A £20m government grant to the British Tourist Authority (BTA ) to promote Britain overseas, which  matches a cash injection of £5m and a £15m marketing contribution from Britain`s tourism and hospitality industry, was welcomed by Bob Cotton, chief executive of the British Hospitality Association, as a unique example of the public and private sectors working together.

The BHA  has led the campaign for more funds to help Britain overcome the combined impact on the tourism industry of the foot-and-mouth outbreak, the 11 September terrorist attack, and the economic downturn in the US. Last year, spending by overseas visitors to Britain declined by 14 per cent to £11bn compared with 2000 and visitor numbers were down by seven per cent.

"Tourism and hospitality companies have made an equal contribution to planning and funding this £40m campaign. We welcome not only the cash and contribution in kind being put up by the major organisations in the industry, but especially the additional £20m in grant which the Treasury announced today." he said. "This is a unique example of the private and public sectors working together for the benefit of the UK economy as a whole."

Mr Cotton said that the challenge for Britain to regain its market share was plain for all to see, but today`s announcement was very timely.

"It is a template for future partnerships and shows the industry a very positive way forward." A successful campaign would enable the Treasury to gain far more in VAT and duty revenues than the money it was investing in it, he added.

Major hotel companies, including Six Continents and Hilton, have contributed to the funding and will be playing a leading role in creating the campaign.

"We are committed to creating an innovative and forward-looking marketing campaign to boost inbound tourism at this much-needed time," said David Michels, chief executive, Hilton Group plc.