Coupled with the beginning of the school holidays and the good weather, Scarborough's hotels and B&Bs are filling up fast, according to a survey carried out by the Evening News.

One guest house owner Ian Jones, of The Monico in Columbus Ravine, said: "Our bookings have gone up about 40 per cent compared with last year. Many more people are deciding to stay in Britain for a holiday to cut costs – plus the fact that Scarborough is now beginning to look really nice with more facilities. We have more families staying – and for longer. I think the trend is back and I think it's here to stay."

Joy White, of the Kensington in Columbus Ravine, said: "Our bookings have gone up, and people are staying longer than they used to."

Cereece Garwood, of Derwentdale, Columbus Ravine, said: "Our bookings are up around 25 per cent on the same time last year. We have had a lot more enquiries for people wanting to stay for longer than just a couple of nights."

Malcolm Harper, of the Raincliffe Hotel in Valley Road, said he too had seen an increase in bookings, with all his family rooms now booked up.

However ome of the guest houses, which had been established longer, claimed the season was picking up pace but it still wasn't how it used to be.

Alan DelaPerelle has had the Ashcroft Hotel, Columbus Ravine, for 15 years. He said: "We don't really get the casuals any more and people are staying for three or four night breaks rather than weeks like they used to."

The Crown Hotel's David Frank said he had seen a rise in the mini break or the "staycation", particularly from senior managers who didn't want to go back to a mountain of work after a two-week break.

He added: "Overall, clients are still having holidays though they are very much more price conscious and their expectations from a UK holiday experience are greater than a year ago. In order for establishments to hold their own sustainably in the present market they must look to bridging the gap and exceeding clients expectations in every way."

Scarborough Camping and Caravanning Club Site, in Burnsiton Road, has also seen an increase in the number of people using the site.

Site manager Ann Watson said: "We're busier this year than we were last year. We're actually beating 2006 on figures.

"We're beating last year's figures by about 1,000 units, which is caravans, tents or motor homes.

"It could be because people aren't going abroad as much because prices are going up quite a lot everywhere."

A spokesperson for Cayton Village Caravan Park in Mill Lane, Cayton Bay, said: "We tend to run at full throughout the children's holidays regardless. This year I would say camping has been down for tents but I would say that's because of how cold it's been. From Friday and Saturday we're very busy throughout the summer. The credit crunch hasn't affected us at all."

According to new research conducted by Laterooms.com, 57 per cent of holiday makers are planning to take an old fashioned holiday on the British coastline this summer.

Of those asked, 20 per cent said they would be visiting Scarborough – making it sixth in the top ten up-and-coming beach hot spots for 2008.

And it's not just the visitors making a beeline for the beach - the UK's money men are rushing to get their hands on new hotel sites.
With credit crunch Britain – including Gordon Brown and David Cameron – choosing to holiday at home, some of the most ruthlessly demanding investors believe seaside towns will provide profits for years to come.

Budget hotel giant Travelodge has already snapped up Scarborough's former St Nicholas Hotel, and plans to continue building its empire along England's coastline.

It plans to spend £150m on 55 coastal hotels between now and 2015 and is even offering up to £150,000 to anyone who suggests a new or existing UK location that results in a new hotel opening.

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See our guide to some of the attractions available in Scarborough