Stansted boss: Scrap the ‘tourist tax’ to keep London competitive
The boss of London Stansted Airport has called on the government to scrap the so-called tourist tax in order to keep London competitive.
International tourists visiting the UK had previously been able to claim 20 per cent back on their purchases, but the policy was axed by Rishi Sunak in 2021 when was Chancellor and dubbed the ‘tourist tax’.
Airports, retailers and London business groups have lobbied hard to bring back the discount, which was particularly popular among wealthy tourists looking to splash their cash in the capital.
Speaking exclusively to City A.M., Gareth Powell, Stansted’s Managing Director, said he was “very supportive of those calls.”
“We think it’s an important part of what would support the recovery of London and the tourism industry more broadly. And therefore, it’s important that voice is heard by government and the government takes action on that point.”
Powell, a former senior executive at Transport for London, said that ditching the tax would be crucial in making sure London could compete with rival European cities such as Paris and Milan, who have benefited from cash rich shoppers shunning Britain.
“It’s really important that we are able to compete as a nation and as a city around the world, and if you have a choice to go and do your shopping in Paris or Milan or in London, it’s an important consideration as to whether or not you can claim back 20 per cent,” he said.
“It’s really important that we are able to compete as a nation and as a city around the world, and if you have a choice to go and do your shopping in Paris or Milan or in London, it’s an important consideration as to whether or not you can claim back 20 per cent.”
Gareth Powell, Stansted Managing Director
Stansted Airport, which is owned by MAG Group, is the second biggest gateway for tourism into London.
Powell insisted he had seen “no signs” of passenger demand “easing up” in the autumn months, despite concerns in the sector of a slowdown after summers’ record season of travel.
“We’ve seen the demand is there, both from European visitors coming into the UK and also from those in the UK travelling to Europe and further,” adding that he expects that to continue “through the winter.”
The airport to the North-East of London primarily serves short-haul carriers such as Ryanair but Powell noted that a recent push into the long-haul market had helped prop up its post-pandemic recovery.
“Now we have three flights a day to Dubai with Emirates Airlines [and] that service is performing extremely well,” he added.