War 'to cost capital tourism £1bn'

LONDON'S tourism industry could face a loss of almost £1bn because of a slump in visitors caused by the war in Iraq, official figures suggest.

Sales to tourists in two of the capital's busiest shopping areas, Oxford Street and Regent Street, have fallen by up to one fifth due to the lack of overseas visitors.

The figures will be revealed today by Mayor Ken Livingstone's chief economist John Ross at a conference on the effects of the conflict.

Ross will say the aftershock of the war has kept business and consumer confidence low, slowing the recovery in London.

He calculates losses of £110m between April and June to tourist businesses such as hotels and visitor attractions. If the trend continues through the year, the total cost will be £360m.

The worst-case scenario, based on predictions from Government agency Visit Britain that tourism will fall 15% compared with last year, would cost London's overall economy as much as a further £870m by January, Ross warns.