‘Destination City’ – how the Square Mile is reinventing itself

During the working week, tube passenger numbers in the City remain below 2019 levels. In line with hybrid working trends, passenger numbers are weakest on a Monday and Friday, being 25% down on 2019, whereas numbers are just 10% lower mid-week. However, in contrast, passenger numbers at the weekend are 11% ahead of the 2019 benchmark this year. Albeit, this pattern isn’t replicated consistently across all London areas, with the West End* experiencing a 5% fall in 2024 compared with 2019.

Figure 1: Percentage change in tube passengers in City of London stations 2023/24 vs 2019 (Weeks 1-24)

So why has weekend tube activity increased in the City?

One factor could be the increased number of residents living in the area. Around 2,200 new residential homes have been completed in the locality since 2019. This could translate to between four and seven thousand new residents. Many of these residents are likely to work in the City, so they won’t use the tube for their commute. However, they are likely to be using transport links at the weekends when going further afield for leisure activities.

That said, the City is becoming a leisure destination in its own right and will attract weekend visitors. Firstly, the area’s food and leisure offerings have continued to grow. For example, the racing simulation experience, F1 Arcade, opened in late 2022 at One New Change. Other similar recent openings include Clays in Moorgate, a clay-shooting simulation venue, and War of the World’s on Leadenhall Street. Alongside these leisure lettings, several restaurants have opened in the City; Eataly (an Italian food destination) opened their first UK site in 2021, letting 40,000 sq. ft at Broadgate, and The Ivy Asia opened their first London site at St Paul’s at the end of 2019.

The range of grab & go in the City has also grown; however, these operators are typically targeting workers. As a result, demand for space is highest in core locations where there is a critical mass of operators and direct access to workers, such as Paternoster Square, Liverpool Street, and Spitalfields. Although passenger numbers remain below 2019 levels in the week, anecdotal feedback suggests grab & go operators in these core locations are performing well. This suggests workers are spreading their weekly ‘lunchtime budget’ across fewer days in the office, leading to higher average transaction values.

The already well-established rooftop bar and viewing gallery market has also developed further. In addition to the Sky Garden, which last year attracted 3,000 visitors a day, several viewing platforms have opened. Examples include The Lookout (at 8 Bishopsgate), Sabine, and Wagtail, as well as Horizon 22 (at 22 Bishopsgate), where Gordon Ramsay is opening his newest venue with multiple concepts. Considering the nighttime economy more broadly, the area also continues to benefit from its small resident population, with bars and restaurants typically permitted to stay open till later.

As well as these new additions, the City of London Corporation also launched a ‘Destination City’ programme in 2022. The aim of the programme is to highlight the Square Mile’s visitor offering post-pandemic, with a dedicated visitor website launched in 2023. Key features include £2.5m annual investment to improve the leisure offer, an all-year-round events programme, physical changes to the streets including al-fresco dining and improved pavements, and increased marketing of the long-standing attractions.

Looking ahead, there are more developments in the pipeline that support the aspirations of the ‘Destination City’ programme. Proposals include turning an old HSBC bank on Fleet Street into a noodle bar with mini-golf and 10-pin bowling, and converting a retail unit which has been vacant since 2022 into the first London site for the Roxy Ball Room. After the success of F1 Arcade, Landsec plans to combine and convert seven lower ground retail units at One New Change into one large 22k sq ft new competitive socialising offering. There are also several new tourist attractions in the pipeline, including the London Museum set to open in 2026 and the Barbican Centre's renewal programme. Additionally, final approval was granted in July for the London Tunnels; a development of the historic Kingsway Exchange Tunnels, proposed to include a new exhibition space, bar, retail units, and ‘Heritage Experience.’

This demonstrates how a typical employment-based area like the City is pivoting to broaden its offering to create a greater wealth of reasons to visit, providing the building blocks for the rise in weekend footfall. Whilst still some way to go, before the City can be redefined as a ‘seven-day-a-week’ destination, the footfall statistics point to its progression as a place to live, as a hub of leisure activity attracting a wider audience, while continuing to serve its long-standing purpose as a business district.

*West End stations include Oxford Street, Bond Street, Tottenham Court Road, Green Park, Piccadilly Circus, Leicester Square, and Covent Garden.