Attractions like the new Hadrian's Wall walk has boosted visitors

It is thought One NorthEast - the board's biggest financial backer - will now set up its own tourist board.

Since April this year, development agencies have been taking greater responsibility for planning tourism strategy.

But the Northumbria Tourist Board (NTB) and some businesses have reacted angrily to the decision.

Hugh Becker, member of the NTB, said: "The NTB has been around for 35 years... we are well known in England for being the best tourist board in the country.

Tourism is very important to the region and we are going to invest �60m in it Alan Clarke, One NorthEast

"We have 1,500 members who pay - most of them small businesses - you cannot have a better endorsement of an organisation that is delivering.

"We want to know what One NorthEast think they can replace this very good, fit-for-purpose organisation with."

Alan Clarke, chief executive of One NorthEast, said: "We have been talking to NTB for over a year but we haven't been able to come to a clear way forward so we felt we had to make this decision for the interests of tourism in the region.

"Tourism is very important to the region and we are going to invest �60m in it."

In a statement, Durham County Council, who are accountable for NTB, said: "The County Council - as the board's adviser and treasurer - has a duty to protect its members.

"The council has therefore suggested that a working party be set up as quickly as possible comprising members of One NorthEast, the Tourist Board and the county council, to manage an orderly wind-down of the board and its finances."