Is the government intent on killing London's hospitality sector with a double-whammy tourist tax?

"There was a time - not so long ago, though it already feels sepia-tinted - when London was the sort of place that tourists arrived in with stars in their eyes and left with shopping bags cutting off circulation at the fingers. Harrods bags, Selfridges bags, Mulberry bags, the bright yellow of Fortnum's peeking out of a suitcase being sat on in a hotel lobby. Europe's favourite grown-up playground; Manhattan's chic transatlantic sibling; Tokyo's idea of European swagger with better tailoring and more chaotic restaurants."

"Because now, instead of rolling out the red carpet to high-spending visitors who fund vast swathes of our hospitality and retail industries, we appear determined to trip them up with a series of policy banana skins. A kind of bureaucratic Mario Kart, except instead of cartoon plumbers skidding off Rainbow Road, it's Andrea Baldo at Mulberry watching millions evaporate from his London tills."

London historically attracted wealthy shoppers and tourists, producing strong retail and hospitality revenues. Recent policy changes, notably the abolition of tax-free shopping, have discouraged international shoppers and undermined competitiveness with cities offering instant VAT refunds. Retail leaders report falling sales at flagship brands and attribute lost revenue to diverted spending to Paris and other European destinations. The removal of tourist incentives combines with bureaucratic obstacles to create friction for visitors. Consequences include lower store takings, pressure on jobs and industry investment, and reputational damage to London as a global shopping destination unless policy is adjusted to restore incentives.

Read at Business Matters