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UK ‘Tourist Tax’ sends tourists flocking to Paris, Milan and Madrid for tax-free shopping

Thousands of tourists who used to come to Britain for tax-free shopping are now visiting stores in Paris, Milan and Madrid after the UK scrapped the incentive in the wake of Brexit. New analysis shows that 162,000 tourists from outside the European Union sought refunds on VAT — a sales tax — exclusively in Britain in 2019. One fifth of those tourists are now claiming rebates in other parts of the EU, where the tax break still applies. The UK ended the tax incentive in 2021 and has resisted strong lobbying from retailers and other companies linked to the tourism sector. The 34,000 tourists who have shifted their tax-free shopping from Britain have also ramped up their spending from an average of €2,900 ($3,622) per person in 2019 to €3,800 in 2023, according to Global Blue, a Switzerland-based tax rebate provider that tracks passport numbers. France and Italy are benefiting the most, attracting more than two-thirds of these travelers, with Spain’s retail sector also getting a boost. “The continued absence of a tax-free scheme is certainly impacting international sales at Selfridges,” said Andrew Keith, chief executive officer of the chain of upmarket UK department stores. Political row Britain’s refusal to bring back the tax break after leaving the EU is more damaging than the recent cost-of-living crisis, according to the New West End Company, a lobby group representing London’s tourist hot-spot. However, the UK government believes its policy has bolstered the public purse and not deterred tourists. It commissioned an independent review by the Office for Budget Responsibility, a government spending watchdog, in 2020 and again this year. The OBR estimated a £462 million ($579 million) benefit to the public finances last financial year from closing the loophole, even when accounting for the effect on tourism and displaced spending — rising to over half a billion pounds in the current fiscal year. Tourism to Britain appears to be strong. Hotel occupancy in London overtook pre-pandemic levels in December according to data from consultancy firm RSM UK, while 18.5 million passengers passed through Heathrow in the first quarter of this year — an all-time high. The city’s famous Oxford Street is mounting a comeback. With a national election due later this year, some luxury retailers have given up on any prospect of a change of tack. “Is the Prime Minister going to stand up and say ‘I called all of this wrong’?” said Michael Ward, Managing Director of Harrods, speaking at the World Retail Congress in Paris last month. “I doubt it very much.” The opposition Labour party is expected to return to power and Ward said the tax rebate is “not on their agenda at all.” Other retailers are still arguing the case. “If we want British brands to be able to invest in jobs, shops and people we need to entice foreign shoppers to spend money in the UK,” said Thierry Andretta, Chief Executive Officer of Mulberry Group. “That requires offering them the same tax-free policy they enjoy in the rest of the world.” The British handbag maker, which has struggled in the last few years, blamed a 4% decline in UK sales in the final 13 weeks of 2023 compared with the previous year on a lack of VAT-free shopping. “There is this lost opportunity,” said Paul Barnes, Chief Executive Officer of the Association of International Retail. “Visitor numbers are actually as strong as they are in the rest of Europe now, but they’re not spending — that’s the difference.” Global Blue’s data excludes Chinese shoppers as their numbers were still less than half pre-Covid levels. Most of the tourists in the data were from a group of Middle Eastern countries (33%) and the US (19%).

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Akasa Air increases weight limit for pet carriage from 7 kg to 10 kg

In a recent update, Akasa Air has announced an increased weight limit for pet carriage. Their 'Pets on Akasa' policy will now allow the weight of pets in passenger cabins from 7 kg to 10 kg, which is a change driven by customer feedback. Since its launch in November 2022, 'Pets on Akasa' has allowed the travel of over 3200 pets, which shows the policy’s popularity among pet owners. Understanding the importance of feedback, the airline has increased the weight limit to 10 kgs (including the container) to accommodate bigger pets comfortably. Not only this, the airline has extended the validity of travel certificates for pets from three days to 15 days, offering flexibility for short-term travel plans. Akasa Air said, "Travel certificates issued for pets will now remain valid for up to 15 days instead of three days, adding convenience for customers booked on return for short-term travel. Customers travelling for longer than 15 days will be required to obtain a new travel certificate". Now passengers with their furry friends on Akasa Air can enjoy complimentary value-added services, including pre-booked window seats, priority baggage delivery, and priority boarding, enhancing their overall flying experience. The airline has invested in extensive research and training across its customer care center, airports, and in-flight teams to ensure the highest standards of care, safety, and comfort throughout the journey. Furthermore, the airline has also collaborated with Umeed for Animals Foundation to implement best practices in pet travel, underscoring its commitment to animal welfare. Belson Coutinho, Co-Founder and Chief Marketing & Experience Officer at Akasa Air, expressed gratitude for the constructive feedback from pet parents, which has driven these new developments. He said the airline's dedication to creating an inclusive and humane travel experience for passengers and their pets. About Pet on Akasa policy 'Pets on Akasa' was introduced on November 1, 2022. It allows travellers to fly with their cats and dogs on domestic flights across 22 cities. Akasa Air, which started operations in August 2022, has flown over 8 million passengers and connects with 22 cities, including popular destinations like Mumbai, Delhi, Bengaluru, and Chennai, among others.

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Air India Express to cancel 40 flights daily until May 13

As per the latest development, the challenges in the Tata Group's airline merger continue to persist without any relief. As reported earlier, the airline faced substantial disruptions when official sources confirmed the cancellations of more than 90 flights since Tuesday night. This occurred due to a widespread sick leave among cabin crew members, affecting both international and domestic flights. Reports add that approximately 300 senior cabin crew members unexpectedly reported sick and were missing from action; they were unreachable too as they turned off their mobile phones. Now, reports add that the budget carrier will be cancelling 40 flights daily until May 13th. This reduction, prompted by a surge in sick reports from cabin crew, echoes similar disruptions experienced last month by Vistara during its merger with Air India. Over 300 cabin crew members from Air India Express called in sick, which led to the cancellation of more than 90 flights by Wednesday evening. Latest reports suggest that termination notices have been issued to those involved. Airline sources further added that they are making all efforts to minimise international disruptions and that their overseas flight might see less than 20% of the cancellations. With current flights operating at over 80% capacity, around 13,000 passengers have been affected by these cancellations. Passengers scheduled to travel have been advised to verify the status of their flights beforehand due to the dynamic nature of crew availability, which may result in further cancellations beyond those already announced. A source from the airline added, "Guests may visit the 'Flight Status' section on our website for real-time information. If their flight is canceled, or delayed beyond 3 hours, they may opt for a full refund or reschedule to a later date without any fees on Tia on WhatsApp (+91 6360012345) or on airindiaexpress.com." To mitigate inconvenience, affected passengers are offered full refunds or rescheduling options without additional fees. However, the peak summer cancellations exacerbate existing travel constraints, as other carriers face operational challenges. The Ministry of Aviation has requested a report from Air India Express and stressed the importance of prompt issue resolution and adherence to regulatory standards.

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Air India Express shares Whatsapp number to assist travellers get refund and reschedule

As per the latest development, after letting go of 30 crew members, Air India Express announced the cancellation of 85 flights on Thursday. In response, the airline has assured passengers that if their flights were cancelled or delayed beyond three hours, they could choose between a full refund or rescheduling to a later date without incurring any fees. The official statement from Air India Express stated, "If their flight is cancelled, or delayed beyond 3 hours, they may opt for a full refund or reschedule to a later date without any fees on Tia on WhatsApp (+91 6360012345) or on airindiaexpress.com." Expressing its commitment to minimise passenger inconvenience, a spokesperson for Air India Express added that the airline is making all efforts to address the unexpected situation. The spokesperson assured that Air India Express is making every possible effort to minimise the inconvenience caused to travellers by this unexpected situation. He further added, "We will be operating 283 flights today. We have mobilised all resources and Air India will support us by operating on 20 of our routes. However, 85 of our flights are cancelled and we urge our guests booked to fly with us to check if their flight is affected by the disruption before heading to the airport." Passengers affected by cancellations or delays beyond three hours were offered the option of a full refund or rescheduling to a later date without additional fees. They could avail of these options through Tia on WhatsApp (+91 6360012345) or on airindiaexpress.com. "While we will continue to engage with our cabin crew colleagues with a commitment to address any concern, we are taking appropriate steps against certain individuals as their actions have caused grave inconvenience to thousands of our guests," the spokesperson added. As reported earlier, the disruptions were attributed to unforeseen circumstances, causing inconvenience to travellers. Air India Express assured passengers that it was diligently working to resolve the situation and ensure smooth operations. Meanwhile, passengers have been advised to check the status of their flights before heading to the airport to avoid inconvenience. Air India Express has faced challenges in recent times, with more than 80 flights cancelled and delays due to a mass sick leave of crew members. The situation spiralled to such an extent that the Ministry of Civil Aviation intervened, directing the airline to follow DGCA rules and provide immediate assistance to stranded and affected passengers.

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Egypt receives record 15 million tourists in 2023, 27% increase this year in first four months

The total number of tourists visiting Egypt during the first four months of 2024 increased by 27 per cent, supported by inbound tourism from Arab countries, which witnessed a 54 per cent growth compared to the same period in 2023, according to Ghada Shalaby, Vice Minister for Tourism of Egypt. Egypt will showcase its commitment to enhancing the tourist experience and attracting new visitors from the UAE, GCC, and globally by highlighting the country’s tourism potential, forthcoming projects, and future initiatives at Arabian Travel Market 2024 (ATM) in Dubai as it looks to build on the record 15 million tourists welcomed in 2023. Dr Ghada Shalaby, Egypt’s Vice Minister of Tourism and Antiquities for Tourism Affairs, said, “Egypt is gearing up to attract a wide range of travelers based on its commitment to diversifying its tourism offerings. The Ministry has worked to unveil a group of new products that meet the evolving preferences of travellers, from health tourism to meetings, incentives, conferences, and exhibitions tourism, all the way to the innovative Umrah Plus product and the attractive Cairo City Break program.” Dr Ghada noted that cooperation lies at the heart of Egypt's tourism strategy. By strengthening partnerships between tourism entities in Egypt, the Far East, and GGC countries, among other Arab countries, the Ministry aims to combine efforts in promoting Egyptian destinations and ensuring unparalleled experiences for visitors. Through collaborative endeavours, the tourism sector is ready to flourish and grow. Egypt’s commitment to infrastructure development remains steadfast. From enhancing transportation networks to enhancing airport facilities and expanding railway systems, significant investments are being made to improve accessibility and connectivity across the country. These initiatives play an essential role in facilitating smooth travel experiences for visitors to Egypt, said Dr Ghada. Amr El-Kady, CEO, Egyptian Tourism Authority, mentioned that Egypt is witnessing a qualitative shift in its approach to tourism, as by embracing the dynamism of the private sector, the country is embarking on a journey of liberation and promoting an enabling environment for investment and innovation in the travel sector. From this standpoint, the Arabian Travel Market, held in Dubai, constitutes an essential platform to complete these efforts and raise its status at this level.”

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Election tourism: 27% surge in inter-state travel during Lok Sabha polls

India offers a diverse array of tourism opportunities including cultural tourism, wildlife tourism, medical tourism, village-stay tourism, Himalayan trekking, and pilgrimage tourism, as well as yoga and temple tourism. As the world's largest democracy, it also presents a unique form of election tourism. "Election tourism is a fascinating phenomenon that reflects the deep-rooted commitment of citizens towards democratic participation," Rohit Sharma, COO of AbhiBus (ixigo bus business) said. Travel trends during elections Travel platforms like ixigo and AbhiBus have observed significant shifts in travel patterns during the 2024 Lok Sabha elections. These changes were noted based on the phases of polling across various states in India. " Our analysis of bus travel trends during the recent elections reveals a remarkable surge in intra-state travel across Tamil Nadu, Odisha, Bihar, Rajasthan, and Uttar Pradesh," Rohit Sharma said. AbhiBus's analysis of bus travel trends indicated that in Tamil Nadu, travel activity increased by 27% over usual levels. Similarly, Odisha saw a 10% increase, Bihar 16%, Rajasthan 26%, and Uttar Pradesh 24% in bus travel demand during this election season. Inter-state voter mobilisation There was notable inter-state travel during the election period, with a 21% increase in bus travel from Karnataka to Tamil Nadu, suggesting a cross-border mobilisation of voters. Bus travel search increase on Abhibus — Week on week Banglore - Mumbai: 104% Mumbai- Delhi: 52% Delhi-Srinagar: 45% Chandigarh - Srinagar: 48% Air travel analysis Here's an analysis of one-way average airfares for various routes as reported by Ixigo, comparing the prices from the period of 19 April to 1 June 2024 with those in the same period in 2023, along with the year-on-year percentage increase: New Delhi to Ahmedabad 2024: Rs 4,735 2023: Rs 3,871 YoY increase: 22% Hyderabad to Vishakhapatnam 2024: Rs 5,587 2023: Rs 5,040 YoY increase: 11% New Delhi to Lucknow 2024: Rs 5,486 2023: Rs 4,478 YoY increase: 23% New Delhi to Ranchi 2024: Rs 7,487 2023: Rs 5,729 YoY increase: 31% Pune to Nagpur 2024: Rs 7,163 2023: Rs 5,161 YoY increase: 39% New Delhi to Amritsar 2024: Rs 3,907 2023: Rs 3,694 YoY increase: 6% Tourism in India India's inbound tourism sector has witnessed a significant resurgence, with foreign tourist arrivals increasing by 64% in 2023 compared to 2022, reaching a total of 9,236,108 visitors. However, despite this growth, the sector remains 15.5% below the pre-pandemic levels recorded in 2019, as reported by the Ministry of Tourism.

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