The weak economy and squeeze on incomes will have a dampening effect on the Jubilee’s benefits for London hotels.
Commenting on the impact of the Queen’s Diamond Jubilee celebrations, Liz Hall, head of hospitality & leisure research at PwC, said: ‘It should be a good weekend for London hotels, but not the golden prize many expect.
‘The effect won’t be as big as it could be if the economic situation was stronger and people had more disposable income.’
About 1m visitors lined the streets for last year’s Royal Wedding and PwC estimated that its economic benefit to London from visitors’ expenditure was about £107m.
Looking ahead to the Jubilee, PwC anticipates a similar number of visitors lining the streets and river banks.
Hall added: ‘The challenge for hoteliers is to fill their rooms. Looking back to the Royal wedding last year, it was mainly hotels along the route that benefitted.
‘If that is the case this time round, there are only about 10 hotels along the river between Battersea and Tower Bridge and not all of those hotels/rooms will have a river view.
‘There could also be an exodus as many look to take an extended holiday over the period, many may go abroad or leave London altogether and it is likely to deter the lucrative corporate business clientele, who spend most in hotels.
‘All in all though, it should be a good weekend for the capital with all eyes on London ahead of the Olympics.’
For more from PwC on the Jubilee, click here.