London tourist numbers are down

It comes just days after a warning that London hotels will continue to suffer, because of the war.

Figures from accountants and business advisors PKF, show only a limited improvement in hotel room occupancy since the foot-and-mouth crisis and 11 September.

Hotels were 74.2% full in 2002 compared to 72.7% full in 2001.

At his weekly press conference, Mr Livingstone said: "There is a downturn in people coming into central London that I am working with business and the visitor and tourist industry to deal with.

"The economic impact on central London is noticeable, with some sectors undoubtedly affected, but is not in any sense desperate.

Destabilised market

"My preliminary estimates are that up to �15 million should be set aside for tourism and visitor recovery for London."

During the Gulf War of 1991, London's tourism industry lost �300m.

PKF's hotel consultancy services managing director Melvin Gold said: "We had hoped to see a much better recovery in 2002 and a war with Iraq could further destabilise the market."

The survey, which is sponsored by consultancy company E.C. Harris, found the proportion of visitors from the US staying in London hotels had dropped.

The figure went down from 24.7% in 2001 to 23.2% in 2002.

Mr Gold said some hotel managers were hoping a short and successful conflict with Iraq could "clear the air" and allow the tourist trade to improve again later in the year.