Tourist tax could cost the economy £260m over Christmas A study by industry group UKinbound suggests that the tourist tax will cost UK retailers more than £250m in lost sales over the festive season. The overall total could be even higher as the analysis does not include spending at hotels or other tourism-reliant businesses. Historically, 17.2% of retail spending by overseas visitors to Britain happens in November and December. Extrapolated against the estimated £1.5bn in lost annual sales due to the levy, the data suggests that shops will lose out on as much as £259m over the Christmas period. Joss Croft, chief executive of UKinbound, said the projections “lay bare the reality of the decision not to reintroduce VAT-free shopping for international visitors.” He added that the “unnecessary tax continues to affect international visitors' holiday choices and continues to negatively impact businesses throughout the UK.”