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From this Wednesday afternoon the British will be able to pay a last tribute to their queen at the Palace of Westminster. Hundreds of thousands are expected, often with a flower or an object. Sales of these souvenirs will soar. The crown is also a booming business for the British economy.
The grief of the subjects of the crown is immense. It temporarily erases the resentment felt by the poorest households, hard hit by the double-digit inflation that is currently raging in the United Kingdom with regard to this family of wealthy people. The exorbitant cost of the royal family’s lifestyle is a recurring subject of controversy. To fuel this epidermal debate, economists regularly produce cost/benefit studies and their conclusion is unanimous: the crown brings much more to the economy as a whole than it costs the taxpayer. Between the annual allowance given to the Windsor family and the costs incurred to ensure the safety of its members, the cost would be around 500 million pounds, and the benefit for the British economy, five times higher, of 2 .5 billion pounds, according to the estimate of the consultant Brand Finance, or about 3 billion euros.
It is tourism that benefits the most from the “England crown” effect
In this sector, the benefits are around 500 million pounds per year. Taking into account the derivatives industry, the profits of hotels, restaurants and the receipts of the places visited. Buckingham Palace and Windsor Castle are among the top 10 most visited sites in the UK. British companies are also benefiting from the corona effect. The royal seal granted to 800 companies would boost their profits by 10%. The famous luxury grocery store Fortnum & Mason, one of Her Majesty’s official suppliers, for tea in particular, is one of the lucky ones, she has also lowered her flag as a sign of mourning and gratitude.
The royal family has become a brand that must be nurtured and promoted to ensure return on investment
Absolutely, family events, births, weddings, but also divorces or funerals, are all opportunities to take care of or protect this brand with precise communication. Prince William and Kate’s wedding was seen by 200 million viewers worldwide. It was a great publicity campaign for the “Firm”. The “Firm” is how the British affectionately call the royal family when referring to its members and their successful business. With the disappearance of the queen, this firm has undoubtedly lost its best asset. Elizabeth II was extremely popular at home and around the world. The halo of the crown had made her, and her children, the best ambassadors of British foreign trade.
It is now on the shoulders of the new king, Charles III, that the prosperity of this business of the crown rests
He is far from having the popularity of his mother, so he has an interest in remedying this to ensure the sustainability of the firm. He made it clear that he would reduce the lifestyle of the crown. This could raise its rating but it will probably not extinguish the controversy over the welfare plan enjoyed by the Windsors. A debate as old as the crown.