London's tourism competitiveness threatened by 'poorly designed' policies, warns business group

London's position as a premier global destination for tourism and culture is being hampered by what the West End's leading business advocate describes as "poorly designed" policies. Dee Corsi, chief executive of the New West End Company (NWEC), stated that the capital is at a disadvantage compared to international rivals whose governments are actively promoting tourism and attracting talent.

The NWEC, representing over 800 businesses in the retail, leisure, and hospitality sectors, has outlined a series of policy recommendations aimed at fostering significant growth in London. A recent report by the organization ranked London as a top destination for culture and international influence, on par with Paris, and within the top five for innovation, tourism, and investment appeal. The city's free museums and numerous Michelin-starred restaurants contribute to its cultural distinctiveness, while its robust AI sector, bolstered by the presence of Google Deepmind and OpenAI headquarters, helps attract top-tier tech talent.

However, the NWEC highlighted that London performs poorly in terms of its policy environment, lagging behind cities like New York, Dubai, and Tokyo, which are aggressively competing for global talent and spending. The group is urging the UK government to reinstate VAT-free shopping for tourists, relax restrictions on retailers' opening hours, and increase policing numbers. The abolition of VAT-free shopping in late 2020, when Rishi Sunak was Chancellor, is estimated to have cost West End retailers more than £600 million annually by removing their cost advantage over European competitors.

Furthermore, the NWEC is pressing for promised reforms to business rates, noting the significant contribution of the West End to national tax revenues under this system. Corsi emphasized that global competitors are continuously improving their policy frameworks and visitor experiences, and that London's natural advantages are being constrained by "poorly designed regulation."

Howard Dawber, the deputy mayor for business and growth, acknowledged the NWEC's findings regarding London's strengths and assured that City Hall is committed to enhancing the city's attractiveness for overseas investment and talent, aiming to build a more prosperous London.