DESPITE Spain’s uncertainty in the Eurozone, as ex-pats there is definitely an air of optimism here on the Costa del Sol – even though VAT here has gone up.

My wife Elaine and myself can’t avoid the TV images of the horrendous weather the UK is experiencing this summer – and our hearts go out to everyone back home. Here, the contrast is extraordinary with soaring temperatures and cloudless skies, the beaches, restaurants and bars are filling up.

Despite high temperatures and no rain for almost five months, authorities are confident here that there will be no water restrictions this summer. Water levels are lower than last year, but with 75% of total capacity in reservoirs, general usage and irrigation are guaranteed.

OK, so people will have a to pay a bit more. Spanish Prime Minister Mariano Rajoy and his PP Party have raised the VAT level from 18% to 21% on most items and the tax on restaurant food etc will go up from 8% to 10%. He hopes this will help to save 65 billion euros.

Despite the difficulties tourism here is up and by early July there was an avalanche of last minute bookings, giving the region a 73.5% hotel occupancy, Spain seems to be a favourite again!

Regular visitors will welcome the news that there is to be big crackdown on ‘looky looky’ men on the coast who pedal illegal goods and constantly harass holiday makers. Local town halls are to instigate more surveillance and hand out tougher fines to suppliers and pedlars. Thank goodness, they are an on-going nuisance.

Dozens of top line artists are set to perform at sell-out concerts on balmy summer evenings.

This year sees the most concerts we have ever known in a single season with acts like George Benson, Sting, Tony Bennett, Boney M, Simple Minds, Paul Anka and loads more, all eager to entertain to huge crowds. And with the long awaited opening after five years work, the controversial San Pedro tunnel will help to whisk revellers to the shows and the many classy clubs in Marbella, now once more attracting celebs from around the world.

The second Malaga Airport runway opened at the end of June which should help cope with the growing number of holidaymakers and potential property seekers.

And with the spectacular growth of Malaga Port, a record number of tourists roam the streets of Malaga looking for shops to buy gifts to take back on board, but find the shops closed on Sundays. Malaga Council and the Spanish Government are considering allowing them to open and if they did it would bring in much needed cash flow to the city. If new laws are passed, they could also affect other major cities in Spain.

A much reported long running dispute between Lord Sugar and property developers Aifos rumbles on. It relates to the 144 room five star luxury Hotel Byblos near Fuengirola which was closed in May 2010 when debts forced Aifos, the owners into administration. Lord Sugar was the only bidder at auction more than two years ago but he can’t begin work on the deteriorating complex as Aifos is claiming it is worth more than the 8 million euro investment. The 16-year-old iconic hotel has been the secure holiday residence for people like Princess Diana, The Rolling Stones, Robbie Williams and dozens more. Once opened, Lord Sugar is hoping the project will bring employment and prosperity to the area.

The nearby Hipodromo horse race track is expanding monthly with night-time racing in full swing at the moment. The promoters have erected a semi-permanent 3,000-seater marquee for indoor sports activities and corporate events. And an adjacent massive go-kart track will be opened soon.

A new chocolate factory shop opened recently in Mijas village called Majan Monkey. It has people queuing out of the door waiting to sample its wares and create their own unique bar of chocolate, such is the love of sweet stuff by the Spanish people.

Another well publicised investigation in Marbella involves actor Sean Connery and his wife Micheline. A Malaga court has been waiting 18 months for the Scottish ex-Bond star to return to Spain to answer questions about an alleged money laundering operation related to the sale of a villa the couple owned in Marbella. From his home in the Bahamas he said ‘he was unable to travel because of ill health.’ It is now likely that a team of lawyers will go over to question him there.

There has been a dramatic fall in unemployment in this region, probably due to the influx of tourism.

Official monthly figures showed a reduction of almost 100,000 people, the biggest drop in June for 16 years. And April and May also saw a fall in the number claiming benefits.

So with such a lot of gloom around at the moment it is gratifying to see so many people, especially children having so much fun in the sun.

I just hope parents take heed of the huge publicity by health authorities here are giving out about the dangers of too much unprotected sunlight. There is a big increase in skin cancer in the region and they are hoping to educate people to cream up, especially midday.