The review took three years

The results of a three-year review were announced at Holyrood by Tourism Minister Frank McAveety.

VisitScotland's marketing budget is to rise by �5m a year, with an extra �3m for staff training.

Mr McAveety told the Scottish Parliament that the country's tourism industry has the potential to grow by 50% over the next 10 years.

That would see turnover rise from �4bn to �6bn over the course of a decade.

The Scottish National Party welcomed the changes.

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But the Conservatives said it was the kind of top-down approach that the industry does not want.

The review of Scotland's area tourist boards concluded that they should be re-named and integrated with VisitScotland.

Legislation is planned to make possible the change to local tourism hubs, which will charge tourist operators for providing services.

The 14 area tourist boards will be reduced to two during the transition period.

Mr McAveety said this would act as a "stepping stone" to enable the new network to be up and running by 2005.

More co-ordination

"We would hope that most of the present staff of the ATBs will move to this new structure on that date," he said.

The minister said the consultation exercise had resulted in mixed opinions on the way forward, although everyone agreed that more co-ordination was the key.

VisitScotland's marketing budget will be increased by nearly 30%, leading to a �17m rise over three years - �5m this year and next, then �7m in 2005-06.

Frank McAveety announced details at Holyrood

The bulk of the additional money will be used to promote Scotland to the rest of the UK and to overseas markets which have not yet been fully tapped.

There will be �3m more per year for training - and the industry is being asked to match the government funding pound for pound.

Mr McAveety told MSPs: "We are confident that what we have announced today will, with a matching commitment from the private sector and continuing support from local authorities, help Scottish tourism to go from strength to strength."

VisitScotland chairman Peter Lederer described the announcement as "a major step in driving forward Scotland's most important industry".

SNP tourism spokesman Kenny MacAskill said the announcement contained "more questions than answers".

Apology call

"While the additional marketing funding is welcome, the overall amount which has been made available is still less than two years ago," he said.

"VisitScotland will still be heavily outspent by Tourism Ireland, our major competitor."

Tory tourism spokesman Jamie McGrigor asked the minister to apologise for the fact that the review had taken so long.