NEW ORLEANS – Louisiana Tax Free Shopping for International Visitors (LTFS) announced that annual figures for 2015 showed sharp increases in visitor spending and total number of transactions processed by the program. The 2015 figures represent the highest numbers in the decade following the devastating 2005 hurricane season.
The program, begun in 1989, provides cash refunds to international visitors for sales taxes paid on tangible goods purchased from participating stores that will be removed from the state. The refunds are available from six centers located around the state including Louis Armstrong International Airport. There is no participation fee for Louisiana merchants, opening the program to any store wishing to be included.
The overall dollar value of purchases rose sharply in 2015, up to $41.8 million from $32.5 million the previous year. Total transactions processed by LTFS increased to 51,641, over 10,000 more than those recorded in 2014.
The Philippines led all countries with $8.4 million spent, up more than $5 million from the previous year. China followed with $6.3 million compared to $2.8 million in 2014. Rounding out the top ten in terms of expenditures were Brazil, Mexico, Honduras, Canada, India, the United Kingdom, Australia, and Argentina. China led the way in total number of transactions (6,901), followed by the Philippines, Brazil, Canada, the United Kingdom, Mexico, Germany, France, Australia and India. India continues to show sharp growth in both categories, revealing the strength of the program in attracting new visitors from the Asia-Pacific market.
“2015 started off with the governor signing legislation that would waive the participation fee for any merchant in the state that wanted to offer tax free shopping to international visitors,” LTFS Commission Chairman Steven Windham said. “I think these numbers speak for themselves as far as that goes—making tax free shopping easier than ever in Louisiana. LTFS and our partners at the Louisiana Office of Tourism, along with our member retailers and local civic and business leaders, are very proud of the impact tax free shopping is having on our state's economy.”
A 2011 survey of international customers showed that tax free shopping is often a deciding factor in helping them choose to visit the state of Louisiana. International visitors tend to stay longer and spend more than their domestic counterparts, and the tax free shopping program has been proven to return $1.8 dollars to the state for every $1 refunded. Customers receiving refunds have also been shown to likely spend their cash refunds with merchants in the immediate area.
According to the United States Office of Travel and Tourism, the State Department has made significant progress in shortening the wait times for visas to visitors from China and Brazil, helping to increase the number of travelers from two of the world's largest and fastest growing economies. More international visitors than ever are expected in 2016.
