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It will be the successor to the £45m 'Only in Britain' campaign run in 2002. The BTA is spending £2m and lobbying the private sector for £4m.

BTA chief executive Tom Wright said the campaign was scheduled for late-summer in the hope that any war in the Gulf would be over by then.

He added that £1.5m in cash had already been raised, principally from cities keen to promote themselves as short- break destinations.

Despite long-haul tourism from countries such as the US and Japan being almost back to pre-September 11 levels, threats of war and terrorism is expected to set back demand. But the BTA's research shows that short breaks made by Europeans are the fastest- growing segment of the market and now comprise 25% of the nine million visits made to Britain each year.

The campaign will focus on cities bidding to be European Capital of Culture 2008, including Cardiff, Bristol and Birmingham.

"City-break spending in London is £808m each year, but the next most popular cities, such as Manchester and Edinburgh, generate just £8m to £12m. We want to redress the balance," said Wright.

The BTA is also testing a strategy of one-to-one marketing in March.

It will log the interests of potential tourists and send out glossy brochures personalised to their tastes.

The organisation has revised its prediction of 3% to 4% growth in tourism during 2003 due to the uncertain political environment.

COMMENT

The multiple blows of foot and mouth disease, terrorist attacks and now the looming war with Iraq have forced the BTA to become a more focused and professional marketing body since the turn of the millennium.

A flexible brand strategy and better use of research is enabling it to quickly shift tactics and exploit any growth areas in a tough tourism climate.

But the body is still hamstrung by some severe flaws in its product, such as severe delays on the rail network and a crumbling London Underground system that requires investment.