THOUSANDS of visitors have begun to descend on the Cotswolds, the Vale of Evesham and Stratford for the premier event of the National Hunt calendar.

An estimated 150,000 people from across the world will be arriving for the three-day Cheltenham Festival which starts on Tuesday. The influx of race-goers ensures that the coming week will be one of the busiest of the year for local hotels, restaurants and shops.

The festival will also be a milestone for the Gloucestershire Warwickshire Railway, with a new link to the racecourse being opened by The Princess Royal. The opportunity for hundreds of people to travel to the races by steam train is expected to dramatically reduce the usual congestion on the area's roads.

Princess Anne will not be the only royal visitor this year - it was recently announced that The Queen will be presenting the Gold Cup for the first time since 1951.

Veronica Woodford of Stow tourist information centre described the importance of the festival to the local economy. "When the foot and mouth epidemic forced the festival to cancel two years ago it was completely devastating for many businesses - they lost out on one of their busiest weeks of the year."

Weeks before the races, many hotels and B-and-Bs across the area were fully booked. "We have had lots and lots of requests for accommodation - I would not say that every last room is booked but we are already pretty choc-a-bloc."

Mrs Woodford added that it is not just local hotels that benefit from the festival. "Throughout the week there are many people walking around and doing a lot of shopping - particularly the wives. They often don't like racing so will spend their time visiting shops all around the Cotswolds.

"Also, of course, after a day at the races people come back for an evening meal, which is good news for restaurants."

The Lygon Arms in Chipping Campden is holding a preview evening on Sunday and Monday. Top names from National Hunt racing will be on hand at the charity event with all proceeds going to the Injured Jockeys Fund.

Over at the Lygon Arms in Broadway, manger Barry Hancocks said: "This is the busiest week of the year for us - we are always full with the same people staying from year to year. They go to the races and then come back here for great food and enjoy themselves."

Another hotel that is traditionally fully booked for the festival is the Fosse Manor, near Stow. Landlord Simon Haggarty said the only limit to his trade over the coming week will be size of his establishment. "If I had 100 rooms they would all be full. A lot of people come back year after year - as they leave after their stay they often book the same room for the following year. It is an incredible atmosphere, particularly with the Irish visitors."

Stratford's's Moat House Hotel will be getting the full flavour of the festival, with about 200 Irish racegoers taking up half the rooms. The hotel's connection with the festival goes back many years, according to general manager Douglas Bamber. "We have had a relationship with travel company called Tully for many years and some of their people stay in Cheltenham and some stay here," said Mr Bamber.

The racegoers, including some who choose to stay at guest houses or B&Bs in Stratford, are bussed to Cheltenham each day in a fleet of coaches.

Mr Haggarty launched his festival week with an auction of promises last night, which was attended by many luminaries of the racing scene including Willie Carson. Even before the hammer had fallen on a single lot, £12,000 had already been given in donations to Macmillan Nurses.

The Cotswolds is expected to do well on the course itself. Local trainers Jonjo O'Neill and Nigel Twiston-Davies can expect strong support for their runners and Condicote-based jockey Warren Marston is widely tipped for a successful year.

The festival, with a total of 20 races, starts next Tuesday and runs until Thursday. For information log on to www.cheltenham.co.uk. For details of the special steam train packages call 01749 841591 or visit www.racingtours.co.uk.