Villas inside and out

We have been told that the Olympics could be the economic saviour of the country: according to the British Chamber of Commerce UK economy will receive a £621m spending boost during the three week period between the opening and closing of the Olympic Games

But now a new survey carried out by European travel agencies seems to be less optimistic than the government's recent research.

A study by the European Tour Operators Association (ETOA) of 38 different travel companies - which bring around two million overseas tourists to London per year - shows a fall of 95 per cent in bookings for travel during the Olympics, and a fifth less of bookings for travel during the rest of 2012.

ETOA's numbers contradict the government's prediction that the Olympics and the Queen's Diamond Jubilee could encourage four million more holidaymakers to visit Britain in 2012. According to ETOA, such a considerable reduction in visitors could cost the British economy up to £3.5 billion.

Tom Jenkins, executive director of the association, said: "We always see a decline in demand for a destination during an Olympic year. During the Olympic period itself, there is currently almost no demand from regular tourists."

Tourism decline during an Olympic year is in fact an usual phenomenon. According to a report on the BBC News website the number of tourists visiting the Chinese capital of Beijing during the 2008 Games was 14% lower than the same period of 2007. In that case officials expected the Olympics to attract more visitors, but visa requirements and over-zealous security officials led to a fall in tourist demand.

Another factor was the hotel rates in Beijing during the last Olympics. These were up to 10 times more expensive than normal.

According to ETOA "there appears to be little evidence of any benefit to tourism of hosting an Olympic Games, and considerable evidence of damage."

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