The wedding of Prince William and Kate Middleton next year is expected to generate unprecedented interest in the British Royal Family - and have a direct effect on inbound tourism and tourism revenues.

Hospitality and travel operators can expect the big event to draw a flood of extra tourists to the capital, while millions more are expected to follow the live broadcast of the event.

Paul Eastham, head of corporate communications at Visit England said: "News of the Royal Wedding is not only a happy event for the couple and their families. It will also be very positive for the tourism industry, especially in the run up the London 2012 Olympic and Paralympic Games.

"Our research indicates that Monarchy and the associated places, events and history generate directly and indirectly well over £500m a year in revenue for the British tourism industry. We expect that figure to be exceeded next year, thanks to the wedding.

"The youth and vigour of the couple is very attractive and millions of people around the world are certain see the wedding as the perfect moment to come to Britain to see the young Royals and our much loved Queen."

Sandie Dawe, chief executive of VisitBritain, added that the event will be harnessed to promote the entire country.

"The Royal Wedding is set to deliver a welcome boost not just to the tourism industry in London but across Britain," she said.

"It will give us (VisitBritain) a wonderful opportunity to showcase Britain in the lead up to the 2012 Games. We are already talking to the rights holding broadcasters and the marriage in 2011 gives a further unparalleled chance to tell the world what we have to offer as a tourism destination."