Best of the Week
Most Popular
1.UK General Election BBC Exit Polls Forecast Accuracy - Nadeem_Walayat
2.UK General Election 2017 Seats Final Forecast, Labour, Conservative Lib-Dem, SNP - Nadeem_Walayat
3.UK General Election 2017 Forecast: Conservative 358, Labour 212 Seats - Nadeem_Walayat
4.Theresa May to Resign, Fatal Error Was to Believe Worthless Opinion Polls! - Nadeem_Walayat
5.UK House Prices Forecast General Election 2017 Conservative Seats Result - Nadeem_Walayat
6.The Stock Market Crash of 2017 That Never Was But Could it Still Come to Pass? - Sol_Palha
7.[TRADE ALERT] Write This Gold Stock Ticker Down Now - WallStreetNation
8.UK General Election Results Map 2017 vs 2015 vs Opinion Polls - Nadeem_Walayat
9.Orphaned Poisoned Waters,Severe Chronic Water Shortage Imminent - Richard_Mills
10.How The Smart Money Is Playing The Lithium Boom - OilPrice_Com
Last 7 days
US Stock Market Correction Could be Underway - 24th Jun 17
Proof That This Economic Recovery Narrative is False - 24th Jun 17
Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - 24th Jun 17
Gold Summer Doldrums - 23rd Jun 17
Hedgers Net Short the Euro, US Market Rotates; 2 Horsemen Set to Ride? - 23rd Jun 17
Nether Edge By Election Result: Labour Win Sheffield City Council Seat by 132 Votes - 23rd Jun 17
Grenfell Fire: 600 of 4000 Tower Blocks Ticking Time Bomb Death Traps! - 22nd Jun 17
Car Sales About To Go Over The Cliff - 22nd Jun 17
LOG 0.786 support in CRUDE OIL and COCOA - 22nd Jun 17
More Stock Market Fluctuations Along New Record Highs - 22nd Jun 17
Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - 22nd Jun 17
Green Party Could Control Sheffield City Council Balance of Power Local Election 2018 - 22nd Jun 17
Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle - 22nd Jun 17
Steem Hard Forks & Now People Are Making Even More Money On Blockchain Steemit - 22nd Jun 17
4 Steps for Comparing Binary Options Providers - 22nd Jun 17
Nether Edge & Sharrow By-Election, Will Labour Lose Safe Council Seat, Sheffield? - 21st Jun 17
Stock Market SPX Making New Lows - 21st Jun 17
Your Future Wealth Depends on what You Decide to Keep and Invest in Now - 21st Jun 17
Either Bitcoin Will Fail OR Bitcoin Is A Government Invention Meant To Enslave... - 21st Jun 17
Strength in Gold and Silver Mining Stocks and Its Implications - 21st Jun 17
Inflation is No Longer in Stealth Mode - 21st Jun 17
CRUDE OIL UPDATE- “0.30 risk is cheap for changing implication!” - 20th Jun 17
Crude Oil Verifies Price Breakdown – Or Is It Something More? - 20th Jun 17
Trump Backs ISIS As He Pushes US Onto Brink of World War III With Russia - 20th Jun 17
Most Popular Auto Trading Tools for trading with Stock Markets - 20th Jun 17
GDXJ Gold Stocks Massacre: The Aftermath - 20th Jun 17
Why Walkers Crisps Pay Packet Promotion is RUBBISH! - 20th Jun 17
7 Signs You Should Add Gold To Your Portfolio Now - 19th Jun 17
US Bonds and Related Market Indicators - 19th Jun 17
Wireless Wars: The Billion Dollar Tech Boom No One Is Talking About - 19th Jun 17
Amey Playing Cat and Mouse Game with Sheffield Residents and Tree Campaigners - 19th Jun 17
Positive Stock Market Expectations, But Will Uptrend Continue? - 19th Jun 17
Gold Proprietary Cycle Indicator Remains Down - 19th Jun 17
Stock Market Higher Highs Still Likely - 18th Jun 17
The US Government Clamps Down on Ability of Americans To Purchase Bitcoin - 18th Jun 17
NDX/NAZ Continue downward pressure on the US Stock Market - 18th Jun 17
Return of the Gold Bear? - 18th Jun 17
Are Sheffield's High Rise Tower Blocks Safe? Grenfell Cladding Fire Disaster! - 18th Jun 17
Globalist Takeover Of The Internet Moves Into Overdrive - 17th Jun 17
Crazy Charging Stocks Bull Market Random Thoughts - 17th Jun 17
Reflation, Deflation and Gold - 17th Jun 17
Here’s The Case For An Upside Risk In The Global Economy - 17th Jun 17
Gold Bullish on Fed Interest Rate Hike - 16th Jun 17
Drones Upending Business Models and Reshaping Industry Landscapes - 16th Jun 17
Grenfell Tower Cladding Fire Disaster, 4,000 Ticking Time Bombs, Sheffield Council Flats Panic! - 16th Jun 17
Heating Oil Bottom Is In.(probably) - 16th Jun 17
Here’s the Investing Reason Active Funds Can’t Beat Passive Funds—and It Worries Me a Lot - 16th Jun 17
Is There Gold “Hype” and is Gold an Emotional Trade? - 16th Jun 17

Market Oracle FREE Newsletter

The MRI 3D 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

© 2005-2017 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