Lincolnshire businesses have said a poor summer has left parts of the tourist industry in a "very, very serious" condition.
Persistent bad weather and the economic downturn put many people off going to traditional resorts like Skegness.
Although no figures have been compiled, hoteliers said tourists that do head to the county have been spending less.
But Lincolnshire Tourism said a push to create more diverse attractions had left them in a stronger position.
Last summer Skegness had to cope with floods caused by heavy rain in June and then a major fire which destroyed part of the seafront arcade in August.
Nigel Tett, chairman of the Skegness Hospitality Association, said he believed numbers were down compared to summer 2007.
"It is very, very serious. I don't think owners will cut and run but they will certainly have to look at their investment over the next year or so.
"I believe there will be pressure on takings for the next two or three years."
But Penny Baker from Lincolnshire Tourism insisted it was not all doom and gloom: "I think potentially the credit crunch gives us an opportunity.
"It does make life a little more difficult but I think people will be going to Europe and finding it really expensive so more and more people will perhaps be thinking about staying in Britain for a holiday - which gives us an opportunity."