High Street shops are reporting the worst trading conditions for at least a decade but tourism bosses say business is booming.
More people are choosing to spend short breaks at the seaside rather than jetting off to Europe.
Tourism South East carries out business confidence surveys every quarter and in the latest one, based on figures from January to July, 42 per cent said trade had improved.
Another 27 per cent said business had not changed and 31 per cent said business had declined. Optimism is strong with 49 per cent expecting trading to improve during 2006.
The organisation said the rise was down to the number of big events held in the South East, such as the Bognor Birdman competition, the Eastbourne Airshow and the Goodwood Festival Of Speed.
Business has been strong at hotels in Brighton and Hove, Eastbourne, Worthing and Bognor.
Roger Marlowe, chairman of the Brighton and Hove Hotels Association, said big events and festivals kept people coming back to the city.
He said: "Faced with the choice of going to Worthing, Eastbourne or Brighton, you would go to Brighton because it is so lively.
"People are never disappointed when they come here.
"Among the smaller hotels, some say they are doing better and some are struggling. The nicer hotels are doing well."
Giles Paul, chairman of the Major Hotels Group in Brighton and Hove, said: "We are very positive. We've had a reasonable summer and the conference season is coming up."
Roy Stannard runs the Worthing First group, promoting tourism in the town.
He said: "The economic climate is still difficult but more people are coming to Worthing for weekend breaks than before."
Thursday, September 1, 2005
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