Businesses in Oxford are gearing up for the euro in anticipation of thousands of tourists visiting the city with the new currency.

Although Britain opted out of joining the single currency, the euro became legal tender here on January 1 and many hotels, department stores and other shops will now accept payment in the fledgling currency.

Tourism experts estimate that about 700,000 tourists visit Oxford every year from mainland Europe, making the city one of the most popular destinations in the country.

Marks & Spencer has identified Oxford as one of 30 places in Britain likely to be visited by tourists with the new currency, and euro tills have been installed at the store in Queen Street, Oxford.

A spokesman for Marks & Spencer said: "This is a service for our customers, both in the UK and abroad, who use the euro.

"UK tourists can use their old notes here when they return from abroad and foreign tourists can use them here, as in their own countries."

In 2001, tourist revenue in Oxfordshire suffered from the strong pound and the foot and mouth crisis. Businesses are hoping to improve their fortunes in 2002 by gearing up for trade in the euro.

Jan Hull, tourism manager for Oxford, said: "Some hotels are prepared to take bookings in euros, and I imagine businesses that take group bookings from Europe would want to invoice in euros to make things easier.

"Tourism suffered badly in Oxfordshire last year and we are hoping that the euro will strengthen against the pound to encourage more people to come here."

Banks took delivery of the newly-printed notes in December and staff have been trained to deal with it.

George Hulbert, spokesman for Barclays Bank, said: "We have been doing a range of training for quite a while making sure our staff are aware of the euro, the issues involved and what they look like.

"We have also trained staff in the look, feel and touch tests that the European Central Bank recommends to check for forgeries."

The change has affected some businesses more than others.

Holiday Inn managers said they have been handling invoices in euros for several years and Debenhams, in Magdalen Street, Oxford, has accepted payment in foreign currencies since 1997.