Global Blue Releases the Monthly Tax Free Shopping Business Update for April 2023

In Continental Europe, the recovery is stable at 110%^[1] in April compared to 109%^[1] in Q1 2023.

Regarding origin markets, the return of Mainland Chinese residents has accelerated, with a recovery rate reaching 47%^[1] in April vs. 31%^[1] in Q1. This acceleration has offset the slowdown in the Gulf Cooperation Council residents’ recovery at 109%^[1] in April vs. 255%^[1] in Q1 due to the Ramadan unfavorable calendar effect^[2].

US shopper recovery remains strong at 274%^[1] in April vs. 288%^[1] in Q1.

In terms of destination markets, the solid recovery in April was across all destinations, predominantly led by Greece at 155%^[1], France at 138%^[1], Spain at 123%^[1], Italy at 111%^[1], and Switzerland at 107%^[1].

In Asia Pacific, the recovery reached 99%^[1] in April vs. 87%^[1] Q1.

In terms of origin markets, the return of Mainland Chinese shoppers has also been a key contributor to the strengthening recovery in Asia Pacific. In April, Mainland Chinese shopper recovery in South Korea reached 105%^[1] in April vs. 47%^[1] in Q1, whilst in Singapore Mainland Chinese shopper recovery reached 83%^[1] in April vs. 40%^[1] in March.

With regards to the other origin market nationalities, Hong Kong and Taiwan residents continue to have an elevated recovery level at 349%^[1] in April vs. 368%^[1] in Q1. This was followed by South East Asia residents at 164%^[1] in April vs. 145%^[1] in Q1.

Regarding destination markets, Japan and South Korea are leading the Sales in Store like-for-like recovery, both reaching 102%^[1] in April, followed by Singapore at 94%^[1].

Since China's borders reopened in January 2023, air capacity recovery from Mainland China to key destinations has been gradually on the rise.

In Continental Europe, air capacity recovery reached 36%^[3] in April vs. 22%^[3] in March. In Asia Pacific, air capacity recovery reached 31%^[3] in April vs. 14%^[3] in March as a result of the easing of Covid restrictions in the region. The willingness to travel for Mainland China shoppers has significantly increased, reaching 79%^[4] in April vs. 70%^[4] in March.

The average spend progression is also strong for Chinese shoppers. In April, it increased by  59%^[5] in Continental Europe and 127%^[5] in Asia Pacific.

On the back of this progressive air capacity recovery and average spend increase, there is a steady improvement in the Sales in Store like-for-like Mainland Chinese recovery which has reached 45%^[1] worldwide in April vs. 32%^[1] in Q1.

• Gulf Cooperation Council countries include: Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Bahrain, Oman
• South East Asia includes: Indonesia, Thailand, Cambodia, Philippines, Vietnam, Malaysia, Singapore
• North East Asia includes: Japan, South Korea

[1]Recovery rate is equal to 2023 Issued Sales in Store divided by 2019 Issued Sales in Store, like-for-like (i.e.:  at constant merchant scope and exchange rates).

[2]Ramadan took place from May 5th to June 3rd in 2019, while it took place from March 22d to April 20th in 2023, leading to an unfavorable basis effect in March and April 2023.

[3]Air capacity: ForwardKeys data platform – March 2023

[4]Global Blue Willingness to travel survey

[5]Chinese shoppers increase of average spend per international shopper versus 2019