Durham University Business School says an extra 400 jobs were created between October and December 2004.

The survey comes in the wake of a new strategy by regional development agency One NorthEast to bring two million more visitors to the region.

However, the same study suggests that a fall in the number of manufacturing jobs, has hit business confidence.

The study revealed the largest batch of jobs was created with the development of a new casino within The Gate leisure complex in Newcastle - with 250 new posts.

'Longer-term downturn'

Professor Ian Stone of Durham Business School said: "The boost to jobs in the tourism sector is excellent news for the region.

"Given the ambitious plans for its development over the coming years, we would hope to see this growth replicated in future surveys."

But the same study also expressed concern at job losses in the region's manufacturing sector.

Prof Stone added: "The overall fall in new jobs created and business expansions does suggest a slight reduction in business confidence in the region.

"At this stage it is too early to say whether there might be a longer-term downturn in the regional economy."

Recent figures from One NorthEast estimate there are currently 47,000 jobs directly supported by tourism and a further 52,000 indirectly in the region.