There were no official warnings that such an attack was likely

The Hanover court said the TUI group could not be blamed for failing to warn people that travel to Tunisia was dangerous at the time of the attack.

The case was brought by parents of a six-year-old boy, Adrian Esper, who suffered severe burns.

More than 20 people died in the attack, in a synagogue on the island of Djerba.

The Esper family is expected to appeal the verdict

TUI, which is Europe's largest travel operator, had argued that it could not be blamed for the tragedy because the German foreign ministry had not produced any official warnings about a risk.

It argued that a ruling in favour of the plaintiff could set a legal precedent making tour companies liable for any unpredictable circumstances.

'Everything in our power'

The Esper family, which was seeking 100,000 euros ($128,000) in compensation, is expected to appeal against the court's decision.

A representative of TUI welcomed the verdict.

"The decision of the court meets our expectations," said Volker Boettcher, chief executive of 1-2-Fly, the company through which the family booked their trip to Tunisia and the visit to the synagogue.

"In the future, we will continue to do everything in our power to protect our guests."

TUI said it had set up a system of grants to finance the studies of Adrian and other children injured in the blasts.

The blast, which killed 21 people including 14 German tourists, happened when a fuel tanker blew up outside the ancient synagogue.