According to figures released by chief economist John Ross for London mayor Ken Livingstone, the capital’s tourism industry faces losses of nearly £1bn due to a drop in visitors because of the Iraq war.

Popular London shopping areas such as Oxford Street and Regent Street have also suffered a drop in sales figures of up to one fifth because of the lack of overseas tourism.

The lack of consumer confidence was also blamed for considerably slowing tourism recovery in the capital while the lucrative long-haul US market is also showing a particularly sluggish recovery, in turn adversely affecting the tourism figures announced. Details: www.visitlondon.com