stansted and Gatwick yesterday said the UK is in danger of falling behind rivals that have tax-free schemes.

Businesses have called on the Chancellor to reverse removing VAT-free shopping for tourists

The UK’s largest airport Heathrow was ‘seeing first-hand the economic damage of the tourist tax’, said Ross Baker, its chief commercial officer, adding: ‘Tourist spend in the UK is eclipsed by our European neighbours where goods are up to 20 per cent cheaper.’

Heathrow blamed the policy for an 8.3 per cent dip in retail sales per passenger in the first half of 2023. It is forecasting 70million to 78million passengers in 2023, down on 2019’s 81million.

Evidence is mounting that the tax is helping cities such as Paris and Milan lure consumers who might have favoured London.

Gatwick retail director Rachel Bulford said: ‘It is imperative tax-free shopping is reinstated, as key, big-spending travel markets like China grow back, and before the UK falls irretrievably behind other European nations.’

Businesses have backed a campaign spearheaded by The Mail to ditch the unpopular measure. 

On behalf of airports and other businesses, lobby group BusinessLDN asked the Treasury for more analysis into the levy yesterday.