Taking a holiday in Paris or Milan without loading up on Chanel and Prada goodies might seem a bit of a waste – but it looks as though that is what an increasing number of tourists have done this summer.
Tourists spent 14 percent less in July 2016 than July 2015, according to global figures from value added tax refund company Global Blue compiled for UBS. The figures, which are a barometer for tourism spending, could herald a knock-on effect across the entire luxury industry, as tourism spending makes up about a third of global luxury revenues, and more than half of European luxury sales, according to Bain.
The decline happened despite what should have been a favorable boost from this year's timing of Ramadan, which is often key to spending by Middle Eastern tourists.
So why are tourists pulling out their credit cards less?