This performance boost has come despite a 15% fall in foreign visitors to India following the 11 September terrorist attacks, and tensions with Pakistan over Kashmir.

Thomas Cook (India) has strengthened its domestic tourism services to maintain its position, and expected to beat its profit predictions convincingly this year, managing director Ashwini Kakkar said.

The news came as The World Travel and Tourism Council [WTTC] named India in a list of three locations set to attract rising numbers of holidaymakers.

Tourism boom

India accounts for barely 0.4% of the global tourism market, attracting just 2.4 million visitors last year, the WTTC figures showed.

However the council predicted that India, with Turkey and China, would see double-digit growth in tourism after 2003.

Worldwide, the sector would achieve average growth of 4.2% a year, returning to pre-11 September levels by February 2004, as increased security eased travel fears.

However, a further international crisis could effect the recovery, the council added.