Spain surpasses Germany in Tax Free spending and luxury grows by 164%

12-07-24

Spain has reached the third place in 'tax free' spending in Europe, surpassing Germany and being only behind France and Italy, which lead with 27% each. According to the report "The Elite Tourist" by Global Blue for Círculo Fortuny, the luxury sector in Spain has experienced a 164% growth in 'tax free' spending in the last 12 months, compared to the same period in 2019.

Luxury in Spain accounts for 50% of total 'tax free' spending, although it still lags behind France and Italy, where luxury reaches 75%. To close this gap, the report suggests that Spain needs to increase the average spend per person on 'tax free' shopping, which currently stands at €1,150, compared to the EU average of almost €2,000.

A key strategy is to attract more elite tourists from the United States, Latin America, China and the Gulf countries, who spend heavily on shopping trips. Xandra Falcó, president of Círculo Fortuny, stated that "Spain is beginning to reap the rewards of the work in connectivity and promotion to attract the high-impact tourist."

Madrid and Barcelona drive growth

Madrid is the second city in Europe that has recovered the most in post-pandemic 'tax free' spending, with an increase of 163%, second only to Lisbon (+177%). This growth is partly due to the boom in business schools and the opening of five-star hotels. For its part, Barcelona is in fifth place with an increase of 116%.

Spending by luxury tourists is higher in Madrid (2,600 euros) compared to Barcelona (2,400 euros). In addition, destinations such as Ibiza, Mallorca and Marbella are emerging as important shopping centers, with increases in tax-free spending of 467%, 227% and 194%, respectively.

Spain, Latin America's preferred destination

The report highlights that Spain is the number one destination for travelers from Latin America, with two out of three of them choosing Spain for their shopping, compared to 16% choosing Italy and 12% preferring France. Cultural and linguistic connections, along with air connectivity, have been key factors in this preference.

Latin American tourists account for 30% of tax-free spending in Spain, five times more than in France and Italy, although their average spend is lower (850 euros). However, the potential for growth is significant.

United States and Gulf Countries: growth opportunities

U.S. tourists have shown a significant increase, with a 300% growth in tax-free spending in Spain, exceeding the EU average. However, they still spend more in Italy and France (24%) than in Spain (14%).

Tourists from the Gulf countries also present an opportunity for growth. In France and Italy, their spending is significantly higher than in Spain, where the spending potential of this group reaches 2,300 euros.

Chinese tourist remains key

Chinese tourists continue to be the biggest spenders in Spain, with 2,550 euros per purchase in the last year. Although they have prioritized domestic travel post-pandemic, Spain is increasing in popularity among Chinese tourists traveling abroad, leading in 'tax free' spending in Europe with a 61% increase, seven points above the EU average.

The general manager of Global Blue Spain, Ainara Andueza, stressed the importance of diversifying and not relying exclusively on Chinese tourists, taking advantage of the cultural and connectivity advantages that Spain offers over other European destinations.