Despite concerns that the jubilee bank holiday cost the UK £1.2bn, new research shows that the monarchy contributes £44bn to the economy, from boosting tourism by £1bn a year to promoting trade through its Royal Warrants.
Haribo's mosiac of sweets forming a picture of The Queen to celebrate her Diamond Jubilee
When it comes to the Queen its hard not to think of money. From the millions shelled out on her luxurious lifestyle, opulent property and round the clock security, to the countless tourist dollars she attracts to the UK every year, we’re talking big bucks.It’s a correlation reaffirmed every time we see her stare out from our bank notes and coins, but just how much is she worth? What is the monetary value of the Queen and her kinsfolk to the UK economy, and how do you go abut measuring this?Well, to coincide with the jubilee celebrations, Brand Finance set about gauging the royal brand and its commercial value, finding that, if the monarchy was put up for sale and valued like any other business, is would be worth more than Tesco and Marks & Spencer combined.In valuing the royal family from a brand perspective, Brand Finance found it to be worth £44.5bn. Tesco is worth £33bn and Marks & Spencer £7.4bn.The £44.5bn valuation of the royal family involves £18.1bn of tangible assets, including the crown jewels and royal palaces, as well as £26.4bn intangible asset value through the economic benefits of boosting tourism and other industries.The bulk of the £18.1bn of tangible assets comes from the royal family’s estate which has a valuation of around £7bn, and the Royal Collection which is worth £10bn.Intangible benefits of the royal family aren’t quite as easy to put a value on.The jubilee celebrations alone are due to give an estimated extra £324m uplift to the leisure, tourism and accommodation industries which, when combined with the recurring £600m the monarchy boosts the industries by each year, indicates that the royal family will instigate an uplift of nearly £1bn in 2012. Brand Finance converts this £1bn into an “intangible asset in perpetuity” of more than £16bn.There is then an estimated £8.3bn brought in by Crown Estate properties and advertising worth £4bn from the publicity the royal family receives overseas, as well as the 850 UK businesses benefitting from Royal Warrants estimated to be worth £4bn, and the significant reputational benefit to individual UK businesses from the monarchy once they have been granted a Coat of Arms, valued at £400m.The findings go somewhere to countering concerns that the extra day’s bank holiday will hinder attempts to drag Britain out of recession, with it estimated that the holiday will cost the UK economy around £1.2bn.In total the intangible assets of the royal brand are offset by around £7.6bn of costs including security at £3.3bn, the Civil List estimated at £461m, and travel expenses of around £195m.David Haigh, CEO of Brand Finance, explained: “The monarchy is one of the most valuable of all British brands.Whatever one thinks about the constitutional principle, there seems little doubt that the institution of monarchy adds significant annual earnings and long term economic value to the UK.”