Where to find the festivities

Fashion stores, jewellers, restaurants and hotels will be the main beneficiaries of the visitors from Eastern Europe, Russia and Canada, giving the capital a £120 million boost.

"There is the traditional holidaymaker from Europe coming over for a short weekend break to see the sights, go to the theatre and go shopping," a spokesman for Visit London said. "The City is also booming and companies are more inclined to allow their employees to come here to do business and spend money on expenses." Selfridges communications director Christine Watts said foreign tourists were flocking to the store. She said: "Trade is particularly buoyant."

But despite the Christmas boost, today's figures also show that the number of UK residents visiting London is expected to fall by about 80,000 compared to last year.

One of the chief reasons that London attracts tourists at this time of year is because the capital's carol services, lights, trees and events evoke Christmas. Here we round up the best.

Where to find the festivities:

FATHER CHRISTMAS

SELFRIDGES CHRISTMAS GROTTO
Encounter magical Christmas characters in the maze. Book two days in advance.
29 Nov-24 Dec. Free, but for bookings made online at www.selfridges.com, proceeds go to the Teenage Cancer Trust.

SANTA'S GROTTO AT CANARY WHARF
Every weekend until Christmas plus Friday 15 and 22 Dec, 11am-4pm; admission £1. Jubilee Place, E14.

HAMLEY'S
Children get to discuss their wish-lists with Santa over a breakfast of Elves' Special Eggy Bread. £30 per child; Regent Street, W1; 0800 280 2444.

BATTERSEA PARK CHILDREN'S ZOO A special place to meet Father Christmas.
Chelsea Gate, Queenstown Road; 020 7924 5826. Entrance fee plus £2.50 per child; quiz costs £1.

LIGHTS

CARNABY STREET
Walk through fields of white light created by giant, energy-saving lightbulbs.

DEVONSHIRE STREET
Charming and traditional.
Marylebone, W1. Until 6 Jan.

THE SOUTH BANK
A contemporary twist using recycled bins and drinks containers.
Until 6 Jan.

ACTIVITIES

PAINTED HALL
A Christmas workshop for children to make cards and decorations.
Old Royal Naval College, SE10. 20 Dec, 2pm-4pm; £1 per child, booking essential; 020 8269 4799.

BOB WILSON FUNFAIR
Leicester Square, W2. 29 Nov-30 Dec, 12pm-12am. Admission free, rides charged separately.

WALKS
CHARLES DICKENS'S LONDON
A guide to old London, through Lincoln's Inn Fields.
Every Friday. Meet at Temple Tube, 2:30pm. £6 or £5 for concessions.

POST-CHRISTMAS WALK
Greenwich Heritage Centre, SE18.
28 Dec, 2pm. Admission £3; to book call 020 8854 2452.

EXHIBITIONS

DUTCH WINTER SCENES
An exhibition focusing on Dutch artists and their take on winter.
Admission free. National Gallery, WC2. 10 Nov-2 Jan.

CHRISTMAS PAST AND PRESENTS Greenwich Heritage Centre, SE18; 9 Dec-6 Jan; Free; 020 8854 2452.

RIDES

CHRISTMAS DANCE-AND-DINNER CRUISE
Enjoy a trip down the Thames via Greenwich with dinner, a bar and disco.
Sailing from Westminster Pier at 8pm, returning at midnight. Every Thursday, Friday and Saturday from 1-23 Dec. £67.50 per person, visit www.city cruises.com. Dress: no jeans.

WINTER PIMMS AND CHOCOLATE TRUFFLES ON THE LONDON EYE Book a capsule for 20 people, call 0870 220 2223. £327.66 per capsule plus £13.61pp.

SHOPS

SELFRIDGES, OXFORD STREET
See its spectacular Christmas window displays. Designed by creative director Alannah Weston, they follow a fairy story theme with topiary, gold and top fashion.

THE CHRISTMAS SHOP
London's only shop dedicated to Christmas all year round.
55a Tooley Street, SE1.

CAROL CONCERTS

ST PAUL'S CATHEDRAL
Join the choirs of St Paul's for all your favourite carols.
Family Carols is at 1pm, 23 Dec.
ST MARTIN-IN-THE-FIELDS
A lovely church with a long musical tradition.
19 Dec (6.30pm) and a Festival of Nine Lessons and Carols on 20 Dec (6.30pm), both free. West Street, WC2.

SHOWS

THE SNOWMAN
Magic as Sadler's Wells presents a classic Christmas tale. The flying scenes will dazzle.
Tickets from £12; Peacock Theatre, Portugal Street, WC2; 0870 737 0337.

MATTHEW BOURNE'S SWAN LAKE
This stunningly original production, with an all-male corps de ballet, is a big hit.
Tickets from £13; Sadler's Wells, Rosebery Avenue, EC1; 0870 737 7737.

HOTELS

THE DORCHESTER
Take a break from the shopping and sit in the lobby, with its extravagant tree. Afternoon tea is accompanied by a choir singing carols.
Park Lane, W1; 020 7629 8888.

CLARIDGE'S
The tree is covered in gorgeous presents from Bond Street's finest retailers. Afternoon tea includes a free glass of champagne.
Brook Street, W1; 020 7629 8860.
THE LANESBOROUGH
Ladies can dump their bags, kick off their heels and sit by a fire with a cocktail in hand.
1 Lanesborough Place, SW1; 020 7259 5599.

ICE RINKS
KEW GARDENS
London's most beautiful rink. On 15 and 16 December, it's late-night opening with carols.
Adult tickets £10, children £7.50. Kew, Richmond, Surrey, TW9; 020 8332 5655.

SOMERSET HOUSE
Skate in spectacular surroundings.
Adult tickets £10 (£12 evening, £15 after 10.30pm), £7 children; book on 0870 166 0423. The Strand, WC2.

HAMPSTEAD HEATH
A great ice rink on Parliament Hill Fields .
Book on 0870 060 1762. Adult tickets £9.50, children's £7.