British Economy to Lose Billions during Royal Wedding Holiday
The Confederation of British Industry (CBI) has predicted that the UK won’t get the economic boost from the rise in tourist trade and sold memorabilia for the royal wedding of Prince William and Kate Middleton (which is today!) that the government hoped for. As a matter of fact, they estimate the economy will suffer a £6 billion blow for allowing an extra public holiday, despite the spirit of the historic event and the boost it’s due to give London attractions.
According to the group, one-time public holidays have a lasting affect on GDP. Official figures show that industrial production fell by over 4% and services by more than 2% in June of 2002 after the extra public holiday was called to celebrate the Queen’s Golden Jubilee. This isn’t the only time that the economy has contracted due to extra public holidays.
However, not everyone has a negative outlook on how the royal wedding will affect the economy. Sky News has reported that Moneysupermarket.com estimates Brits will spend £480 billion during the big day, which is an average £29 each. Retailers were expecting Thursday to be the busiest day of the year to date, as people shopped for party items. The British Retail Consortium (BRC) was also reported estimating that the extra holiday will add to the amount people spend, because they’re being given the extra chance to shop.
Airlines, hotels, travel agents and other companies are also benefiting from the royal wedding as foreigners visit London to celebrate the event. It’s expected that the affects will last even after the wedding, as at least some of the people watching at home will want to visit the British capital.