The Isle of Man steam railway chalked up 109,069 passengers last year, up 7.1 per cent from the 101,837 carried in 2006.

Meanwhile the Manx Electric Railway also saw passenger growth, carrying 78,665 passengers in 2007 compared to 71,567 over the same period in 2006 – an increase of 9.9 per cent.

And there was a 6.2 per cent increase in numbers on the Snaefell Mountain Railway, which carried 39,504 passengers in 2007, compared with 37,200 in 2006.

Department of Tourism and Leisure director of service delivery Mike Ball said: 'We are obviously pleased that 2007 has been a very good year for us.

'Throughout the year, we have sought to broaden the Isle of Man Railways' nostalgic appeal to visitors of all ages but also actively market the railway as one of the best ways for people to see the countryside.

'The Island's railway has experienced significant improvements during the last few years and we will continue to expand and keep up the good maintenance of our engines.

'We hope new visitors and, of course our regular customers, will come back again and again to enjoy the sights using this nostalgic and most relaxing form of transport.'

The Santa trains also proved extremely popular during December, carrying more than 1,900 people and the DTL says it is looking forward to another record breaking year in 2008.

The steam railway is the longest narrow gauge steam railway in Britain, stretching 15.5 miles. The first train ran on July 1, 1873.

The Manx Electric Railway started in 1893 and the Snaefell Mountain Railway in 1895.