Thailand says it expects a record windfall this year from foreign film-makers lured there by its exotic locations and liberal industry regulations.

Officials announced on Tuesday that they expected to rake in 1.5bn baht (�21.8m/ $35m) during 2003.

They have credited the government's moves to cut red tape governing film shoots and to lower income tax for foreign actors.

Thailand's beautiful locations famously served as the backdrop for the 2000 Hollywood blockbuster The Beach starring Leonardo DiCaprio.

Protestors claimed filming on The Beach damaged the environment

Film Board director Sidhichai Jayant said 25 films, 200 documentaries and more than 200 commercials were filmed in the country last year.

"This year we forecast revenue to top 1.5 billion baht," he said.

He said Japanese and Indian producers would be first to benefit from moves to shorten a formerly lengthy approvals process for film-making.

Thailand has also agreed to tax foreign actors at a flat rate of 10%, ditching the old system that applied a sliding scale of six to 37%.

Officials say this should encourage actors previously put off by the thought of paying income tax on up to a third or more of their salary.

As well as Thailand's stunning locations, officials say it has a strong infrastructure for international film crews to take advantage of.

Sidhichai Jayant said: "In the past they came here just because the scripts said the action was happening in Thailand.

Conservation

"But we want them to come here not just because Thailand is in the script, but because they want to film here."

The Thai film industry is also sending a team to the US to observe how Hollywood crews handle environmental issues when they film in conservation areas.

During filming of The Beach on Thailand's Phi Phi island in 1999, angry environmental campaigners claimed the shoot had caused damage to the beauty spot.

The island's Maya beach was later closed for restoration by forestry authorities after a series of protests by locals and activists.