Tourists have been staying away in droves

Figures just released for July - an important month for the tourism sector - show that visitor rates are down by an average of 20% on 2002.

"It's true that July was a weak month," Tourism Minister Gilles de Robien said.

Forest fires have hit business in the south-eastern Riviera region, while the oil of the sunken tanker Prestige has blighted the beaches of the south-west for months.

"It is true that in the south-east and the south-west, there are fewer tourists, especially foreigners," Mr de Robien said, although he was hopeful August and September would make up for the shortfall.

A strike over welfare payments by art performers led to the cancellation of the season's top two arts festivals - in Avignon and Aix-en-Provence - damaging France's image in the process.

US absence

One central problem, reports say, is the drop in American visitors, who are staying away because of the Franco-US rift over the war on Iraq and a weak dollar.

TOURISM PROBLEMS Iraq war Forest fires Oil spills Performance artists strike Economic downturn Euro strength

The sharp rise in the value of the euro has also meant American buying power in Europe has been drastically reduced.

Hotels, restaurants and museums in their main destinations - Paris, the Riviera and the World War II landing beaches in Normandy - have reported a big drop in US visitors, Liberation newspaper reported last week.

According to the official figures, the Germans and visitors from Asia, especially Japan, have also been shunning trips to France compared to last year.

And British visitors have been unusually scarce - especially from the Dordogne region they are fond of.