And as visitors flocked to the seaside resort, two of its B&Bs were ranked in the top 25 best places to stay around Britain.

They featured in The Observer newspaper, which asked inspectors from two respected travel guides to pick their favourite places to stay.

Crown House in Crown Terrace was praised in an article in Sunday’s Observer for its light-filled rooms and great breakfasts, while the Windmill B&B was described as a quirky and unique B&B tucked away in its own cobbled courtyard in the town centre.

Barbara Firth, the landlady of the Crown House, said her business had also been featured in The Guardian on the previous weekend. She said: “We’ve done quite well in Scarborough.”

The 49-year-old opened the guest house almost two years ago after working for nearly 30 years in human resources for a large multi-national company.

She said: “We came from York to live by the seaside. I used to come to Scarborough as a girl and we bought a flat here in 2000. In 2003 I wanted a life so I left my job. This is not your standard B&B – this is our home and we share it with people.

“I don’t aim for 100 per cent occupancy all the time. Physically the work is a lot harder. I knew it would be hard work, but it’s very satisfying work.”

Roland Thompson, 59, who has run the Windmill for the past 11 years with his wife Angela, said they had been busy over the weekend. He said: “We were full the night before last and almost full last night but I think people are starting to feel the pinch.”

He added he was pleased the Windmill had been featured in the article. “I am delighted to hear that people are recognising interesting places to stay. We have made a huge effort to make this something different.

“It is a family-run hotel and we all contribute to make people feel welcome and enjoy their holiday. I think there’s always a place for the unusual hotel and, provided the other accoutrements are in place, then people will always enjoy coming somewhere different.”

The report also highlighted Scarborough’s regeneration which has brought big changes to the resort such as the Spa Complex, the Rotunda museum, the North Bay beach chalets and free wi-fi access in the harbour.