HOTELS across York are continuing to suffer a damaging drop in trade following the attack on the World Trade Centre.

Overseas companies and American tourists are reported to be staying away from the city in droves.

Shara Ross, manager of The Grange Hotel, in Bootham, said it had been hit by a "double whammy" of cancellations which cost them more than £12,000 in just one week.

An international company scrapped a five-day conference at the hotel because it was reluctant for its delegates to fly over the Middle East.

An American tour company has also cancelled a trip scheduled for March.

Miss Ross, who is also chairwoman of York Hospitality Association, said: "It's very difficult for us as an independent hotel to fill in the gaps left by these major cancellations.

"We're desperately relying on a big increase in domestic trade, otherwise the situation will be very bleak indeed."

Meanwhile, David Brooks, general manager at the Dean Court Hotel, on Duncombe Place, said the crisis had led to a 50-strong party postponing a trip to watch the Ryder Cup.

They had been due to watch the golf on a large screen while enjoying a meal and drinks. Their visit is now off - but has been pencilled in for the Ryder Cup 2002.

"The booking has been deferred. That was inevitable from the moment the Ryder Cup itself was deferred. It is a shame, but compare it to what has happened in America and it pales into insignificance.

"And, apart from that, the booking has been deferred, rather than cancelled altogether."

Mr Brooks said the crisis had not affected York's hotel trade too badly, as overseas cancellations were being replaced by those from the UK.

He added: "The majority of lost trade is being replaced. People unable or reluctant to fly, who have now cancelled overseas trips, are looking for popular tourist destinations at home.

"York, as is well known, has long been a prominent tourist choice."

Updated: 10:46 Friday, September 28, 2001