Terrorism fears keep Merlin visitors away

A DROP in visitor numbers to London caused by terror attacks continues to weigh heavily on leisure giant Merlin Entertainments.

A spate of attacks last year, which included the Westminster Bridge and Borough Market atrocities, is putting tourists off the capital.

Merlin said its Midway division, which includes attractions such as Madame Tussauds, the London Eye and Sea Life aquariums, is still experi- encing lower footfall compared with 12 months ago.

“In Midway, visitation in our London division remains down year on year reflecting the strong trading in the comparative period and continued impact from the 2017 terror attacks,” it said. “We remain confident of a recovery over time.”

The company’s plan to focus more on offering accommodation has accelerated. It has opened 644 rooms in 2018, taking it above 4,100. At the end of 2017, it had 3,469 across the whole group after opening 383 that year.

Merlin also confirmed it had extended the size of its banking facility meaning it had been able to repay £377m of sterling and US dollar loans to help it reduce its financing costs.

In October, Merlin cut its profit expectations on the back of tough trading caused by terror attacks in the UK.

Shares in the company tumbled 20pc to 361p following that update after it revealed that like-for-like sales growth in the 40 weeks to Oct 7 was just 0.3pc.

At the time, chief executive Nick Varney said his decision to redirect capital expenditure from 2018 to 2021 away from existing plans towards building more accommodation was a sensible reaction to the tough market conditions.

Merlin’s shares closed up nearly 5pc at 363p yesterday.

The company will report its first-half results on Aug 2.