Britons are flocking to Sussex for last-minute credit crunch-beating deals.
Brighton and Hove is believed to be benefiting in particular from the strong Euro which is making trips to the continent more expensive.
Hotels are also reporting a surge in interest from travellers from parts of Europe which were rarely represented in the city in the past.
Mark Jones, the chairman of Brighton and Hove Hotels Association, said the city's hotels have fared well this summer thanks to cheap Gatwick flights and Brits wanting to escape their money worries and have a good time.
Tourists using the website Expedia.co.uk searched for holidays in Brighton 54% more times last month than in July 2008, putting the city in the top 10 of the most searched for destinations around the world.
Another survey, from Essential Travel, found that 70% of the UK’s holidaying public stayed in the country this year and 68% were planning another break in Britain in 2010.
Mr Jones, who owns the Colson House Hotel, in Upper Rock Gardens, Brighton, said: “2009 up to May was awful for the city's hotels. The world was talking about recession and everyone was sensitive about spending money.
“But Brighton came into its own in about May when the conference and events calendar took off and we've got bookings right through to the Labour Party Conference in September.
“We have seen a massive increase in Europeans coming.
“We have seen nationalities we have never seen here, before like Norwegians, Finns and lots of Swiss people.
“I've just said goodbye to guests from the Ukraine and Russia.
“People are discovering Brighton and discovering Gatwick is very close and a lot more European countries now have no frills carriers flying in to Gatwick.
“We have seen a pretty good summer.
“Hopefully, the Euro will stay strong and we can keep our fingers crossed through the winter and next year will be even better.”
Expedia.co.uk director Jonathan Cudworth said: "Holidaymakers are looking for last-minute deals to lift their spirits after the spate of bad weather.
"At home destinations are perfect for an affordable weekend away or mini-break.”
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