Blow for London pubs as tourists shun city in favour of regions

American tourists are shunning London in favour of the regions, according to new figures for September - bringing bad news for the capital's pubs and bars.

The aftermath of the terrorist attacks on the United States saw the number of hotel rooms occupied by American visitors drop by 45 per cent, said accountancy firm PKF, while average prices fell by 6.6 per cent.

The regions appeared to be more resilient but PKF said it expected October's figures to be worse for both London and the regions, as last month's statistics included the period before the attacks.

Americans are usually by far the biggest group of foreign visitors to London.

The British Tourist Authority has estimated that the UK could lose £2.5bn in revenue from overseas visitors next year if Americans stay away, and jobs in pubs, bars and hotels could be at risk.

In the authority's annual report, BTA chairman David Quarmby, said: "Truly, 2001 will go down as the tourism industry's annus horribilis."

He said that 2001 had already been blighted by the foot-and-mouth outbreak, and added: "The terrorist attacks in the US and the consequent worldwide loss of confidence in air travel will have a further devastating impact on inbound travel to Britain."

However, an English Tourism Council survey has shown that almost one million Britons have scrapped plans to travel abroad since the attacks, choosing instead to holiday in the UK, which could give a much-needed boost to domestic tourism.

Last week's half term holiday for schools has also improved the outlook for pubs, with many parents choosing to take the children to British holiday resorts such as the Lake District instead of foreign destinations.

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