A record five million visitors came during the last quarter of 2016, up eight per cent when compared to the same period in 2015. During this period, spending increased by 3.7 per cent compared to the same period in 2015.
Overseas tourists made 19.1 million visits to the city in 2016, an increase of 2.6 per cent compared to 2015, according to the new figures released by the Office for National Statistics International Passenger Survey (IPS).
The last three months of the year were especially strong as overseas tourists took the advantage of London offering better value for money than ever before.
Mayor of London Sadiq Khan said, "I am delighted that more people than ever before are choosing to visit London, immersing themselves in all that our great city has to offer including an unbeatable array of restaurants, museums, shops and theatres. This is further evidence that London is Open and has an appeal that clearly extends across the globe".
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The United Kingdom welcomed a total of 37.6 million visits, up 4.1 per cent compared to 2015.
Separate data from Forward Keys, a company that records overseas travel agent bookings to London, suggests that in the first six months of 2017, there has been a 10 per cent increase in overseas travellers coming to London.
London's packed calendar of events attracted millions of people to the city. Events such as Great Fire 350 saw tourists lining the river Thames to see the burning of a replica City of London from 1666 to commemorate the anniversary of the Great Fire of London.
Deputy Director of the British Museum Joanna Mackle said, "The British Museum is delighted to be the most visited attraction in the UK for the 10th year running".
"The British Museum is a place that visitors can explore for free, discovering objects from the dawn of human history two million years ago up to the present day. We welcome visitors from across the world and last year around three quarters of our visitors came from outside the UK.
The jam-packed cultural calendar continues in 2017, with the first UK exhibition on Modern and contemporary American printmaking, American Dream, Pop to Present, taking place at the British Museum.
Basquiat: Boom for Real coming to the Barbican in September, the first UK exhibition of the iconic painter Jean-Michel Basquiat, plus Harry Potter: A History of Magic display taking place at the British Library in Autumn, showcasing wizarding books, century old library treasures, and original material from JK Rowling's own archive.