London, 13 February 2025 – The West End has demonstrated its resilience once again, recording muted growth of 0.25% year-on-year over the festive period (November and December). However, new analysis shows West End retailers lost an estimated £640 million in unrealised international visitor revenue across FY2024 due to the absence of tax-free shopping – up from £400 million in 2023.
The data paints a clear picture: in the face of continued pressure on domestic spend, the economic potential of international visitors remains significantly underutilised, and the policy environment must evolve quickly to support business stability and meaningful growth.
Domestic spend declined in November and December, dropping by 2.2% compared to the previous year—part of a broader trend of reduced consumer confidence. In contrast, international spend across the festive period rose by 3.5% year-on-year, albeit still below pre-pandemic levels despite an increase in visitor volumes. Visitors from the US, Saudi Arabia, and Germany emerged as the top international shoppers.
Key drivers behind the district’s appeal and its ability to draw both domestic and international visitors in strong numbers is the evolving mix of experiences, highly anticipated activations on-street and special offers in stores. Yet, with international spend still below pre-pandemic levels, the UK’s lack of a robust tourism strategy and the removal of VAT-free shopping put London at a competitive disadvantage against key European cities, stifling recovery and growth.
In continental Europe, where tourists enjoy up to 20% savings on purchases, data from Global Blue reveals that issued Sales in Store in Europe surged by 16% in November 2024 and 20% in December. Compared to the previous year, the UK is significantly behind this.
Dee Corsi, Chief Executive Officer of New West End Company, commented:
“Our latest data reaffirms the West End’s status as a world-class destination for retail, leisure and hospitality particularly during the festive period. However, challenging economic headwinds and policy inertia are holding us back. International visitors are eager to spend, at a time when domestic spend is declining, but without a robust tourism strategy, we are losing out to our European competitors – to the tune of £640 million in a year.
The Government has just announced support for Heathrow’s third runway. And yet policies like lack of tax-free shopping remain stumbling blocks in their growth agenda. We need bold action to unlock the full potential of international spend, if we are to recover to pre-pandemic levels and achieve growth.
Additionally, the proposed increases to business rates at a time when tax on businesses are already rising risk undermining the very high streets the Government aims to protect. If the Government is serious about protecting high streets and driving investment, now is the time to act before the growth window narrows even further.”
