London is one of the greatest cities in the world – a statement borne out this week in a new landmark report, ‘Unlocking the London Advantage’, which benchmarks the capital against twelve other leading global cities, from New York and Paris to Tokyo and Dubai.
The analysis revealed that London is the most consistently competitive performer on the global stage, ranking in the top five for culture, tourism, innovation and investment appeal. Yet the capital ranks last among peer cities for policy competitiveness, raising concerns that the current policy environment, if left unchanged, will erode its tourism and growth advantages.
And, according to the index, there are several advantages to leverage – particularly across the visitor economy. In the index’s cultural ranking, London is an indisputable powerhouse, neck-and-neck with Paris in joint first place and pulling decisively away from its next-closest European competitor, Barcelona.
When it comes to tourism and hospitality, London ranks among the top three, after New York and Dubai. The capital’s strength in luxury hotels, boasting world-renowned names like Claridge’s and The Connaught, is a clear differentiator from other cities. Demand is also strong; average daily hotel rates rose 6% year-on-year across 2025, double the all-index average. This is felt most keenly in the West End. Known worldwide as a global tourism hub, the district saw international visitor volumes grow by a staggering 11.8% last year, even as international arrivals into the capital fell by 3.1%.
But the report also reveals that, compared with other global cities, London is the third most expensive for a three-night break, at £690, versus the all-index average of £500. It is also one of only four cities without a shopping incentive scheme for international visitors, and it lacks the late-night weekend shopping hours which are standard in Tokyo, Dubai and Paris. These are competitive disadvantages London can no longer afford to ignore.
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