Thursday, February 25, 2016

Mozambicans enter ranking

Mozambicans are among the five biggest spenders at tax free shops in Portugal, according to a report published yesterday in Portuguese newspaper Publico. Visitors from Mozambique spend on average 227 Euros, behind only Angolans, Brazilian, Chinese and American tourists.In 2015, Chinese tourists spent 641 Euros per head on purchases – the most among non-European visitors. According to Global Blue, a company that manages tax-free operations, the Chinese are the third most important nationality when it comes to increases in retail and tourism spending. In 2011, for example, the average purchase of these visitors amounted to 560 Euros well above cruise ship passengers arriving in Lisbon in 2014, at 193.49 Euros.With regard to the tax-free shopping, the Chinese represent 14 percent, behind Angola (43 percent) and Brazil (16 percent).Compared with 2014, the number of transactions grew 73 percent and the total amount spent rose 18 percent. But the surprise in 2015 was not Chinese expenditure, but the entry of the United States and Mozambique in the list of the five top markets, along with the exit of Russia, until now a major player in retail tourism, especially at the luxury end.“The Americans and the return of Mozambicans are a great novelty. Russians have not been doing much retail tourism since the conflict [in Ukraine] and the devaluation the ruble. They are abandoning shopping abroad and buying more domestically,” explains Renato Lira Leite of Global Blue, Portugal. The company estimates that the number of purchases by Russian tourists in Portugal fell 42 percent last year.With the dollar’s increase in value, US purchases grew 42 percent compared to 2014 and the average value per purchase of 493 euros rose 29 percent. “It was big news,” said Leite. Visitors from Mozambique, whose spending accounts for four percent of the total, spent 227 Euros on average, the number of purchases rising 23 percent and the total amount spent by 27 percent.Visitors from Angola continue to form the majority of those who ask for the return of VAT on their purchases. The oil crisis brought hard times to the Angolan economy and the average tourist expenditure was 273 euros, down from 350 euros in 2011. Number of purchases fell 8 percent and the total amount spent dropped by 11 percent compared to 2014.“Not surprisingly, Angola remains the main market, due to the historical ties that unite the two countries. Portugal is a favourite destination for shopping, despite the devaluation of the Kwanza and the oil price crisis. Angolan weight in the Portuguese market remains huge, but it was more significant in 2014 when it accounted for 46-47 percent,” the Global Blue executive explains.Luxury brands such as Louis Vuitton and Prada attract high-spending tourists but domestic brands still have “pulling power” and are growing. Leite says that tourists look for unique items they can show off when they get home. “There are a number of domestic brands offer unique items that make all the difference to Chinese and American tourists,” he says, citing Machado Jeweller and Maria João Bahia.

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