A �3.7m project is being launched to help Newquay hotels cater for upmarket tourists.

There have been worries in recent years about Newquay's growing reputation as Britain's Ibiza.

The Honey (Hotels of Newquay Enhance Yourself) project will provide expert advice and financial grants to improve facilities.

The money will come partly from the EU, which is pumping �1.3m into the project.

This will be a godsend to hoteliers in Newquay Hotelier Ray Newton

The rest will be matched by cash from private companies and from those joining the project.

Hotelier Ray Newton, says it is what Newquay needs to attract guests visiting attractions like the Eden Project.

He said: "This is excellent news and will be a godsend to hoteliers in Newquay because it's tailor-made for individual businesses.

"The value of having a one-to-one business mentor is priceless."

Bucket-and-spade

Carleen Kelman, programme director of the Objective One fund in Cornwall, said: "Newquay is one of the UK and Cornwall's leading resorts.

"But it has traditionally been known as the ultimate bucket-and-spade destination.

"The Cornwall of today is very different to what it was.

"Now we have the world-famous Eden Project, the National Maritime Museum and the new Tate gallery.

"What we are investing in is the ability of the hoteliers of Newquay to pick up the challenge and make the best of these new opportunities."

She said that if the project was a success, it would be repeated elsewhere in Cornwall.