RECORD numbers of foreign tourists visited the North-East last year, providing a welcome boost to the region's economy.

Figures show that more than 540,000 overseas visitors stayed in the region last year -up six per cent on 2003 - with tourists spending almost £200m.

The figures will be welcome news to the region's tourist industry, which is continuing to battle back from 2001, when the North-East reeled from the combined effects of foot-and-mouth disease and the decline in international travel after the September 11 attacks.

The largest proportion of last year's visitors came from Germany, at 13 per cent, closely followed by Norway and the US at about ten per cent.

However, the headline figures hide the fact that the region still has quite a way to go to establish itself as a holiday destination. More than a third of tourists came to visit friends and relatives, others came for business or study and only just over a quarter came for a holiday, drawn in the main by established attractions such as Hadrian's Wall and Durham Cathedral.

Much of the increase is being put down to the growth in budget airlines offering the North-East as a destination, the opening of new attractions such as Alnwick Gardens and The Sage music centre, in Gateshead, and also the improved marketing of the region as it attempts to reach a target of 700,000 visitors a year by 2010.

John Holmes, director of regeneration and tourism at One NorthEast, said: "This is very good news for the North-East and the region's tourism industry, which already contributes more than £1bn to the region's economy.

"The increase in passengers through the ports and also the growth in low-cost flights will have been a major factor in this, but so too has been the success of our attractions and marketing efforts.

"Over the last two years, we have had a year-on-year increase in the number of tourists coming to the North-East, but we believe we can still build on this."

Tourism bosses hope that events such as the Tall Ships' Race, which comes to the Tyne in the summer, will help maintain the momentum.