THE Westcountry became a playground for a weird and wonderful array of creatures, as partygoers put on fancy dress to welcome in the New Year.

Revellers cast off worries about the recession to let their hair down for one of the biggest parties of the year across Devon and Cornwall.

Fireworks and crazy costumes were common sights across both counties as landlords reported healthy turn-outs and a festive atmosphere.

In Falmouth, Nick Goodall, of the Boathouse, said 90 per cent of customers turned out in outfits for the Hats and Cravats night. Mr Goodall, who has been at the helm for two years, said he is proud to have created a real community pub. "The secret is getting to know everyone's names," he said. "Everyone likes a bit of recognition, and a lot of these chain pubs just don't offer that."

Some areas, including Truro and Barnstaple, laid on public fireworks displays, with good turn-outs despite the cold. Inspector Toby Davies of Barnstaple police, said the atmosphere in the square was brilliant.

"There was a distinct family atmosphere and everyone was in great spirits," he said. "There was hardly any trouble and was a generally really enjoyable night."

In Lyme Regis, West Dorset, the Cobb Inn resembled a comic convention as regulars took to the heroes and villains theme with gusto. Manager Debbie Turner said the attendance had beaten expectations. She said: "It was brilliant. We weren't too sure what to expect this year, but it was far better than last year, and we had absolutely no trouble. Everyone was in a really happy mood."

In Lostwithiel, Mid-Cornwall, more than 100 people turned out for the midnight Giants' Parade, where effigies are marched through the town to improvised communal music. John Webb, who took part, said the cold failed to deter the group. "People get really creative. Our biggest monster was more than four metres tall, which meant we had trouble with some of the overhead wires, but it was all good fun."

But away from the frivolity of the party, business leaders fear the festive season could be lacking in terms of the economic boost expected at this time of year.

Tim Jones, chairman of the Devon and Cornwall Business Council, said a survey of his members indicated bookings were down by about 20 per cent. Across the whole of Christmas and New Year, he estimated the shortfall could be about £30 million.

He said they were reporting that more people were opting to stay in on New Year's Eve. He said: "People believe it's far better to spend it with friends and family and do your own thing. The time of the hotel event, with a dinner dance party scenario, has passed."