UP to 5,000 rural tourism jobs could be lost because of the long-term impact of the foot-and-mouth crisis, a report has warned.

It is also feared that the epidemic could leave a devastating legacy, which could see 600 businesses fold before next spring.

The alarming scenario was outlined by council leaders in North Yorkshire, where a series of foot-and-mouth clusters have left the future of the farming and tourism industries in jeopardy.

The county council's business director, Gordon Gresty, said a consultant, ECOTEC, had carried out a study on behalf of regional development agency Yorkshire Forward.

It suggested 5,000 jobs were at risk in the North and East Yorkshire tourism sector.

"Many of these tourist businesses only have the summer to rely on," said Mr Gresty.

A report to the authority's executive says 27 per cent of businesses have laid off workers, while 57 per cent who planned to recruit seasonal staff have not done so.

People who lose their jobs or businesses are unlikely to find local jobs, because few traders will be able to take on staff.

Accommodation providers are said to have been hit hardest, losing up to 70 per cent of their trade.

Jo Pickering, of the Yorkshire Tourist Board, said: "The rural tourism economy in the region is worth £1.7bn and we have lost an estimated £300m of that already."

She said a rural revival could be a long way off, with foreign visitor numbers down for the next two to three years due to a loss of confidence.

Read more about foot-and-mouth here.