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25th July 2012Bike shops are experiencing a surge of customers after Bradley Wiggins' victory at the Tour de France.
Ahead of the start of the London 2012 Olympics on Friday, bicycle sales and services enjoyed a 6.3 per cent rise in spending week on week and 5.1 per cent year on year, according to the Visa London 2012 Games Spend Tracker.
Total spending by international visitors in the UK on Visa cards during the week beginning on 16 July was £464.1m, an increase of 5.1 per cent year on year.
Commenting on the findings, Dr. Steve Perry, Commercial Director at Visa Europe said:
"Bradley Wiggins' historic victory spurred people to get on their bikes – quite literally!
"Visa data shows that spending on bikes and associated products were up by over six percentage week on week, demonstrating the impact that sporting success can have on the nation's spending behaviour.
"Even before the majority of international visitors arrive this week, international spending on Visa cards in the UK is up 5 per cent on the same period last year.
"Indeed, there is evidence to suggest that The Games are not the only draw to the UK with strong annual increases at tourist attractions, exhibitions and theatres confirming the UK's position as an enduring cultural hot spot."
Visitors from the United States of America accounted for 12.2 per cent of international spending, the top country overall, with £56.4m spent on American Visa cards in the UK last week.
When it comes to average transaction values, visitors from China spent £198.56 per transaction, over three times the amount spent by American visitors (£59.60).
Retail, Services and Entertainment sectors among the biggest beneficiaries of international spend, accounting for 27.2 per cent (£126.2 million), 18.4 per cent (£85.4 million) and 13.6 per cent (£63.1 million) of total international spend in the UK on Visa cards respectively.
Spending on domestic Visa cards in the UK was during the week commencing 16th July was £6.7 billion, down 1.4 per cent year on year, and the average transaction value was £40.93.
The Visa London 2012 Games Spend Tracker tracks both domestic and international spending in the UK during Games Times. The indicator for domestic spend is based on spending on all Visa debit, credit and prepaid cards which are used to make an average of over 1.9 billion transactions every quarter and account for £1 in £3 of all UK spending.
For domestic based indicators – which are based on card issued to UK households – the spending data are adjusted (where applicable) for a variety of factors such as refunds, cash back, card issuance, changing consumer preferences to pay by card, and inflation. These adjustments mean these data are distinct from Visa Europe's business performance and are done so with the aim to provide a robust indicator of real UK consumer expenditure.
For international data, spending on all Visa debit, credit and prepaid cards from outside the UK is taken into account. The numbers are not adjusted for any of the aforementioned factors. Therefore direct comparisons with indicators of domestic spend should not be made; the international data should be viewed as indicative of trends in international spending patterns in the UK during the London 2012 Games.