Having ruling monarchs in countries works more like a boon than a bane for most nations. Royals contribute a valuable sum to the society and economy of nations as a whole but are also very expensive at the same time.
THE ECONOMIC BENEFITS OF A MONARCHY
BRITAIN – ROYAL HOUSE OF WINDSOR
Maintenance of royal estates and other assets along with salaries paid to royal family members of England, is estimated to burn at least £100 million every year, but the actual cost could go up to £350 million.
But these costs are nothing compared to what they add and do for the country. Royal family pumps millions of dollars into the economy which is one of the reasons why they still exist in today’s day and time.
VisitBritain has said that at least 2.7 million people from all over the world every year visit the royal residences such as the Windsor castle and Buckingham palace before the pandemic.
Every person from the House of Windsor is said to have collectively contributed a sum beyond £1.9 billion ($2.7 billion) annually to a pre-pandemic hit economy. A major chunk of the revenue is through the tourism that they actively attract and drive.
According to a report over 3.2 million people visited the official residences of the monarchy in 2019 generating the highest ever sum of £49,859,000.
Windsor Castle alone welcomed about 1.5 million visitors and through gift shop sales they amassed £19,983,646.
A grand total of £71,526,000 was amassed by the Royal Collection Trust in 2019. And in 2018 The Crown generated an income of £343.5 million.
For the financial year 2020, the Crown Estate is said to have garnered more than $700 million which means over $475 million in profits alone and of this value only 25% goes back to the crown estate and remaining 75% to the government.
The personal expenses of the ruling monarch and her family is also supported by the Duchy of Lancaster, namely Privy Purse. For the last fiscal year, the Duchy of Lancaster reported that they incurred a net profit of $30 million.
Apart from generating income through tourism they also provide employment to a large number of people. The Buckingham Palace soley employs over 1,200 people.
They also indirectly bring in a lot of revenue through royal warrants. Several experts have said that a royal warrant can boost its holder’s income by 10%. Corporations and institutions revolving in the monarchy’s orbit end up by extension receiving a huge economic boost such as Johnnie Walker whisky and Barbour jackets.
THAILAND – ROYAL HOUSE OF CHAKRI
The government of Thailand has granted a budget that is going over a billion dollars for this year to finance its monarchy. Thailand’s king is said to have assets accounting $40 billion and earns a lot of money through a series of investments.
A major chunk of income earned by the King is from rental contracts with developers that covers almost everything ranging from malls, shop-houses, residential areas to government agencies. The king also leases lands that are owned by the Crown and holds large amounts of stake in major banks and business conglomerates.
Such sort of investments work in mutual benefit of the King and the businesses operating in the country. Apart from all this the king is subjected to pay tax on the returns of his investment like any other common folk.
SAUDI ARABIA – ROYAL HOUSE OF SAUD
The royal family of Saudi Arabia has a combined net worth of at least $100 billion. A major chunk of the wealth is garnered over the decades through its vast oil expansions. The rich oil reserves have changed the fate and fortune of not just the nation as a whole but also has made the royal family the richest family in the entire world.
Through the country’s state owned oil company Saudi Aramco the Saudi government makes a large portion of its revenue. It is to be noted that the Saudi government is vastly dominated by the royal family members so in a way we can say the royal family is the functioning government in charge of the nation as a whole.
IS IT GOOD TO HAVE A MONARCHY ?
Monarchies bring in more than money to their nations, they not only bring in a certain status, goodwill and quid pro quo but also teach and show how to do good, as most of the official duties of royal family members lie within the realm of charity and philanthropy. Therefore setting an example for individuals, institutions and organisations.
In a way having a monarchy or a stamp of approval of one is like having a reliable partner that adds integrity to a nation, company and even an individual to a certain level.
“Monarchy is a symbol of nationhood and has a target market of a wide range of stakeholders. In that respect, they almost behave like corporations themselves,” Stephen Greyser, a Harvard Business School marketing professor said.