TOURISM in the Malvern Hills area has been given a major boost with news that this year's Cheltenham Gold Cup has already sold out - two months ahead of the event.

The race takes place on the last day of the renowned Cheltenham National Hunt Festival, which runs from March 12-14.

Organisers have also reported heavy demand for the two remaining days of racing.

The festival was cancelled last year because of foot and mouth, costing hotels and tourism- related businesses throughout the Three Counties tens of thousands of pounds in lost trade.

"We're absolutely delighted it's going ahead," said Sharon Gray, head of economic development and tourism at Malvern Hills District Council. "March is traditionally a very poor month for tourism.

"It will be a massive boost to the local economy. It's not just accommodation providers who will benefit from the week but also shops and service providers around the district.

"Normally we tend not to have a single bed free in the whole district during the festival."

Hotels and traders in Malvern and Ledbury welcomed the return of the event, which traditionally provides one of their busiest weeks of the year.

Patrick Jones, general manager at the Abbey Hotel in Malvern, said: "It's a prime week in our calendar. Last year was a massive blow to us - a gigantic blow even. We lost lots of revenue, and thus profits.

"What made it worse was there was a subsequent knock-on effect on leisure traffic.

"We're very happy that it's going ahead and we expect to be as busy as we had been in the past."

Nigel Thomas, manager at the Foley Arms Hotel on Worcester Road, said: "It's the first good bit of news this year. The Gold Cup means we'll hopefully be in a much better position this year than last.

"We never recovered from it last year. Over the four or five days, we lost around £5,000.

"The Gold Cup will also mean a better season so far as concerns the Three Counties Showground as well."