GLOOMY pundits who predict that the royal wedding will knock economic growth in the UK are being waved away in York and North Yorkshire.

“Not here”, say business and tourist organisations in the region, who claim they are bracing themselves for an economic fillip as a result of Prince William and Kate Middleton’s big day on April 29.

Analysts at brokers Investec forecast that the extra bank holiday on April 29 could result in a 0.25 per cent reduction in GDP growth in the second quarter of this year.

And accountancy firm RSM Tenon warned that on average British business loses £6 billion in productivity for each bank holiday and could lose up to £30 billion in the last two weeks of April.

However, the financial impact of the wedding will be partially offset by a boost to hotel trade, alcohol sales and souvenir merchandising.

Investec looked at the impact the Queen’s Golden Jubilee had on economic growth in June 2002, when the country also took a day off for the royal celebratation. The research showed manufacturing and services output plunged in June, compared with growth in every other month of the year.

But Susie Cawood, head of the York and North Yorkshire Chamber of Commerce which, with its Leeds arm has more than 2,500 members, said: “None of our members has expressed any disquiet to me about possible losses.

“We hope that the Royal wedding will have a positive effect on the York and North Yorkshire economy, particularly in the tourism sector.

“The extra visitors coming to our region will have a ripple effect to all other businesses in the region.”

Gillian Cruddas, chief executive of Visit York, said: “The royal wedding has got to be good news for Britain’s tourism economy and there are few cities outside London that can rival York in terms of its connections with royalty.

“American visitors are especially excited about the day and we have a raft of special events and tours on offer to encourage new visits to York. “We’re confident that the royal wedding will boost tourism business in York, not just for April but in the year ahead.”