The temptation of low-cost flights abroad will lure British residents away from visiting London this year, a new report suggests.
Tourism authority Visit London predicts that domestic visits to the city are likely to decline by 2.1% to 11.75m in 2006 compared to last year, with spending falling by 1.9% to £2.6bn.
The organisation blames the decrease on slowing consumer spending and the prevalence of low-cost flights to foreign climbs.
Visit Britain said the figures are based on current trends which began in the summer of 2005.
Between July and August last year, anecdotal evidence suggests the number of UK residents coming to the capital fell by as much as 30% due to terrorism fears after the July 7 bomb attacks.
However, in contrast to the domestic figures, the report said foreign visitors have not been put off by the bombings with overseas tourist numbers projected to rise in 2006.
The strongest growth is predicted to come from Eastern Europe and Asia taking overseas visits to a record 14.9m and spending up 4.5% to £7.2bn.
Spending by all visitors to London will reach £9.8bn, a 2.7% rise, Visit London claimed.
Jamie Talmage, business analyst at Visit London, said: "In general, prospects for 2006 are positive.
"However, there does seem to be divide between buoyant prospects for the overseas market and challenging indicators for the domestic market."
London mayor Ken Livingstone added: "It is encouraging to see the international support for London and the growth in visitors from Eastern Europe.
"Our successful Olympic bid also gives us the opportunity to promote the city as the most globally inclusive capital in the world."