London was the only UK region to see an increase in domestic visitors last year, according to marketing body Visit London.
The capital enjoyed a boost in domestic overnight stays of 2.6% year-on-year with 10.9 million people electing to stay during 2006.
Spending also rose 8.4% to £2.27b.
The latest figures from the UK Tourism Survey come after last month's announcement that a record number of overseas visitors had come to London in 2006, with 1.3 million more boosting London's economy by £600m.
Visit London chief executive James Bidwell said: "The latest statistics suggest the domestic market is beginning to stabilise for the first time since the millennium."
By Chris Druce
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