Britain is losing out because of the tourist tax

The boss of Longchamp, who called for the reinstatement of tax-free shopping in Britain, warned that Britain was losing out on tourists with high spending habits.

Jean Cassegrain said that the resurgence of tourism in London was “less than the Continent”, after Brexit scrapped duty-free shopping.

He said that shopping is the number one reason why people travel. Most shoppers don’t mind a good bargain. “If tourists can find a better deal on a trip to Paris than they could in London, they’ll go there.”

In 2021, the scheme that allowed foreign visitors to claim 20 percent of VAT on UK purchases was discontinued due to the UK’s departure from the European Union. Luxury goods brands like Burberry, Mulberry, and Swiss Watches have warned since then that wealthy tourists prefer to travel to Paris and Milan instead of London.

Caroline Rush, the chief executive of the British Fashion Council said that this month the so-called “tourist tax” was not only affecting luxury retailers, but was also having an impact on the entire sector, from the supply chain to tourism and the hospitality. It makes it very difficult for the UK.”

The Centre for Economics and Business Research found that the tax-free shopping policy has discouraged two million tourists from visiting the UK each year, and costs the UK £11.1 billion a year in lost GDP.

Jeremy Hunt, the Conservative leader at the time, launched a review to determine whether the scheme was reinstated. The former chancellor, however, decided to not bring it back because the Office for Budget Responsibility estimated a cost of £2 billion.

Longchamp thinks that if the “tourist’s tax” were dropped, more people would visit its Regent Street store in central London.

Cassegrain said that he “very much” hoped the new government would consider restoring tax-free shopping. He said that restoring VAT-free shopping would bring London back on a level playing field with the continent.

In 1948, Cassegrain’s grandfather Jean Cassegrain founded in Paris. Le Pliage Canvas is the label’s most famous product. It is seen on celebrities and royalty including Dame Mary Berry and Kendall Jenner. Influencers have described the nylon tote as an “accessible designer bag” for Gen Z, and also a good “book bag”. Prices range between £80 and £450.

Longchamp is one the last remaining family-owned leather products manufacturers in France. Jean Cassegrain, the successor to his father, Adrien Cassegrain, will join the company in 2020. Hector and Adrien Cassegrain, members of fourth generation, are also joining.

He said that there was “no possibility” of selling the company, even though some of Europe’s biggest luxury brands had expressed interest in acquiring it. He said, “We intend to remain independent.” We think that’s what makes us unique and unusual. We don’t get help from a big-brother.

Cassegrain stated that the global luxury sector was being squeezed by inflation and cost of living crises, but Longchamp is well positioned to overcome these challenges due to its “affordable price points”. He said that the company was still growing at a significant rate and there were no signs of a slowdown. “We are in a unique market position that resonates with our customers.”

The company is very secretive about its financial performance, but reported an increase of 44 percent in revenue for the past year.