Jason Moore20/09/2016 00:00
TW
1

I was rather amazed to read reports that tourists were flocking to London and cashing in on the fall of the pound against the euro. I visited London last month and yes it was packed with tourists but I very much doubt that anyone found it cheap.

The pound, as we all know, has fallen against the euro but it is still trading relatively strongly against the single currency. London, like any capital city, is not cheap. I have often complained about prices in Majorca, but London is in a different league. It is incredibly expensive for anyone travelling with euros. The only good point is that prices have fallen in line with the drop in value of sterling. I would say that prices in London are 20 per cent higher than anywhere else in the country. But wages are also higher. I know plenty of Majorcans who are now working in the British capital and they say that their salaries are at least double what they would be paid for a similar job in Majorca. And there is plenty of work as tourists continue to flock to the British capital.

Tourism, it appears, is one of the bright spots for the British economy at the moment, helped in no small part by a cheaper pound. There are indications that sterling will remain low against the euro until the Brexit negotiations are completed so London can cash in and Majorca must get use to the fact that British tourists will not have the same spending power. London´s gain is Majorca's loss.