A SET of saucy garden gnomes outside a York gift shop has forced an American tour party to flee the city in disgust.

Joan Townsend, a tour operator with Sedona Arizona Travel Company, claims the gnomes, sold in front of the Blue Moon Trading gift shop, in Goodramgate, were "driving tourists away".

But shop owners Stuart and Linda Sykes said they were "harmless" and claimed one American visitor paid for his naughty gnome to sit next to him on the plane home.

The objects of disgust, which are Polish-made, include characters such as Fred The Flasher, Pete The Piddler, Juicy Lucy and Nasty Nick.

One of them is making an offensive gesture with its finger, while the others have their "naughty bits" hanging out.

Mrs Townsend said: "They are totally offensive and have greatly distressed our American customers.

"One tour party were so upset they didn't want to see any more of the city and we were forced to leave.

"They have vowed never to return, which can't be good for York, particularly after September 11.

"This is a beautiful city and doesn't need this sort of thing."

Mr Sykes vowed to keep them and said they brought a lot of joy to passing shoppers.

"Two nuns were in here the other day laughing their heads off," he said.

"They're very popular with the majority of tourists and are a big seller.

"I don't see how they can be classed as obscene."

Mrs Sykes said: "The police told us to obscure their private parts after one complaint, but our customers keep uncovering them to have a laugh."

Gillian Cruddas, chief executive of York Tourism Bureau, said: "There seems to have been a bit of overreaction here.

"However, we should be aware of the different sensitivities of people from overseas and clearly the American market is crucial to York.

"What is saucy to one person is rude and offensive to someone else.

"You could argue there is little difference between the gnomes and the naked gargoyles on York Minster.

"It's a matter of presenting things tastefully."

Updated: 10:26 Saturday, March 16, 2002