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Will business rates stifle recent strong London tourism growth?

By James Russell: Will business rates stifle recent strong London tourism growth?

February 19, 2017

We are pleased to report on more strong economic growth figures for London that in part will have had a positive impact across the hospitality and catering sector, but…

London’s retail tourism industry saw strong growth in 2016 as international tax free shopping spend in the capital increased by 15% compared with 2015. These figures support VisitBritain’s announcement that more overseas visitors came to the UK in 2016 than ever before.

Ros Morgan, CEO, Heart of London Business Alliance commented: “London, and the West End, is a huge contributor to the UK’s tourist economy and last year’s positive growth shows the importance of our city to destination UK. We know the weakened pound played a role in attracting visitor spend, but now is the time to ensure we continue to inspire visitors’ to travel here and support our thriving tourist economy and remind visitors that #londonisopen.”

London could however see the impact of business rates increases stifle growth, as could many other regions of the UK.

ALMR Chief Executive Kate Nicholls said: “We are once again calling on the Government to take action to drastically reduce the business rates burden being faced by licensed hospitality venues which is stifling investment.” The ALMR is not the only body concerned with thirteen trade bodies currently voicing similar concerns.

Like many others across our industry we will watch the Government’s response with interest as the opposing business rate increase lobby voices louden.

 

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