ALISON CAMPSIE and GILLIAN LONEY With its neighbour at the centre of the flu pandemic scare, the US was last night looking vulnerable to the increasing spread of infection with alarming reports ranging from "many hundreds" of schoolchildren sick with suspected swine flu in New York to California declaring a state of emergency.

ALISON CAMPSIE and GILLIAN LONEY

With its neighbour at the centre of the flu pandemic scare, the US was last night looking vulnerable to the increasing spread of infection with alarming reports ranging from "many hundreds" of schoolchildren sick with suspected swine flu in New York to California declaring a state of emergency.

At least five people have been hospitalised with swine flu in the US and deaths are likely, a US health official said. America had more than 60 reported cases of swine flu, mostly in New York City.

"I fully expect we will see deaths from this infection," as swine flu cases are investigated, said Richard Besser, acting director of the federal Centers for Disease Control and Prevention in Atlanta.

Those in hospital include three in California and two in Texas, he said.

Mr Besser said the country had 64 confirmed cases across five states, with 45 in New York, one in Ohio, two in Kansas, six in Texas and 10 in California. At least four other cases have been reported by states.

In New York City, Mayor Michael Bloomberg said two people - an adult in Brooklyn and child in the Bronx - were also in hospital.

Their cases were separate from an outbreak at a private school in the Queens area. According to the city's health commissioner Thomas Frieden, many hundreds of schoolchildren throughout New York were sick with suspected cases of swine flu.

Across the country, the Los Angeles County coroner's office was investigating the recent deaths of two men, 33 and 45 years old, for links to swine flu.

Federal officials suggested the flu may be spreading so fast there may be no practical way to contain it, and no need to tighten borders further.

In California, which borders Mexico, Governor Arnold Schwarzenegger has declared a state of emergency that will help state agencies co-ordinate efforts in response to the outbreak of the illness.

Meanwhile, Canadian health officials confirmed seven more cases of swine flu.

In Mexico, the country's business chamber said the swine flu shutdown, which was affecting schools, public buildings, factories and restaurants, was costing Mexico City economy $57m (£39m) a day.

Foreign tourists are being scared away and hotels are reporting cancellations across the country in a blow to an important engine for Mexico's economy.

The first British tourists to be pulled out of Mexico as a result of the swine flu outbreak are due to land on home soil today.

Holiday firm Thomson announced that arrangements were being made to repatriate holidaymakers to the UK as the impact of the infection was felt on a global scale.

The Foreign and Commonwealth Office has recommended that all non-essential travel to Mexico is cancelled.

While the World Health Organisation said that it was not stopping inter-country travel given that the flu virus has already been reported in several countries, including Britain, Spain, New Zealand, the US and Canada, Thomson said it was acting to reduce the risk to its customers.

Thomson estimated that it has 2500 holidaymakers in Mexico at present, with up to 10,000 Brits said to be there at the moment.

Mexico is listed as the tenth most visited destination on the planet with around 22 million international travellers touching down every year in the country, which is flanked by the Pacific Ocean and the Caribbean Sea.

Fears for the Mexican economy have been deepening given the international reaction to the outbreak although the government said that it "respected" the guidance issued by numerous countries not to travel there. Tourism raised around $13bn for the economy last year.

Many restaurants, football stadiums and tourist attractions have closed as the government attempts to stem the spread of the infection.

Yesterday, doctors and nurses were on standby at Birmingham International Airport to examine passengers of a Thomson flight who returned from Mexico as scheduled.

Thomson and its sister company, First Choice, announced that it will not service travel to Mexico until May 9 at the earliest.

A spokesman said: "While we do appreciate that this news may be a great disappointment to customers, we hope they will also understand that their health and safety is of paramount importance to Thomson.

"Thomson is currently making arrangements for the repatriation flights that are expected to start today."

Customers of both firms due to travel to Cancun or Cozumel from April 28 up to and including May 8 will have the option to cancel their holiday free of charge or make a free amendment to their holiday. Those due to fly before May 22 will be allowed to change their holiday but not cancel it without charge.

Thomas Cook has suspended travel to Cancun for the next week and Virgin said that those customers due to visit Mexico before May 5 could get a full refund on their trip or alter their travel plans to a new destination without charge.