Tourists get boost from fall in value of pound

The fall in the value of the British pound could mean more Chinese tourists coming to Britain and spending more money during their visits, according to a new report.

The sterling currency plunge over the prospect of a no-deal Brexit is good news for overseas visitors to London, who will find better value and lower costs.

The number of Chinese shoppers in the United Kingdom has increased by 5.6 percent compared to a year ago, according to JGOO, a mobile payments platform, and this figure could increase by 22 percent if sterling falls to parity against the United States dollar, and the Chinese currency holds its value.

If this happens, tourists from China could spend an extra 375 pounds per person per visit, bringing the average to 2,053 pounds ($2,500), analysis by JGOO revealed.

"Under Boris Johnson, the new government appears to be taking a tougher stance over Brexit and the chances of leaving without a deal are increasing," said Richard Morecroft, director and co-founder of JGOO.

With the chances of the Conservative Party's majority in Parliament falling to one and with the possibility of a general election, sterling is likely to fall further Morecroft said.

"All of this is putting pressure on sterling, and if it does fall, this will no doubt have a negative impact on many parts of the UK economy," said Morecroft. "Such a fall is likely to be a huge boost for UK retailers when selling their goods to tourists, to those buying remotely from China, and for the country's tourism industry as a whole".

The company says London will benefit most from any increase in Chinese visitors.

It found that around 37 percent of the nights they spend in the UK are in the capital, and 48 percent of total expenditure is spent there.

The study also showed that 75 percent of Chinese tourists who visit the UK book their trip within two months of their departure, with the most popular time to visit being between July and September.

JGOO provides Western retailers with direct trading access to the Chinese market through their official partnership with WeChat Pay and Alipay.

This lets brands engage with Chinese shoppers, both as tourists in Europe and when buying remotely from China.

In July 2018, Tencent appointed JGOO as its official UK institution, enabling a nationwide WeChat payments solution at any physical and online store. The offerings extend beyond payments alone, enabling brands to advertise on the WeChat platform.

As of March 2019, the mobile platform also has the same capabilities as Alipay, offering a full service Alipay solution to help brands tap into the fast-growing Chinese market.