After a disappointing start to the year (see our story), Monaco's tourist industry is cautiously optimistic for summer.

The Principality is still an attractive tourist destination and the average stay this year has increased from 5 to 7 days. However many visitors are booking online at the last minute, making it difficult for hoteliers to plan ahead. SBM hotels anticipate a decline in sales compared to last year but an increase of 5% is expected for entertainment due to this year's dinner shows in the Salle des Etoiles.

Still plenty of business for the tourist train

As usual, Monaco is proving most popular with Italians, French and Russians. The number of American visitors is relatively low, apart from those that disembark for a few hours from the cruise ships.

Unfortunately, cruise passengers are no longer big spenders. Anecdotal evidence suggests they spend about 70% less than they did 10 years ago. Many are budget tourists who are happy to explore on their own. Good news perhaps for attractions such as the Oceanographic Museum, which registered a whopping 3846 visitors on July 13, 1293 more than on any day last year. But it's not so good for the private tour organizers and chauffeurs who are seeing their takings suffer due to the availability of high quality, low priced public transport.

In spite of this, July has been better than expected for tourism, leading to hopes for a good August.