The success of this year's Labour Party conference has confirmed Brighton's reputation as a leading conference centre.

But the party's decision to snub its traditional home in Blackpool in favour of the "City by the Sea" has sparked a fierce North/South debate.

In retrospect it must have been an easy choice.

Where better than Brighton to showcase a party which reinvented itself to become a major political force?

The town which shed its image as a jaded seaside resort in favour of The Place To Be has much in common with Tony Blair and New Labour.

Labour is said to have shunned Blackpool because of a lack of amenities but Brighton's proximity to London, its smart hotels and good restaurants were also important factors.

Whatever the reason, the decision has generated about £5 million for the local economy, attracted 20,000 delegates and priceless publicity.

Head of tourism at Brighton and Hove Council Amanda Shepherd said: "The eyes of the whole world have been on us this week and the coverage has been fantastic.

"We have had a large amount of media here, more than previous years, and the images they have sent out to the rest of the world are invaluable to us.

"Holding a conference for the Government is a great coup for Brighton and Hove and sends out the message we can handle a very large and complex event of this kind. The effects, in terms of additional conference trade, are likely to stretch over a couple of years."

In 1997, Labour scrapped a 70-year-old tradition and stopped holding its annual conference in Blackpool every other year.

In 1998 it put the conference out to tender. The result was a two-year deal with Brighton for 2000 and 2001.

Two stories circulated about why Labour left Blackpool. The first was the conference facilities at Blackpool's Winter Gardens were not up to scratch. And second was the town was simply too out-dated for New Labour.

With its booming economy and city status bid, Brighton has become an ideal venue for political conferences.

The town was recently found to be the most profitable place in the UK to do business in and big-name retailers are queuing up to move into the restaurant and club scene.

Though Blackpool is a popular seaside resort, with its famous tower, pictured right, it does not share Brighton's fashionable status.

This is the first year in living memory it has not hosted a single political conference - though the Tories were there last year and will return next year.

Shops, restaurants and hotels have reported a huge slump in trade.

Blackpool's Labour council leader George Bancroft admitted the town may have been too complacent about its conference business.

A reception was held at the Labour conference in a bid to lure the party back to Blackpool in 2002.

Blackpool has made improvements to the Winter Gardens and there are plans for a secure bus service between the conference centre and the main conference hotel which will rival Brighton's link bridge.

Spokeswoman for Brighton and Hove Chamber of Commerce Frances Hix said similar investment was needed in Brighton's conference facilities.

She said: "Political conferences are important because they are so high profile. And with the security staff, journalists and lobbyists it doubles, even quadruples, the number of people who attend.

"However, we need to invest a lot of money in the Brighton Centre. It is definitely past its sell-by date. It doesn't have the right technology or good enough media facilities and needs a larger exhibition area.

"There is a shortage of reasonably-priced hotel accommodation in the town. Many delegates can't afford four-star hotels.

"The conference trade is vital to the town because while the council has done a very successful job of promoting Brighton as a place for short breaks, conferences fill the hotels and the restaurants during the quieter weekdays."

Planning for this year's Labour conference began in earnest 12 months ago.

Improvements included tighter security fences to minimise disruption to local residents and a £300,000 bridge linking the Brighton Centre with the conference hotel.

It has been so successful, Brighton's Tories want the Conservative Party to bring back its annual conference.

The Tories used to come to Brighton every other year but switched to every four years after the 1984 IRA bomb.

In 1988 and 1992 many Conservatives were upset by hostile speeches from the town's Labour mayors and the conference stopped coming altogether.

Now the party's three parliamentary hopefuls in Brighton and Hove, David Gold, Jenny Langston and Geoffrey Theobald, are planning to raise the issue with Tory bosses in Bourne-mouth this week.