The Palace Pier was back in business yesterday, just hours after the fire which threatened to bring it to its knees.

The public were allowed back on to the structure after engineers declared it safe, saying the blaze appeared to have caused no long-term damage.

Early reports of burning debris cascading through the floor into the sea raised fears the steel supporting structure of the 103-year-old pier may have weakened.

But a morning inspection by engineers and the fire brigade revealed the damage was less severe than anticipated.

Pier owners Noble Amusements responded yesterday by opening two-thirds of the pier while keeping the southern end closed.

Much of that section is expected to reopen by tomorrow, with the damaged funfair area cordoned off for safety.

Investigators from East Sussex Fire Brigade were still examining the area yesterday to try to find the cause of the blaze, which started in the ghost train.

Pier bosses said they could not put a cost on the damage but conceded it would be "major."

A pier spokeswoman said: "When the managers arrived last night it was an inferno.

"But the damage is not as bad as we feared. Thanks to the fire brigade, it has been confined to one area.

"We are hoping to have the pier fully open within two weeks but it may take longer to replace some of the rides."

Hours earlier, onlookers witnessed flames shooting 30ft into the sky as dozens of people were evacuated and firefighters from across Sussex arrived to tackle the blaze.

Daylight revealed the true extent of the damage.

All that remained of the ghost train was a heap of blackened debris.

The log flume and mini bumpers were also destroyed and the helter skelter was badly scorched. Bosses say it will have to demolished.

But while the adjacent carousel and rollercoaster appeared slightly blackened, both escaped serious damage as the flames were blown in the opposite direction.

Noble's group managing director, who is responsible for the rides, said the ghost train had been there for about ten years and was one of the most popular rides.

He said all the rides had been closed by 7.30pm when the fire broke out.

He urged the council not to hinder the rebuilding process, saying: "I could have these open again in four weeks but the planning people could see to it taking six months to get going.

"I'm worried about missing the summer season. We're concerned they will take the same attitude they have taken with other rides recently.

"But these are 50p rides for tots. It's not a financial thing, just to attract that part of the market."

Engineers in boats yesterday studied the underside of the structure, testing the strength of the steel supports.

Structural engineer Jonathan Orrell said it appeared to have got off lightly.

He said: "We have had a good look around and, bearing in mind the size and severity of the fire, it could have been a lot worse.

"The deck is burnt and charred but there are a series of small holes as opposed to any one large hole.

"But the main thing is that the steelwork, which is the backbone of a pier, is in pretty good shape.

"It's certainly better than it could have been. There doesn't seem to be any fundamental structural damage but as demolition work begins and we expose it, we will be keeping a close eye on it.

"Demolition work is now ready to begin, subject to the requirements of any scenes of crime investigation."

The pier was reopened at 10.45am and, within minutes, sightseers were streaming through the entrance, attracted by a mixture of curiosity and the bright winter sunshine.

By lunchtime, the benches were filled with people eating their sandwiches.

The slot machines were jingling again, the fairground music blaring out and the doughnut makers enjoying a bumper trade.

Corinne McVeay, from Mauritius, and her friend Vanessa Arouff-Parfait, from Crawley, were visiting Brighton for the day in the hope of getting on the pier.

Vanessa said: "I was a bit shocked the pier could be destroyed. The other one is already a ruin but this one is what Brighton is famous for. It's why I come here."

Father John Twistleton, from Haywards Heath, enjoyed the view as he ate his lunch and said: "We are very grateful to God that the pier has been spared from this calamity and that no one was hurt."

Teacher Vivienne Briscoe was taking pupils from Castledean Primary School, Hollingdean, to see the pier as part of a project on the changing seafront.

She said: "We have been studying the way the West Pier has changed in recent weeks and today we thought we'd come and see how this pier has now changed overnight.

"It's very strange that things have happened to both piers so close together."

A 76-year-old Brighton-born man, who wouldn't give his name, said he would have shed no tears for the pier, adding: "It's nothing like the Palace Pier used to be. Quite honestly, it's almost like a mini gambling casino."

But most appeared relieved the city landmark was still standing.

Grandfather Tony Simmonds said: "I was very, very upset when I heard it on the news.

"I come on the pier every day to meet friends, have a chat and set the world to rights.

"I'm so pleased it's not as bad as it looked last night.

"I love this pier, I've been coming on it since before the war and now I bring my grandchildren on it to go on the rides.

"It's a shame about the West Pier but they have done a marvellous job with this one."

Pier staff had turned up early after being told to report for duty as normal.

Handfuls of workers began arriving from 6am.

By 8am they were lining the security cordon, wondering if they would be allowed back to work.

Most had learned about the blaze from television reports and several had come down to watch as firefighters fought to save their workplace.

One man, a Turkish bar worker said: "I couldn't believe it when someone told me the pier was on fire.

"I love the pier. I didn't think about losing my job, I just thought we might lose the pier and how awful that would be.

"When I saw the fire brigade had it under control, I calmed down.

"We are hoping we can go back to work soon. I came in at 6am because we're expecting a beer delivery."

Another said: "We're all just relieved it's not worse and we've still got jobs.

"We were worried there wouldn't be a pier here any more."

His colleague added: "We haven't been told anything but we came in this morning anyway.

"It looks like it's only a little bit burned. We're hoping to go back to work today."

Pier painter and decorator Edward Bell said: "It's very sad. It's such a fine piece of architecture, it's a shame it has been damaged."

Early morning walkers who had seen the pier burn the night before looked puzzled as they gazed at it in the early morning sun.

No sign of damage could be seen from the entrance and in the distance, the roller coaster and helter skelter could be seen, still standing proud and apparently unassailable.