TRADERS in the Grassmarket claim they are stuck in a tourism "black hole" because there are no signs to direct people to the area.

Businesses also claim the current work renovating the former Lothian Regional Council headquarters on the corner of the Royal Mile and George IV Bridge has made the situation worse by hiding the walkway down Victoria Street.

With work on the refurbishment of the Grassmarket area due to start next week, and tram construction widely expected to reduce the number of visitors to the city centre, they fear further drops in footfall could threaten the future of small traders in the area.

The Grassmarket Area Traders Association (GATA) wants the city council to put up brown tourist attraction signs directing visitors to the "historic Grassmarket".

But the council says the brown signs have not been put up anywhere in the city for several years, in line with city planning policy to reduce "clutter".

Jos Bastiaensen, chairman of GATA, which represents at least 47 members in and around the Grassmarket,

said: "There is the same access to Victoria Street as there always has been but people are now more likely to walk past and think 'there's nothing down there but a building site'. There is a worry that the refurbishment of the area will depress footfall even further.

"We don't know yet exactly what the schedule is but hopefully it will be done in quarters to limit the effect it has on traders."

Mr Bastiaensen, director of the Helios Fountain gift shop, said many traders will be "hanging in" during the 12 to 14-month refurbishment programme in the hope the improvements to the area, and to trade, will make it worth it.

The association is hoping it can persuade RJ McLeod, the company contracted to carry out the refurbishment of the area, to erect permanent signs directing visitors to the area.

Bill Baber, owner of the Bill Baber knitwear shop on the Grassmarket, has arranged for the building contractors at George IV Bridge to put up a temporary sign while work continues.

He said: "We have a real problem with signage. The Grassmarket is like a black hole. There's no sign at any entrance to show where it is.

"The problem on the Royal Mile with the quality of the shops has been because there is too much footfall. Here, we have too little."

Councillor Tom Buchanan, convener of the council's economic development committee, said the multi-million overhaul of the Grassmarket would benefit traders.

He said: "I understand retailers' frustration at the amount of work that's gone on in the area in recent months, including a lot of disruption caused by utility companies who have upgraded outdated infrastructure."

But he added: "However, I believe that the long-term gains from the planned improvements to the area will be well worthwhile."