War worries affect tourism prospects

The war in Iraq has replaced the weather as the factor most likely to adversely affect tourism in the South-west - but businesses in the region are more optimistic about the future than they were a year ago, according to a recent survey.

The study, by South West Tourism, found that 61% of the hotels, attractions and tourist businesses polled feared that security issues and the Iraq war could hamper their business during the second quarter. Weather, traditionally the leading concern, was cited by 59% of respondents as a possible negative influence.

Nevertheless, 62% of businesses surveyed were more optimistic about the future of tourism in the region than a year ago, and 65% are more upbeat over their prospects for the summer.

First-quarter trade has offered reasons to be cheerful, with nearly half citing an increase on last year and just 23% reporting a downturn.

The split between optimists and pessimists is even more marked over second-quarter business: 56% forecast a rise, while 16% expect business to fall compared with 2002.

Three-quarters of respondents expected the Iraq war to prompt UK residents to take more domestic holidays, although 85% feared the conflict could delay holiday decisions.