Riots undermine British tourism as Olympics approach

_A Monitor Report London : Stores smashed and looted by rampaging mobs, buildings in flames - the damage was to London and other English cities, but the images were beamed around the world. Four days of riots have already cost businesses and insurers hundreds of millions of dollars. The cost to Britain's reputation_ and its lucrative tourist trade in the run-up to the 2012 Olympic Games - may be incalculable. London's historic centre, visited by millions of tourists a year, has been almost untouched by the riots which hit a handful of inner-city and suburban areas. That hasn't stopped images of flaming buildings and shattered shops under headlines like "London's burning" flashing around the globe. "People read that there are riots in London, they think people are rioting on Tower Bridge or in front of Parliament," said Tom Rees, senior travel and tourism analyst at market research firm Mintel. "The impression people are getting in other countries is that a lawless state existed in London for a few days," he added. "The impression could be fostered that it's just not safe, and that's a tremendous problem for tourism." So far there is little hard data, but Rees said there are anecdotal reports about people canceling trips to London. "I think there is certainly going to be a damaging short-term impact on arrivals," he said. Patricia Yates of Visit Britain said tourism businesses had seen "concern from some consumers" but not yet cancellations. Most tourist attractions have been unaffected by the rioting. Museums, art galleries, and West End theaters have remained open - though several smaller theaters in riot-hit London neighbourhoods canceled performances earlier this week. Tom Jenkins, Chief Executive of the European Tour Operators Association, said the images of riots looked bad, but the disturbances would have little long-term impact on Britain's resilient tourism industry. "My members move tens of thousands of visitors in London every day and I haven't had any reports of anyone being caught up in it," he said. "We've had major terrorist bombings, we've had sustained IRA campaign, we've had riots before. London is one of the most vibrant and safest places a tourist could go to. And that remains the case." Aside from the impact on tourism, the riots have hurt a huge range of British businesses, big and small. The looters' targets ranged from corner stores, stripped of booze, cigarettes and candy, to chains selling youth-friendly gear and music. Colin Stanbridge, Chief Executive of the London Chambers of Commerce and Industry, said the riots could not have come at a worse time - less than a year ahead of the 2012 Olympics and with Britain's economy still fragile after a prolonged recession.