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UK: The Heart of London Business Alliance (HOLBA) has released a report which examines the experience sector in the West End of London and its contribution to the economy.
HOLBA was the first Business Improvement District (BID) established in central London. The Heart of London area consists of three subdistricts: Leicester Square and Piccadilly Circus; Piccadilly and Jermyn Street; and St Martin’s Lane area.
Collectively, these areas host popular tourist and cultural attractions and is worth more than £10 billion annually to the UK’s economy.
HOLBA’s latest report – Unlocking the Experience Economy: Driving Growth in the West End – reveals that consumers in the UK, aged 18 to 34 specifically, are prioritising experiences over traditional purchases. This demographic spent 67 per cent more than the national average between July and September 2024.
The report builds on insights from the Quarterly Real Estate Insights Report which shows that during the same period last year, the area attracted 22.6 million visitors of which 14.4 million were domestic and 8.2 million were international. Compared to the same period in 2023, the area experienced a 6.7 per cent increase in footfall.
Additionally, HOLBA’s analysis shows that commercial occupancy rates in the Heart of London area were at 97.3 per cent while restaurants, bars, and other hospitality venues had a 100 per cent occupancy rate.
Hotels also reported a 4.5 per cent increase in revenue compared to the same period in 2023, as well as increases in occupancy rates (ranging from 1.7-2.0 per cent).
More than £370 million in investment in hotel refurbishments has also been identified over the next few years, as well as more than 41,000 square feet of potential development of new casino space. Real estate and public realm developments in areas such as Leicester Square, Regent Street, Haymarket and Piccadilly Circus are also on the horizon.
Ros Morgan, chief executive of HOLBA said: “We are at a crucial moment where a unified framework and vision for the experience economy is essential to sustaining this vital sector’s growth. Our report clearly identifies the challenges policymakers, businesses, and investors face, so we are now in a position where we can work with key stakeholders to drive solutions. Our goal is to strengthen the West End’s position as a global commercial and cultural powerhouse—open for investment and powering the UK economy forward.”
Laura Citron, CEO of London & Partners, London’s growth agency, said: “The West End has been London’s entertainment capital for over 150 years, attracting visitors from across the globe. As a cornerstone of the experience economy, it remains a vital destination for unique and memorable experiences. Events and research like this are invaluable for uniting the business community and driving continued investment in our city.”
Opportunities to expand the experience economy in the area, as identified by HOLBA, includes:
• Offering short-term leases for experiential pop-ups to retailers, brands and institutions.
• Utilising the public realm to create unique experiences.
• Investing in technology and bridging the gap between the physical and virtual.
• Collaborating across sectors to create innovative concepts.
To download the full Experience Economy report, click here.
