Tourism officials warn the industry is under threat and thousands of jobs across the country are at stake because the cost of a visa from countries such as India and China has doubled and visitors must provide biometric information.

They fear holidaymakers from these countries – where populations are booming and increasingly able to afford foreign travel – are striking Britain off their itineraries and buying a single, cheaper visa which allows them to travel around 24 other European countries.

The Government is already accused of endangering tourism in the region by cutting the budget of VisitBritain by nearly 20 per cent, and Ministers are being urged to slash visa prices. Tourism is worth £4.1bn to Yorkshire every year.

Yorkshire Tourist Board chief executive David Andrews said: "The visa is effectively a tax on everyone who wants to visit, which discourages visitors.

"Tourism is a key economic driver for Yorkshire and if potential visitors are put off visiting the UK then this would ultimately result in a negative impact for the Yorkshire tourism industry.

"The Olympics in the UK in 2012 is a fantastic opportunity for us to align our costs with the rest of Europe and lower our visa charges."

The cost of a tourist visa has risen from £36 to £63, which industry experts say has led to a fall in applications.

Problems are exacerbated because holidaymakers needing a visa now have to travel to visa officers to give biometric information before they can get the document, adding to travel costs and leaving some people in remote areas with a journey of hundreds of miles.

VisitBritain – whose budget will fall from £49.6m in 2007 to £40.7m in 2010 – says China, India, Russia, Thailand and the United Arab Emirates have been worst affected, and group tour organisers are striking the UK off their itineraries in favour of a single £43 "Schengen" visa which allows them into 24 other countries in Europe, but not Britain. In 2006, while France had 750,000 visitors from China, Britain had only 150,000. Some studies say this country is losing out on £140m a year because of visa price increases.

The tourism industry is making its views known in a Home Office consultation ending next week.

Chief executive Stephen Dowd of UKInbound – representing hundreds of businesses catering for overseas visitors – said there had been a "noticeable drop-off" in business from visa countries.

"I think in the long term it's going to be a major problem," he said. "If we start losing hundreds, even thousands of jobs, everybody suffers and over the long term that's exactly what's going to happen."

VisitBritain public affairs manager Stuart Barrow said: "Tourism is Britain's fifth largest industry worth £85bn and anything that jeopardises that success will be bad for the economy.

"There is a statistical link between the price of visas and the number of applications. As in any market, when prices go up, demand tends to go down."

Although the overall number of overseas visitors coming to Britain has been rising, China and India are key future markets and the UK share of global tourism is already falling.

Tory Shadow Culture Secretary Jeremy Hunt said: "For an Indian family of four to come to the UK now would cost them £420 before they even left India. Then, once they get here, Britain is one of the most expensive tourist destinations in Europe. If we are to harness the potential of a growing global tourist industry we must examine these issues."

A Home Office spokesman said: "We are exploring ways to facilitate short visits to the UK for those with a Schengen visa without imposing significant extra financial burdens on the traveller.

"Applicants would continue to be subject to the strict entry requirements for the UK. Our consultation on these new proposals is still ongoing, and no decisions have yet been made."

He said the demand for biometric data was part of a "triple ring of security" to stop people entering Britain illegally.