In truth it has much to offer: self-appointed motorcycle road racing capital of the world, a nature lover's paradise, and a fascinating concentration of historical treasures - but there lies the paradox.

Some see it as a bohemian place where leather-clad bikers dice with death on roads with no speed limit, while others regard it as a haven of peace and tranquillity with beautiful scenery, wonderful historic railway systems and excellent walks.

The challenge faced by the Manx Department of Tourism and Leisure has always been to deliver a balanced appreciation of the island's many charms, and to attract a varied audience beyond its traditional catchment area of the north-west of England. The days when a fleet of Isle of Man Steam Packet ferries disgorged thousands of bucket and spade holidaymakers on to the quayside at Douglas are long gone.

Today, the island targets the short-break market with a strong emphasis on key special events throughout the year. Elements of the island's tourism product are sophisticated in their presentation. For example, its unique heritage, as told by Manx National Heritage through its The Story of Mann , provides award-winning interactive museum facilities, and is responsible for many of the island's wealth of historic treasures.

"We use the phrase 'set yourself free'," says Geoff Le Page, director of tourism. "The Isle of Man is the perfect place for both relaxing experiences and activities such as mountain biking and sea kayaking. By air, we are within an hour of anywhere in the UK."

Other ingredients in the Manx tourism mix have in the past fallen short of perfection. Quality hotels and restaurants have been in relatively short supply, though this is changing - spurred on in part by the growth of the island's film industry, with its year round demand for quality accommodation.

The elegant four-star Sefton Hotel on Douglas's seafront is one of the island's hotels that has invested heavily to raise its game. Stars such as Madonna have stayed there.

Plans for new upmarket boutique hotels in Douglas, Castletown, Ramsey and Peel are signs that the island is growing in confidence. And it is not just hotels - many farmers and landowners are converting disused outbuildings and barns into four- and five-star self-catering accommodation.

"We have had 41 new properties register with the Tourism Department this year and a significant number are self-catering properties in rural areas," says Mr Le Page.

People are being attracted to the industry by its potential for good year-round income, and by a range of generous grants offered by the government for those prepared to make the investment.

Transport to and from the Island has always been a political hot potato. It still is, and currently a Manx government select committee is looking into the performance of the Steam Packet Company, which despite its proud Manx heritage and its mantle as the oldest ferry operator in the world, has changed hands twice since the millennium.

The company has a monopoly on routes to and from the island under what is termed the "Harbour User Agreement", but, in return, has to provide a defined level of services and commit itself to investment.

The Steam Packet operates all-year sailings to Heysham and Liverpool, with seasonal services to Belfast and Dublin. Its fleet is currently reduced to an all-purpose Ropax ferry, Ben-my-Chree , and the fast-craft mono-hull Super Seacat II . This follows an accident this year in which its other fast craft - the Seacat catamaran Sea Express I was involved in a collision with a freighter in the Mersey, sustaining serious damage.

Air services have endured a period of prolonged turbulence but are showing signs of increasing stability in a fiercely competitive environment.

With four flights a day to Gatwick, the same number to London City, a new daily Luton service and good connections with Birmingham, Manchester and Liverpool, getting to and from the island need not be too arduous, though you must be prepared to book early to obtain fares that will not induce a sharp intake of breath. In total, 16 UK and Irish airports have direct air links with the island.

The Isle of Man is the proud home of the world famous TT Races, which celebrated their centenary in June this year, but more than ever it is determined to prove that outside the frenetic two-week race festival its many other qualities deserve serious consideration.

That said, the TT remains fundamentally important to the island's economy. Latest Manx Government figures suggest the centenary event brought in £50m, representing a spend of some £800 a visitor. So far, bookings for the 2008 TT Festival are 35 per cent up on the level expected for this time of year.

The significant investment made by the Isle of Man in its tourism infrastructure in recent years has earned it a place on the lucrative UK conference circuit. The Isle of Man Visitor and Convention Bureau is an arm of the department of tourism and provides a dedicated team that can assist conference organisers with all aspects of their event.

The jewel in the island's conference crown is the elegant Villa Marina Royal Hall on Douglas seafront. Recently the subject of a £15m upgrade, the facility offers a multi-purpose hall with seating for 1,500, banqueting for 500 and a range of smaller meeting rooms and bars. The centre bristles with state-of-the-art sound and lighting equipment and is within easy walking distance of leading hotels and restaurants.

Elsewhere, the island is developing a good network of venues for smaller and medium-sized gatherings and provides an appealing alternative to UK mainland towns and cities.

The territory's compact size means that delegates are never more than 30 minutes from golf courses, heritage sites and other attractions.