Royal fans give London tourism a bump amid UK economic woes

Britain's King Charles III before Privy Council members in the Throne Room during the Accession Council at St James's Palace, London, September 10, 2022, where he is formally proclaimed monarch. [AP]

On the Thames, the Riverside Cafe that's next to the mileslong, round-the-clock line for people to get a glimpse of the queen's coffin, has been "extremely busy," manager Zab Istanik said. He's been opening two hours earlier than normal, at 7 a.m.

"We were busy like this when the Queen Mum passed away in 2002. But it wasn't as busy as it is ... this week," Istanik said.

Also on the route, Jason Rich's food stall, Fed By Plants, was doing brisk business selling lentil burgers.

"It's a long queue," Rich said. "So definitely it had a good boost on the business."

The U.K. was already an attractive place to visit as demand rebounds for international travel since the COVID-19 pandemic and the weakened pound, especially for American visitors, makes transatlantic travel more affordable.

University professor Chad Broughton, 51, who was visiting London from Chicago with two friends after a long pandemic delay, said their hotel room in the tourist-heavy Covent Garden neighborhood was pricey at 400 pounds ($456) a night.

But the trip to London was unique. "Seeing all these people queued up, seeing the reaction on BBC and just feeling this, you get a sense of how important it is to the people here," he said.

Plus, costs were offset by the currency's fall, friend Josh Walsman said.

"We've found everything to be a pretty surprising value," Walsman, 51-year-old musician, said as they walked by Westminster Hall, where mourners inside paid homage to the queen and tourists outside snapped photos on streets closed to traffic.

Walsman said they went to a Champions League soccer match, had tickets for a play and a dinner reservation at the upscale Cinnamon Club Indian restaurant.

"We've been mostly spending our money at pubs," he said. "The conversion rate has meant that each time a bill comes, it's like, 'Oh, I thought it was about 30% more.'"

The pound briefly slumped to a 37-year low against the dollar on Friday after U.K. retail sales volumes slid more than expected in August - a fresh sign of economic weakness.

A man places a flower on the top of other floral tributes for Queen Elizabeth II outside the gates of Balmoral Castle in Aberdeenshire, Scotland, Friday, Sept. 9, 2022. [AP]

The British economy is reeling from rising energy prices spurred by Russia's war in Ukraine, driving the worst cost-of-living crisis in a generation. The government said it will cap energy bills for households and businesses, but prices are still painfully high. Inflation is the highest in the Group of Seven economies, at 9.9%.

With that backdrop, the money being spent by visitors offered a glimmer of hope.

"Speaking to our hospitality sector, not just our hotels, but restaurants, bars and pubs, they've had an awful three years because of this pandemic," London Mayor Sadiq Khan said.

Budget hotel operator Travelodge said it's ordered extra breakfast supplies for its 78 London hotels for Monday, saying it expects many mourners to start their day with a "traditional full English" breakfast. Pub chain JD Wetherspoon says it will keep its pubs in central London open Monday during the queen's funeral.

Some analysts predicted the overall economic boost for the U.K. from the royal mourning period would be limited. That's because it would be offset by supermarkets, retailers, hardware stores and other businesses closing for the funeral Monday, which has been made a public holiday.

However, renewed interest in the royal family could give an extended boost to the travel and tourism industry, said Tim Hentschel, co-founder and CEO of Hotelplanner.com.

"Yes, short term, the bank holiday will probably cut down productivity a little bit," Hentschel said. But "the overall momentum that the U.K. is going to gain from all the tourism that's going to flock here over the next few days and then over the next few months will far outweigh" the short-term loss.