Besides the massive loss of lives during the Mumbai terror attacks, it is the image of India that has taken a beating.

The tourism industry, which is seeing fewer tourists coming into the country, is upset with the Mumbai police for releasing footage of the gun battle inside the Taj and Trident hotels. They say this makes tourists stay away from the country.

Mumbai's iconic Taj Mahal Hotel was under siege for 62 hours last month. Painful visuals were beamed live across the world. Moreover, the CCTV footage of the battle inside the Taj between the police and the terrorists that was released by the Mumbai police on Sunday has upset the tourism industry.

"This hotel has been financially hit, so many have lost their lives inside. How does such footage help? It was not right to release it. Plus already over all business is down by 40 per cent," said Lalit Sheth, MD, Raj Travels.

Travel agencies say, though the exact figures are not available. Many American, British and Australian nationals have already cancelled their travel plans.

But there are some who are not deterred. Like this gutsy Belgian backpacker, who reached Mumbai in the midst of the attack.

"My family was insisting I should cancel it. But something like this can happen in Paris or Brussels also," said Sylvie Roux, Belgian tourist.

Those in the hospitality and tourism industries say they realise they have been badly hit, but now is the time to fight back. They must take measures to infuse confidence in their customers.