London hotels have not suffered widespread cancellations following July’s terror attacks, according to tourism body Visit London.

In its latest London Monthly Trends report, the group said that although some impact was inevitable the signs, so far, were encouraging.

Visit London said more than 2.7 million overseas visits were made to the capital in May 2005, a year-on-year increase of 17%.

In the 12 months to May 2005 overseas visits grew by 11%, with expenditure growing at the same rate. Although tourist figures from most major markets increased, inbound US tourism was a notable exception and remained largely flat.

Despite the recent bombings, London remains on course to hit a record 29 million overseas visits this year.

Hotels in London enjoyed a strong performance in May outperforming regional hotels and boosting occupancy, room rate and revenue per available room, the last of which grew by 6.2 percentage points to £84.90.

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