Tourist tax free
spending is growing

Verdun is a growing destination

Tax free spending increased by 5.5 percent over the last year compared to 2016, according to Global Blue’s report: Globe Shopper Spending Insights 2017. The report accounts for VAT refunds that occur at Beirut Rafic Hariri International Airport and other borders.

This increase comes after a nine percent drop in 2016 compared to 2015.

Joe Yaccoub, Managing Director at Global Blue Lebanon, said: “Activity was promising in the first nine months. Expectations were for double digits during this growth, but the political incident that happened in November affected the activity negatively.”

Syrian tourist spending increased by 32 percent, Kuwaiti by 28 percent, Saudi by 15 percent, and American spending increased by 11 percent. “Saudi and Kuwaiti tourist spending increased by 44 percent up to October, but dropped after the incident,” he said.

Egyptian spending has dropped by 19 percent, and Emirati spending has also dropped by nine percent. “Egyptians were affected by the devaluation of their currency, and therefore are spending at a slower pace,” he said.

Saudi tourists represented 14 percent of the total number of spenders, followed by Emiratis at 12 percent, and Kuwaitis represented seven percent.

Refund transaction numbers increased by three percent last year compared to 2016. It increased by 48 percent among Syrians, 33 percent among Kuwaitis, and 20 percent among Saudis.

Around 69 percent of spending went on fashion and clothing, followed by watches and jewelry at 16 percent. Spending by category increased by 5.5 percent. Spending in department stores increased by 20 percent, followed by watches and jewelry at 5.5 percent, and home and garden items by five percent.

Beirut Central District represented 54 percent of tourist spending, followed by Ashrafieh at 12 percent, and Verdun at six percent.

Refund transactions increased by 27 percent in Verdun, and 13 percent in Jounieh. It dropped two percent in Hamra. “The increase in Verdun is due to the opening of the new ABC. Hamra is increasingly visited for restaurants and night life rather than as a shopping destination,” said Yaccoub.