Fawlty image

Think of Torquay and two things spring to mind. One is Basil Fawlty, ear-cuffing Manuel, arguing with Sybil, putting up mooseheads and not mentioning the war.

The other is the rather stunted palm trees that add to its reputation as the heart of that unlikely concept, the English Riviera. Torquay, together with its neighbours Paignton and Brixham, make up Torbay. This is Nice without the nice weather, Cannes without the celebrities, St Tropez without the tan.

Still, Fawlty Towers always drew its fair share of colonels, and Basil certainly would never have knocked its classiness. Torquay is probably about as upmarket as British seaside resorts get. A nice, respectable, white promenade, some pretty fancy Victorian hotels, and a devoted yearly following.

However, Chris Wattin, tourism officer at the English Riviera Tourist Board, admits that times have changed. "There may have been a time in the 1920s and '30s when Torquay was very refined and upmarket," he says. "Now there's something for everyone."

But is that reputation for grandeur now faded? Take the view of holiday-maker Bob Fletcher, 64, from east London, in Torquay for a week with his wife. "I haven't been here for a few years," he says, "but it's not what it used to be. There was more of a buzz. And the seafront seems a bit run-down."

The local papers have fretted over a claim that Torquay is looking "tired", a remark made by John Hart, chairman of the Torbay Hotel and Caterer Association. He explains: "All I'm doing is repeating what guests are saying to us. I've had it three times this week at my hotel.

"People come here who haven't been for a number of years, and they are a little bit disappointed by the current image."

But Hart does not think the operators are to blame, pointing out: "Most hoteliers spend a lot of money on their facilities." Public funding cuts are making their mark, he says. "Torquay has been in decline over the years. In the 1990s there's been a slight downward turn."

Subtle things make a difference. For example, Torbay council has cut funding for flower beds, leaving one-third of them unseeded this year. Paint is peeling off the promenade rails. It's not yet dilapidated, but it is certainly slightly drab.

Hart complains that such lack of investment is simply short-sighted. "Our major earner in Britain is tourism, but the Government is not aware that anything exists west of Bristol. We were going to get a bypass, but not now. Torbay council has had a £5m cut in its budget, and the Government is setting up a regional development agency that lumps Devon and Cornwall in with Gloucestershire, Somerset and Wiltshire. It's ludicrous."

However, it would be unfair to claim that the local authority is simply resting on its laurels. There have been big plans to resuscitate Torquay's ailing seafront. A failed millennium lottery bid, Waterfront 2000, included provision for a permanent barrier to keep water in the bay. There are also plans to raise funds for a new promenade walkway that would extend round the coastline to Paignton and Brixham.

Coral Island is a particular eyesore - a wodge of offshore concrete awaiting development. Plans to turn it into a Harry Ramsden's fish and chip shop were thwarted by local traders. Now there is talk of a leisure and shopping mall, but a developer has yet to be found.

If progress has been slow, Hart believes, there is a reason. He feels that, ironically, local residents are the main obstacle. "They are quite happy to retire here, but there is some anti-tourism feeling. They are very quick to oppose any change."

But the problem is not just Torquay's seafront image. Another bugbear, says Hart, is that the town "has more bedspaces than it can cope with". There are 17,370 hotels and guesthouses in Torquay - and a further 5,170 self-catering units. Wattin agrees: "We don't experience a shortage of hotel rooms. There's no real push to build new hotels."

That view is easily confirmed. Walk through Torquay and you encounter hotel after hotel, like endless pebbles on a beach. Wattin says some rundown hotels are now being converted into residential accommodation.

Certainly, with the strong pound and mostly poor weather, it hasn't been an easy year so far. The dining room of one four-star hotel is practically deserted at lunchtime. A member of the bar staff confides that despite having 100 rooms, the hotel has only 30 guests, although the manager is quick to deny this.

Forced to cut rates

Instead, hotels have been forced into cutting rates for late bookings. The reason? Torquay's economy relies on tourists. According to Wattin, 13,400 people out of the town's 120,000 population are directly employed in tourism.

Torquay, like any other British resort, must compete both in the national and international arenas. The bargain-bucket foreign package holiday market has eaten into our tourist trade, and Torquay is not particularly cheap, even by England's standards, with three-star hotels happily charging £70 a night. Wattin admits: "Certainly, for package deals it would be cheaper to go abroad than coming here."

Hart remains hopeful, however. He believes a backlash against foreign holidays has begun. "People are getting fed up with delays at airports, and the risk of food poisoning."

Paul Feasey, manager of Torquay's 110-bedroom Grand hotel, agrees: "People don't always want the hassle of going abroad, changing money or choosing different food."

One-third of Torbay's visitors come from London and the South-east, one-third from the Midlands, with the rest split. Foreign visitors account for 10%.

The English Riviera Tourist Board's marketing plan this year highlights the growth in last-minute bookings, which makes forward planning difficult in a "volatile market". It notes reduced support from central government, with the onus on private-public partnerships.

The tourist board has tried hard to counter negative trends with its existing resources. It has produced numerous posters exploiting the resort's famous palm-tree image. One turns on its head the idea that Brits must always go abroad: a Greek bar contains a group of old men looking longingly at an English Riviera poster pinned to the wall. Another poster plays the jingoism card, depicting a palm-fringed patio at sunset. The caption reads: "English spoken here."

Exotic and exciting

Wattin comments: "It's about seeing Torbay's potential to be as exotic and exciting as a foreign holiday resort."

The tourist board also wants to increase the number of overseas visitors, particularly from North America, Japan and northern Europe. Torquay is especially keen to sell them its most famous home-grown asset, who dunnit queen Agatha Christie. The European Regional Development Fund has made a grant to market the author's appeal.

Such attractions seem necessary. As the Grand hotel's Paul Feasey points out: "People coming into the UK from Europe are not seeking a beach holiday."

Another challenge facing Torquay is that a large number of the visitors it attracts are no spring chickens - Hart calls them the "wrinkly brigade". There are fears that an ageing clientele means, to put it bluntly, a dying clientele, which could affect future trade.

However, younger visitors are coming to Torquay, says Wattin. "In the early 1990s, three-quarters of all visitors were 45 or over. Now it's gone down to 50%." By contrast, single young people make up a small part of the market: "We're not necessarily targeting that."

In fact, local youths have recently caused some negative publicity, allegedly scaring off old people from the promenade at night - and Hart admits there is a problem. "There is a concentration of clubs and pubs round the harbour. It's a bit intimidating. Elderly people are not happy being there after 9pm."

But he adds: "I wouldn't say that it's violent. And the police are now addressing the problem. They have increased their numbers on Friday and Saturday nights."

Rather than youthful "singletons", it is young families that Torquay suits best, says Tom Fromm, general manager of the 167-bedroom Imperial hotel, the town's only five-star establishment. Complete with penthouse suites, tennis courts and sauna complex, the Imperial sits majestically on a clifftop overlooking the bay, and attracts a well-heeled clientele that includes both long-standing annual guests and their children and grandchildren.

The hotel's future is evidently seen as worth investing in. Paramount Hotels acquired it from Forte this year for £35m along with two others in the group.

Watersports resort

But Fromm realises it is not enough to rely on generations of goodwill and habit. He visualises the Imperial, and Torquay in general, growing as a watersports resort. He also has plans to eventually provide a private beach for the hotel.

The other key area for Torquay's growth is its conference appeal. The Grand's Feasey says that 40% of his hotel's trade is now conference-based.

Fromm confirms: "Torquay seems to be attracting more than before. From the feedback we've had, people will come, but distance is a problem. You have to offer a unique provision - provide trains or coaches for delegates."

One problem that local hotel operators cannot solve so easily is the weather. It's not so much that it's bad, just that the forecasts are inaccurate. Torbay has mild weather because Dartmoor shields it from behind and the bay itself is sheltered.

Says Hart: "We made a complaint to the Met Office. Nine out of 10 forecasts they were doing for Torbay were wrong. It could be sunny here but they didn't show it. It puts visitors off and loses us trade."

Next week: Margate