Ettinger says tourist tax discourages foreign visitors splurging cash

Luxury leather brand Ettinger says tourist tax discourages foreign visitors from splurging cash in Britain

  • Ettinger has produced leather products since Gerry Ettinger founded it in 1934
  • His son Robert is worried visitors won’t spend much on Coronation bank holiday 

Many tourists visiting the UK for the Coronation will be deterred from splashing out due to a lack of VAT-free shopping, the boss of luxury brand Ettinger has warned.

Ettinger has been producing leather products such as wallets, briefcases and passport holders since Gerry Ettinger founded the business in 1934.

Now his son Robert is worried that visitors will not spend as much during the Coronation bank holiday celebrations due to the ‘tourist tax’.

After making leather goods for members of the Royal Family for many years, the company received a Royal Warrant to the then-Prince of Wales in 1996.

Fans of the Royal Family will flock to the UK in droves next month but they may be less keen to fork out on British-manufactured goods now they won’t benefit from the tax refund, Mr Ettinger said.

Many tourists visiting the UK for the Coronation will be deterred from splashing out due to a lack of VAT-free shopping, the boss of luxury brand Ettinger has warned. Pictured: A briefcase from the Ettinger range

‘If people are coming for the Coronation, then they will come here [to London]’, he added.

‘But there’s a chance they won’t buy as much when they’re here. People love coming to London but [a lack of VAT-free shopping] will possibly change the amount of money they will spend.’ 

The businessman is already seeing his customers rein back purchases at the Ettinger showroom in Putney, west London.

He said some seemed ‘annoyed’ when they realised their purchases will cost them hundreds pounds more than they did on their last trip.

Many shoppers do not realise the tax-free incentive is not in place any more, finding out only when Mr Ettinger and his staff explain at the till.

‘They are very upset they’re not getting it,’ he said.

Fans of the Royal Family will flock to the UK in droves next month but they may be less keen to fork out on British-manufactured goods now they won’t benefit from the tax refund, Mr Ettinger said

‘They’re almost blaming us, which is amazing. If they come and spend £2,000, then normally they would get around £400 back – so they are saying ‘why not?’ and ‘we have done this for years with you’.

‘We explain that the Government has done it and a number have said, ‘well, frankly, we can buy your products in Paris or Rome and get money back’.’

Mr Ettinger said he had heard from friends who had taken a flight or Eurostar to Paris in pursuit of a new handbag, and the VAT savings had paid for their trip, hotel and meals.

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