Tourists are flocking back to Britain after a disastrous slump in visitor numbers sparked by the foot-and-mouth epidemic and the post-11 September crisis.

The upsurge suggests that memories of the disastrous Tony Blair photo-opportunity, when he deterred tens of thousands of potential foreign visitors by touring a farm in a protective yellow suit, are beginning to fade.

Government figures yesterday revealed that overseas visits have returned to their level of two years ago. A total of 2.05 million foreign tourists came to Britain in October, compared with 1.63 million in the previous October and 2.06 million the year before. They spent £935m in Britain, an increase of more than 20 per cent over last year.

The lucrative North American market is showing strong signs of recovery. A total of 320,000 Americans and Canadians visited this country during the month, compared with 257,000 the year before.

The increases come after a £40m "Only In Britain" publicity drive, jointly financed by the Government and the tourist industry, to promote the country to its core markets of North America and western Europe.

The tourist industry collapsed after foot-and-mouth disease erupted in Britain in February 2001, sending images of burning pyres and "countryside closed" signs around the world. The photos of Mr Blair, in particular, did serious damage, with Whitehall officials calculating it could have cost the country £1bn.

Just as tourism was showing tentative signs of picking up, the recovery was shattered by the 11 September terrorist attacks on New York and Washington. Numbers of American visitors collapsed, partly offset by increased tourism from Europe.

The number of UK residents' trips abroad rose from 5.27 million in October 2001 to 5.83 million in October 2002. Visits to North America, which fell after 11 September, rose from 467,000 in October 2001 to 550,000 in October 2002.

UK residents spent £2.21m on overseas trips in October 2001, and £2.58m in the same month this year. Tom Wright, the chief executive of the British Tourist Authority (BTA), said: "These latest results are very positive and proof that Britain is in a strong position for continued growth and recovery as we enter 2003."

He said the BTA was planning a drive next year to sell the country in emerging markets such as China and Russia.