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Tax-free shopping for tourists has been axed, and EU visitors now need a passport to visit, which most don’t have. Matt Cardy/Getty ImagesAs a result of Brexit, in 2021 the UK government abolished tax-free shopping for non-EU citizens. It means the UK is now the only European country not offering tax-free shopping to visitors from outside the continent. “The impact of losing tax-free shopping is clear to see,” says Dee Corsi, chief executive of the NWEC. “Whilst the likes of Italy and France are actively leveraging tax-free shopping as a driver of growth, British businesses continue to trade at a disadvantage.
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U.S. travelers — Britain’s biggest inbound market — are expected to lead next week’s swell of arrivals. Flight bookings from the United States to Britain are about 10 percent higher in May compared to in May 2019, before the pandemic, according to VisitBritain. According to Hopper, the booking app, they are also more expensive — round-trip airfares from the United States to London over coronation weekend averaged $733 in mid-April, 21 percent higher than a year earlier. After the coronation dates were announced, searches for Airbnb rentals in London during the coronation weekend surged, according to the company, which reported U.S. travelers among the top guests in London around the coronation dates, along with travelers from Britain, France, Australia and Germany (the company declined to share booking numbers). By late March, hotel bookings in London on the booking platform Expedia were 60 percent higher for the coronation weekend compared to the same time last year.
Gen Zers and millennials are turning to movies and TV shows for travel inspiration in a trend dubbed set-jetting. This includes a boom in bookings for the hotels in Hawaii and Italy "The White Lotus" was filmed at. In particular, travelers have been scrambling to visit the resorts where the first two seasons of HBO's hit "The White Lotus" were set. When season one was broadcast, web traffic to the Four Seasons Maui resort increased 425% year-over-year, Four Seasons told Bloomberg. To visit the Taormina hotel for a week in July, many of the lower-priced options have already sold out and two-person rooms start at around $3,500 per night.
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