The Conservatives are set to give Cheltenham a £1 million boost.

Tory leader David Cameron will bring his party to Cheltenham racecourse in April for the Conservative Spring Forum.

The three-day event at The Centaur will see thousands of politicians, councillors, activists and journalists flocking to the town's hotels and restaurants.

Party chairwoman Caroline Spelman was in Cheltenham yesterday to make the announcement.

She said: "The Spring Forum is a major event in the Conservative Party calendar and we are thrilled it is coming to Cheltenham."

The event will be the final party conference before the European elections in June 2009.

Cheltenham Borough Council chief executive Andrew North said: "This is going to put Cheltenham on the map and will be a major boost for the town's economy."

Conservative prospective parliamentary candidate for Cheltenham Mark Coote – who this week called for more big events in the town as part of the Echo's Your Town, Your Future campaign – said he was delighted at the news.

He said: "This is something I have been lobbying for and I am delighted. I am sure Cheltenham's cafe culture will prove a hit with party members."

Edward Gillespie, managing director of Cheltenham racecourse, said details for staging the event were still being finalised.

He said: "This is another major coup for Cheltenham racecourse, which enhances our reputation on the national and international stage.

"I am particularly pleased for Mark Coote, who has been lobbying hard to bring the event to the town.

"When we were visualising The Centaur, it was exactly this type of event that we had in mind."

The 2008 Spring Forum was held in Newcastle-Gateshead and injected an estimated £1 million into the local economy by attracting 2,000 extra visitors to the region.

Martin Quantock, chairman of the town's business partnership, said: "This is fantastic news for all Cheltenham businesses, particularly the hotel and restaurant industries.

"It will boost the profile of Cheltenham and could see the town catapulted on to the established party conference circuit."

Lin Chapman, owner of Lumiere restaurant in the town centre, said: "During the Cheltenham Festival it is like a week of Saturdays so hopefully this event will have a similar effect."

Laurence Robertson, Tory MP for Tewkesbury, said: "It is great news.

"Hosting the Forum will bring trade to the area in a time when we are all trying to find a bigger slice of a smaller cake.

"As a Conservative, I will be proud to host the forum in my constituency."

The Centaur is the largest conference facility between Bristol and Birmingham and can cater for up to 2,250 delegates.