Article: Hotels suffer as tourists stay out of London.

Byline: JAMES BURLEIGH

LONDON hotels are experiencing a drop in trade as the strong pound and foot-and-mouth continue to deter visitors, the latest tourism survey has revealed.

Reservations fell by nearly six per cent in July compared to the same month last year and there was a 12 per cent drop in average room rates to [pound]118.45, according to figures released by Hotel Consultancy Services at accountancy firm PKF.

Hotels in the countryside, the report said, fared much better, with a drop in occupancy of only one per cent and an increase in rates for rooms.

Economic slowdown in the US may also be contributing to the problem.

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