The Notebook: Charles Tyrwhitt boss on how the ‘tourist tax’ is hurting London
Where the City’s movers and shakers get a few things off their chest. Today, it’s Nicholas Wheeler, founder of tailored shirts specialist Charles Tyrwhitt.
Ditch the ‘tourist tax’ to support London’s rebound
I always think London feels super busy, but the bods at the tourism board are forecasting the opposite. Fewer visitors spending their money in Britain is bad for the high street, bad for hotels and bad for restaurants.
My fellow retailers from Mulberry to Burberry to Jigsaw think they have diagnosed the problem. We are the only country in Europe that doesn’t refund VAT to international tourists who have come to the UK to shop. The result? Fewer tourists choosing to come here, and data showing places like Madrid, Milan and Paris hoovering up their spending.
Tourism is a cash cow for this country — raking in billions in revenue that supports the economy, as well as paying for the government to do its job.
The government might be saying they want to do whatever they can to support businesses and drive growth — but making us an international outlier on tourist taxes only leads us down one path, putting us at a huge disadvantage to every country on our doorstep.
Visit Britain’s data on this is clear. Half of Chinese and US tourists have said they are significantly reducing their spending in the UK because of a lack of tax-free shopping – with many now not coming here at all. This has to change.
As the Chancellor plans his Autumn budget, going out to bat for British retailers, restaurateurs and hoteliers that depend on tourism is something he should consider carefully. If everyone from socialist governments in Spain, conservatives in Italy, through to the government’s own tourism agency can see the madness of taxing tourists, a new policy must be worked up, and fast.
Student loans to broaden young people’s horizons?
Last year my youngest left school and chose to skip university. She is becoming a pop star instead. Good on her. It certainly made the dreaded results day a little less stressful.
Whether it’s A-Levels or university degrees, young people worry that this one day will define the rest of
their life. Anyone in business will tell you it won’t.
Research just out from charity Teach First shows how unprepared young people are for the world of work when they leave school and universities have no clue either about how to prepare students for what comes next.
Instead of loaning thousands to students who get little out of their degree, why can’t we loan that same money to young people to attend the ‘University of Life’? Businesses are looking for well-rounded young people with the right attitude, skills and experience.
Three months learning Spanish in Peru, building a school in Costa Rica, crewing a supertanker across the Pacific and working in a kibbutz is a far better way of demonstrating this than three years in lecture halls downing a few thousand pints.
Fashion isn’t just about trends
Fashion isn’t just driven by what’s on trend. Take the rise of casual wear. At Charles Tyrwhitt we used to sell 80:20 in favour of formal shirts and suits. It’s now 50:50.
Home working is a major factor. So too is temperature. Warmer summers see spikes in linen sales. Comfort has consigned the suit and tie to ‘big days’ only.
But through it all, the shirt remains the constant in a man’s wardrobe. My bet is it will never become passé. But I would say that, wouldn’t I?
What I’m currently reading
Highly Desirable: Tales of London’s super-prime property from the Secret Agent. Anonymous. Funny. Cutting. The madness of the London property market. Great for the beach.