While the credit crunch has made the future of many businesses uncertain, the tourist industry was told to brace itself for a new kind of holidaymaker. Money-conscious Brits, we were told, were going to abandon costly plans for exotic foreign trips and instead would content themselves with destinations closer to home. Apparently 34 million of us were heading to the nearest rock pool for a fortnight's holiday reminiscent of simpler times.

Hoteliers and guest house owners blew the dust off candlewick bed sheets in preparation for an expected 10 per cent rise in bookings and resorts such as Scarborough and Bridlington looked forward to a holiday bonanza not seen since the 1970s.

Sadly, the predicted silver lining to economic woe hasn't quite materialised.

Rising petrol prices were the first spanner in the works, making many think twice about the merits of a day trip to the seaside, and it was the county's most rural spots which were first to feel the squeeze.

Reports earlier this year suggested that while some were managing to buck the trend, the Yorkshire Dales and North York Moors as a whole was facing a 25 per cent downturn, with tourism bosses warning it was the biggest slump since the 2001 foot and mouth outbreak turned the countryside into a no-go area. At the time many were hopeful the school holidays would be enough to tempt families to explore attractions on their own doorstep. But then came the rain.

Whitby was the first casualty. Earlier this month, just weeks after problems at a nearby pumping station led to untreated waste being discharged into the harbour, raw sewage gushed into the resort. The stench was blamed on heavy downpours which left a stream of effluence and toilet paper spurting from manholes in one town-centre street.

The second home of Captain Cook has become an all-year-round resort, but while the plethora of jet shops remained busy, it was hardly the best advert for a season of summer fun. Elsewhere, families have been sheltering behind windbreaks, and while camping holidays were supposed to be de riguer, when a night under canvas becomes a night underwater, many have admitted defeat.

Even a nuclear bunker designed to survive a Cold War attack has been unable to escape the curse. Just two years after it was opened to the public following a £250,000 restoration, English Heritage were forced to seal off their most unusual tourist attraction in York's suburbs after the damp conditions caused an outbreak of mould.

Worse was to come. Last week, after days of rain, York's prestigious Ebor meeting was scrapped for the first time in history. With the ground saturated, clerk of the course William Derby was left with little option but to cancel the meeting, and the loss of the event is expected to the cost the city's economy £5m.

The Ebor which never happened came on the back of figures showing that, like elsewhere in the country, the number of Americans visiting York has fallen by 80,000 in the last two years. Visitors from the US now only make up 25 per cent of overseas visitors compared to 45 per cent a few years ago and the British Tourism Authority has said the UK economy as a whole has lost out on £250m.

"It is a challenging time and hotels are finding that they need to work harder and business hasn't been as strong as perhaps it has been in previous years," says Kay Hyde of Visit York. "There has been a steady decline in the number of visitors from North America largely due to the exchange rates and we have just finished a major marketing campaign in Germany, Belgium and the Netherlands to try to boost numbers visiting from Europe.

"Obviously it's too early to tell whether that has been successful, but anecdotally, the city's information centre is reporting a good number of bookings. Because of the economic climate people are demanding more value for money and those who rely on tourism have had to adapt.

"We are hopeful that when the market stabilises we will see an increase in visitors from America, but those who have come are still spending well.

"Even in a city like York which has lots to offer tourists, even in terrible weather, no one can be complacent."

While Britain has never been a guaranteed sun trap, there is evidence to show that the much talked about "staycation" phenomena has already worn a little thin. According to the UK travel organisation two million of us weren't about to risk another bank holiday dodging the showers and were instead planning to enlarge our carbon footprints by flying off for a mini-break abroad.

Optimists suggested that the exodus may mean less traffic jams than normal, but not even the promise of a stress-free journey to the coast may be enough to tempt many to leave their own four walls.

Following research which showed two in three adults will today be spending the bank holiday in front of the television, Britons were accused of a "lack of national purpose".

With yesterday marking the final day of the Olympic Games the coach potato syndrome is perhaps understandable, but the fatigue seems to be more widespread.

"Brits are simply not pro-active or spontaneous during their bank holidays, preferring to lounge around the house or catch up on some rest," says James McCoy, leisure expert at analysts firm Mintel.

"There have been calls from some quarters for an extra
bank holiday, but if that is to work, we need people to get
off the sofa and get involved, much like our overseas countrerparts who often celebrate national days with fiestas and carnivals."

All of which adds up to a pretty miserable outlook. However, with inevitable talk of an Indian Summer in September, the region's resorts and tourist attractions may yet get a much-needed boost.

"British holidaymakers are a fairly resolute bunch," says Eddie Blakeley, owner of the Atlanta Hotel and member of the Scarborough Hospitality Association.

"But it's hard to say how good or bad this year has been. If you went back 10 years, hoteliers lived or died by their summer holiday bookings, but the season is much longer than it used to be. September is the new August and we often still have reasonable bookings throughout October.

"We don't have the intensity of booking over the summer months that we used to, but the shortfall will hopefully be made up by people coming to the seaside later on in the year.

"I'm a great believer that in this line of business you make your own luck."