London Calling

In July London sadly became the latest in a long line of targets singled out by terrorists for destruction. Striking at the heart of the UK's capital, the blasts that detonated on three Tubes and a bus were designed to do two things: cause maximum immediate damage and puncture the British economy by undermining the appeal of London as an economic investment and as a desirable destination.

Figures detailing the potential fall-out from the bombs arrived quickly and looked ominous. On July 22nd, the day of the failed second attack, figures published by the Tourism Industry Emergency Response Group estimated that the initial attacks could set British industry back by £300 million.

Only a record first half of 2005 in London's tourist industry was expected to help stave off the post-"7/7" downturn according to the Tourism Industry Emergency Response (TIER) group. A study into the impact of both the attacks by TIER indicated that both visits and spending rose in the first half of the year, by 12 per cent and 13 per cent respectively. After the attacks, spending fell, with TIER noting that this year could end in a significant shortfall from initial forecasts as a potential £750 million deficit materialises.

Yet more than two months on from the bombs and more encouraging noises are being heard, with the status of London as one of the world's top destinations appearing to have emerged unscathed. Indeed, potential sticking points for tourists looking to find a hotel and see the city have moved on to more traditional gripes - namely expense.

A survey this week by hotel chain Travelodge found that only a third of those asked said they were worried by terrorism. Instead, the main issue was value for money – with 45 per cent, or nearly half, expressing displeasure at the likely cost of a trip. Less than one in a hundred said they had been moved to cancel a visit after the bombing.

Moves by the Mayor to entice tourists back to London should go some way towards allaying these fears. Hundreds of discounts are now available in the capital as part of a concerted effort to get people on the buses and the trains and to get them back at West End shows and on the capital's leading attractions. Events including the London Eye have been put on two-for-one, while free events such as the Regent Street Festival have been running throughout September.

Mr Livingstone told the BBC that the drive offered something positive for both visitors and locals.

"Since July, our tourism numbers are down four per cent. Now that doesn't seem too important, but that could mean 10,000 people in the catering or retail trades losing their jobs.

"What we are saying to people is: 'Come to London by public transport with your Oyster travelcard and get these huge discounts'," he concluded.