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The Covid-19 epidemic and the ensuing closure of international borders played a major role in the decline in zero-rated purchases in February in Europe. In March 2020, the impact on international spending accelerated considerably following the containment measures implemented in many European destinations.
The tax-free market in France in February and March 2020
A popular destination for international travelers, France saw the zero-rated purchases of these tourists begin to decrease in February, then massively in March 2020, due to the epidemic of Covid-19.
If the sharp drop expected in February in France was able to be amortized (-3% compared to February 2019), it is partly due to the increase in duty-free purchases by American tourists (+ 40%), Russians ( + 33%) and Japanese (+ 23%). These results should however be taken with caution. Indeed, France had already suffered a decrease in its zero-rated sales in February 2019 following the movement of Yellow Vests (-14% compared to February 2018).
This first decline in zero-rated purchases by international tourists observed in February in France increased sharply in March with a drop of -74% compared to March 2019. Indeed, health measures such as border closings or the establishment of confinement made leisure travel impossible and led to a drastic reduction in activity for the international tourism market in France.
As a direct result of these measures, Chinese tourists, the first travelers to benefit from the tax refund in France, saw their tax-free purchases drop by -87% in March 2020 compared to March 2019.
A finding also visible on a European scale. In fact, Spain and Italy saw zero-rated purchases by Chinese visitors fall by -94% and -98% respectively in March 2020 compared to March 2019.
With a significant share in the tax-free market, European countries are suffering the full impact of the absence of Chinese tourists from their international tourism economy.
In terms of forecasts, it is difficult to predict the months to come, as long as the Schengen area does not reopen. The zero-rated shopping will be practically zero with only a few tax refunds for Swiss or expatriate customers.
Read also > Post-covid-19 : luxury hotels are practicing news sanitary standards
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The Covid-19 epidemic and the ensuing closure of international borders played a major role in the decline in zero-rated purchases in February in Europe. In March 2020, the impact on international spending accelerated considerably following the containment measures implemented in many European destinations.
The tax-free market in France in February and March 2020
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The Covid-19 epidemic and the ensuing closure of international borders played a major role in the decline in zero-rated purchases in February in Europe. In March 2020, the impact on international spending accelerated considerably following the containment measures implemented in many European destinations.
The tax-free market in France in February and March 2020
A popular destination for international travelers, France saw the zero-rated purchases of these tourists begin to decrease in February, then massively in March 2020, due to the epidemic of Covid-19.[/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fabonnements-et-newsletter-2%2F|||”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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