Figures for the first two weeks in August show an occupancy of 90.7 per cent, according to Hosbec, the hotel association for Benidorm and the Costa Blanca.
This is down 1.6 per cent on usual occupancy rates and is directly blamed on the loss of Brits.
A spokeperson for Hosbec said: "The data leaves no doubt.
“Hotel occupancy maintains the downward trend and the figures are the worst in recent years.
“We must go back to 2012 and to the harshest years of the economic crisis (2008-2010) to find hotel occupancy data below 90 per cent on average in Benidorm."
Hosbec says the cause is due to the British market "which continues in free fall".
The group is also blaming fewer flights going from the UK to Beniform for the decline in British tourists.
There have been 10,000 less people coming into the resort as a result, while ticket prices for flights have gone up by between four and 11 per cent.
While there have been losses with Brits, there are more Spaniards visiting the resort, and Spanish tourists are now 50 per cent of the market there.
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There has also been a 20 per cent growth in visitors from Portugal, while the French are now the third biggest market there.
The forecast occupancy rate for hotels for the second half of August stands at 86.35 per cent at this time.
Hosbec president, Toni Mayor said he was confident hotel occupancy could still recover in August, despite recent bad weather which was "not helping".
Sun Online Travel previously revealed that hotels in Benidorm had their worst July on record.
Horrified hoteliers blamed the continued loss of British visitors, the return of holidaymakers to in Egypt, Tunisia and Turkey, the hot weather in the UK, less flights, unfair competition from illegal holiday lets and the World Cup.
According to figures from the hotel organisation Hosbec, hotel occupation in Benidorm during the first fortnight in July fell 2.9 per cent compared to the first half of July 2017 – reaching an average occupation percentage of 89 per cent.
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