London is Europe's costliest city

13 April 2012

LONDON has been declared the most expensive city in Europe and the second dearest in the world.

A survey of 143 major cities found only Tokyo had higher prices.

The report covered the costs of housing and hotels, eating out, public transport, household goods and entertainment. The findings could be another blow to tourism in the capital, which has been hit by the Iraq war and the aftermath of the September 11 terror attacks.

Researcher Marie-Laurence Sepedey, of Mercer Human Resource Consulting, said: 'High accommodation and transport costs plus the rise of the pound against the dollar-have pushed the city up the rankings.'

Stephen Dowd, chief executive of the British Incoming Tour Operators Association, blamed high taxation.

He said: 'We are very concerned. Tourism brings £12bn into this country and about £2bn goes in taxes. It's not that we are ripping people off, it's that it's very hard to compete and make a profit.'

Ken Kelling of Visit London, which promotes tourism, said: 'You can still find good value if you want it. Budget hotels have been one of the biggest growth areas.'

Moscow was third in the survey, followed by Osaka, Hong Kong, Geneva, Seoul, Copenhagen, Zurich and St Petersburg.

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