Royal wedding to boost retail and tourism sectors, economists say

The royal wedding between Prince Harry and Meghan Markle could provide a noticeable fillip for the UK economy as it stumbles out of a gloomy first quarter, a major economic forecasting group has suggested.

With Prince Harry set to marry his fiancee Meghan Markle in St George’s Chapel on Saturday 19 May, the EY ITEM Club believes that the wedding could boost the economy, although it’s not clear how much of an impact we can expect.

“The UK economy could certainly do with a lift after a poor first quarter of the year and a slow start to the second quarter,'" said Howard Archer, chief economic advisor to the economic forecasting group.

"There should be some benefits to the UK economy from the Royal Wedding, although we would be wary of over-egging the potential impact or seeking to put a hard figure on the potential gains,” he said.

The sectors most likely to see an improvement are retail, tourism and possibly catering and pubs. The retail sector is likely to get a boost from people buying souvenirs of the wedding.

“Pubs should also benefit as they have been given permission to stay open for longer. However, it should be kept in mind that some of the retail spending may just be switched from spending on other items,” said Archer.

According to ITEM, which stands for Independent Treasury Economic Model, the UK could also expect a temporary boost in consumer confidence thanks to the 'feel good' factor from the wedding, although it probably will not last long.

“With the Royal Wedding being held at the weekend, there is less likely to be any negative impact on productivity as fewer people will be taking time off work to watch the event. Also there is no public holiday, as was case with the wedding of Prince William and Kate Middleton,” he concluded.