How much money does the Royal Family earn the UK economy?

A look into the monetary benefit of the British Royal Family

I’ve written all about where the Royal Family gets its money and how much they cost the UK. For this article, I’m switching focus and looking at how much the Royal Family makes the UK and boosts the British economy. The amounts are staggering, so hold tight.

Estimates

It is hard to put an estimate on what they Royal Family brings in to the economy, as a lot of their impact in intangible. That being said, some estimates have been made into the family’s money making abilities.

According to Brand Finance, a brand valuation consultancy, the capital value of the British Monarchy as a business is estimated at an enormous £67.5 billion. In 2017 alone, the annual contribution to the economy was £1.766 billion (Brand Finance). These huge figures evidently bring a vast sum into the UK economy. This is done through a number of ways.

Tourism

The most obvious way that the Royal Family boosts the UK economy is by increasing tourism. In 2013, it was estimated that the Royal Family generates around £500 million annually in tourism (The Atlantic). Tourists flock to Royal locations to get a glimpse of the Monarchy’s lives.

Insider claims that almost one third of all inbound trips to Britain include visits to historic houses or castles. Additionally, half of all trips include a visit to a royal site, such as the Tower of London, for example (Insider). The income the Royal Estate made from ticket admissions alone in 2019–20 was almost £49.9 million (Statista).

Fashion

Another area that the Royal Family positively impacts the UK economy is through fashion. What the family wears is frequently reported across the media.

FastCompany suggests that the amount the ‘Duchess Kate Effect’ brings into the economy is £1 billion. This is driven by her fashion choices which promote British brands and create enduring style trends.

Items the family wear sell out within hours of being photographed. They have the ability to catapult new designers into the limelight and create an insatiable demand for their favourite brands.

Weddings and Babies

Events in the Royal Family’s lives have the ability to create an even bigger boost to the economy. According to The Guardian, the 2011 Royal Wedding of Prince William and Catherine Middleton generated an estimated £2 billion for the UK economy. It is also estimated that the wedding would pull in an additional 4 million visitors to Britain (The Guardian). Tourism in the UK saw a 3% boost in 2011 (FastCompany).

In the short term, the 2011 Royal Wedding made London £107 million, boosting hotels, shops and restaurants as viewers flocked to the capital (The Guardian). Sales of Prince William and Catherine merchandise was estimated to total £26 million, including commemorative items such as tea towels and mugs (The Guardian).

The 2018 Royal Wedding of Prince Harry and Meghan Markle generated an estimated £1.05 billion, according to MarketWatch.

Britain’s Center for Retail Research estimated that the birth of Prince George would generate $383 million, due to aspects like commemerative merchandise and alcohol sales seeing a boost (Washington Post).

How much money does the Royal Family earn the UK economy? The Royal Family has a vast impact on the economy, through tourism and fashion to important events boosting the sale of goods. Although difficult to accurately estimate the value of the Royal Family, it is clear that the financial impact they have is hugely positive.

Sources:

https://brandfinance.com/wp-content/uploads/1/brand_finance_monarchy_press_release.pdf