Just over 4 years ago in early July, London beat Paris to become the 2012 Olympic venue. It came at a time when recession was being discussed by analysts and international Banks were on the brink of what was to become a period of closures and sell-offs. Gordon Gekko R.I.P.!
The award of the Olympics venue was seen by some as a reason to be optimistic and to celebrate. The last time London hosted the event was in 1948 when remarkably it made a very small profit. Others pointed out that none of the Cities hosting the past 5 Olympics had made money - even during periods of relative world economic strength. It is very doubtful whether 2012 will end up with London making a profit. Apart from construction costs and new infrastructure, plus manpower costs to support the games there are the costs of signage and road markings which for weeks will change traffic patterns in the Capital. The time and planning that have gone into ensuring that every aspect of transporation, security, safety and the smooth running of the games has been enormous - all at a cost....
Then there are the "incidental costs". As a West London resident I have received several booklets advising me of road closures and dates where traffic will be banned or badly affected. Apart from the cost of every household getting the two booklets (duplicating the information!), the widespread publicity about Olympic traffic only lanes with £130 fines for those unfortunate enough to drive into one has definitely deterred traffic coming into my part of London anyway. Some tradesman are even stopping deliveries or working in Central London during the Olympics. It will be interesting to see what experience shops and restaurants have over the games' period.
There are already several indicators that give an idea that the games may not provide the bonanza economic boost the the local economy, let alone the UK, is hoping for. This week London hotels are having to discount room prices with one late-booking site saying it is carrying scores of central London four-star hotels this week with rates at just £59 a night and five-star luxury from £110. Next week after the start of the games rates rise to £100 and £180 a night respectively and hotels claim they are fully booked. If that is the case then travellers looking for a bed need not worry - only about 10% of the private rentals market that hoped to benefit from the Olympic effect have been actually booked. Remarkably the Guardian newspaper reported that the iconic restaurant, the Ivy, normally fully booked for weeks in advance was able to offer its reporter a table for the same day. I'm sure many restaurants are seeing the same effect.
I guess we should not be too surprised. With the Eurozone continuing to teeter on the brink of an ever-deepening crisis; VAT on Hotels at 20% and restuarants; the Pound at its highest against the Dollar and the Euro; Air Passenger Duty the highest tax on flying in the World, plus all the negative publicity about immigation problems at Heathrow its difficult to imagine a scenario less conducive to tourism to the UK.
However London is a great place to be with or without an Olympic ticket! Also the wet weather which we suffered in June seems to be over and at last, in the words of the old West -End musical "Salad Days", 'The sun has got his hat on! Hip,Hip,Hip Hooray!' The forecast is not too bad either! So please don't give up on coming to London there is still room at the Inn!!
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