Russians Spending Less On Holiday: Good News for All of Us?
Duty free shopping is big business – and Russian tourists and travellers have made it much bigger over the last decade or so.
But the Russian rouble has dropped in value in recent months – in part due to the Ukraine crisis – which has had a serious knock-on effect on Russian spending power abroad.
Leading tax refund operator Global Blue says Russians are spending a lot less now than they were 12 months ago. London, which has long been a preferred destination for well-to-do Russians, has seen a big drop in Russian spending.
Global Blue reports that similar drops in Russian spending have been seen in France, Italy, Germany and Singapore. These four nations, in addition to the UK, attract around 75% of the entire global shopping spend.
However, while Russian revenue is down, Global Blue points out that Russians are still travelling in similar numbers, but that there is "a decrease in average spend per transaction,” according to a statement by the group.
Of course, further EU sanctions against the Russian Federation could see fewer Russian travellers due to increased visa restrictions and an overall negative effect on the Russian economy (and therefore spending power).
For now though, it seems they are simply less able or willing to part with their cash.
But while Russians spending less may mean a weaker international economy in the long term, it could mean big savings for shoppers. Stores from Milan to Barcelona selling clothes, make-up and designer goods will be keen to keep Russians – and the rest of us – in the mood to buy. That can only mean discounts – in both city centres and duty free airport stores.
So the next time you're passing through the airport or strolling around a city centre on your next holiday, be prepared for some bargains – or at least some heavy discounts.
You can say "spaseba" (thank you) to the Russians for that.
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