Business

Harrods chief executive Michael Ward sees no V-shape recovery for the economy as tourists from the US and Asia stay away

Rich tourists are staying away because of coronavirus
AFP/Getty Images
Mark Shapland
27 July 2020

Harrods boss Michael Ward has warned there will be no V-shaped recovery for the UK as tourists stay away from London amid ongoing Covid fears.

In a discussion with London stockbroking firm Jefferies, Ward said he believes US and Asian tourists will not be returning this year or next.

Harrods relies heavily on wealthy tourists to come and spend money at the department store with only 30% of sales coming from local Londoners and European visitors.

Ward believes a vaccine is needed before shopping habits can return to normal.

Pre-coronavirus Harrods boasted 80,000 visitors daily, but today that figure is just 4,000.

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Harrods is pencilling in a fall in revenue of 45% for this year and a 35% fall in 2021. It is aiming for a full recovery in 2023.

US tourists are notoriously cautious about returning to travel after a crisis and took years to come back to London after 9/11.

Harrods boss Michael Ward
Jenny Goodall

Asian tourists are likely to be prevented from travelling by their home governments and are also wary about receiving a frosty reception following coronavirus.

Separately, official figures showed a 13.9% jump in retail sales for June as non-essential stores reopened. However it was still the weakest quarter on record with city centre stores struggling.

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