By Phil Keating and Serafin Gomez

MIAMI, Fla- It has been a tough year for tourism overall in Florida. However, recently the industry is showing signs of a gradual recovery as cheap rooms and the weak dollar are helping fill hotels during what is typically the busiest time of the year. Yami Alvarado, who represents the South Beach Group, a collective of hip, boutique hotels in southern Florida says the bad economy has made rates cheaper and more affordable to tourists.

“Miami is a number one destination because of the weather, the sexiness, the fun, but now also the rates,” Alvarado says.

A recent study by the Smith Travel Research company found an increase in hotel occupancy at Florida’s big beach counties, like Miami-Dade, and Palm Beach.

But the struggle to fully escape Florida’s tourism recession remains a challenge.Next month, Credit Suisse is auctioning off a 90-million dollar loan it made to the owners of the luxury hot spot Gansevoort South Hotel, hoping to recoup what so far is a loss. And the Sagamore Hotel is three months behind on its mortgage, but here, in Sexy south Beach–what else but a sexy solution.

Playboy Enterprises plans to bring its bunnies to the hotel, to spice up a revenue stream it feels is ready to grow again.The big question, for this tourism-dependent state, is how soon?

“The tourism industry as the economy overall is still in challenging times.” Says Ronaldo Aedo, Vice President of the Greater Miami Convention and Visitors Bureau.”The revenue of tourism is still off significantly between 15 and 20 percent.”

But Aedo adds, the hotels seem to be driving force behind the upward momentum.

“Hotels are selling more rooms in greater Miami and they are doing so by driving demand by lowering their prices and we are getting more people.”