Europe arrivals down, especially from the U.S.

NEW YORK -- Overseas visitor arrivals in much of Europe have dropped by up to 30% since September's terrorist attacks, according to a new European Union report.

Business travel, incentive travel and cruises -- heavily dependent on Americans -- were hit particularly hard. Car rental companies expect to lose one-third of business through year's end.

Hotel occupancy in major European cities has dropped 20% to 30%, according to the report, with no recovery predicted until the second quarter of 2002.

Among destinations, the U.K. and Ireland, which also rely on U.S. visitors, have been severely affected, while Spain and Portugal -- popular with European tourists -- reported little measurable downturn, since the impact on internal European travel remains minimal.

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