Language schools have been hit by the economic backlash from the terrorist attacks on the US.

The schools generate millions of pounds' worth of business in Sussex every year.

But the drop in business sparked by the September 11 atrocities is "the last straw" for at least one school, which is to close.

Bookings for language courses have dropped, say schools, because some foreign students see the UK as a target for terrorist activities. French students have been advised not to travel abroad.

Sheron Hunt, director of Hastings language school EF, said the drop in bookings was the final nail in the coffin for the school, which will close in December.

She said: "This has come about as a result of the terrorist attacks.

"We still had nearly 200 students when the decision came to close the school but we moved most of them to other schools.

"We still have 100 students here but staff will be made redundant when the school closes on December 14.

"It is very difficult. It was the last straw for the school. It is easier to sell the courses in Cambridge and Brighton but Hastings has problems."

Students generate £30 million a year for Hastings alone and bring in millions of pounds to seaside resorts across Sussex.

A spokesman for Eastbourne Borough Council said a decision by authorities in France to advise students not to travel would have an impact on resorts across the country.

She said: "Eastbourne language schools attract businesses from a wide range of countries. This year, in spite of the foot and mouth crisis, the schools have reported a healthy summer and autumn season.

"While we are sorry not to receive French students we are still receiving students from all over the world who we warmly welcome, including those from the Middle East.

"We are also, in fact, receiving diverted bookings from students who were due to attend language schools in London."

Graham White, principal of Eastbourne School of English, said he believed the drop in students would be a temporary problem.

He said: "We have had the odd cancellation, and that was in the immediate aftermath of when people were frightened to fly. But students see Eastbourne as a safe and relaxed place to come and don't see it as a target for terrorism.

"The message I want to get across is that it is business as usual in Eastbourne. It is somewhere that is perceived as a quiet and safe place."