The UK welcomed 10% more visitors over the first nine months of this year than it did during the same period in 2004, despite July's London bomb attacks, new figures reveal.

Latest international visitor figures suggest Britain has not only rebounded from the terrorist incidents of 7 and 21 July amid fears it would suffer, but the tourism industry is outperforming expectations.

Some 23 million overseas residents have travelled to the UK this year, contributing £10.7bn to the visitor economy in the year to date, third-quarter results show.

By the end of 2005, the country can expect 29.3 million international visitors who will have spent £13.9bn during their stay.

But while the country has proved its resilience, the report warned that low consumer confidence in the US and increasing competition from rival tourist destinations could ultimately harm the UK's long-term prospects.

"The figures highlight some of the challenges that face the industry," said Tom Wright, chief executive of VisitBritain.

"Visitors from Western Europe traditionally spend less per visit than their North American counterparts and usually stay for a shorter time, as well," he added, noting that the greatest growth in tourist visits this year has come in visitors from Western European nations.

"Emerging markets including China, India, Eastern European and South East Asian countries continue to grow but will take time to reach their full potential. As well as extra investment in these newer markets, we must continue to support initiatives and brand building work in our traditional markets, particularly in the US," he said.

To help push the UK as a tourist destination, VisitBritain will launch a new, three-year strategy next month. A series of marketing campaigns will promote Britain to international visitors and England to the British.

A similar campaign has also been launched in London.

The Capital's mayor Ken Livingstone announced on Tuesday that the initiative will have a budget of £6.2m, £3.7m of which will be used to market London internationally and £2.5m toward inward promotion.

It will feature press, radio, online and outdoor advertising, as well as hotel and transport offers in the run-up to and after Christmas. Its main aim is to boost Tube journeys in the West End, which have not fully recovered from the July attacks.