A prestigious powerboat race is to return to South West waters this summer after a three-year break.

The Cowes-Torquay-Cowes (CTC), which first ran in 1961, will return to Torquay over the August bank holiday weekend.

It is being organised by Powerboat P1 Management in association with the British Powerboat Racing Club (BPRC).

Powerboat P1 Management said they expect that more than 30,000 people will descend on Torbay to watch the event.

The CTC was the very first offshore race in Europe, and is recognised as one of the toughest challenges in world power-boating, comparable with the Indy 500 and 24 Hours of Le Mans.

According to Powerboat P1 Management, the race could generate more than £1m for the local economy.

Lord Beaverbrook, BPRC: "It is an event steeped in history and tradition and represents one of the great power-boating adventures."

The CTC, which will replace the British Grand Prix of the Sea, is an open event, and up to 80 speedboats are expected to participate.

The boats will start and finish in Cowes and the front runners are expected to complete the course in less than four hours.

Lord Beaverbrook, chairman of BPRC, said: "We are delighted that the Cowes-Torquay-Cowes will return in 2008.

"It is an event steeped in history and tradition and represents one of the great power-boating adventures. In the past it has been instrumental in the development of offshore motorised craft. If any race has provenance this one has.

"The timing of its return, in the same year as the Round Britain Race, adds fresh impetus to both events as teams and manufacturers have an added incentive to make the necessary investment."

Jim O'Toole, managing director of Powerboat P1 Management, added "The event enjoys iconic status in world power-boating and we believe many racers from various classes and markets around the world will be unable to resist the opportunity to participate in this legendary race.

"We look forward to working closely with the BPRC in the months ahead to make the return of the event a resounding success."