The number of overseas tourists visiting the UK had been rapidly increasing before last month's London terror bombings, official data shows.
Some 14.01 million foreign visitors came to Britain during the six months to June, up 12% on the same period last year, the Official for National Statistics said.
Although arrivals from North America dropped 6% to 1.96 million, visits by Western European rose 12% while tourists from the rest of the world soared 30% to 2.85 million.
Overseas visitors spent a total £6.11 million in the first half of the year, 12% more than was spent last year, ONS said.
July's terror attacks, however, are expected to halt the rise in tourist numbers.
Research by the Tourism Industry Emergency Response Group predicted spending by overseas visitors during 2005 will be down 2% on initial expectations as a result of the explosions.
Given that 50% of all international visitors travel to London, the decline would represent a £150 million shortfall for the Capital's tourism industry.
Immediately following the attacks on 7 July and the attempted blasts two weeks later there were few travel cancellations but experts fear autumn bookings will be affected.