London landlord Shaftesbury today said the flood of overseas and domestic tourists to the capital boosted business for its tenants across the West End.

The firm said the influx of visitors meant demand for its shops and restaurants in Covent Garden, Chinatown and Carnaby Street remained healthy as tenants continued to rake in profits despite the recession.

It reduced its vacant space to 69,000 square feet by the end of July from 74,500 square feet in March and said it has new lettings worth £956,000 in the pipeline — more than double the volume seen in March.

However, Shaftesbury warned the office market remained weak due to the downturn.

Chief executive Jonathan Lane said: “London's West End, which has proved very resilient throughout the recent period of economic turbulence, continues to prosper and there is now evidence of stability returning to financial and property markets. We are confident that demand for our shops, restaurants and residential accommodation will remain strong.”

The firm last month raised £149 million through a rights issue, which it used to repay debts.