Best of the Week
Most Popular
1.The Trump Reset, US Empire's Coming Economic, Cyber and Military War With China (2/2) - Nadeem_Walayat
2.Now Is the Time to Buy Gold - 5th Jan 17 - John Grandits
3.CIA Planning Rogue President Donald Trump Assassination? Elites "Manchurian Candidate" Plan B - Nadeem_Walayat
4.The Trump Reset - Regime Change, Russia the Over Hyped Fake News SuperPower (Part1) - Nadeem_Walayat
5.Most Popular Financial Markets Analysis of 2016 - Stock Market Crash Postponed Again - Nadeem_Walayat
6.No UK House Prices Brexit Crash 2016 Despite London Weakness, Forecast 2017 - Nadeem_Walayat
7.President Trump Understands the NSA, CIA... LIE, America's Intelligence Agencies Crime Syndicate! -Nadeem_Walayat
8.President Donald Trump's 2017 New Year Message, BBC Fake News, Was 2016 a Dream? - Nadeem_Walayat
9.Major Stocks Bear Market Still Looms - Zeal_LLC
10.Biased 2017 Forecasts - Debt, Housing and Stock Market (1/2) - James_Quinn
Last 7 days
Time for Crude Oil Price Drop below $50? - 21st Jan 17
AI and Robotics - We Are All Low-Skilled Workers Now - 21st Jan 17
The Trump RESET Starts on US Presidential Inauguration Day 2017 - What to Expect - 20th Jan 17
Will the CIA Assassinate Rogue President Donald Trump Like JFK? - 19th Jan 17
Bonds, Dollar, Stocks, Gold, Silver Major Markets at Turning Points - 19th Jan 17
Populism; the Danger? What About Debt? - 19th Jan 17
Gold Price 50-DMA Breakout - 19th Jan 17
Turkey, 'Axis of Gold' and End of US Dollar Hegemony - 19th Jan 17
The Most Important Market Chart on the Planet - 19th Jan 17
Trump Deficits Will Be Huge - 19th Jan 17
Stock Market Trading Patience Pays Off with CHK Using Momentum Reversals - 19th Jan 17
Gold - How to "Buy Low and Sell High" Like a Pro - 19th Jan 17
State of the Global Stock, Financial and Commodity Markets Report 2017 - 19th Jan 17
The Hunt for Russia's Next Enemy - 18th Jan 17
Returning Gold Bulls - 18th Jan 17
Biotech Breakthrough Could Create A $11.4 Trillion Opportunity - 18th Jan 17
Bitcoin and Gold - Outlook, Volatility and Safe Haven Diversification - 17th Jan 17
Stock Market Uptrend on Borrowed Time - 17th Jan 17
The One Stock to Retire On - 17th Jan 17
Trump anti-Communist Counter Revolution - 17th Jan 17
US Stock Market Update as the Trump Inauguration Approaches - 17th Jan 17
The American Crisis - Common Sense 2017 - 17th Jan 17
Obama Leaves, Hope Arrives, Will Stupid Stay? - 17th Jan 17
Damage Inflicted by Precious Metals Manipulation Is in the “Multi Billions” - Keith Neumeyer - 17th Jan 17
Gold Price Forecast 2017 Update - Video - 17th Jan 17
The Story of the U.S. Regime Change Plan in the Philippines - 16th Jan 17
Gold Price 2017 Trending Towards $1375 as Forecast - 16th Jan 17
'Deep State' CIA Director States We are Not NAZI's, Warns Trump Does Not Understand Russian Threat - 15th Jan 17
UK House Prices Forecast 2017 - Crash or Bull Market? - Video - 15th Jan 17
SPX Stocks Bull Market Update - 14th Jan 17
President Trump vs the Deep State that Hides in Plain Sight - 14th Jan 17
The Impact of Sir Alex Ferguson's Retirement on Man United's Share Price - 14th Jan 17
What Can Stock Market Tell You About Politics? - 13th Jan 17
Big Gold Buying Coming 2017 - 13th Jan 17
A Bullish Case for Gold 2017 - 13th Jan 17
Will Stocks Bull Market Continue to Charge or is it Time to Sell the News - 13th Jan 17
Gold and Silver Off To Shining Start to 2017 - 13th Jan 17
Gold’s Fundamental Outlook for 2017 - 13th Jan 17
Is trading stocks and shares just as luck-based as roulette? - 13th Jan 17
Trump CIA Like Nazi Germany - Fake MI6 Intelligence leaked to Fake News Mainstream Media - 13th Jan 17
USD in Decline. SPX and TNX May Follow - 12th Jan 17
CIA War On Trump - Leaks Fake MI6 Intelligence to Fake News Broadcast Media - 12th Jan 17

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

State of Global Markets 2017 - Report

London Loses Money on the Olympics

Politics / UK Politics Aug 11, 2012 - 01:16 PM GMT

By: Pravda

Politics

The Olympics in London turned into a loss for many segments of the urban business. The Games attracted not as many fans as expected and scared away thousands of "non-sporting" tourists on whose money the Londoners counted. Hoteliers, retailers, as well as numerous museums and other cultural institutions have suffered losses.


According to The Financial Times, over 100,000 foreign visitors came to see the Olympics to London. This is more than in the past games. But fans do not focus on shopping in London and spend far less money than conventional tourists. Market analysts say that 90 percent of London's Olympic tourists do not plan major purchases in the British capital.

Incidentally, the arenas in the stands do not appear to be sold-out. At this time 200,000 tickets for soccer and 100-120 thousand tickets for other events are still available.

Tickets are available for sale on the site of LOCOG, however, there is no rush to buy them. There is a new practice of selling tickets by those leaving the competition to those who would like to get in. Tickets go for ridiculous sums: 300 people watched Saturday's handball competition for only five pounds for an adult ticket and one pound for the children's one.

During this period, the non-Olympic London is usually visited by approximately 300,000 tourists. They leave their money in numerous shops, theaters, hotels and museums. Now their number has decreased dramatically precisely because of the anticipated discomfort in London in connection with the Olympics.

"In August London is usually visited by 300,000 foreign and 800,000 British tourists. These people have indicated that they stayed away. They were replaced by 500,000 people who purchased tickets to the Olympics. Many of them are London residents and tourists who came here to watch sporting events. They are not that interested in the sights. They did not come here to shop, eat, or admire the beauty," said a representative of the European Association of Tour Operators Tom Jenkins.

Theaters complain of falling incomes, and the past week was the worst of the year at the box offices. As head of the group of Nimax Theatres Nick Burns predicted, this summer ticket sales in the theaters located in the West End will be reduced by 30 percent.

The museum tickets sales fell by a third as well.

"Usually, tourists walk through the city center, but today's visitors come to watch the competition. People were scared away by the talk about the problems with transport. Although it seems to me that it works fine, and they should not be afraid," said the president of the Society of London Theatre Mark Rubinstayn.

British capital hotels also complain about loss of business. Before the 2012 Olympics in London hoteliers have increased prices for tourist accommodations. In June, the cost of overnight stays was increased by ten percent, to 226 euros. At the time of the Olympic tournament hotel services rose in price on average by 36 percent - up to 350 euros per night.

Clearly, hotels were ahead of themselves with the acceleration of prices in London. It turned out that for the period of the Games there were plenty of vacant rooms in hotels. Seeing the prospects of failure, the British hotel and tourist business began stepping back. They even reduced the price of the Olympics by about a quarter. The hotel reservation service "Jack Travel" stated that the hotel owners overestimated the expected flow of tourists to the Olympics.

Until recently, the owners of four-star hotels asked 300-400 pounds per day for a room. Reality has put everything into place and restrained the appetites of the hoteliers. Now one can stay overnight for 109-150 pounds. A two stars hotel is now taking an average of 50 pounds per person per night, against 200 pounds in anticipation of the Olympics.

Managing Director of Travel Agency Golden Tours Nick Palau complained to The Financial Times that the Olympics undermined the hotel business. "Earlier hotels inflated prices, and the largest tour operators actually stopped the sales in May. Our profit for this period decreased by 20 percent," said Palau.

In general, according to experts' calculations, hotel and excursion business have lost 20 and 35 percent of the projected gains, respectively. Only the owners of the establishments in the area of ​​the Olympic Park have met the expected indicators.

Large retail chains that have the facilities in central London also noticed a reduction in the number of customers. It was projected that the number of buyers in the West-end stores this summer was supposed to reach 25 million. The reduction of the flow of customers was especially noticeable before the opening of the Olympics, when the West-end shops were visited by ten percent fewer people than usual at this time of year.

Anatoly Miranovsky

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife