Prince William’s wedding to boost economy

Posted on November 19th, 2010 | Categories - Financial News

The economy will improve through an increase in tourism and spending as a result of Prince William’s wedding.

Economists are predicting that the economy will be strengthened in the lead up to the marriage of Prince William and his fiancée.

The 2011 summer wedding of Prince William and Kate Middleton is set to boost the UK economy, according to experts.

The couple announced their engagement earlier this week and their upcoming nuptial celebrations may bolster tourism, merchandising and broadcasting, helping post-recession Britain to improve its fiscal foundations.

The good news may even cause consumers to spend more, working to strengthen the economy even further.

Professor Stephen Lea of Exeter University, who specialises in economic psychology, said, “extraneous events can increase feelings of economic and other wellbeing” and lift people out of the atmosphere of doom and gloom, which has become an unwelcome characteristic of the economic downturn.

He added that people who were not directly affected by the recession but controlled their spending in line with hard hit groups may begin to spend more. “The great advantage is that generally these people are not borrowing, but spending out of savings or increased income”, Professor Lea said.

The money generated through tourism will also strengthen the economy as tourists travel to the UK to witness the grand event.

Visit Britain spokesman Paul Eastham said: “Our culture and heritage reputation is very strong around the world. At the heart of that lies the monarchy”.

He added that “people like to be on the spot when historic events happen,” and the wedding is “likely to produce a very positive additional premium on what we normally see”.

The 2012 Olympics will also draw in large number of tourists resulting in a double whammy boost to the economy over the next couple of years.