Businesses have had a mixed start to the summer season, according to South West Tourism's latest survey, with some saying trade is down on 2003.
The report, which covers April to June 2004, shows a third of tourism companies are showing a "decrease in levels of activity" in this quarter.
But 39% of those polled said that turnover was up compared to 2003.
Just over 60% of business leaders are complaining that increased costs are becoming a problem.
The South West Tourism survey acknowledges that 2003 was an "exceptional" year and that comparisons with 2004 make this year look "average".
Robin Barker, deputy chief executive, said: "The report shows that 2004 has been a tough year in some parts of the region.
"It's been a generally good start across the whole South West but has been a poor spring and early summer in parts of Devon and Cornwall."
The survey took in results from businesses across the whole region from Cornwall in the south to Gloucestershire in the north.