Modest growth forecast for London’s tourism industry

The London Tourist Board and Convention Bureau (LTB) is predicting that there will be some growth in visitor numbers in 2002.

Visits to London dropped by 7% in 2001, due to the combined factors of foot and mouth disease and 11 September 2001. However, the LTB says that even prior to 2001 there was little growth in overseas visitor numbers due to economic factors, particularly the relationship of the pound to the Euro. Visitor numbers are expected to grow 3% on 2001 but this is still a 6% drop on 2000.

Teresa Wickham, chairman of LTB, said: “The combined negative factors in 2001 created an unprecedented situation for the tourism industry. There is no clear pattern emerging of bookings throughout 2002 so we are predicting a modest growth for this year. There are a number of marketing initiatives underway and others planned so our hope is that visitor numbers will exceed expectations.

“A particular focus this year will be to inform potential visitors how they get better value for money from London as a destination in order to address issues created by the strength of the pound.”

The London Tourism Recovery Group (LTRG) led by LTB has just completed Phase III of research into the impact of 11 September on the industry in London. More than 70% of tourism businesses in the capital are still reporting a downturn in trading of up to 25%. However, concerns about the economic climate are now far greater than security issues. Those interviewed believe that it will take a long-term marketing effort to return to pre-2001 visitor figures and many businesses will continue to require support.

Post 11 September, the Mayor established the London Tourism Action Group and has spearheaded a number of marketing and business support initiatives. Over the last six months, the London Development Agency has undertaken a review of tourism in the capital, as the first step to developing a tourism strategy for London.

Mayor of London, Ken Livingstone (pictured), said: “Over the last few months I have been able to secure £4 million to assist a short-term recovery of the tourism industry. The success of various initiatives delivered under my LTAG banner demonstrates what could be achieved in the long-term with greater co-ordination and funding.

“Tourism is worth £8 billion to the local economy, it employs 275,000 people, London accounts for 50% of expenditure by overseas visitors to Britain – yet public sector investment in tourism is minimal.”

Mrs Wickham said: “Tourism in London, and indeed Britain, has been seriously under-funded over many years. LTB is delighted with the support and commitment that the Mayor, the London Development Agency and the Association of London Government have given the industry over the last year and we believe that with these champions we can now develop the case for more funding for tourism marketing and development.

“We want to bring visitors back to London and optimise the benefits for Londoners in terms of employment, social inclusion and regeneration.”