LEEDS Castle is facing troubled times as it battles to balance the books after a slump in visitor numbers.

World events, economic uncertainty and increased competition have led to a 20 per cent drop in visitors since 2001, with no sign of an early recovery.

In a staff newsletter, Lord Armstrong, chairman of the Leeds Castle Foundation, said the fall in revenue had not been matched by a fall in costs.

Insurance costs have rocketed since September 11, with an added £20,000 this year alone. It also has to find £10,000 to ensure compliance with new disability guidelines.

Trustees are hoping for 400,000 visitors this year but the impact of the Iraqi war and now the SARS virus have yet to filter through.

Chief executive Paul Sabin is leading a review of operations. Three senior managers have already left.

He is due to report back with his final recommendations later in the year. The result is likely to be a much leaner enterprise.

A Leeds Castle Foundation newsletter distributed to more than 400 staff says difficult, but necessary decisions have already been taken to keep finances under control.

But it promises that there are no immediate plans for further job cuts or cutbacks on essential maintenance work.

In a statement to the Kent Messenger, Mr Sabin remained upbeat claiming Leeds Castle had seen a great start to the new season.

Visitor numbers so far this year were on target with bookings for special events such as the castle's open air concert ahead of 2002.

He said: "There is no denying that every tourist attraction in the UK has had a tough three years,

"Like any business from time to time reviews take place to ensure we are running efficiently.

"The review, which is taking place throughout the coming months, will look at all aspects of the organisation and customer experience.

"Its aim will be to ensure the Castle retains its position as one of the top 10 most visited historic houses in the country."