"Recent information shows clearly that there has been a very significant revival in the tourism sector and that cancelled bookings are being speedily renewed," Deputy Prime Minister Abdullatif Sener told reporters following a cabinet meeting.

"We hope there will be an important improvement in the tourism sector this year," Sener said.

The war in Iraq is being fought at least 1,000 kilometres (625 miles) from Turkey's nearest coastal resorts -- but it has already hit the country's tourism sector, a primary source of foreign currency revenues for its crisis-ridden economy.

Travel agencies have reported a freefall in bookings ahead of the holiday season, with press reports putting the decline at about 40 percent.

The government had set the ambitious goal of attracting 15 million foreign tourists this year -- a significant increase on the estimated 13.2 million who brought the economy 11.9 billion dollars in 2002, according to official data.

Referring to widespread fears of economic consequences ahead of the war, Sener said that "Turkey got through this process in a healthy way."

"We have established that the minimum of negative impact has occurred as far as concerns Turkey," the minister said.

The government, which is battling severe financial difficulties with the support of the International Monetary Fund (IMF), did not have immediate plans to revise economic targets for 2003, he added.

SPACE.WIRE