Tourists are spending more money in London although the number of them is dwindling, according to figures from Visit London.

The amount they spent rose 3.4 per cent to£10.4 billion last year, despite the number of tourists visiting London falling 4 per cent as a result of the credit crunch and the decline in consumer confidence.

While visitor numbers rose 6 per cent in the first half of the year, they fell 7 per cent in the second half, resulting in a total of 25.5 million visitors to the capital last year.

Retailers that benefit particularly from tourist spend include iconic stores like Harrods, Hamleys and Fortnum & Mason.