Traders in St David's, Pembrokeshire are hoping that this week's National Eisteddfod will bring a welcome boost in takings.

Businesses in the UK's smallest city expect to benefit to the tune of millions of pounds as a result of Wales' premier cultural event.

The coastline in the area is very picturesque

Organisers say the eight-day festival will provide a long-lasting boost to tourism as people from all over the world descend on the area to experience the colourful Celtic pageantry and ceremony.

More than 160,000 people are expected to attend the eisteddfod during the week of competition in poetry, music and the performing arts.

Elfed Roberts director of the eisteddfod said: "When it was held in Llanelli in 2000 we produced a report which showed �6.4m was injected into the local economy.

"The eisteddfod has taken up any slack accommodation capacity locally.

"People visit the eisteddfod area and if they like what they see they'll come back.

St David's has been gearing up for the event

"Images from the eisteddfod and the area are being broadcast all over the world."

Tourism operators say the eisteddfod has come at an important time after the area was affected so badly by the foot-and-mouth crisis last summer

Graham Pengelly of the Grove Hotel, St David's said: "We've been here for 14 years and we haven't seen anything like it.

"It has been good all-round for the traders here.

"People who've never been here before are already telling us they're coming back.

Focus of attention

"But we've had to be careful not to disappoint our regular visitors so we've been offering discounted deals for them to visit later in the season."

John Evans from Pembrokeshire Coast National Park said bed bookings in the area had increased by 20% on last year:

"Some people booked for this eisteddfod three years ago and others are staying as far away as Tenby to attend", he said.

"There's an obvious knock-on affect because it shows the quality of the area and the wonderful coastline.

"The eisteddfod has focused further attention on the National Park in its 50th year."