The devaluation of the yuan could cause Chinese shoppers to stay away from the UK during Chinese Golden Week, warns tax-free spending firm Global Blue.
Spend by Chinese tourists was down 2% year-on-year in August following the drop of the yuan. Global Blue is expecting Chinese Golden Week (October 1 to 7) to be “significantly weaker” this year as unfavourable currency rates see a further slowdown in Chinese spending.
Gordon Clark, head of commercial UK and Ireland at Global Blue, said: “With the devaluation of the yuan and falling confidence of Chinese consumers, forecasts for UK spend growth are not looking strong. It is essential we take action to make sure we do not lose out on the opportunity this market brings to the UK economy.”
He added: “We are calling on the UK Government to make the 10 year, multiple entry visa the standard visa we issue to Chinese travellers.”