The number of foreign tourists visiting China last year fell by two million, despite a much-anticipated tourist boom as a result of Beijing's hosting of the Olympic games.

The state-run China Daily newspaper said on Thursday that it was the first drop in tourist arrivals since 2003.

The host nation for the 2008 Summer Olympics had expected a tourist boom because of the games but Shao Qiwei, the director of the National Tourism Administration, said China received 130 million foreign tourists in 2008, two million fewer than in 2007.

"All major inbound source markets, except for Hong Kong and Russia, slumped last year amid the economic downturn," Shao was quoted as saying by the China Daily.

There was no mention of other factors that may have kept tourists away, such as the massive earthquake in Sichuan province in May and the rioting and subsequent government lock down of Tibet in March.

Shao said "the inbound tourism sector is facing a considerable challenge this year", but his department was still forecasting a 1.5 per cent rebound in visitors, with revenues projected to increase one per cent to $41.5bn.

The government is counting on domestic travel to give the tourism industry a boost this year, and is drafting new guidelines to encourage workers to tag their annual leave on to public holidays.

China became the world's fourth-largest tourist destination in 2006 after France, Spain and the United States, and Shao has said that China aims to grab the top spot by 2015.