Tourism contributes £8.9bn to the South West economy each year, a new study has found.

The report, carried out by South West Tourism, also shows that the region's job market is heavily reliant on tourism.

More than 264,000 jobs are supported by the tourism industry, directly and indirectly - 11 per cent of total regional employment, according to the study.

The £8.9bn figure includes total spending by people who stay in the South West and visitors to the region on day trips.

The total number of trips (day and staying visits) reached a staggering 114,219,000 in 2005.

Malcolm Bell, chief executive of South West Tourism, said: "This piece of research is vital as it goes right down to district level and enables us to find out how the region is performing and what areas need further development.

"Visitor related spend is at an all time high showing that visitors are still spending, as we continue to compete with the many low cost airlines and overseas short break destinations.

"We are finding that the businesses who are not embracing new marketing techniques, making more sustainable choices for their businesses and offering online booking options are the ones who will ultimately be left behind.

"The tourism industry is constantly moving forward, so it is vital that businesses make the right business choices, keeping them ahead of competitors.

"The region now needs to react to this research and continue to build on the success of our tourism industry, keeping the South West as the UK’s number one holiday destination."