INDUSTRY CONCERNS: Tourism officials have warned that the attacks on London and continuing police investigation will have "serious implications" for the capital's tourist industry, which had been showing a strong recovery after the July 7th bombings.
A crisis meeting held yesterday by the travel industry emergency response group was told the attacks on London's transport system two weeks ago cost the industry an estimated £300 million (€432 million) as travellers cancelled hotels and holiday activities.
Though it is too early to assess the economic impact of the renewed attacks in the last few days, tourist groups believe the figure will rise as the full implications become clear.
James Bidwell, chief executive of Visit London, said: "The feeling is that this week's attacks will have serious implications for tourism in London. After an initial downturn, people were starting to get back to normal and the fear is that the new attacks will undo that."
The organisation was working on recovery plans to include international and domestic advertising campaigns to encourage visitors. "The message we want to get across is that out on the streets of London life goes on."
Miles Quest, spokesman for the British Hospitality Association, which represents 3,000 hotels and guesthouses in London, agreed that the developments had "serious implications for tourism in London and potentially the rest of the UK".
He said: "One has to be worried about what the implications will be, not just on overseas people but on people coming to London from the rest of the country. I think a second attack is always more worrying than the first because people think the first is a one-off. The industry will be very wary about what the future holds."
There was a similar picture on London's high streets, with major retailers reporting 27 per cent fewer shoppers entering central London on Thursday compared with the same time last year. Shoppers numbers slumped 74.1 per cent on July 7th.
Tim Denison, a director of retail tracking agency SPSL, said: "The fundamental question we must now ask is whether shoppers will no longer consider the July 7th attacks as a one-off but as part of an ongoing threat. If they do, it is likely consumer recovery will be very much slower."
A spokeswoman for John Lewis said its stores on Oxford Street and Sloane Square in London were "very quiet" yesterday afternoon as shoppers stayed away. Sales were down 8.3 per cent during the week after the first attack.
The London Eye reported a 20 per cent fall in visitors following the July 7th attacks, while Kensington Palace, Hampton Court and the Tower of London said they had seen a visitor drop of about 10 per cent.