From tomorrow, euro notes and coins will replace the national currencies of 12 European countries, including many with important links to the Sussex tourist industry.

The change means hotels, leisure attractions, and other businesses catering for overseas visitors must decide whether to accept the new currency.

One which will is the Pelirocco Hotel, which opened near the West Pier in Brighton last year.

Until now owners Mick Robinson and Jane Slater have not accepted foreign currency from customers.

But they believe it will be good business to start taking euros when the currency is introduced.

Mick said: "We are all for it. A lot of people in the UK don't think it will affect them. But the fact is most of Europe will be using the euro and we would be stupid to ignore that."

Tomorrow euro notes and coins will replace the national currencies of 300 million people living in 12 European countries.

Although the UK, along with Denmark and Sweden, are members of the EU, they will not be joining the single currency, at least for the time being.

It will be up to individual businesses in these countries whether to accept the euro.

The issue is of particular importance in Brighton and Hove. Tourism brings more than £350 million a year to the city, one of the top ten destinations in the UK for overseas visitors.

Amanda Shepherd, head of tourism and conferences at the city council, said: "We are bound to see the tourist sector leading the way on the euro because it will be at the forefront of the changes.

"Previously it was complicated for smaller hotels to deal with lots of different currencies but now there is one currency for much of Europe. I think many will see the advantages of accepting the euro as just an extension of their customer service."

Mike Cook, Brighton and Hove area director for Sussex Enterprise, agreed the tourist industry in the city could lose money if it was not prepared.

He said: "In Brighton and Hove more people are preoccupied with parking issues than the euro. There is an attitude of thinking this is something happening in Europe and doesn't affect us.

"The danger is insularity and isolation. It's important to separate the political issues of whether Britain should join the euro from the reality that the block of our European partners will be using it on a daily basis."

To combat ignorance on the euro Sussex Enterprise is planning to organise a series of workshops.

The South East Euro Awareness Forum (SEEAF), a non-political group funded by the DTI and private sector, has teamed up with the British Tourist Authority to raise awareness of the euro.

Philip Hardaker, chairman of SEEAF and a senior partner at KPMG consultants based in Crawley, insisted it would be wrong to think of the euro as "just another foreign currency".

He warned: "Our concern is that if businesses don't adapt it may put off visitors coming from Europe. The bottom line is we could end up losing potential customers."

Mike Gillis, chairman of Eastbourne Hotels Association, said his 200 members were being encouraged to accept the euro.

He added: "If as a resort we can make it any easier for our European visitors to come over here and spend their currency then we should do so. We need to be progressive.

"We just cannot afford to ignore a market of 300 million people right on our doorstep."

Across Sussex a number of organisations and attractions have begun preparations for accepting the euro.

Brighton Sea Life Centre has already said it will accept the currency. General manager Toby Forer said: "It would be foolhardy for us to ignore the importance of being able to accept it when so many of our customers will be coming over here with euros in their pockets."

But not everybody is convinced the euro will have a significant impact on business.

Brighton and Hove city centre manager Tony Mernagh said: "I really don't think it's going to be an issue in the city. I think the whole thing will be a non-event like the Millennium."

Richard Mead, head of European policy at West Sussex County Council, also predicted the impact on small business would not be as pronounced as for those companies which traded directly with Europe.

He said: "Initially on a day-to-day basis I don't think the euro will effect many of the smaller businesses unless they export to Europe.

"However it's always important to make things easier for your customers and some companies may decide it's in their interest to accept euros."

Fyfield Hotel in New Steine, Brighton, is the kind of small hotel which SEEAF is hoping to reach with its campaign. But manager Anna Culpeck was not convinced it would be in her interest to accept euros.

She said: "We feel it's something for the bigger hotels."

Businesses wanting more information on euro preparation plans can contact the Euro Help Line on 02380 832866 or check the web site on www.seeaf.co.uk