The figure represents a far lower total than the amount of spending lost due to the large decrease in commuters traveling into the city, the study says.
Mr Khan said the data showed new bail-outs announced by the Prime Minister and Chancellor on Thursday were only ‘a sticking plaster solution’.
He claimed the collapse of London tourism will leave many hospitality, retail and leisure business without hope of returning to normal for ‘many months to come’.
Mayor of London Sadiq Khan, pictured, has released research which suggests London is suffering a drop in income from tourists of about £11bn this year
Mr Khan has accused the government of failing to introduce a functioning ‘Track and Trace’ system which would allow venues across the capital to open
He called on the Government to enact a ‘functioning’ Test and Trace system to help the economy reopen safely.
City Hall analysis of forecasts by Visit Britain showed goods and services revenue from foreign tourists in the city would drop £7.4 billion through the year, while domestic tourists would spend £3.5 billion less.
‘This analysis shows the eye-watering drop in the money spent by visitors in the economic and cultural heart of the capital – which is far greater than even the impact of fewer commuters travelling into the centre of the city each day,’ Mr Khan said in a statement.
‘Clearly, this will mean many businesses are in danger of closing and many thousands of jobs will be at risk.
The Chancellor’s fresh financial package has been hailed a lifeline for firms under Tier 2
The government has been laying out huge sums while public finances have plunged
The new system means workers could receive less overall than under the previous scheme
Pub and restaurant bosses welcome Sunak’s ‘new furlough scheme’ to help hospitality sector… but warn it will STILL be a tough winter for many
Pub and restaurant bosses today welcomed Rishi Sunak‘s ‘new furlough scheme’ to help those in the hospitality sector – as others warned it will still be a tough winter for many.
Dame Carolyn Fairbairn, the Confederation of British Industry’s director-general, dubbing the scheme ‘a welcome and much-needed successor to the furlough scheme.’
Speaking today, Dame Carolyn said: ‘It’s right that businesses contribute if they wish to access this scheme.
‘But with a tough winter ahead, significantly increased Government contributions to non-worked hours across all regions will do even more to protect people’s livelihoods.’
Ms Fairbairn said the ‘missing middle of pubs, cafes and theatres in Tier Two along with other businesses across the UK who are seeing demand fall away, but with little extra support, will be relieved to see that anomaly come to an end.’
‘This is a big step towards a more standardised approach of support for areas going into tiers two and three and those businesses that face tough times who operate within them,’ she said.
A British Chambers of Commerce spokesman added: ‘Chambers have been campaigning for greater support for businesses experiencing big falls in demand as a result of new restrictions, and a number of the steps announced today, including the lowering of employer contributions and the number of hours worked needed to qualify for the scheme, respond directly to our calls.’
Jonathan Geldart, director general of the Institute of Directors, also welcomed the scheme, adding: ‘The new and improved jobs support scheme is to be welcomed, and should go some way to easing company directors’ fears.’
However, others have warned the ‘sad reality’ is that thousands of businesses are likely to close over the winter ‘whatever financial support packages the Chancellor offers up.’
Aude Barral, co-founder of developer recruitment platform CodinGame, added: ‘The Government needs to recognise how important reskilling and retraining is going to be in helping the country get back on its feet as quickly as possible.
‘The hospitality, tourism and retail sectors have been decimated by the pandemic, but there are sectors such as technology that have huge employment potential.
‘There needs to be significantly more investment in retraining for the future, opening up these sectors to people who have transferable skills and are keen to get back to work.’
‘I’m determined to do all I can to support London’s economic recovery now, and in the years to come. But these sectors won’t be able to sustain pre-pandemic levels of employment until tourists return in significant numbers – so Government must act swiftly to prevent widespread job losses and the financial hardship this will bring for Londoners, many of whom are already struggling to make ends meet.
‘The Government needs to get its act together and provide a functioning test and trace system so the economy can reopen safely.’
‘We also urgently need an extension of the business rates holiday to next year along with more support for jobs beyond what the Chancellor announced this week and which truly reflects the scale of the problem.’
Chair of the Association of Leading Visitor Attractions, Baroness Patience Wheatcroft, said: ‘Everyone in London knows someone who works in tourism and they know how decimated the industry is.
‘We need specific help from the Government for our hospitality and tourism sectors to keep businesses afloat, keep people in their jobs and to market London to the UK domestic market, and to the world, so we can welcome back our inbound tourists when they are ready to return.’
Mr Khan is also commissioning new research into Covid’s impact on the so-called central activities zone (CAZ) – London’s economic and cultural heart – to identify emerging trends across key sectors over the next few years and further.
Along with the drop in tourism and commuters, the CAZ has also been affected by changes in how Londoners spend their free time, Mr Khan said.
He has also urged the Government to scrap the 10pm curfew, which he argues became redundant when London and other parts of the country moved into Tier 2 and higher restrictions.
His comments come the day after Rishi Sunak announced an emergency bailout that will cost up to £22billion bailout to keep business afloat and head off a jobs bloodbath this winter.
The Chancellor’s fresh financial package has been hailed a lifeline for firms under Tier 2 lockdowns such as London which were previously ineligible for Government support.
In a statement to the House of Commons, he unveiled the three-pronged funding blizzard to shore up the health of UK Plc as more regions face tighter restrictions.
Mr Sunak said grants of up to £2,100 a month will be offered to Tier 2 companies that are not forced to close but are struggling to be commercially viable..
Some 150,000 businesses are estimated to qualify for the payments, which could cost the Treasury £1.2billion.
The Job Support Scheme, which will replace furlough, will be extended to firms that are legally allowed to open.
It will be made more generous so employers will only have to pay 5 per cent of staff wages, while the minimum threshold for hours worked will be slashed to just one day.
If two million people enroll, the pledge could cost the Treasury £6billion.
Finally, Mr Sunak increased grants given to self-employed workers to 40 per cent of the average profits, up to a maximum of £3,750 a month, which could cost about £3billion.