Tourism is booming despite terror threat

Tourists are returning to London in record numbers with Europeans ignoring the threat of terrorism and Americans falling for the "Tony Blair effect".

After three years in the doldrums, latest tourism statistics reveal 6.5 million visitors came to Britain between March and May - the highest number ever recorded in this period.

About half are understood to have stayed in the capital.

In the wake of the Madrid train bombings in March industry experts had expected a sharp drop in numbers from western Europe. But figures from VisitBritain show a rise of 21 per cent.

Tourism chiefs credit the jump to a growing desensitisation to the threat of terrorism among Europeans, who make up two-thirds of the total visitors. A rise of 17 per cent in the number of Americans visiting in the same period has been largely credited to the huge popularity the Prime Minister enjoys in the US.

VisitBritain, the agency responsible for marketing the country abroad, has used Mr Blair's image heavily in US marketing campaigns and is convinced he has helped draw back tourists.

US visitors account for one sixth of all tourists coming to Britain and are considered especially important as they are known to spend a disproportionately-The figures come as a relief to London's ?15billion a year tourism industry which has taken repeated setbacks, first from the foot-and-mouth outbreak, then September 11, Sars, war in Iraq and the global economic slowdown.

BAA, operator of Britain's largest airports, reported a rise in passenger numbers last month of seven per cent to 12.8 million compared with last year. British Airways had an especially good June, with passenger figures up 30 per cent. Jonathan Simpson, spokesman for VisitBritain, said: "It appears the industry is turning the corner and we are delighted. Certainly in terms of the American market Tony Blair has had quite an impact - he is very popular over there."