While the volume of tax-free (VAT refund) shopping increased rapidly around the world after the pandemic measures were eased, it has grown by 300% in Turkey when compared to 2019, according to Global Blue Turkey, which started and continues to develop the tax-free shopping services in Turkey by establishing a local partnership.
It has been operating since 1996 with more than 8,000 retail stores, local returns offices, airports and 35 return points at border gates throughout Turkey.
Global Blue Turkey General Manager Selim Şeyhun told Anadolu Agency (AA) that the volume of tax-free shopping in Europe reached its highest levels since the beginning of the pandemic in the first months of this year.
Indicating that the situation in Turkey is going better than in Europe and the return of tourism is stronger in Turkey compared to other European countries, Şeyhun noted that both the purchasing power of the tourists and the average expenditure per transaction have increased considerably.
Noting that this is not only due to the Turkish lira losing value against dollar, Şeyhun said, "The number of tax-free sales, that is, the number of transactions made in stores, increased by 57% in 2022 compared to the first five months of 2019.”
“Our country's holiday centers, the quality of its hotels, the reduction in the number of pandemic cases, the strong brand portfolio and organized retail in shopping malls contribute significantly to the tourism’s return to Turkey,” he said.
There are also differences in the tourist profile compared to 2019, Şeyhun said, noting: “When we analyzed the tax free shopping data in 2019, China was in the first place with 16%. China was followed by Kuwait, Saudi Arabia, Iran, Qatar and Russia.”
However, he said, currently, Chinese and Saudi Arabian tourists are absent.
“Kuwait is in the first place with a slice of 11%, followed by Iran, Egypt, Israel and Russians, and these top five countries make up 40% of the total tax free shopping” he said.
Şeyhun added that although Kuwait has the largest share in total, Israel is actually recorded the largest grow.
“The biggest negative loss came from visitors from China and Saudi Arabia between 2019 and 2022. On the other hand, the best gains were from Egypt and Israel,” he said.
Şeyhun stated that while the average expenditure for one tax free shopping in Turkey in the first five months of 2019 was TL 1,729, this figure reached TL 3,650 in the first five months of 2022.
He said that those coming from Qatar are among the highest-spending customers and that the average expenditure of Qataris for a single purchase is around TL 13,000.
Expressing that as Global Blue, they are making serious efforts to serve the retail industry, Şeyhun said that they made the tax-free system completely digital in 2017 with the coordination and work of the ministries, and they positioned tax-free return points in many shopping centers.
Şeyhun noted that by giving the VAT refund to the tourists at these points based on the customs approval they will receive later, they contribute to the tourists' spending more of this money within the country, and also ensure that the tourists do not wait in line for a second tax-free process at the airports after customs.
