IMPACT OF BOMBINGS ON LONDON TOURIST INDUSTRY 60% WORSE THAN FEARED - TEATHER

10.31.29am UTC (GMT +0000) Tue 25th Oct 2005

Liberal Democrat MP for Brent East, Sarah Teather, has today revealed that the impact of the London bombings on the 7th and 21st of July on London's tourist economy is 60% worse than was initially feared.

Figures from the Tourism Industry Emergency Response Group in July estimated that the attacks could cost the UK industry about £300m. However new figures uncovered by Sarah Teather MP suggest that the impact to the tourist industry is now anticipated to be £500m.

Liberal Democrat MP for Brent East Sarah Teather said:

"Whilst the short-term impacts of the bombings in terms of transport infrastructure have largely been solved it is now time to turn our attention to the longer term. The Government and the Mayor must act quickly to support the many businesses that rely so heavily on the tourist trade.

"Increased investment in marketing London as a tourist attraction both within this country and abroad is now a priority. Londoners have all pulled together to get London back on track, they are determined that the terrorists won't win. It is now up to the Mayor and Ministers to work hard to get back the confidence of tourists so that they return to the capital."

Notes to editors

1) Please see BBC News online report for news of the initial figure from the Tourism Industry Emergency Response Group http://news.bbc.co.uk/1/hi/uk/4706615.stm

2) Parliamentary question from Sarah Teather MP

London Bombings

Sarah Teather: To ask the Secretary of State for Culture, Media and Sport what assessment she has made of the impact of the London bombings of 7 and 21 July 2005 on tourism in (a) London and (b) England; and if she will make a statement. [16882]

James Purnell: I met representatives of the London and UK tourism sector on 12 July and 6 October 2005. I have also received regular updates on work to assess the economic effects of the bombings, and on recovery work, through the VisitBritain-led Tourism Industry Emergency Response Group.

The Group commissioned work from Oxford economic forecasting following 22 July 2005, the results of which project the financial effects of the bombings as follows:

(a) the turnover of the London tourism industry is projected to be £500 million lower than previously expected; and

(b) total tourism revenues across the UK are projected to be £750 million lower than previously expected (separate figures for England were not produced).

Although there has been a downturn in domestic tourists visiting London, the visitor economy in both the UK and London is still expected to grow by the end of 2005. Overseas visitor arrivals are expected to grow by 6 per cent. in London with spending likely to increase by 8 per cent. with the United States market remaining particularly strong.

My Department and its partner organisations in the private and public sectors continue to monitor the situation closely.