// Tourist spending in London expected to fall by £10.9bn this year due to Covid, London mayor Sadiq Khan says
// He also warns collapse of tourism could leave retail businesses without hope of returning to normal for “many months to come”
Tourist spending in central London is set to fall by £10.9 billion this year due to the Covid pandemic, according to an analysis published by mayor Sadiq Khan.
The figure represents a far lower total than the amount of spending lost due to the large decrease in commuters traveling into the city, the study says.
Khan said the data showed new bail-outs announced by the Prime Minister and Chancellor on Thursday were only “a sticking plaster solution”, with the collapse of London tourism to leave many hospitality, retail and leisure business without hope of returning to normal for “many months to come”.
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He called on the government to enact a “functioning” Test and Trace system to help the economy reopen safely.
City Hall analysis of forecasts by Visit Britain showed goods and services revenue from foreign tourists in the city would drop £7.4 billion through the year, while domestic tourists would spend £3.5 billion less.
“This analysis shows the eye-watering drop in the money spent by visitors in the economic and cultural heart of the capital – which is far greater than even the impact of fewer commuters travelling into the centre of the city each day,” Khan said in a statement.
“Clearly, this will mean many businesses are in danger of closing and many thousands of jobs will be at risk.
“I’m determined to do all I can to support London’s economic recovery now, and in the years to come.
“But these sectors won’t be able to sustain pre-pandemic levels of employment until tourists return in significant numbers – so government must act swiftly to prevent widespread job losses and the financial hardship this will bring for Londoners, many of whom are already struggling to make ends meet.
“The government needs to get its act together and provide a functioning test and trace system so the economy can reopen safely.”
“We also urgently need an extension of the business rates holiday to next year along with more support for jobs beyond what the Chancellor announced this week and which truly reflects the scale of the problem.”
Khan is also commissioning new research into Covid’s impact on the so-called central activities zone (CAZ) – London’s economic and cultural heart – to identify emerging trends across key sectors over the next few years and further.
Along with the drop in tourism and commuters, the CAZ has also been affected by changes in how Londoners spend their free time, Khan said.
He has also urged the government to scrap the 10pm curfew, which he argues became redundant when London and other parts of the country moved into Tier 2 and higher restrictions.