BUSINESS leaders have welcomed plans to win European Capital of Culture 2008 status for Newcastle and Gateshead.

The bid put together by the area, and shortlisted earlier this week, details plans to bring four million more tourists to the region, inject £700m into the economy and create 17,000 jobs in tourism.

There are also proposals for more than £3bn of investment in transport, leisure, housing and commerce.

The bid has already provided a boost to the region's creative industry.

Newcastle Gateshead Initiative chief executive Neil Rami said: "The creative industries in Newcastle and Gateshead are currently thriving and this bodes well for our bid to become European Capital of Culture.

"But we should also not underestimate just how important an impact these particular industries can make on the region's regeneration and economic objectives."

He cited South Tyneside- based Eyestorm Art Warehouse as one example of how it was possible for those working within the creative industries to run enterprising commercial operations.

Opened on the Hebburn Industrial Estate, Eyestorm offers commissioned works from artists and photographers such as Damien Hurst, Helmut Newton and Dennis Hopper for sale through its website - www.eyestorm.com.

Don Smith and David Grob, who run the factory, have persuaded some of the world's leading artists to produce signed limited editions of their art, which can be sold at affordable prices over the web.

Another new firm, Designed and Made Limited, has been created to establish a network to help those in the design industries showcase their work.

Maggie Walker, one of the founders, said: "Designed and Made is establishing creative partnerships and developing innovative collaborative projects between designer-makers and manufacturers."

The Biscuit Factory, another new creative enterprise involving up to 30 artists, will offer an extensive programme of art.

Director Andy Balman said: "The Biscuit Factory has a very strong commitment to art and artists in this region and we aim to provide a focal point for art in the region, whilst bringing in national and international artists."