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

In Continental Europe, the recovery has accelerated, reaching 130%^[1] in June vs. 115%^[1] in April / May. When excluding Mainland Chinese and Russian shoppers, the recovery would have reached 166%^[1] in June.

In terms of origin markets, there has been a re-acceleration to Q1 2023 levels in the recovery of US and Gulf Cooperation Council residents in Continental Europe. Last month, US shopper recovery accelerated, reaching 285%^[1] vs. 260%^[1] in April/May. Gulf Cooperation Council shoppers also displayed a solid recovery, reaching 250%^[1] in June vs. 208%^[1] in April / May. Similarly, Mainland China shoppers demonstrated a slight increase in recovery, reaching 52%^[1] in June vs. 45%^[1] in April / May.

In terms of destination markets, June witnessed an improving recovery across all destinations, predominantly led by Greece at 197%^[1], France at 153%^[1], Switzerland at 142%^[1], Italy at 141%^[1] and Spain at 122%^[1].

In Asia Pacific, the recovery rate continues to experience a rapid increase, reaching 125%^[1] in June vs. 104%^[1] in April / May. When excluding Mainland Chinese shoppers (which represented 55% of the Sales in Store in the region in 2019), the recovery would have reached 174%^[1] in June.

Regarding origin markets, Mainland Chinese shoppers and Hong Kong and Taiwan residents have played a key role in driving the accelerating recovery in Asia Pacific. In June, Mainland Chinese shoppers reached a high level of recovery of 83%^[1] vs. 52%^[1] in April / May, while the recovery levels among Hong Kong and Taiwan residents have remained consistently elevated, reaching 466%^[1] in June vs. 360%^[1] in April / May. Following closely are North East Asia residents, with a recovery rate of 177%^[1]in June vs. 138%^[1] in April / May.

When examining destination markets, Japan has taken the lead with a Sales in Store like-for-like recovery at 154%^[1] in June, followed by South Korea at 114%^[1].

The ongoing progressive air capacity recovery has played a significant role in driving a consistent improvement in the Sales in Store like-for-like recovery for Mainland Chinese shoppers. It reached 65%^[1] worldwide vs. 48%^[1] in April / May.

In terms of air capacity recovery rates, June witnessed similar levels in Continental Europe (48%^[2]) and in Asia Pacific (45%^[2]). However, the Sales in Store like-for-like recovery has been faster in Asia Pacific (83%^[1]) than in Europe (52%^[1]) as there are fewer travel-related barriers (passport and visa issuance, travel costs etc.) Furthermore, there is a higher average spend progression per shopper in Asia Pacific (132%^[3]) compared to Continental Europe (54%^[3]). Across both Continental Europe and Asia Pacific Chinese Millennial and Gen Z shoppers are leading the recovery.

The recovery of Mainland Chinese travelers is expected to gain momentum in the coming months. This growth will be driven by a projected increase in air capacity (expected to surpass 50%^[2] in both Continental Europe and Asia Pacific in the coming months) and a strong willingness to travel, reaching 75%^[4] in June.

• 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]  Air capacity: ForwardKeys data platform – June 2023

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

[4] Global Blue Willingness to travel survey