Record numbers of overseas tourists visited Britain in July, the Government announced today.

According to official figures, 2.87 million foreigners arrived during the month, an 11% increase on July 2003.

But although visitor numbers are up, tourists are not parting with their cash as readily.

During the period they spent £1.385m, up by only 4% on the previous year.

Despite the slowdown in spending, the Government is bullish about the overall picture.

A spokesman said: “Visitor levels between January and July are up 6% on the same period in 2000.

"After September 11 and foot-and-mouth, the figures are proof that the recovery is now well on the way.”

North American visitor levels in July were up by 14% but even this was not enough to boost spending.

The spokesman said: “The weak dollar and the fact that visitors aren’t staying as long means that spend hasn’t risen accordingly.”

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