The report took into account a number of factors when assessing the impact of the industry, including the number of bed spaces, hotels, car park spaces and visitor footfall figures in the District.

It found that Chichester District is predominantly a day visitor destination with more than 4.8m visitors, but also benefits from having a number of major events of national importance that take place in the area, such as the Goodwood Festival of Speed, the Glorious Goodwood horseracing spectacle, and the numerous productions put on at the Chichester Festival Theatre and as part of the Theatre's annual Festival from April to September.

Councillor Nick Thomas, Portfolio Holder for Culture and Sport at Chichester District Council, said the benefits of tourism to the District are not always obvious.

He said: "Tourism is a truly significant local industry – the tourist pound re-circulates around the District through many companies who have an indirect link with the arrival of tourists to the area.

"It is also estimated that more than 6000 households in the District are affected by tourism and rely on its success to provide people with an income, either as a business owner or as a paid employee."

Chichester District Council runs three Tourist Information Centres in Chichester, Midhurst and Petworth, and has a 50 per cent stake in Visit Chichester, a recent partnership initiative between the Council and businesses with an interest in tourism, such as entertainment venues, hotels and bed and breakfasts. It has 120 members, and works to promote the District as a visitor destination on a national and international level.

"VisitChichester has really put the District on the map as far as tourism is concerned. We take for granted the fact that we have the South Downs, the historic city of Chichester and a wonderful coastline right on our doorstep, but those outside the area may not be aware of just what the area can offer to visitors," said Cllr Thomas.

"We can't afford to be complacent though – we need to look at new ways to promote the area, and the District Council will be continuing to invest in projects such as the website www.visitchichester.org.uk that will bring more and more people to the area.

"We would also like to work more closely with retailers in the District to help them maximise the opportunities that tourism brings with it, and that is a key area for us as we gear up for 2008.

"Another area we are looking closely at is the provision of high quality serviced bed spaces. At the moment, we do not have enough, especially in Chichester. If we want to move on from being a day trip location and attract more people to stay for short breaks, we need to look at how we can offer more accommodation options."

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