Airports quiet as the Olympics keeps visitors away

200,000 fewer people flew into London in July than last year.

The thought of welcoming an influx of 300,000 or so visitors made even the least cynical Londoner wretch in anticipation. While optimists reveled in the thought of subletting their flats to American tourists, others slowly got used to the idea that tubes, trains, and pavements would be teeming with people who walk far too slowly.

And the London pace did slow. But not for the expected reasons. Statistics released by BAA (the company that owns most British airports) show that 4.1 per cent fewer passengers year-on-year made their way to Great Britain this July. Although Heathrow welcomed a record-breaking 236,955 passengers on the first day of the Games, there were roughly 200,000 less passengers in July 2012 relative to 2011. In particular, the airport noted a 6.6 per cent annual decrease in European traffic, even as North Atlantic traffic remained virtually unchanged. Stansted, Glasgow and Southampton experienced similar trends.

BAA’s statistics confirm anecdotal reports of London as a "ghost town". According to the Huffington Post, the city’s main attractions drew less crowds than before:

Bernard Donoghue, chief executive of the Association of Leading Visitor Attractions, which represents venues ranging from London Zoo to St Paul's Cathedral, said visitor numbers were down by between 30% and 35%.

Donoghue argues that the reason for the drop is two-fold. Firstly, Londoners – obeying Mayor Boris – avoided the prophesied anarchy that would clot circulation within the capital. Secondly, non-Olympic foreign visitors were likely put off by fears of hotel overcrowding and general pandemonium.

In short, not only were there less visitors, but those that braved London went to Wimbledon rather than Wicked.

However, reports of record-breaking public transportation use somewhat contradict the aforementioned claims. On the 3rd of August, the Mayor announced that a record 4.4 million passengers used the Underground in one day. TFL further refuted claims of empty theatres with the fact that the West End’s stations saw a passenger increase of 27 per cent relative to 2011 on the 3rd of August. Moreover, Boris hailed the short-term economic success of the Olympics by boasting that eight out of every ten hotel rooms were full – an occupancy rate that far exceeded that of Beijing or Sydney.

Jeremy Hunt added to this optimism by claiming that consumption has risen with the Games, quoting Visa statistics showing that:

London spend in restaurants is up nearly 20% on a year ago, nightclub spending is up 24%, and spending on theatre and other tickets has doubled.

While it is too early to gauge whether Boris and Hunt have cherry-picked statistics (anecdotes of small shop owners would certainly support this), it remains less clear whether the Olympics will “turbo-charge our tourism industry”. London is neither Beijing nor Syndey, and certainly doesn’t need expensive PR gimmicks. Or maybe that’s just the newly instilled pride talking.

Planes leave Heathrow, but fewer people were on them this summer. Photograph: Getty Images
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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.