THE family of murdered backpacker Caroline Stuttle is to set up a memorial fund to help other youngsters realise their dreams of travel.

An initial collection for the appeal, which is in its early stages, will be held at Caroline's funeral, today.

The Reverend Chris Cullwick, who will lead the thanksgiving service and give the funeral address, said: "The family are very keen that some good should come out of such a terrible event.

"There will be an opportunity for people to contribute to this fund at the funeral. The family have not decided what form the fund will take."

Caroline, 19, was enjoying a gap year holiday in Australia with her best friend Sarah Holiday when she was killed at Bundaberg, in Queensland.

She was returning to the caravan site where she was staying when she was mugged for her handbag and mobile phone, and then thrown over the parapet of a bridge.

Caroline's parents, Alan and Marjorie Stuttle, have previously said they were eager that her death should not put off young people from backpacking abroad, or prevent their parents allowing them to go on such trips.

In a floral tribute sent to the scene of their daughter's death they said: "Let them pursue their desire to travel and experience life. Let them fly."

Family friend David Marks said it was hoped the fund would be called the Caroline Rainbow Foundation - "because she was following her dream at the end of the rainbow."

The aim was to help backpackers abroad who got into difficulties, for example because they had been robbed or needed medical help.

He said the family was in the process of registering the charity, but in the meantime a bank account had been set up, and donations were welcome.

"We have already been overwhelmed by people's generosity in response to this appeal," said Mr Marks.

Delegates at a York Business Network luncheon were told about the appeal at the end of last week and have already given substantial donations.

The funeral will take place at noon tomorrow at All Saints' Church, Huntington, York, followed by a private burial at New Lane Cemetery.

The service will also include tributes by family friend Brian Gledhill and Caroline's former psychology tutor at York College, Jo Taylor.