Firms in the Lake District, popular with Japanese tourists, claim the London 2012 Olympic and Paralympic Games is damaging business, local newspapers reported in February.
Some Japanese groups have already cancelled visits to the Lake District, the BBC said.
Lake District Hospitality Association Chairman Jonathan Denby said hotels will lose tens of thousands of pounds and the district will lose “millions” from the £2bn worth of tourism business Cumbria enjoys each year.
A hotel manager said he already had lost £10,000 worth of bookings in 2012, blaming increased hotel costs in London for preventing tourists from leaving the capital to travel and spend money elsewhere in the UK.
The government is launching a £4m campaign this month to encourage visitors to the Olympics also to visit other tourist spots.
