And in Europe, countries like Germany and France along with other members of the Eurozone, reported that their economies had actually got smaller in the last quarter.



But despite clear warnings of hard times ahead for the next year at least, nothing it would appear seems to stop the British taking their holidays.

A recent report shows that British tourists spent around 64 billion sterling (around 100 billion US dollars) between them last year - pretty impressive for a country with a population of 60 million people.

And at a time when belt tightening is recommended by finacial institutions to weather the storm ahead, around a third of British families spend ten per cent or more of their disposable incomes on holidays, with many explaining that they 'live for their holidays' - and the survey proves this to be the case.

A British company who run European travel related internet sites say that 'In times of gloom, a holiday is something people can look forward to. It reminds them of happier times in the past and of good times to come - we're not surprised that holidays are regarded as an essential rather than a luxury item when it comes to planning the family budget.'

And while the holidays industry might be relieved to read that British people intend to keep spending their money on holidays, they will need to keep their finger on the pulse of the travelling public as Britain's economic downturn could shift where they are heading.

Up until recently Spain was a clear winner for British tourists, and the island of Majorca was the most popular destination. This changed in 2008 as the British pound slipped in value against the Euro, and suddenly Turkey - which has her own currency and was still good value for tourists when buying their holiday money - overtook Majorca for the number 1 spot.

There are some areas in the 15 countries that make up the Eurozone though that have done well this summer despite the poor currency exchange rate for the British tourist - Malta is one example.

Low cost flights helped turn Malta's tourism industry round from being in the doldrums just three years ago to one now that is doing well and is confident of the future.

The former British colony is popular not just because it is in the Mediterranean - like Majorca - but it is easy for the British to adjust as soon as they step out of the airport. The language is English and the cars drive on the same side of the road for example.

Paceville is the nightlife capital of Malta. Most of the venues of Paceville are located on four main streets that spread out from the main square. These streets are Dragonara Road, Wilga Street, St. Georges Road and St. Rita Steps. A police presence is always nearby, keeping the denizens of the clubs safe and orderly. A taxi rank is also located in the main square, for those who need a lift.

St. Paul's Bay is the ideal vacation spot for tourists who like some variety. Whether they want to take a meandering stroll around the harbour and look at the Mediterranean, to indulge in a coffee and something sweet, or simply to relax and take in some rays, St. Paul's Bay is a good Malta holidays area and has a range of hotels.

For eating out, St. Paul's Bay has a good choice of restaurants. The area is well appointed by many tourist-friendly cafes and restaurants. For a taste of more upscale dining there is Old St. Paul's Bay, where there are generally upmarket eateries, and all around the bay there are many good fish restaurants that serve up some of the best fish that Malta has to offer. For a little window shopping, tourists can take a stroll around the many shops located in the old village.

For a taste of the more modern side of the St. Paul's Bay region, there is the seafront at Bugibba, the hub of nightlife in the area. Here, there are a selection of trendy boutiques and restaurants. When the sun sets, Malta can go down market as well as up market and there are karaoke bars in Bugibba, but there is also the casino and a cinema.

With more British tourists visiting the island during their economic downturn, they might help the Malta economy through Europe's recession - the Malta holidays industry will be glad the British regard their holidays as a necessity!