Beauty rises from the ashes of war; Once the playground of the rich and famous,Croatia is again attracting tourists in their thousands as it recovers from years of bloody conflict. Alistair Keely savours a Balkan revival.

TELL somebody in Britain that you have been to Croatia and Montenegro and the response would send a shudder through the Balkans.``Must be a bit of a bomb site?'' The image of a war-torn region has proved remarkably hard to shift since the early 1990s, when the former republic of Yugoslavia erupted in a vicious and bloody conflict as first Slovenia and then Croatia sought independence.

The ensuing conflict left the region in ruins as Serbia and Croatia slugged it out over disputed territory and carved up Bosnia-Herzegovina with ethnic cleansing, which left thousands dead and many more homeless in acts of unspeakable brutality.

Tourism,one of Croatia's main sources of foreign earnings,ground to a halt.

Now, slowly but surely,Croatia is coming back. War ended in 1995 and every year since the number of visitors has grown. In 2001, the number of visiting Britons topped 100,000 onceagain.

It is easy to see why tourists are returning. For a start the region is stunningly beautiful. If you thought Britain boasts many islands, thinkagain. Croatia has 1,280 of them dotted along its coastline.

Prince Charles was spellbound by the island of Mljet,considered one of the most attractive in the whole Adriatic. The entire western end of the island is a national park and features a pair of salt water lakes, the larger of which boasts its own island capped with a ruined monastery.

Croatia has stunning landscapes, a turbulent history and a rich culture. At the crossroads of Europe,Romans,Greeks and Venetians all made a home here.

Scars of war -shrapnel and bullet marks -are plainly evident. But the ancient buildings of the country represent some of the best architecture in Europe and,once again,Croatians are optimistic about the future.

Nowhere is that spirit more prevalent than in the old walled city of Dubrovnik, the poet Byron's ``pearl of the Adriatic''.

In October 1991 the world watched in horror as the medieval city was shelled by Serb positions overlooking the port. The Yugoslav army laid siege, shutting off water and electricity supplies and bombarding the old city.

Although the odd shell mark or bullet hole is still clearly visible,most roofs have been rebuilt and, walking the narrow streets today,it is hard to imagine the city under siege.

Tourists mingle with residents in the warm sunshine and cafes and restaurants are again thriving,although visitor numbers are still only 40pc of what they were before war broke out.

The town,indeed the whole Croatian coastline, was once a favoured destination of the rich and famous. Bianca Jagger was a regular visitor,and in an earlier age,Edward VIII and Wallis Simpson were seen strolling within its medieval walls.

The old town of Dubrovnik,once known as Ragusa, wasn't completed until the 13th century. A huge wall, the third largest civilian wall in the world, surrounds the town and there are only two entrances,one of which leads to the Stradun, the main street.

Lunching in a restaurant in the shadow of the St Lawrence fortress, which stages Shakespearean tragedies in summer,I reflect that the residents of Dubrovnik have probably come full circle.

Leave the dramatic Dalmatian coastline to head inland,and the scars of war are more evident,particularly in Bosnia- Herzegovina. A three-hour drive away from Dubrovnik lies the ancient Muslim town of Mostar. It is hard not to notice the large graveyards that line the main road, while shelled homes are blackened and abandoned.

The capital of Herzegovina is the oldest Turkish town in the former Yugoslavia.

The large Muslim population was trapped in the war as Croatian and Serbian forces fought for control.

The town was famous for its 16th century bridge,completely destroyed in the fighting and now being painstakingly rebuilt by a pounds 10 million programme. It is due to reopen in January 2004.

With empty shell cases and Russian guns on display in shops and market stalls,it is hard not to feel sombre as you walk the ancient town. A call to prayer for the Muslim population late in the afternoon adds to the atmosphere.

My two- centre holiday included Montenegro, where the true beauty of the Balkans can be relished.

Geographically the country is incredibly diverse,from a beautiful coastline to mountainous hinterland intersected by rich and verdant valleys.

The country also boasts the largest lake in the Balkans. Skadar Lake is a national park,one of four in the country,and encircled on three sides by mountains. It must be one of the most tranquil, beautiful places on earth.

I stayed at the picture postcard island of Sveti Stefan (Saint Stephen).Some 50 years ago it was still a fishing village complete with its own 15th century church. The whole island is now tastefully transformed into a hotel. Quaint fishing cottages are now luxurious -by Montenegro standards -quarters in a hotel with the names of Sylvester Stallone,Sophia Loren and Jeremy Irons in the visitors' book.

Celebs always choose room 118, which comes complete with two bathrooms, two bedrooms, a sauna,private swimming pool and sun-drenched terrace with sumptuous views over the Adriatic. But all guests enjoy coastal views.

Montenegro received 1.2 billioneuros for handing over Slobodan Milosevic,and some of that is being used to boost tourism. The rich and famous are going back to the Dalmatian coast.

travel detailsAlistair Keely travelled with Inghams, who offer four hotels in Montenegro and 13 hotels in Dubrovnik,Cavtat and Mlini in Croatia for two-centre,14-night stays in Montenegro and Croatia.

n Seven nights' half- board at four-star Hotel Sveti Stefan in Montenegro and seven nights' half-boardat four-star HotelCroatia, Cavtat starts at pounds 857 per person in September (two sharing).The package includes scheduled flights with Croatian Airlines ex-Gatwick/ Manchester (supplement pounds 6) to Dubrovnik,and transfers. Inghams Reservations Line 020 8780 4433 (www.inghams.co.uk)

CAPTION(S):

The village of Vranjina in Montenegro's Skadar Lake National Park. The country got 1.2 billioneuros for handing over Slobodan Milosevic,and some of that is being used to boost tourism; The ancient Muslim town of Mostar, the oldest Turkish settlement in the former Yugoslavia