UAE visitors boost UK tourism

Post-Brexit vote, tourists from the UAE and wider GCC are flocking to the country as the tumbling pound makes dollar-pegged currencies go further. And while British business in general may be nervous, the travel sector is gaining.

Romanna Bint-Abubaker at her Chelsea-based shop Haute Elan. Simon Dawson / Bloomberg
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London // The UK prime minister Theresa May yesterday pulled the trigger to start EU negotiations following Britain’s shock Brexit vote – further rattling national business sentiment – but one industry sector in the country is flying high in the face of change: international tourism.

The latest figures from VisitBritain show that during the first nine months of 2016, there were 606,000 visits from the GCC to the UK, a historic high for any January to September period, with visitors splashing out a record total £1.1 billion (Dh5.02bn).

By the end of February this year, the falling pound meant the UK was 13 per cent more affordable for visitors from the UAE and other dollar-pegged countries in the GCC than the same date last year. The pound weakened yesterday before recovering to US$1.24 at 6.30pm UAE time.

“The depreciation of Sterling following the outcome of the UK referendum, coupled with timing of the end of Ramadan, precipitated a shopping boom in the UK,” Patrick Waldron, the chief executive of Premier Tax Free, a firm that facilitates overseas visitors claiming back VAT on purchases, tells The National.

“This confluence of factors saw GCC national spend increase by 70 per cent year-on-year in the month of July 2016.”

Mr Waldron says GCC nationals visiting the UK in the second half of 2016 spent 30 per cent more in tax-free sales than the same period the year before.

He adds that tourists from the UAE represented the strongest gains in this period, seeing spending growth of 37 per cent, while Saudi, Kuwaiti, and Qatari nationals all increased spending by more than 20 per cent in the second half of 2016.

At a time of national economic uncertainty in the UK and European political wrangling, a coterie of British shopping boutiques, designer labels and flight operators has welcomed this Arabian Gulf windfall with open arms.

The British-Muslim fashion boutique owner Romanna Bint-Abubaker, is one. She runs a thriving shop in London’s upmarket Chelsea that has noticeably benefited from Brexit. The 33-year-old founder of Haute Elan retails curated “modest fashion” items and counts many wealthy GCC Arabs among her eclectic clientele.

Ms Abubaker tells The National she has heard of more friends and associates taking the decision to visit the UK to enjoy the spoils of the weak pound. She also notes that more international customers are taking the opportunity to visit her store.

“Yes, it’s absolutely the case. A much higher volume of international clientele is coming in, taking advantage of the opportunity to shop in the fashion capital of the world,” she says. “I’ve witnessed about 20 per cent increased footfall in my own store since the Brexit vote.”

It is not only high-end stores that benefit with more affordable names such as TopShop and Tezenis also likely to gain.

Still, the wealthier buyer usually prefers the more luxurious retailers. Just a few minutes from Ms Abubaker’s store lies Sloane Street, one of the capital’s most luxurious shopping districts. As a grand purveyor of many premium labels and boutiques, such as Fendi and Versace, the area is a magnet for GCC tourists looking to bag a Brexit bargain. Cadogan, a property management company and the main landlord for London’s Chelsea and Knightsbridge, says Sloane Street has seen a footfall increase more than 20 per cent in the past few months.

“Undoubtedly some of this can be accredited to the current currency fluctuations and much greater number of international visitors,” says the company’s chief executive, Hugh Seaborn.

“Shoppers from the GCC are drawn to the street’s elegant environment and sophisticated luxury brands. They also love the feel of being part of a real London neighbourhood, with fantastic restaurants, hotels and cultural activities. In terms of visitor demographic, we know that shoppers from the Gulf are the largest growing international audience to the area, with the peak travel period over the summer months,” Mr Seaborn says.

“This year there are some changes to the street that we hope they will like, such as larger, more beautiful stores for brands such as Hermes, plus new shops, including a fantastic new Boutique 1 concept store.”

Research by VisitBritain shows that Saudi Arabian visitors are the GCC travellers most interested in luxury shopping.

More than 60 per cent of Saudis are likely to have shopped at an upmarket outlet or department store during their visit.

They are also among the most likely to purchase clothes or shoes during a trip to Britain.

VisitBritain data says visitors from the GCC are some of the UK’s highest international spenders, splashing an average £2,198 per visit, more than three times that of any other group. They also stay longer than most international visitors with an average length of stay of 15 nights, compared to an average of eight nights for other markets.

And with such figures, it is no surprise the British tourism sector is pushing to grow that market. Just last month, VisitBritain opened a new office in Riyadh and appointed the Saudi national Bader Almandeel as the UK’s representative there, making it the first western tourism board to establish a presence in Saudi Arabia.

“The UK’s attractions, hotels, shops and luxury goods are all offering great value right now, making it an attractive choice for visitors from the GCC who already rate Britain as a top destination,” says VisitBritain’s director for Asia Pacific, Middle East and Africa, Sumathi Ramanathan. “The new office will see VisitBritain engage more effectively with potential visitors and convert aspiration to visit into bookings.

“By showcasing the sheer diversity of experiences on offer, from shopping in our world-class boutiques and department stores to touring the countryside and soaking up the culture of our cities and towns, we want to inspire more visitors from the GCC to book a trip to come and discover their own amazing moments.”

business@thenational.ae