Tourism officials in Britain's Lake District are alarmed by a steep drop in the number of Japanese visitors during the London Olympics, which have seen hotel prices soar and tough traffic restrictions imposed in the capital.

The decline will result in businesses in the picturesque area incurring heavy losses, the officials warned, amid growing concern about the negative effects of the games on Britain's tourism sector.

Jonathan Denby, president of the Lakes Hospitality Association, said Japanese tour groups stopped visiting the area about a week before the Olympics kicked off July 27, and that there have been no further bookings until a week after they end Aug. 12. The number of tourists from Australia and China has also fallen noticeably, Denby, who owns four hotels in the area, added.