Week 1: The Royal Wedding's Effects on England's Economy

The wedding of Prince William and Katherine Middleton may be a double edged sword for England’s economy.  The very public event has benefited England’s tourism industry, increased good will, and stimulated domestic spending.  It has also decreased productivity and increased worker absenteeism.

For the royal wedding alone, the tourism industry in England reportedly pulled in almost 4 million travelers, and £2bn.  By comparison, during the second quarter last year London hosted about 3.5 million travelers (Cork, and Milner 1), a significant increase.  Tourism is not the only area that has benefited, however.  Good will towards England is anticipated to increase from the public event (Voigt).

Money is being spent by both tourists and citizens.  The April 29th bank holiday allowed workers time to go and spend their money on luxury items they may not have otherwise.  There were street parties and flat viewings, which spurred consumers to purchase food and other entertainment items.  Royal wedding merchandise also had its own profits (Wood 15).

April 29th’s bank holiday came on the heels of an Easter break.  It is also estimated that workers will be taking additional time off from the already extended holiday (Voigt). This change in the amount of human resources available is likely to decrease the ability for England to produce as many goods.

What does all of this mean for their economy? Can the good will generated and increased spending be enough to replace the decreased production from the time off?  Will one day make a significant impact on England’s economy? Although statistics are already available for analysis, the full effect of the royal wedding on England’s economy is yet to be determined.

Word Count: 268

Works Cited:

Voigt, Kevin. "Royal wedding: Pricey or priceless?."Business 360. CNN, 04292011. Web. 21 May 2011. <http://business.blogs.cnn.com/2011/04/29/royal-wedding-pricy-or-priceless/>.

Cork, , and Milner. London. Visit London. London: Cork Gully, 2011. Web. 21 May 2011. <http://vlstatic.com/l-and-p/assets/media/london_overseas_visits_q2_2010.pdf>.

Wood, Zoe. "Royal wedding gives £2bn boost to UK tourism." Guardian 04302011, Main Section: 15. Print.