Olympics minister Hugh Robertson sounded far from sympathetic when quizzed this week about business being hit by the Games. “This is hardly a surprise,” he told the BBC. “There has been ample time to plan for it.”
The problem is that retailers and leisure operators did plan. They planned for a bonanza, not a dearth of customers. So restaurants in Mayfair that would otherwise have taken a summer break stayed open. Taxi drivers who had been worried about the impact of the special Olympic lanes have found a 20-40% fall in passenger numbers to be a bigger problem. And retailers who expected increased footfall have found the opposite to be the case.
You could argue they were unrealistic. They would say they were missold.
The impact of the Games on retailers is most quantifiable. Last weekend saw retail footfall across London plunge 21%. This was an effect that rippled out beyond the capital – across the UK it was down 9%, according to monitoring service Springboard.
There is a positive side to this, of course. The success of the Games – a spectacular opening ceremony was followed, after a nervy few days, by gold medals – means people have stayed at home.
But for the Games to be truly successful, the goodwill they are generating needs to be capitalised on. UK Regeneration’s Jackie Sadek suggests an economic Olympics; Springboard calls for a national campaign in September to promote the high street’s shops and restaurants.
Ministers should heed the spirit of that advice. Merely insisting the Games will give a long-term boost to business is a performance worthy of a gold medal in complacency.
Contrast Robertson’s performance with that of true Olympics hero Bradley Wiggins. Cycling was already the fastest-growing sport in property – OK, serious research to back this up may be needed, but I’m certain it’s true – but the Wiggo effect will no doubt accelerate the conversion. Before the goosebumps recede, act: registration for the 2013 Cycle 2 Cannes is already open. Details here.
The Serious Fraud Office acted in haste when it raided the premises of Robert and Vincent Tchenguiz back in March. It will repent at leisure.
After the raid was ruled unlawful this week by the high court, Vincent pledged to seek damages from the SFO. He cites personal and business costs and losses directly resulting from the SFO’s actions. The SFO has conceded serious mistakes, and others who “contributed to the court being misled” are also in Vincent’s sights. A claim of as much as £100m has been mooted.
Vincent was unfairly targeted (he has since been dropped as a suspect), the case badly handled and the SFO in the wrong. The experience has been damaging to the brothers and they are entitled to be compensated. Moreover, the case further damages the credibility of the SFO, which is in no one’s interests.
Successive governments have been unwilling to invest in a properly resourced agency that takes appropriate action in cases where wrongdoing is legitimately suspected. That was not the case here. But if a sizeable damages payout persuades the coalition to act – as it once pledged – that may be of little comfort to the Tchenguizes, but it would be of benefit to UK plc.
The annual Estates Gazette Investment Summit takes place on 19 September, followed that afternoon by our distressed property event. The topics are increasingly intertwined. Speakers across the events include Lynda Shillaw, corporate real estate managing director for wholesale banking and markets at Lloyds and Royal Bank of Scotland’s head of property Aubrey Adams. Morgan Stanley’s Brian Niles and Mark Williams, Hark Group partner and chairman of the Distressed Retail Property Taskforce, will also speak. It would be nice to say distress will be less relevant in the autumn; it’s inconceivable to suppose it will be. Full details
