Luxury: increase in purchases by visitors to Italy

In 2003, purchases of tax-free luxury goods by visitors to Italy from outside Europe who are entitled to a Vat refund when they leave the European Union, have dropped by 15% to a value of around 1,100 million euros.

The data were given by Global Refund, the world leader in Tax-free Shopping, which forecasts a 14% growth in the sector for 2004. Recovery should be supported by the return of American tourists (expected growth +23%), and by an increase in Chinese (+42%) and Russian visitors (+8%).

Despite a downturn in the market, in 2003 good performance was recorded in provincial cities and the results for the outlet sector (income +7%) were excellent. In 2003, Japanese and Americans were once again confirmed as the biggest spenders, even though the downturn over the year was 21% and 20%, respectively.

At 25% and an overall value of 280 million euros, Japanese tourists are in fact ahead of American visitors at 20% with the amount spent equal to 220 million euros. With an 11% share and 125 million euros spent, during 2003 Russian tourists continued the constant growth trend which went up by 27%. The items for which the majority of Vat refunds are requested are clothing, a sector with a 54% share of the overall value, followed by leather goods with an 18% share, and jewelry at 14%.

As far as preferred shopping destinations are concerned, even though there was a of 15% downturn, with a share of 33% Milan is still the city with the highest number of tourists from outside the Eu. They spent 365 million euros and concentrated 59% of their purchases in the exclusives streets in the fashion quadrilateral. Despite a 15% downturn, Rome still has a 23% share valued at 255 million euros, and is the second city in terms of the volume of Tax-Free goods, 67% of which is spent in the area between Piazza di Spagna and Via Condotti. Florence has a 16% share with a value of 175 million euros, and at 20% less it was the city that saw the biggest drop in 2003. But provincial cities such as Udine, Alessandria, Rimini, Varese and Como are growing.

The trend was also positive for the outlets, which recorded +7% compared to the -15% of traditional retail. As well as visitors from the United States, China and Russia, the hope for 2004 is that tourists will start to arrive also from Arab countries.

(Source: Ansa)