THIS is the worst of times for Britain's tourist industry.

Foot and mouth disease has cost the sector well over a billion pounds in spending by overseas visitors. Any hope of a late recovery was shattered by the terrorists: a further billion pounds is expected to be lost during the next three months.

Matters are unlikely to improve soon. The British Tourism Authority (BTA), which compiled these figures, is unwilling to speculate on the possible impact of any military reprisals. But it is clear that the climate of fear and uncertainty that is stopping Americans coming to Britain will be with us for some time.

It took four years for the industry to recover its share of the US market after the Gulf War in 1991.

The effects are already apparent. After London, York is the most popular destination in the country for transatlantic visitors. City hotels report a rush of American cancellations.

Free-spending US visitors are a mainstay of Britain's tourist economy, splashing out £2.5 billion a year. Unless income can be generated from elsewhere, many tourist businesses will be devastated. The BTA has warned that as many as 75,000 jobs may be at risk.

The fight back has to begin now. York Tourism Bureau staff are to step up their drive to encourage more domestic visitors to the city. They are campaign-hardened veterans, having battled successfully to bring people back to York after the double setbacks of floods and foot and mouth.

In their favour is the tremendous product they have to promote.

Today we report how another North Yorkshire hotel has received national acclaim: the Ryedale Country Lodge, named the most romantic in the country.

And the county's pubs have been heaped with praise in the latest AA guide.

To come through this crisis, we must tell the rest of the world what we have to offer - and then sell it competitively.

Updated: 10:14 Thursday, September 27, 2001