Tourism organisation, Visit London, says the rise is due to a downturn in visits to Asia and America because of Sars and post-Iraqi security fears.

The latest figures come after it was recently revealed that London is the most visited European City.

Visit London predicts further rises in tourism and spending during 2004.

'Trend should continue'

David Campbell, chief executive of the organisation, said: "Lonely Planet's new guide to London describes the capital as being back in the spotlight and one of the most dynamic hubs on earth.

"We'd agree with that, and with London benefiting from more assertive marketing, the upward trend in visitors should continue."

The city's share of world international arrivals is predicted to go up from 1.65% in 2002 to 1.72% in 2003, based upon initial estimates from the World Tourism Organisation.

In 2003 world-wide international arrivals fell by 1.2%, the biggest annual drop ever.

Overseas visits to London are estimated to rise by 5.9% to 12.65 million and spending by overseas visitors to rise by 4.6% to �6.25bn, in comparison with 2003.

And domestic visits are estimated to rise by 2% to 15.4 million and spending by 5% to �3.09bn.