Pictured: Jerry Blackett, Birmingham Chamber of Commerce Group Chief Executive.

Birmingham's retail and leisure industry could have been hit by up to £2.5 million a day as a result of the rioting on the city's streets since last weekend.

Birmingham Chamber of Commerce Group (BCCG) says that that the sector, which is worth £5 million a day, is reporting a decrease of 50 per cent in trade as department stores, shops, pubs, restaurants and clubs have closed early to protect their staff and property.

Jerry Blackett, the BCCG's chief executive, said: "While there is much guesswork involved, our best estimate is that the riots could have so far cost Birmingham a total of about £7 million.

"But this does not take account of the cost to businesses like banks and other institutions who have suffered by having to send staff home with the resultant loss in productivity. The total Birmingham economic output creates £20 billion a year, which equates to over £55 million a day.

"Of this, the visitor economy - which is all of the people visiting the city during the day like workers, shoppers and tourists - is about 10 per cent, of which about £3.5 million is retail.

"We know that insurers are sensitive to the problems businesses will face in getting back on their feet and we urge them to provide all help possible.

"Clearly, the rioting will have had an impact on the city economically and for some businesses the losses could be the difference between profit and loss.

"The problems might be extremely painful to bear at the moment but in the great scheme of things they are not largely significant economically, provided they are contained.

"And it is absolutely vital that we keep the problems in perspective. Birmingham is a big, major city that is well used to dealing with challenges and keeping open for business.

"Even a tornado a few years ago could not blow us off course for long. We will have over 100,000 people enjoying the England-Indian cricket Test at Edgbaston representing all that is good in the city.

"Television viewers worldwide will see the magnificent new stand at the ground and hopefully this will result in people being left with positive vibes about our great city.

"It is important that the business community unites to help the city recover from these setbacks particularly at a time when Birmingham is going all out to attract inward investment not only from the UK but firms abroad."

Nasir Awan, president of the Institute of Asian Businesses, said: "Birmingham's Asian business community condemns unreservedly the actions of the rioters.

"Many businesses have suffered as a result of these mindless acts and we stand prepared to help to speed the recovery of people whose operations have been damaged. This may be long-term as the result of the loss of business or more short-term in terms of damage to infrastructure.

"However, we will unite to eradicate this menace and ensure that Birmingham remains the friendly, open-for-business reputation that it enjoys globally."