LONDON REPORT 2013-2014 CONTENTS

SECTION 1 tourism trends 2013 p. 06

SECTION 2 International visits to London p. 16

SECTION 3 Domestic visits to London p. 28

SECTION 4 London’s connectivity p. 36

SECTION 5 London’s hotel industry p. 42

SECTION 6 London’s visitor attractions and theatres p. 50

SECTION 7 The forecast for tourism in London p. 58

LONDON TOURISM REVIEW | 3 NORTH AMERICA AND EUROPE ACCOUNT FOR

The USA is London's largest visit market, 80% its 1.89 million OF ALL represented 11.2% OVERSEAS VISITS of all visits in 2013

This equated to 16.8 million overseas visits in 2012

spending a total of £11.6 billion over 97.4 million nights 29.1 MILLION HEADLINES FOR £14.1 BILLION Staying overseas and domestic visitors, generating almost 1,218 In expenditure LONDON HOTELS PROVIDING NEARLY £ £ 12.3 MILLION £ £ 117,000 VISITORS ROOMS £ £ £ £ £ 42.7 MILLION £2.8 from within the uk in 2013 ROOM BILLION spending a total of £2.8 billion NIGTHS A YEAR over 27.4 million nights

ONE OF THE BEST WITH 344 DIRECT LINKS CONNECTED CITIES IN THE WORLD TO A WIDE RANGE OF SOURCE MARKETS

TOP 3

NORTH 1.89 MILLION OVERSEAS AMERICA VISITS LONDON VISIT MARKETS 262 1.87 MILLION RECEIVED MILLION VISITS 1.34 MILLION VISITS DAY VISITS IN 2013

4 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 5 PHOTO SECTION 1 LONDON TOURISM TRENDS 2013

London’s tourism economy is dominated by overseas visitors. In 2013 overseas visitors accounted for 58% of visits, but more significantly, they accounted for 78% of nights and 80% of expenditure.

London is the fourth most visited international destination MILLION day visits in 2013 a daily average across in the world based on arrivals. 262 the year of approximately 720,000.

The total number of visits to London Overseas visitors spent increased by 13% from over £11.26 billion in Like many tourist destinations, London experienced a In 2013, London welcomed 29.1 million staying overseas 2008 to 2013, an extra London in 2013, while 3.3 million visits domestic visitors spent recessionary downturn in 2008/2009. Since then, and and domestic visits, generating £14.05 billion in expenditure. £2.79 billion with the added impetus of hosting the Olympic Games Since 2008 visitor expenditure has experienced consistent in 2012, the market has recovered strongly, to the extent growth, resulting in a £3.7 billion (36%) increase in 2013. Total visitor spend LONDON that the number of visits to London in 2013 was 4.2 million increased by 36% from ACCOUNTS LONDON 2008 to 2013, an extra higher than the market low-point in 2009. FOR OVER £3.7 billion in the six 50% year period OF ALL 1.1 Total London visits and expenditure 2008-2013 OVERSEAS Visits (million) Expenditure (£bn) VISITS TO THE UK 40 40 LONDON ACCOUNTED 30 30 FOR 1.5% of all international visitors arrivals in the world 20 20

DOMESTIC 10 10 HOLIDAY 12.3 VISITORS EXPENDITURE 0 0 INCREASED BY 30% from 2008 2008 2009 2010 2011 2012 2013 to 2013, an extra £570 million in Visits Expenditure MILLION the six year period holiday visits in 2013

and represented 42% Source: Office for National Statistics, International Passenger Survey 2008-2013; of all arrivals to London Visit England, Great Britain Tourism Survey 2008-2013

6 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 7 LONDON TOURISM TRENDS 2013

THE GROWTH IN LONDON TOURISM

The city saw a surge in the number of overseas visits in London is the UK’s major destination for overseas visitors, 2013, an increase of 1.3 million (+8.5% year-on-year), accounting for nearly 51% of all overseas visits to the UK representing the greatest increase over the six-year period. and 10% of all UK domestic visits. Moreover, this growth is reflected in overseas expenditure for 2013, with an increase of 11.7%. As well as 29.1 million overnight visits, London also received an estimated 262 million day visits in 2013 - a daily average Overseas visitors accounted for 58% of all visits to London, across the year of 720,000 visits. Day visits to London also but more significantly, they represented 78% of nights and accounted for £9.22 billion in spend in 2013. 80% of expenditure. 1.3 TOTAL VOLUME OF VISITS TO LONDON AND ENGLAND 2013

Volume (million) London England (Total) Overseas 16.8 28.6 1.2 LONDON OVERNIGHT VISITS, NIGHTS & EXPENDITURE 2008-2013 Domestic 12.3 101.8 2008 2009 2010 2011 2012 2013 Tourism Day trips 262 1,370 Visits (million) Overseas 14.75 14.21 14.71 15.29 15.46 16.78 Overseas Visits 2013 Domestic Visits 2013 Day Trips 2013 Source of London Visits (million) Domestic 11.02 10.65 11.37 11.09 12.15 12.31

Total Visits 25.77 24.86 26.08 26.38 27.61 29.09 16.8 12.3 12.3 Nights (million) 261.7 Overseas 90.8 85.7 90.3 91.5 94.3 97. 4 Domestic 26.5 23.5 24.3 27.1 27.7 27.4 13.6 16.8

Total Nights 117.3 109.2 114.6 118.6 122 124.8 89.4 1,108.2 261.7

Expenditure (million) Overseas 8.13 8.24 8.74 9.41 10.08 11.26 Domestic 2.22 2.18 2.41 2.4 2.78 2.79 London Visits (million) London Visits (million) London Visits (million) Overseas (million) Domestic (million) Total Expenditure 10.35 10.42 11.15 11.81 12.86 14.05 Rest of England Visits (million) Rest of England Visits (million) Rest of England Visits (million) Day Trips (million)

Source: Office for National Statistics, International Passenger Survey 2008-2013; Visit England, Great Britain Tourism Survey 2008-2013

Source: Office for National Statistics, International Passenger Survey 2013; Visit England, Great British Day Visits Survey 2013; Visit England, Great Britain Tourism Survey 2013

8 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 9 LONDON TOURISM TRENDS 2013 LONDON IN A GLOBAL TOURISM CONTEXT

London’s established footprint in the global tourism market puts it in 4th place in Euromonitor International’s Top Cities Destination Ranking of 100 of the world’s the world’s leading cities in terms of international tourist arrivals, well ahead of its closest competition such as New York (8th), Paris (10th), Rome (12th), Barcelona (23rd) and Amsterdam (29th).

1.5 TOP CITY DESTINATIONS RANKING 2012

Rank Destination Arrivals 2012 (million) 2011/2012 % growth 1.4 TOTAL VALUE OF ENGLAND AND LONDON VISITORS 2013 1 Hong Kong 23.8 6.5 2 Singapore 21.3 7. 7 Value (£ billion) London England (Total) 3 Bangkok 15.8 14.6 Overseas 11.26 18.4 4 London 15.5 2.3 Domestic 2.79 18.71 5 Macau 13.4 3.4 Tourism Day trips 9.22 46.02 6 Kuala Lumpur 13.3 6.7 7 Shenzhen 12.1 9.6 Overseas visitors are higher spenders, spending £11.26 billion in London in 2013, equating to 54% of the UK 11.6 8.9 overseas expenditure total, while domestic visitor spent £2.79 billion – just 12% of the ‘UK’ domestic total expenditure. 8 New York City Quantifying that overseas visitors account for approximately eight pence of every pound spent by staying visitors. 9 Antalya 10.3 -1.6 10 Paris 9.8 3.3 11 Istanbul 8.8 16.5 12 Rome 6.7 13.9 Overseas Domestic Day Trip Sources of 13 Dubai 8.0 0.5 Visits Expenditure 2013 Visitor Expenditure 2013 Expenditure 2013 London Expenditure (£bn) 14 Guangzhou 7. 9 1.2 15 Phuket 7. 2 14.7

£2.79 16 Mecca 6.9 6.9 17 Pattaya 6.6 8.4 £9.22 £7.14 18 Taipei 6.6 24.8 £9.22 £11.26 19 Prague 6.5 5.1 £11.26 £15.92 £36.80 20 Shanghai 6.5 -2.2 21 Las Vegas 6.3 5.9 £2.79 22 Miami 6.0 4.5 23 Barcelona 5.5 0.5

London (£bn) London (£bn) London (£bn) Overseas (£bn) Domestic (£bn) 24 Moscow 5.0 13.6 Rest of England Visits (£bn) Rest of England Visits (£bn) Rest of England Visits (£bn) Day trips (£bn) 25 Beijing 5.0 -3.2 26 Los Angeles 5.0 1.2

Source: Office for National Statistics, International Passenger Survey 2013; Visit England, Great British Day Visits Survey 2013; 27 Budapest 4.8 12 Visit England; Great Britain Tourism Survey 2013 28 Vienna 4.3 8 29 Amsterdam 4.3 2.1 30 Sofia 4.1 -0.4

Source: Euromonitor International’s Top City Destinations Ranking 2012 (2013 edition)

10 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 11 LONDON TOURISM TRENDS 2013 1.7 Domestic and overseas expenditure 2008-2013

Expediture (£billion) £12.5

£10.0

£7.5

£5.0

£2.5

DOMESTIC AND INTERNATIONAL TOURISM TRENDS £0.0 2008 2009 2010 2011 2012 2013 Overseas Expenditure 8.13 8.24 8.74 9.41 10.08 11.26 Tourist nights - In 2013 overseas visitors stayed over three The average spend per visit to London increased by £19 Domestic Expenditure 2.226 2.179 2.414 2.398 2.784 2.793 times as many nights as domestic visitors – a trend which to £483 in 2013 – representing an £82 increase since has been fairly constant since 2008. This trend reflects 2008. In 2013 overseas visitors spent on average nearly Source: Office for National Statistics, International Passenger Survey 2013; Visit England, Great British Tourism Survey 2013 the much higher average spend and total expenditure of three times as much per visit as domestic visitors; the main overseas visitors in the capital. factor behind this difference is the longer average stay (5.8 days for overseas visitors, compared to 2.2 days for 1.8 AVERAGE EXPENDITURE AND TRIP LENGTH FOR DOMESTIC AND OVERSEAS VISITS, 2013 Tourist expenditure - Overseas expenditure has increased domestic visitors). On a per day basis, overseas visitors year-on-year, resulting in a substantial increase of £3.2 spend an average of £14 per day more than a domestic Average Length of Stay Average Spend per day Average Spend per Visit billion since 2008 (40%), while domestic expenditure visitor. Despite domestic visits accounting for 42% of Overseas 5.8 days £116 £671 appears to have stayed relatively flat over the six year all visits to London, domestic expenditure only accounts Domestic 2.2 days £102 £227 period since 2008, with small increases year-on-year. for 20% of all overnight tourism expenditure in London. Total 4.3 days £113 £483

Yet, this is not as insignificant as it first seems, domestic Overseas visits are proportionally more valuable than Source: Office for National Statistics, International Passenger Survey 2013; Visit England, Great British Tourism Survey 2013 expenditure actually grew 25% from 2008-2013, resulting domestic visits, with a higher average length of stay and a in a £560 million increase. higher average spend per visit. PHOTO

1.6 Total number of nights stayed by domestic and overseas visitors, 2013

27.4 2013 97.4 27.7 2012 94.3 27.1 2011 91.5 24.3 2010 90.3 23.5 2009 85.7 26.5 2008 90.8 Nights (million) 0 25 50 75 100 Domestic Nights Overseas Nights

Source: Office for National Statistics, International Passenger Survey 2013; Visit England, Great British Tourism Survey 2013

12 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 13 LONDON TOURISM TRENDS 2013

Despite their lower volumes, international business visitors are the second most valuable segment. This reflects the much higher average spend per visit; almost double that of a leisure visitor. VFR visitors have a lower spend because they are usually not paying for hotel accommodation.

AGE PROFILE 1.10 Ranking of London visits (volume) by purpose 2008/2013

London has a broad appeal to all.age groups. In 2013, Since 2008 overseas holiday visits have been the key Overseas Holiday

47% of overseas visitors to London were aged 25-44, driver of growth. The number of visits has continued to grow Domestic VFR while the 35-54 year old age group accounted for 44% due to the increasing volume of leisure visits, including Domestic Holiday of domestic visitors. Domestic visitors are more likely to be those classified as VFR (visiting friends and relatives). In Overseas VFR older than their overseas counter parts, with the over 65 terms of volume and value, the overseas holiday segment Domestic Business age group accounting for 11% of all domestic visitors but is the most important to London’s tourism sector and its only 5% of overseas visitors. importance has grown significantly since 2008, with visitor Overseas Business numbers increasing 30% and expenditure increasing 72%. Overseas Others REASON FOR VISITING Domestic Others The holiday visitor segment is the main contributor to the Visits 0 2.5 5 7.5 10 (million) Visitors travel to London for a variety of different purposes. increase in tourism spend over the period, driven by the 2013 2008 The tourist visitor to London is looked at through a number large increase in arrivals from overseas. of different lenses dependent on their travel purpose. Source: Office for National Statistics, International Passenger Survey 2013; Visit England, Great Britain Tourism Survey 2013 Holiday visits to London totalled 12.3 million in 2013 and Business visits make up a lower proportion of London represented about 42% of all arrivals. international arrivals in comparison to holiday visits or those visiting friends and relatives (VFR).

1.9 Domestic and overseas visitor age profile 2013 1.11 Ranking of London expenditure (value) by purpose 2008/2013

Visitors (thousands) Overseas Holiday 4,000 Overseas Business

3,000 Overseas VFR Domestic Holiday

2,000 Oversesas Other

Domestic Business 1,000 Domestic VFR

Domestic Other Expenditure 0 Age (£ bn) 0-15 16-24 25-34 35-44 45-54 55-64 65+ 0 1 2 3 4 5 6 Overseas Domestic 2013 2008

Source: Office for National Statistics, International Passenger Survey 2013; Visit England, Great Britain Tourism Survey 2013 Source: Office for National Statistics, International Passenger Survey 2013; Visit England, Great British Tourism Survey 2013

14 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 15 SECTION 2 INTERNATIONAL VISITORS TO LONDON

In 2013, London received 16.8 million visits from overseas, spending a total of £11.3 billion over 97.4 million nights £1.18

The South and Central The USA is London’s American visitor market largest visitor origin MILLION experienced growth of market, accounting for international visits and 89% over the six-year 11.2% of all visits period to 2013 an additional £1.18 billion in expenditure in 2013 £ £ £ The European and North America markets £ £ £ together account for 80% of all visits to London £ £ £ 77% OF INTERNATIONAL £ £ £ visitors to London arrive by air transport

International visitors to London are at their peak in Quarter 3 (the months of July, August and September), and at their lowest in the winter months of Half of London’s overseas Quarter 1 (January, February and March) visits profile is comprised of

In 2013, London received 16.8 million visits from overseas, spending a total of £11.26 billion over 97.4 million nights. These figures represent a further 1.3 million visits over 2012, and a £1.18 billion increase in spend. In 2013 the 25-44 year old age group accounted 8.5 for nearly 47% of all overseas visitors MILLION 2.1 LONDON OVERSEAS VISITS, NIGHTS AND EXPENDITURE 2003-2013 HOLIDAY VISITS 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Welcomed Visits (million) 11.70 13.39 13.89 15.59 15.34 14.75 14.21 14.71 15.29 15.46 16.78 LONDON Nights (million) 78.9 90.2 91.8 101.1 95.8 90.8 85.7 90.3 91.5 94.3 97. 4 Expenditure (£ billion) 5.87 6.44 6.86 7.82 8.19 8.13 8.24 8.74 9.41 10.08 11.26

an extra 1.3 million international visits and an Source: Office for National Statistics, International Passenger Survey 2003-2013 additional £1.18 billion in expenditure in 2013

16 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 17 INTERNATIONAL VISITORS TO LONDON

THE GROWTH OF OVERSEAS VISITS

The ten year trend for London overseas tourism paints a The market started its climb out of recession in 2011, picture of strong growth in the first half of the previous culminating in its highest ever volume of overseas visits decade, experiencing a peak in 2006 at 15.6 million visits. three years later in 2013 – a 43% increase on 2003. The This was followed by a period of decline coinciding with total spend has increased steadily over the ten year period, the global financial crisis. resulting in a 92% increase on 2003.

2.2 London overseas visits and expenditure 2003-2013

Expenditure (£ billion) Visits (million) THE OVERSEAS VISITS MARKET BY REGION 12 20

10 Europe and North America together account for 80% of all visits to London. European visitors are very much the 15 majority, with two thirds of all visitors to London originating from the continent. However, South and Central America 8 has experienced strong growth in both visitor numbers and expenditure, despite accounting for a small percentage 6 10 of all London visitors. The Middle East region has the strongest growth in terms of expenditure and is London’s third 4 largest expenditure market, with a115% increase since 2008. 5 2 North America is London’s second largest regional visitor market, but over the last six year period, the volume of visitors 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 has seen a slight decline. In contrast, the number of visitors from other parts of the world, such as the South and Central Expenditure Visits America and the Australasia, has continued to grow.

Source: Office for National Statistics, International Passenger Survey 2003-2013 2.3 OVERSEAS MARKETS 2013 BY GEOGRAPHICAL REGION AND % CHANGE

Visits (million) 2008-2013 % change Expenditure (£ billion) 2008-2013 % change

LONDON OVERSEAS VISITS AND EXPENDITURE GROWTH 2003-2013 Europe 11.0 15% 5.29 28% North America 2.33 -3% 1.80 13% 2012-2013 % change 2008-2013 % change 2003-2013 % change Asia 1.04 16% 1.16 75% Visits 9% 14% 44% Australasia 0.90 23% 0.71 62% Expenditure 12% 39% 92% South and Central America 0.56 89% 0.58 67% Source: Office for National Statistics, International Passenger Survey 2003-2013 Middle East 0.53 21% 1.32 115% Africa 0.44 2% 0.54 14%

Source: Office for National Statistics, International Passenger Survey 2008-2013

18 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 19 INTERNATIONAL VISITORS TO LONDON

The list of source markets for London is characterised by a long tail of small markets (many of them long-haul emerging economies), several of which have been growing at a rapid rate. China (ranked 36) has been making its way rapidly up the rankings, although with only 94,000 visitors in 2013 it represents only 0.6% of the total number of overseas visits to London.

In terms of expenditure, London’s top 10 markets A few markets are characterised by very high levels of accounted for 50% of the total international visitor spend. average expenditure, such as Kuwait and UAE which THE OVERSEAS VISITS MARKET BY COUNTRY As well as being London’s largest market by volume, contribute disproportionately high tourism receipts the USA is also the biggest markets in terms of visitor compered to their share of visits. Average spends from In 2013, London’s top 10 origin markets accounted for responsible for almost one quarter of London visitors. The expediture. Spending by American visitors in 2013 totalled each of these markets is £4,000 and £2,500 respectively, 60% of all arrivals into the capital. The USA was marginally visit market has experienced the highest rate of £1.53 billion (13.6% of overseas receipts), twice as much substantially higher than the £670 all-market average. ahead of France as London’s largest individual market - its visitor growth since 2008, with visits to London increasing as France which is the second most valuable market. The Chinese market displays similar properties, its 1.88 million arrivals representing 11% of all visits. by 73% since 2008. share of receipts (1.6%) being more than twice its One half of all visitor receipts are concentrated in the top 10 0.6% volume share. The French visitor market continues to perform strongly, Apart from the USA, Australia is the only other non- source markets, and this is split evenly between Europe and as the proximity and comprehensive travel connections European country featuring in London’s top 10. Visitor the long haul markets of the USA, Australia, Kuwait and UAE. available to the French market generate high levels numbers from Australia have increased significantly in the of demand for short city breaks. Other major Eurozone six years leading to 2013 as a result of the substantial economies of Germany, , and the appreciation in the Australian Dollar. 2.5 Top 10 overseas visitor markets by six yearvisitor trend, 1-year visitor trend and number of visitors 2013 have also followed this trend and are collectively

2008 - 2013 % change 80% 2.4 TOP 10 OVERSEAS MARKETS BY VOLUME 2013 AND SIX YEAR TREND Belgium Rank Country of Residence Visits (million) six year % change 2012-2013 % change 70% 1 USA 1.88 -1% 1% 60% 2 France 1.87 33% 11% 1.34 27% 12% 3 Germany 50% 4 Italy 1.09 11% 13% 5 Spain 0.84 -6% 6% 40% France 6 Netherlands 0.70 6% 9% Germany 7 Australia 0.70 19% 17% 30% 8 0.62 -16% 4% 20% Austria 9 Belgium 0.53 73% 13% 10 Sweden 0.52 25% 4% Italy 10% Source: Office for National Statistics, International Passenger Survey 2008-2013 Netherlands USA 2012-2013 % change 0 Spain -5% 0% 5% 10% 15% 20%

-10% Ireland Bubble size = Number of Visits 2013 -20%

Source: Office for National Statistics, International Passenger Survey 2008-2013

20 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 21 INTERNATIONAL VISITORS TO LONDON

2.6 TOP 10 OVERSEAS MARKETS BY VALUE 2013 AND 2008-2013 % CHANGE

Rank Country of Residence Expenditure (£ billion) 2008-2013 % change 1 USA 1.53 14% 2 France 0.68 52% 3 Germany 0.56 33% 4 Australia 0.55 56% 5 Italy 0.51 8% 6 Spain 0.48 27% 7 Kuwait 0.38 329% 8 United Arab Emirates 0.36 107% 9 Switzerland 0.31 94% 10 Norway 0.31 42%

Source: Office for National Statistics, International Passenger Survey 2008-2013

2.7 Top 10 value markets by 1-year % change, six year% change and total expenditure 2013*

2008 - 2013 % change 400%

350% Kuwait

300%

250%

200%

150%

UAE Switzerland 100% Austria

France 50% Norway USA Italy Germany Spain 2012-2013 % change 0% -20% -10% 0% 10% 20% 30% 40% 50% 60%

-50% Bubble size = Total Expenditure 2013

Source: Office for National Statistics, International Passenger Survey 2008-2013

22 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 23 INTERNATIONAL VISITORS TO LONDON

REASONS FOR VISITING

Approximately half of London’s overseas visitor profile is The business sector is also characterised by a relatively 2.9 AVERAGE OVERSEAS EXPENDITURE AND VISIT LENGTH 2013 comprised of 8.5 million holiday visits, which has increased low average length of stay (4.3 nights vs. all-market by 2 million visits since 2008. average of 5.8 days), meaning business visitors contribute Average spend per day Average spend per visit Average Length of visit a relatively modest 14% of London’s 97.4 million nights. Business £212 £905 4.3 days London’s business visits sector has also seen solid growth Holiday £127 £634 5 days in the same period, although the market is still about a third The average stay of a VFR visit (7.8 days) is much longer than Misc £118 £646 5.5 days of a million short of the levels it achieved in 2006 prior the all-market average, hence its one-third contribution to Study £83 £2,627 31.5 days to the financial crisis. Business visits to London account the nights total. But it is a low value segment, on account VFR £60 £468 7.8 days for 26% of expenditure, the high daily expenditure being of many not spending on accommodation. nearly twice the level for holiday visits. Total £116 £671 5.8 days Source: Office for National Statistics, International Passenger Survey 2013

2.8 Profile of London overseas visits by purpose 2008-2013 2.10 London overseas visits, nights and expendture by purpose 2013 Visits (million) 20 48% 26% 16% 6% 4% Expenditure Study 15 Other Nights 44% 14% 30% 6% 6% 10 Business

VFR 5 Visits 51% 19% 22% 7% 1% Holiday

0 0% 25% 50% 75% 100% 2008 2009 2010 2011 2012 2013 Holiday Business VFR Misc Study

Source: Office for National Statistics, International Passenger Survey 2008-2013 Source: Office for National Statistics, International Passenger Survey 2013

24 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 25 INTERNATIONAL VISITORS TO LONDON

OVERSEAS VISITOR PROFILE BY AGE VISIT FLOWS THROUGHOUT THE YEAR 2.12 Quarterly distribution of London overseas visits 2008-2013 30% London enjoys strong appeal throughout all age groups Overseas visits to London consistently peak in Quarter 3 (the from 16 through to 64. Moreover, in 2013 the 25-44 year months of July, August and September), and are at their lowest 2008 old age group accounted for nearly 47% of all overseas in the winter months of Quarter 1 (January, February and 20% 2009 visits. March). 2010

Even at the extremities of the age spectrum, there are still The most notable disruption to visits was in the Olympic year 10% 2011 significant volumes of tourists. There were approximately 2012, when the volume of visits in Q3 was fewer than in the 2012 850,000 visitors aged over 65 in 2013, while there were prior quarter. The event ‘displaced’ overseas visits from that 2013 around half a million visitors aged under 15. quarter, although it can be seen that visit numbers in Q4 were 0% higher than in 2011, as the market rapidly recovered. Quarter 1 Quarter 2 Quarter 3 Quarter 4

2.11 Overseas visitor profile by age 2013 2008 2009 2010 2011 2012 2013 Number of visitors (million) Quarter 1 22% 21% 20% 21% 21% 20% 5 Quarter 2 27% 26% 24% 26% 27% 27% Quarter 3 28% 28% 29% 29% 26% 29% 4 Quarter 4 23% 24% 26% 24% 26% 24%

3 Source: Office for National Statistics, International Passenger Survey 2013 2

1 2.13 LONDON VISITORS MODE OF ARRIVAL 2008-2013

0 Age 2008 2009 2010 2011 2012 2013 0-15 16-24 25-34 35-44 45-54 55-64 +65 Air 81% 79% 77% 78% 77% 77% Sea 8% 8% 8% 8% 7% 8% Source: Office for National Statistics, International Passenger Survey 2013 Tunnel 11% 13% 15% 14% 16% 15% Source: Office for National Statistics, International Passenger Survey 2008 - 2013

Arrivals via the Channel Tunnel (combining Eurostar rail and shuttle-based services) have increased their share to 15% since 2008. This mode of transport is the most popular for French and Belgian visitors. The prospect of additional routes being added (for example to Cologne and Amsterdam), means that train travel to London is set to increase in popularity.

26 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 27 SECTION 3 DOMESTIC VISITORS THE DOMESTIC VISIT MARKET TO LONDON 3.1. LONDON DOMESTIC VISITS, NIGHTS AND EXPENDITURE 2008-2013

2008 2009 2010 2011 2012 2013 Visits (million) 11.02 10.65 11.37 11.09 12.15 12.31 In 2013, London received 12.3 million visits Nights (million) 26.5 23.5 24.3 27.1 27.7 27.4 from within the UK, spending a total of £2.8 Expenditure (£ billion) 2.23 2.18 2.41 2.40 2.78 2.79 billion over 27.4 million nights Source: Visit England, Great British Tourism Survey 2008-2013

In 2013, London received 12.3 million visits from within the UK, spending a total of £2.79 262 billion over 27.4 million nights. The six year trend for domestic overnight tourism illustrates that the market is growing despite challenging market conditions between 2008 and 2011. In 2013 London experienced MILLION approximately an extra 150,000 domestic visits - a small increase on the previous year - DAY TRIPS TO while domestic expenditure remained stable at around the £2.8 billion mark. LONDON

3.2 Domestic visits and expenditure in London 2008-2013 Holiday visits accounted Visits Expenditure for the largest expenditure (millions) (£billions) segment at 44% 15 3

At 39%, VFR visits formed the largest volume 10 2 segment of domestic visits in 2013. 5 1

0 0 2008 2009 2010 2011 2012 2013 Visits Expenditure

Source: Visit England, Great British Tourism Survey 2008-2013

28 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 29 DOMESTIC VISITORS TO LONDON

3.4 Profile of London domestic visits by purpose 2008-2013

Domestic Visits (millions) 15

REASON FOR VISITING 3.3 3.3 10 3.0 2.7 2.7 2.9 Business Scotland and Wales account for just 12% of domestic The domestic visitor profile of London can be split into overnight visits to London and 18% of expenditure. holiday, business and VFR visits, with the largest share of 4.3 4.7 VFR 4.1 4.1 4.2 Whereas, visits from the South East and South West the city’s domestic profile comprised of 4.66 million VFR 5 4.8 account for 31% of all domestic visits to London. visits. Holiday 4.2 3.1 3.5 3.9 3.7 3.8 The majority of domestic visits to London originate from Since 2011 the domestic business sector has experienced 0 England, with over 80% of visitors originating from English consistent growth and has overtaken the level of visits 2008 2009 2010 2011 2012 2013 regions. reached in 2010. Source: Visit England, Great British Tourism Survey 2008-2013

VFR visits formed the largest volume segment of domestic visits in 2013, although their total spend was significantly 3.3 DOMESTIC VISITS TO LONDON BY REGION OF RESIDENCE 2013 lower than either business or holiday visits. Holiday visits accounted for the largest expenditure segment at 44%, and Visits (milllion) % of Visits Expenditure (£ billion) % of Expenditure business visits accounted for nearly a third of the total volume. Scotland 0.82 7% 0.32 11% Wales 0.58 5% 0.2 7% North East 0.41 3% 0.12 4% 3.5 LONDON DOMESTIC VISITS, NIGHTS AND EXPENDITURE BY PURPOSE, 2008-2013 North West/Mersey 1.33 13% 0.43 15% 2008 2009 2010 2011 2012 2013 Yorkshire/Humberside 1.34 11% 0.33 12% Holiday East Midlands 1.11 9% 0.26 9% Visits (millions) 3.07 3.50 3.90 3.70 4.17 3.80 West Midlands 0.96 8% 0.27 10% Expenditure (£ billions) 0.92 0.92 1.03 0.98 1.23 1.20 East of England 0.85 7% 0.13 5% Nights (millions) 8.1 7. 6 8.2 7. 5 9.0 8.2 London 0.8 6% 0.06 2% South East 2.10 17% 0.32 11% VFR South West 1.69 14% 0.36 13% Visits (millions) 4.75 4.14 4.09 4.22 4.32 4.66 Expenditure (£ billions) 0.55 0.43 0.47 0.47 0.52 0.60 Source: Visit England, Great British Tourism Survey 2013 Nights (millions) 12.1 9.8 9.6 12.5 11.0 12.0

Business Visits (millions) 2.70 2.68 3.02 2.86 3.25 3.34 Expenditure (£ billions) 0.73 0.78 0.84 0.88 0.95 0.90 Nights (millions) 5.9 5.4 5.9 5.72 6.9 6.3 Source: Visit England, Great British Tourism Survey 2008-2013

30 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 31 DOMESTIC VISITORS TO LONDON

3.7 AVERAGE DOMESTIC SPEND AND TRIP LENGTH BY PURPOSE 2013 Average Average spend Average spend DOMESTIC VISITOR PROFILE BY AGE length of visit per day per visit DOMESTIC VISIT CHARACTERISTICS Business 1.9 £143 £270 London consistently appeals to all age groups in the Holiday 2.1 £147 £317 Across all purposes of visit in the domestic market, the average stay spans a range between 1.9 and 2.6 days. domestic profile but proves most popular to visitors aged VFR 2.6 £50 £130 In 2013 domestic visitors to London lasted on average 2.2 nights in 2013 (this figure has remained largely unchanged between 35 and 54. With the 35-54 year old age group Total 2.2 £102 £227 over the past few years). accounting for 44% of domestic visitors. Source: Visit England, Great British Tourism Survey 2013

While the average daily spend of domestic visits (£102) is on a par with that of overseas (£116), the much shorter length of stay of domestic visits means that spend per trip is correspondingly lower (£227 in 2013 while overseas visits 3.8 PATTERN OF SPENDING AND AVERAGE LENGTH OF STAY OF DOMESTIC LONDON VISITS, 2008-2013 averaged £671). 2008 2009 2010 2011 2012 2013 Average stay 2.4 2.2 2.1 2.4 2.3 2.2 3.6 London domestic visits, nights and spend by purpose 2013* Expenditure per visit £208 £207 £212 £216 £229 £227 Expenditure per night £86 £94 £99 £89 £101 £102 Holiday VFR Business Source: Visit England, Great British Tourism Survey, Quarterly Regional Summary Q4 2008-2013

Nights 31% 45% 24% Compared to the overseas visitor profile the over 65 age group enjoys greater prominence, accounting for 10% of 3.9 Domestic visitor profile by age 2013 the domestic profile and 1.3 million visitors. 44% 22% 33% Expenditure Visitors (millions) 3

Visits 32% 39% 28%

0% 25% 50% 75% 100% 2

Source: Visit England, Great British Tourism Survey 2008-2013

1

0 Age 16-24 25-34 35-44 45-54 55-64 +65

Source: Visit England, Great British Tourism Survey 2008-2013

32 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 33 DOMESTIC VISITORS TO LONDON 3.10 Monthly distribution of domestic visits to London, 2008 and 2013

Visits (thousands) 1,500

1,000 2008

2013 500 DOMESTIC VISIT FLOWS THROUGHOUT THE YEAR

About half of all visits to London are made in the spring and summer period from April to September. However it is not unusual for December to be the most popular month for domestic arrivals to London, while a late Easter can generate 0 a substantial spike in April activity. Source: Visit England, Great British Tourism Survey 2008-2013

PHOTO

3.11 Quarterly distribution of London visits 2008-2013

Percentage of visitors 30%

2008

2009 20% 2010

2011

10% 2012

2013

0% Quarter 1 Quarter 2 Quarter 3 Quarter 4

2008 2009 2010 2011 2012 2013 Quarter 1 26% 21% 24% 22% 20% 22% Quarter 2 26% 30% 24% 25% 24% 26% Quarter 3 25% 24% 27% 25% 25% 26% Quarter 4 22% 25% 26% 28% 30% 27%

Source: Visit England, Great British Tourism Survey 2008-2013

34 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 35 SECTION 4 LONDON’S CONNECTIVITY

London has 6 airports serving the city, making it one of the best connected cities in the world, with over 344 direct air links.

HEATHROW LONDON is the dominant London SOUTHEND airport with 72 million passengers in 2013, served nearly 970,000 representing 52% of passengers in 2013, LONDON CONNECTIVITY London’s total, and a massive increase nearly 32% of all UK air compared with the London has 6 airports serving the city, with over 344 travellers form its core catchment. As one of London’s passenger traffic. 44,000 passengers served in 2008. direct air links to a comprehensive range of origin markets. smaller airports, it has a smaller operating scale than its LONDON London also has international rail links to Europe via the bigger rivals, which means its schedules are dominated by Eurostar Terminal at St Pancras Station, making it one of small, short-range aircraft on European routes. GATWICK’S STANSTED the best connected cities in the world. Stansted and Luton are the main bases for UK’s leading 35 million passengers AND LUTON Heathrow is the dominant London airport, with its 72 low-cost airlines, Ryanair and EasyJet. Both airports have represent one quarter have a combined annual million annual passengers in 2013 representing 52% of also successfully attracted low cost operators based in of London’s air passenger total of 27 London’s total. The airport is a European hub for many continental Europe meaning that the mix of their combined passenger total. million passengers. national carriers and their alliance partners, and is the annual 27 million passengers is strongly leisure-oriented. main entry point for most long haul traffic into the UK and premium air traffic. Heathrow Airport accounted for nearly London Southend is a fairly recent addition and provides 32% of all UK air passenger traffic in 2013 . a regional hub outside of congested London airspace. The is London’s busiest rail terminal with 95.9 million passenger entries and exits airport has undergone a major redevelopment in recent Waterloo in 2012/2013, followed by Victoria (77.3 million passenger entries and exits). Gatwick’s 35 million passengers represent over one years - with a new airport railway station and Air Traffic quarter of London’s total. With several low-cost carriers Control Tower in 2011, and a runway extension in 2012. and charter operators at the airport and route networks London Southend served nearly 970,000 passengers spanning Europe, the passenger mix is strongly weighted in 2013, a massive increase compared to the 44,000

In October 2013, London towards holiday visitors . passengers served in 2008. had direct connections to IN 2013, EUROSTAR London City is the capital’s newest airport, accounting In 2013, Eurostar carried a total of £10.1 million CARRIED A TOTAL OF £10.1 for 2.4% of London air passengers in 2013. Its close passengers while estimated 10.3 million passengers used MILLION PASSENGERS, A proximity to the centre of London means that business the Eurotunnel 2% INCREASE ON 2012. 212 countries

36 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 37 LONDON’S CONNECTIVITY

In October 2013, London had direct connections to Sydney and Melbourne are the major routes into Asia/ 212 European destinations. Amsterdam and Dublin are Australasia, along with the main hubs of Hong Kong and the most frequently served, but most capital and second Singapore. cities in Europe’s main economies are served by over LONDON’S LINKS TO THE REST OF THE WORLD 100 flights a week. Delhi and Mumbai have the highest frequencies from London to the Indian sub-continent. Middle Eastern London has direct flights to 31 American cities. There networks are dominated by Dubai, the destination for 40% 4.1. SUMMARY OF DESTINATIONS SERVED, WEEKLY FLIGHTS AND SEAT CAPACITY OF LONDON AIRPORTS are 206 departures a week to New York alone, as well of flights and 49% of capacity into this region. Dubai’s No. of destinations No. of weekly flights Seat capacity as a further 98 flights a week to Washington and Boston. major hub status also means that it is helping to connect UK 14 1,229 159,158 Chicago is a major mid-west hub for the Star Alliance London with destinations that aren’t served by direct Europe 211 6,731 1,053,822 group of airlines, with an average of 7 flights a day from routes. Asia/Australia 30 494 164,930 London, while flights to the West coast are dominated by the 54 weekly flights to Los Angeles. North America 31 842 237,243 Latin America/Caribbean 18 98 29,191 4.3 Main worldwide connections from London, October 2013 Middle East 9 248 79,897 Africa 31 272 62,065 Total 344 9,914 1,786,306

Source: Official Airline Guide, October 2013 LONDON

4.2 Summary of destinations served, weekly flights and seat capacity 2013

Share destinations (%) Share Flights (%) Share capacity (%) 75%

50%

25%

0% UK Africa Europe

Caribbean Middle East Latin America Asia/Australia North America

Source: Official Airline Guide, October 2013

Source: Official Airline Guide, October 2013

38 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 39 LONDON’S CONNECTIVITY

4.8 USAGE OF LONDON’S RAIL DOMESTIC CONNECTIVITY TERMINALS 2012 – 2013 Reduced Exits and All Entries and Exits Station Entries (millions) (millions) There are 14 National Rail terminals Moorgate – serves more local, Marylebone – serves stations in Central London. These stations commuter stations in North and in the south Midlands including Waterloo 29.1 95.9 are the main passenger hubs for North East London. Leamington Spa and Birmingham. Victoria 27.8 77. 3 the city and provide connections to Euston 21.5 36.5 EDINBURGH almost every part of the UK. Euston – serves central and North- Paddington – serves the West Paddington 17.6 33.7 GLASGOW West England and western Scotland, Country and stations in South Wales King’s Cross 16.3 27.8 Waterloo is the busiest London including Birmingham, Manchester, including Bath, Bristol, Cardiff, Liverpool Street 14.4 57. 1 terminal based on reduced exit Liverpool, Glasgow, with links to Exeter and Oxford. Paddington is the London Bridge 13.0 52.6 and entrance tickets (off-peak and both rail and ferry services from both terminus for the Heathrow Express Charing Cross 11.7 38.1 railcard tickets) in 2013. Victoria Northern Ireland and Ireland. to Heathrow Airport. St. Pancras 10.9 23.0 is a close second with 27.8 million Marylebone 6.3 13.4 reduced exits and entries while King’s Cross – serves the north east Victoria – serves the south and Fenchurch Street 3.3 16.9 Euston is third. of England and eastern Scotland south east costal towns including Blackfriars 2.3 12.8 including Leeds, York, Newcastle, Brighton, and Canterbury. It is Cannon Street 2.1 20.2 London rail terminals Aberdeen and Edinburgh. also the terminus for the Gatwick Moorgate 1.2 7. 6 Blackfriars – serves stations on the Express to Gatwick Airport. LEEDS Source: Office of Rail Regulation, Train Station Usage 2012- 2013 Bedford to Brighton cross-London St Pancras – serves the East MANCHESTER LIVERPOOL ‘Thameslink’ route. Midlands including, Leicester, London Bridge – serves stations Doncaster

Nottingham and Sheffield. It is also in Kent, Sussex and South East Holyhead Cannon Street – serves stations the terminus for Eurostar services to London. throughout London and Kent. Brussels and Paris. Leicester AREAS COVERED BY PROMINENT Peterborough Norwich LONDON RAIL TERMINALS Fenchurch Street – serves stations Waterloo – Serves the South BIRMINGHAM Cambridge on the North side of the Thames Coast including Bournemouth, Euston E

Estuary. Southampton and Winchester. London Bridge LB

Swasea King’s Cross KC E KC Liverpool Street – serves stations in Charing Cross – serves stations CARDIFF Liverpool Street LP M LONDON LS the East, including East Anglia and throughout the south east London Newport P Waterloo W LB W BRISTOL Essex. It is also the London terminus and Kent. Paddington P for the Stansted Express Marylebone M DOVER to Stansted Airport. EXETER Weymouth BRIGHTON

Penzance PLYMOUTH

40 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 41 SECTION 5

LONDON HOTEL MARKET 5.1 BREAKDOWN BY CATEGORY LONDON’S HOTEL Rooms Hotels The London hotels census recorded 1,218 Total Rooms Total Establishments hotel establishments providing approximately Economy 26,282 23% 449 37% INDUSTRY 117,000 rooms in autumn 2013; meaning that Midscale 11,236 10% 117 10% London offers about 42.7 million room nights Upper Midscale 13,321 11% 132 11% a year. Based on an average of 1.75 beds Upscale 33,576 29% 289 24% per hotel room, this converts to approximately Upper upscale 20,488 18% 149 12% The luxury class bracket (broadly 75 million bed spaces to cater for a current Luxury Class 11,869 10% 82 7% comparable to the 5-star rating) demand level from holiday and business Total 116,772 1,218 accounts for over 10% 1,218 visitors totalling nearly 71 million nights. of London’s room stock. HOTELS Source: STR Global London Survey, July 2013 PROVIDING NEARLY PHOTOS £ £ £ ALMOST 1/2 117,000 OF LONDON’S £ £ £ ROOMS HOTELS HAVE 50 ROOMS OR LESS, WITH 90% OF THESE BEING INDEPENDENTLY OWNED. 42.7 MILLION room nigths a year

Since 2010, hotel occupancy levels for London hotels have averaged THE WEST END PROVIDES 16% OF LONDON’S 83% HOTEL STOCK AND 22% OF THE 2013 SAW THE AVERAGE CITY’S ROOMS ROOM RATE IN LONDON DECREASE TO £143.51.

THE DEVELOPMENT PIPELINE FOR THE CATEGORISED IN THE FIVE YEARS TO 2017 IS SUBSTANTIAL, 21,600 “PROBABLE” STAGE. WITH APPROXIMATELY BEDROOMS

Across London’s 33 Boroughs, there are currently 31 hotels under construction, adding approximately 4,700 bedrooms to the city’s room stock.

42 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 43 LONDON’S HOTEL INDUSTRY 5.2 London hotels breakdown by category

Luxury Class 10% 7% 12% 18% Upper upscale

24% Upscale 29% 11% Upper 10% Midscale LONDON HOTEL CATEGORIES 11% Midscale 10% The top-end Luxury class bracket (broadly comparable to the 5-star rating) accounts for over 10% of London’s room 37% Economy stock. This sector has attracted significant development in the last three years. Slightly lower down the price spectrum, 23% Upscale properties comprising of the Upscale and Upper Upscale categories (roughly comparable to 4-star/upper 3-star) number 438. These provide nearly 36% of London’s room stock. Rooms Establishments

Midscale hotels are broadly comparable with a 3-star A large number of these are small guest-house style Source: STR Global London Survey, July 2013 designation. Just over one-fifth of London hotels are in properties, many with less than 20 rooms. However, in this category, providing over 24,500 rooms. At the lowest the past five years, leading budget chains have driven end of the price offer, the Economy category is the growth in the category, making low-cost accommodation LONDON’S HOTELS BY SIZE most populous in terms of establishments (449 hotels more accessible to larger numbers of visitors closer to the representing 37%). centre of London. London’s hotel portfolio now includes 20 properties with over 500 rooms, including 4 properties with more than 1,000 rooms. It means that these 20 hotels alone control 13% of London’s room stock.

The largest hotel in the capital is the independently with 90% of these being independently owned, and nearly owned Royal National Hotel in Bloomsbury, a Midscale 50% having an Economy designation. Within the ranks of hotel with 1,630 rooms. Hilton’s London Metropole in the smallest hotels, however, there are a small number of Paddington provides 1,054 rooms in the Upper Upscale Luxury Class properties such as the Firmdale hotels, as banding, making it the largest hotel in the category. well as 45 Park Lane. Almost half of London’s hotels have 50 rooms or less,

5.3 BREAKDOWN OF HOTELS BY ROOM SIZE

Establishments Rooms Total % Total %

1000 + 4 0.3% 4,722 4.0% 750-999 5 0.4% 4,217 3.6% 500-724 11 0.9% 6,615 5.7% 250-499 76 6.2% 25,752 22.1% 100-249 259 21.3% 40,796 34.9% 50-99 272 22.3% 19,253 16.5% Less than 50 591 48.5% 15,417 13.2% Total 1,218 116,772 Source: STR Global London Survey, July 2013

44 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 45 LONDON’S HOTEL 5.4 BREAKDOWN OF HOTELS BY DISTRICT

INDUSTRY Establishments Rooms Total % Total % London West End 191 15.7% 25,217 21.6% Earls Court/Kensington/Chelsea 184 15.1% 15,160 13.0% Paddington/Bayswater/Notting Hill 175 14.4% 12,857 11.0% North Central London 108 8.9% 11,975 10.3% The City/Shoreditch 62 5.1% 9,758 8.4% South Central London 58 4.8% 8,816 7.5% Knightsbridge/Pimlico/Victoria 100 8.2% 7,065 6.1% GEOGRAPHICAL PROFILE OF HOTELS Outer London South 98 8.0% 6,366 5.5% Docklands/Greenwich 34 2.8% 5,700 4.9% New areas of London, such as the City of London, Elsewhere, developers have been improving the availability Outer London West 78 6.4% 5,073 4.3% Southwark, Lambeth and boroughs to the East are of hotel amenities around Canary Wharf and Docklands, supplementing traditional accommodation hot spots such so that this zone accounts for almost 5% of rooms. Outer London North 63 5.2% 4,681 4.0% as Bloomsbury, Mayfair, Victoria and Kensington. Further growth opportunities have come from the recently Outer London East 67 5.5% 4,104 3.5% enlarged Excel Convention Centre, a significant draw for Total 1,218 100.0% 116,772 100.0% The West End provides nearly 16% of London’s hotel event business visitors to London. Source: STR Global. London Survey, July 2013 stock and nearly 22% of the city’s rooms, with a strong cluster of Luxury class properties in areas such as Park Lane and Mayfair. A westerly corridor in the direction of Paddington/Bayswater provides for more cost-conscious visitors, as does the neighbouring Earls Court/Kensington area. Between them these areas account for 24% of London rooms.

One tenth of rooms are located in the North Central zone, anchored around Bloomsbury/Russell Square, with a number of very large properties catering primarily for leisure tourists. The proximity of attractions such as the , as well as easy access to the most popular tourist zones makes the area an attractive base.

The City of London has traditionally been under-supplied with hotel accommodation, with most business visitors to the Square-Mile using facilities in adjacent districts. However, re-generation of the neighbouring Shoreditch area has helped to change this, and there are now 62 hotels offering 9,758 rooms.

Much of London’s visitor activity has traditionally been centred north of the river. But the gravitational pull of major visitor attractions on the South Bank, and the enhanced business infrastructure in the area has seen a raft of hotel development in the boroughs of Lambeth and Southwark and along the river frontage. The South Central zone now has 58 establishments, providing nearly 9,000 rooms.

46 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 47 LONDON’S HOTEL 5.6 London hotel pipeline by room grade 2013 – 2017

INDUSTRY Apartments

Budget

2-star

3-star

4-star

FUTURE HOTEL DEVELOPMENTS AND PIPELINE 5-star

0 5,000 10,000 15,000 20,000 25,000 There was a significant period of hotel development in the period leading up to the 2012 Olympic Games. More than 7,700 new rooms opened in three year period between 2009 and 2011, with a further boost of almost 7,800 rooms in 2012. Source: CBRE Hotels/ London & Partners London Hotel Development Monitor 2013

The development pipeline for the five years to 2017 is substantial, with approximately 21,600 bedrooms (182 hotels) categorised in the “probable” stage (i.e. hotels with detailed planning permission granted). In addition, a further 20,700 bedrooms (190 hotels) are categorised as “possible” (i.e. hotels with outline planning permission that are likely to be 5.7 London hotel pipeline by borough and planning status 2013 – 2017 constructed, or hotels likely to gain permission) for the next five years to 2017. Merton Kensington & Chelsea Havering 5.5 London hotel developments measured in room additions 2003 - 2017 Richmond Waltham Forest Number of Rooms Bexley Bromley Enfield 10,000 Barking & Dagenham Barnet Sutton Haringey Kingston 7,500 Redbridge Harrow Lewisham Croydon Wandsworth 5,000 Ealing Camden Southwark Hammersmith & Fulham Islington 2,500 Lambeth Greenwich Hackney Brent Newham 0 Hounslow 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f City of London Source: CBRE Hotels/London & Partners London Hotel Development Monitor 2013 Tower Hamlets Hillington 0 1,000 2,000 3,000 4,000 5,000 6,000

Source: CBRE Hotels/ London & PartnersUnder London Construction Hotel Development MonitorProbable 2013 Possible

48 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 49 SECTION 6 LONDON VISITOR ATTRACTIONS AND THEATRES

The British Museum, , Natural british museum History Museum and attracted almost between them in 2013 23 MILLION SINCE 2009 VISITORS

THESE 4 ATTRACTIONS HAVE GROWN IN 19.6% COLLECTIVE POPULARITY BY 19.6%, YIELDING 65% AN ADDITIONAL of the British Museum’s 3.8 MILLION visitors were from overseas VISITORS LONDON VISITOR ATTRACTIONS The number of visitors visiting the Churchill War London’s iconic attractions are a major draw for visitors, with the city hosting 17 of the top 20 visited attractions in ST PAUL’S WESTMINSTER Rooms has grown 38% since 2012. the UK. The city’s rich mix of built heritage, world class museums, galleries and royal attractions provide a compelling CATHEDRAL + ABBEY CATHEDRAL motivation to visit.

BOTH The capital’s iconic museums and galleries are undoubtedly London’s historic properties are dominated by the Tower ATTRACTED MILLION the big draw for many visitors, the four largest - the British of London, while the city’s two landmark cathedrals, St OVER VISITORS IN 2013 Museum, National Gallery, Natural History Museum and Paul’s and , both attracted over 2 2 Tate Modern - attracting almost 23 million visitors between million visitors in 2013. them in 2013. Over the last four years since 2009, these four have grown in collective popularity by 19.6%, yielding While most of London’s leading attractions are located in an additional 3.8 million visitors between them. the central area of the city, the top 20 attractions in 2013 also included the trio of Greenwich venues – the Old Royal of overseas visitors THEATRES ATTENDANCE visited a theatre Beyond these four, the list of popular museum venues Naval Hospital, National Maritime Museum, and Royal INCREASED 4.3% TO 14.6 MILLION, performance during includes the Science Museum, the Victoria & Albert (one Observatory – between them attracting 4 million visitors AN ADDITIONAL 600,000 PEOPLE 1/3 their stay in London of London’s fastest growing major attractions in the last in 2013. To the south west of the capital, Kew Gardens five years), as well as the National Portrait Gallery, all with is London’s world class botanical attraction, with just over an excess of 2 million visitors in 2013. 1.3 million visitors.

50 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 51 LONDON VISITOR ATTRACTIONS AND THEIR POPULARITY WITH OVERSEAS VISITORS

ATTRACTIONS AND THEATRES London’s four most popular attractions benefited from substantial volumes of international visitors in 2012/13. The British Museum was one of the most popular attractions for international visitors, with 65% of all visitors from overseas. Just over one-half of visitors to the Natural History Museum were from overseas. Overseas visitors also make up a large proportion of attendances at the Tate venues, National Portrait Gallery and the Victoria & Albert Museum.

London’s Top 4 attractions receive at least 50% of their visitors from overseas, with the 5th most popular (the Tate) receiving 48% of all visitors from overseas.

6.2 OVERSEAS VISITORS TO LEADING London ATTRACTIONS, 2008/09 AND 2012/13

6.1 TOP 30 LONDON ATTRACTIONS 2013 2008/09 2012/13 % change Tate Gallery 2,967,000 3,744,530 26% Attraction Visitors (millions) % change compared to 2012 British Museum 3,228,234 3,609,800 11% 1 British Museum 6.70 20% National Gallery 1,553,600 3,225,000 108% 2 National Gallery 6.03 14% Natural History Museum 1,264,959 2,670,989 111% 3 Natural History Museum 5.36 6.7% Victoria & Albert Museum 817,800 1,536,900 88% 4 Tate Modern 4.88 -8% Science Museum Group 981,295 1,240,000 26% 5 Science Museum, South Kensington (SMG) 3.32 10.9% National Maritime Museum 1,060,012 1,007,526 -5% 6 Victoria & Albert Museum (V&A) 3.29 1.8% National Portrait Gallery 680,000 923,473 36% 7 (HRP) 2.89 18.4% Imperial War Museum 634,702 727,707 14% 8 Trust 2.4 N/C Wallace Collection 140,074 143,547 2.5% 9 St Paul’s Cathedral 2.14 19% Sir John Soane’s Museum 24,112 35,749 48% 10 Westminster Abbey 2.02 13.8% Horniman Museum 9,092 24,491 169% 11 National Portrait Gallery 2.01 -4% Geffrye Museum 9,000 11,728 30% 12 Old Royal Naval College Greenwich 1.8 1% Total 13,369,880 18,901,440 41% 13 British Library 1.48 4.3% Source: Department for Culture, Media and Sport Performance Indicators 2012/13 14 National Maritime Museum (RMG) 1.44 27% 15 1.38 -10% 16 Royal Botanic Gardens, Kew 1.32 29.4% 6.3 Proportion of overseas visitors to leading London attractions, 2012/13

17 ZSL 1.29 26.4% British Museum 65% 18 Houses of Parliament 1.04 4% National Gallery 60% National Maritime Museum 52% 19 Royal Academy of Arts 1.02 -19% Natural History Museum 51% 20 Royal Observatory Greenwich 0.8 27% Tate Gallery 48% 21 Exhibition (CLA) 0.6 17% National Portrait Gallery 45% Victoria and Albert Museum 41% 22 Hampton Court Palace (HRP) 0.56 7.6% Wallace Collection 38% 23 Churchill War Rooms (IWM) 0.48 38% Imperial War Museum 37% 24 Victoria & Albert Museum of Childhood 0.44 3.7% Sir John Soane's Museum 34% Science Museum Group 24% 25 Kensington Palace (HRP) 0.4 13.4% Geffrye Museum 11% 26 Imperial War Museum, London (IWM) 0.36 -62%* Horniman Museum 4% 27 HMS Belfast (IWM) 0.33 107%** 28 Cutty Sark (RMG) 0.32 26% Source: Department for Culture, Media and Sport Performance Indicators 2012/13 29 The Monument (CLA) 0.24 9% 30 The Royal Air Force Museum London 0.23 7.4%

* Six month closure & partial reopening due to building works ** Closure in previous year Source: Association of Leading Visitor Attractions (ALVA) 2013

52 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 53 LONDON VISITOR PHOTOS ATTRACTIONS AND THEATRES

In central London a number of visitor attractions have experienced a surge in overseas visitors. The Natural History Museum has experienced the most substantial increase, resulting in a 111% change from 2008/9 to 2012/13. This is closely followed by the National Gallery, which has benefitted from a 108% increase. However, even attractions outside of the city centre have experienced growth in overseas attendees with The Horniman Museum increasing its volume of overseas visitors 169%.

ATTRACTION ATTENDANCE

Full year figures for attendances at London visitor attractions underline the strength and growing appeal of the sector, with attractions reporting 14% higher attendances than in 2012. The Olympics resulted in a temporary downturn in visitor numbers in 2012, so to some extent this flatters the results for 2013. However, if the comparison is made against prior conditions in 2011, the increase is an appreciable 12%.

6.4 Attractions attendance in London by month and year 2009 – 2013 London’s free museum and gallery venues attractions generate the largest attendances, increasing by 10.5% in 2013, buoyed by a number of highly popular temporary exhibitions such as David Bowie is at the Victoria & Albert Museum, Visitor 6 (millions) and Life and Death Pompeii & Herculaneum at the British Museum. In the paid-for category of visitor attractions, attendances enjoyed a 19.6% boost in 2013.

5 6.5 Attendance at London attractions by fee 2013 2013 Visitors (million) 4 2012 3

2011 3 2010 2 Free Attractions

2 2009 Charging 1 Attractions 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: London & Partners’ Visitor Attraction Monitor 2013

Source: London & Partners’ Visitor Attraction Monitor 2013

54 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 55 LONDON VISITOR ATTRACTIONS AND THEATRES LONDON’S THEATRES

The Society of London Theatre’s (SOLT) 2013 figures Musicals are very much the mainstay of London’s West show that both attendance figures and ticket revenue End theatre offering. In 2013, these accounted for 56% reached record highs. Attendances increased 4.3% to 14.6 of West End theatre volumes, and 61% of revenues. Plays million, an additional 600,000 people and gross revenues contribute 29% to the West End’s attendance mix and of £585 million were up 11% on the previous year. Among 24% of revenues. the 52 West End theatres that comprise the membership of SOLT, there were just over 18,400 performances in 2013 was a particularly strong year for West End 2013 with 270 new productions. productions, buoyed by the popularity of musicals such as Book of Mormon, The Commitments and Charlie and 6.6 Attendance trends at free and charging attractions 2009-2013 According to a survey conducted in 2012, one third of the Chocolate Factory, as well as plays including The overseas visitors had visited a theatre performance during Audience, Iago and Othello. Visitors (millions) their stay in London. This figure was as high as 50% for 50 US visitors, while for other English speaking markets such as Canada and Australia, 40% is typical. 40 18.3 6.8 ATTENDANCE AND REVENUE AT WEST END THEATRES SPLIT BY PERFORMANCE CATEGORY, 2013 15.3 16.1 15.6 30 15.3 Charge attendances % revenue % (millions) attendances (£ millions) revenue 20 Free Musicals 8.20 56% 355.4 61%

28.3 Plays 4.25 29% 140.0 24% 23.1 23.2 23.5 10 22.2 Others 2.14 15% 90.1 15% Total 14.59 100% 585.5 100%

0 2009 2010 2011 2012 2013

Source: London & Partners’ Visitor Attraction Monitor 2009-2013

6.7 SOLT’S TOP 10 THEATRES BY SEATING CAPACITY

Theatre Seating Capacity

1 London Palladium 2,291 2 Drury Lane, Theatre Royal 2,188 3 Dominion 2,137 4 Lyceum Theatre 2,107 5 Apollo Victoria 1,832 6 Prince Edward 1,625 7 Victoria Palace 1,575 8 Adelphi 1,500 9 Shaftesbury 1,405 10 Palace 1,390 Source: society of London theatres, list of prominent London theatres 2013

56 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 57 SECTION 7

The outlook for London’s tourism economy is THE FORECAST FOR strong. Visit numbers are forecast to rise by 4.9% in 2014, driven by robust demand from TOURISM IN LONDON international markets. For the next two years slightly lower levels of growth are forecast, mainly as the post-Olympics impact begins to dissipate. However, there is strong momentum in terms of growing global tourism demand as well as improving economic conditions in London’s core European markets. At these rates of growth, London will be welcoming 2.7 million more international and domestic visits in 2015 compared to 2013, equivalent to consolidated growth of 9.2%.

London’s overseas markets are expected to generate about 58% of the additional volume in 2014. International visitor numbers are forecast to grow 6.7% in 2014, with subsequent growth slowing to 4.4% in 2015. The domestic market should respond to improving conditions in the UK economy, underpinning growth of 2.5% in 2014, and 3.7% in 2015.

7.1 LONDON TOTAL OVERNIGHT VISIT FORECAST 2013 – 2015

2013 2014 2015 Total 29.3 30.7 32.0 % change 5.2 4.9 4.1

By purpose Business 6.7 7. 1 7. 5 % change 5.8 5.8 4.9 Leisure 13.0 13.8 14.5 % change 7. 2 5.8 5.4 VFR 9.6 9.9 10.0 % change 2.1 3.1 1.8

By origin International 16.7 17.9 18.7 % change 8.2 6.7 4.4 Domestic 12.5 12.8 13.3 % change 1.3 2.5 3.7

Source: London and Partners forecast produced by Tourism Economics: An Oxford Economics Company, 2013

58 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 59 THE FORECAST FOR TOURISM IN LONDON

7.2 LONDON OVERSEAS TOURISM FORECASTS BY ORIGIN MARKET 2013-2016 Latin American visits make up 3.2% of London’s total, the 2009 Dubai financial crisis, and moderate growth is having grown by two-thirds since 2009. Brazil has been expected over the next three years. As with several other Visits (million) 2013 2014 2015 2016 mainly responsible for fuelling tourism growth and by 2016, main areas of geography, the next three years will see London could be welcoming a further 152,000 visits from growing contributions from a number of the individually 2.3 2.6 2.8 3.0 North America this region, representing 28% growth. Countries such as small, but rapidly growing, tourism markets such as Qatar % change 2.7 10.1 8.1 7. 3 Mexico and Argentina are beginning to appear around and Kuwait. EU-15 8.5 8.9 9.2 9.4 the edges of London’s visitor economy, and these can % change 10.1 4.8 2.8 2.2 be expected to make a growing contribution to regional The outlook for Africa (2% of visits) is looking more positive Non-EU Europe 2.4 2.6 2.7 2.8 growth. in the wake of the Egyptian crisis. Beyond 2013, strong % change 8.8 8.1 3.4 3.2 underlying conditions in markets such as Nigeria and MENA 0.6 0.6 0.6 0.6 The trend for Middle East and North Africa has tended South Africa, as well as some dynamic economic growth % change 5.2 7. 5 3.0 1.9 to be driven by the performance of the UAE, the region’s projections for several much smaller countries in the African Latin America 0.5 0.6 0.6 0.7 largest contributor. The country has now recovered from continent, should stimulate solid growth up to 2016. % change 9.6 10.1 7. 4 8.4 Africa 0.4 0.4 0.4 0.4 % change 6.6 4.0 6.0 5.4 7. 3 London tourism forecasts by origin market 2014-2016 Asia Pacific 1.9 2.1 2.2 2.4 % change 8.0 8.8 7. 5 6.9 12%

Total 16.7 17.9 18.7 19.4 10% % change 8.2 6.7 4.4 3.9 8% Source: London and Partners forecast produced by Tourism Economics: An Oxford Economics Company, 2013 6%

4% SOLID PROSPECTS IN LONG HAUL MARKETS 2014 2% 2015 2016 As the prospects for the USA’s consumer and business Currently the Asian Pacific countries comprise about 0% economies brighten, demand for London as a destination 11.5% of all visits, but strong growth of 25% is also Asia Pacific Africa Middle East Non EU EU C. & S. N. America for North American tourists looks positive in 2014, with anticipated from this region in the next three years. This Europe Europe America forecast growth of 10.1%. By 2016 visit numbers from will be led by strong growth from Australia and India, the North America to London are predicted to increase by two largest source markets in this area. South Korea, 27%, an additional 645,000 visits. China and the rapidly expanding economies of South-East Source: London and Partners forecast produced by Tourism Economics: An Oxford Economics Company, 2013 Asia can be expected to make a sizeable contribution to regional Asian growth.

60 | LONDON TOURISM REVIEW LONDON TOURISM REVIEW | 61 CONTACTS

Head of Strategy Insight and External Affairs Alex Fong [email protected] Tel: +44 (0) 20 7234 5800

Tourism executive Mariella Southgate [email protected] Tel: +44 (0) 207 234 5883

London & Partners 6th Floor 2 More London Riverside London SE1 2RR londonandpartners.com

62 | LONDON TOURISM REVIEW