TOURISM and business chiefs in Worcester were reeling this morning after hearing Birmingham had missed out on the Capital of Culture title.

The title of European Capital of Culture for 2008 would have brought millions of pounds to the West Midlands - and Worcester - in tourism, business visitors and investment.

Business bodies spoke of their "bitter disappointment" following the live announcement on television this morning by Culture Secretary Tessa Jowell that the title had gone to Liverpool.

However, tourism chiefs in Worcester said the work put into making Birmingham a "cultural centre of excellence" would not be wasted.

Sir William Lawrence, chairman of Visit Heart of England, which has its headquarters in Larkhill Road, Worcester, said the people of Worcester could still benefit.

"All the work put into being a cultural centre of excellence in 2008 will not be lost on those who live, visit and enjoy this part of the Heart of England region," he said.

Alan Stuttard, Head of Cultural Services at Worcester City Council, said the biggest tangible loss to the region was money, with winners Liverpool estimating around £2bn of investment will flood into the city.