Fears for London tourism following Westminster terror attack

Merlin Entertainments shares weakened and G4S rose as investors weigh a possible softening in London tourism and a likely increase in demand for private security after the Westminster terror attack.

Shares of Merlin, the operator of attractions including the London Eye Ferris wheel and Madame Tussaud’s, were down at one stage almost 3% since the incident. Analysts at Peel Hunt yesterday cut their target price, citing concern about weakening tourist visits.

“We now believe there is a risk that tourism in London will fall, particularly visits from families,” Peel Hunt analyst Ivor Jones wrote in a note. That could hurt profits, he said, adding that the UK accounts for about a third of group sales.