The Royal Family injects billions of pounds into the British economy thanks to ‘royal tourism’ revenue. But experts believe this could be at risk following the death of Queen Elizabeth II.
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How much does the Royal Family cost taxpayers?
The Royal Family is funded by the Sovereign Grant, which supports working royals to carry out official duties. It also pays for the ten-year Reservicing of Buckingham Palace, as per royal.uk.
The cost of royal upkeep has been steadily increasing over the past few years. But British Heritage Travelreports that the monarchy cost the taxpayer £102.4m during 2021-22 – a 17% increase from the previous year.
According to Statista, the Sovereign Grant’s value is determined by the amount of money the Crown Estate has brought in.
What is royal tourism?
The Independent notes that millions of tourists are attracted to the UK because of its many historical royal landmarks.
The Royal Family is responsible for generating millions of pounds worth of tourism every year.
In 2019-20, ticket admissions to royal estates generated nearly £50 million in revenue. Destinations include Windsor Castle and Frogmore House, Buckingham Palace, Clarence House, and the Queen’s Gallery, to name but a few.
According to the Royal Collection Trust, the Royal Collection is one of the most important art collections in the world. The Independent reports that in 2019-20 it generated £71.5 million.
Brand Finance estimates that the monarchy injects £2.5 billion into the economy thanks to tourism and royal warrants. It estimates that royal warrants can boost holder’s revenue by 10%.
The director of Brand Finance Canada, Charles Scarlett-Smith, said:
Royalist or not, the amount of economic benefit that’s brought to the U.K. from the existence of the royal family is undeniable
The Queen synonymous with the Royal Family
However, Global News reports that experts say the brand value of the monarchy is at risk following the death of Queen Elizabeth II.
The Royal Family lost a matriarch. The UK lost its Head of State. But the Royal Family brand lost its figurehead, according to Scarlett-Smith.
In 2017, Brand Finance estimated the value of the Royal Family at £67.5 ($91.1) billion, ranking fourth behind Google, Apple, and Amazon.
Journalist and royals researcher, Emily Stedman, puts the brand’s success down to Queen Elizabeth II. She cautions that it will be a ‘big change for people’ now that King Charles III is head of the Royal Family.
Scarlett-Smith seems to share this sentiment. The Royal Family must navigate bringing a new figurehead to the brand cautiously. Ultimately, the Royal Family's value now lies in King Charles III's hands.
Sources used:
- Royal.uk: 'Financial reports 2020-21'
- British Heritage Travel: 'How much does the Royal Family cost the British taxpayer?'
- Statista: 'The Growing Cost of the Royal Family to UK Taxpayers'
- The Independent: 'How much money does the royal family bring in tourism?'
- Royal Collection Trust: 'Explore the Collection'
- Global News: 'U.K. royal family pumps billions into the economy. The queen’s death may change that'
- Brand Finance: 'Valued at £67 Billion, the Monarchy is Britain’s Greatest Treasure'
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