Recovery of UHNWI Tax Free Luxury Shoppers up 168% over 2019 Levels

Paris reigned as the ultimate destination for UHNW travellers with 1 in every 2 UHNW shoppers visiting the French capital. The Paris Olympics helped drive sales but mostly for sports gear that saw a 76% hike in demand over last year, whereas watches and jewellery noted a 30% jump.

In Europe, secondary destinations mainly - Mykonos, Athens, Courchevel, Saint Moritz, and Ibiza also gained significant traction with 56% more UHNW travellers shopping here than they did in 2019.

Despite economic headwinds and lacklustre consumer sentiment, Chinese big spenders continued to lead global luxury tax-free spending, accounting for 25% of the market share, although this is significantly below the 2019 levels when they comprised nearly 37% of the market. This past year, wealthy travellers from Southeast Asia and the Middle East were the second and third largest groups of luxury tax-free shoppers, making up 18% and 14%, respectively. U.S. travellers accounted for only 10% of UHNW shoppers.

India’s tourists represented only 1% of global wealthy tax free shoppers but as the spending power and wealthy population in India rises, this percentage is likely to increase according to Agility Research, a co-author of this report. In the past 12 months, wealthy Indians spent an average €140k in tax free shopping . Their shopping habits were indexed more towards limited edition and customised luxury items because of their uniqueness.

Unlike most luxury shoppers from the U.S. and China, who favoured France as their top shopping destination, India’s wealthy travellers chose to splurge more in Singapore.

Singapore, which is just a six-hour flight away from India and offers the convenience of an e-visa, saw India’s wealthy spend an average €125.3K (SIS*). Paris was their second choice for luxury shopping, though the average spend there was much lower at €41.1K, followed by Geneva where the average spent was a respectable €82.6K.

Another notable finding of the report is that Indians are the second highest holders of VIC (Very Important Clients) memberships, motivated by priority access to events and other key benefits. Indians are preceded only by UK shoppers. Chinese and US shoppers are the third and fourth highest holders of VIC memberships.