Twenty years ago, Russell Fielden sailed a yacht to the Caribbean island of Grenada and fell in love. Pooling his life savings, he bought a small hotel, the True Blue Bay Resort, and slowly built it up from six rooms to 33. Then, on September 7 last year, Hurricane Ivan struck.

“It was terrifying,” he said. “Roofs were blown off and flying about like playing cards. Guests were huddling in their bathrooms, holding mattresses over their heads. The damage cost more than £500,000 and, of course, I wasn’t properly insured.”

Fielden, originally from Sidmouth, Devon, had chosen to settle in Grenada partly because it lies just 12 degrees north of the equator — supposedly clear of the hurricane belt. Before 2004, the island hadn’t been hit by a big one for 49 years. Then, in July this year, came a second hurricane, Emily.

Despite his bad luck, Fielden looked upbeat as he clutched a bottle of Carib beer at the hotel bar, which he had rebuilt using scraps of roofing and other debris. It was a Saturday night and the bar, the Dodgy Dock, was humming with guests and locals.

“In the months following Ivan, most of our guests were aid workers and insurance assessors,” he said. “Now, the tourists are starting to come back. It’s great to see.”

Grenada, one of the prettiest and least spoilt islands in the Caribbean, has paid a high price for shifts in global climate patterns. More than 85% of homes lost their roofs to Ivan, and farming was devastated. Production of nutmeg — so central to the national identity that it even appears on the Grenadian flag — was decimated, with 95% of the crop destroyed. Newly planted trees will not bear fruit for at least 10 years.

Spices may have symbolic importance for Grenada, but it is tourism that makes up the largest slice of the economic pie. Local hoteliers are so desperate for the Brits to return this winter that they are slashing their peak-season rates. Even during January, it is possible to find packages reduced by as much as 25%.

Some of the largest discounts can be found at the three-star Grenadian by Rex, a 200-room hotel on a superb white-sand beach. It sustained $10m worth of damage and has taken more than a year to rebuild. “We’re only 15% occupied right now,” said the general manager, Brett Castleman. “It’s pretty desperate, but guests are starting to come back. We recently had a mother and daughter return who were evacuated during Ivan.”

Those who do visit Grenada this winter will find the beaches as beautiful as ever — and empty. Divers say the coral reefs are undamaged and the water clarity excellent. There are even a few more wrecked boats to explore.

One of the island’s biggest assets is the friendliness and good humour of its people. Even after enduring two hurricanes in 10 months, they remain cheerful and positive about the future. “Maybe it’s because of the climate,” grinned Lawrence Lambert, manager of the Flamboyant, one of the worst-hit hotels. “When the sun’s always shining, things can’t be that bad. We can always go to the beach, set our nets and catch a few fish.”

There was no shortage of fresh fish — tuna, snapper and mahi-mahi — at the Beach House, a delightful seafront restaurant opened six years ago by another British expat, Michelle Minors, and her husband, Andrew. The problem was a lack of customers. “Business is up and down,” said Minors. “We reopened in April, for dinner only, but it’s a struggle.” Takings are not helped by the fact that some hotel guests buy all-inclusive packages. Those who want to help the islanders — and experience the full beauty of Grenada — should book room-only or B&B.

A short walk from the Beach House is Laluna, the island’s most exclusive hotel, where the likes of Kate Moss, Jerry Hall and Dave Stewart pay up to £600 a night to stay in rustic cottages with private plunge pools. “We were incredibly lucky,” said the owner, Wendy Bertucci. “We lost the palm trees on our beach, but that was about it.” Although only three of the 16 cottages were occupied when I visited, high-season bookings are looking up.

()Storm damage can be seen across the island. In the Grand Etang National Park, most of the rainforest canopy has been ripped clean off, destroying the natural habitat of the mona monkey. In the historic capital, St George, one of the most attractive harbours in the Caribbean, 19th-century fish-scale roof tiles have been replaced by crude zinc sheeting.

Virtually every church on the island lost its roof. “The strange thing is that not a single one of the rum shops was damaged,” said my guide, Edwin. Repairs are continuing apace. Botanical gardens are being regrown and the sports stadium, currently in ruins, is to be rebuilt in preparation for the Cricket World Cup in April 2007.

Grenada’s small, independently owned hotels — which number among the best in the Caribbean — are back on their feet and desperate to see guests return. Petit Bacaye, a beachfront hideaway with half-a-dozen stylish thatched cottages, reopened 10 days ago. The owner, Julia Montgomery (known as Fiona Richmond in her glamour-model days), said: “We lost roofs and quite a few trees, and fishing boats were washed up in our grounds. Then Emily came and flooded us. But we’re fine now.”

Nearby is La Sagesse, a charming 12-room inn on a beautiful secluded beach. Once the home of Lord Brownlow, a cousin to the Queen, the house suffered almost no damage, but the owner, Nancy Meranski, said tourists were “afraid to come”. She added: “We ought to be full at this time of year. Where else can you stay right on the beach for £50?” Damage to some of the island’s roads is causing problems for Grenada’s more remote hotels and restaurants. Near Sauteurs, on the northern tip of the island, Morne Fendue is a Victorian plantation house with wrought-iron balconies, lush gardens and commanding views of the surrounding hills.

All eight of the rooms were empty on my visit, but the house was open for lunch. Sitting on the veranda, I tucked into home-made callaloo soup, creole chicken, curried fish and pumpkin stew. A few feet from my table, a hummingbird nibbled at flowering honeysuckle. It was a wondrous meal, pure delight — and all for £12, including drinks.

• Mark Hodson travelled as a guest of Virgin Holidays
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  Travel brief
  
  Going packaged: Virgin Holidays (0871 222 0304, www.virgin.com/holidays) has a week in January, room-only, at the Grenadian by Rex, from £639pp (saving £210pp), and a week’s B&B at True Blue Bay for £739pp, saving £100pp. Both include Virgin Atlantic flights from Gatwick.
  
  Just Grenada (01373 814214, www.justgrenada.co.uk) has a week’s half-board in November at the stylish 30-room Calabash Hotel from £995pp, saving £295pp; and La Sagesse, room-only, for £585pp, saving £110pp. Petit Bacaye costs £655pp, saving £130pp, room-only. Flights are with Excel Airways from Gatwick.
  
  
  
  Or try Caribtours (020 7751 0660, www.caribtours.co.uk) or Hayes & Jarvis (0870 898 9890, www.hayesandjarvis.co.uk). Prices at Laluna have not been reduced; from £1,509pp until December 8 and £1,839pp in January, room-only, with Virgin Holidays.
  
  
  
  Where to eat: the Beach House (00 1 473-444 4455) opens for dinner every day except Sunday. Lunch at Morne Fendue (442 9330) must be booked in advance. Coconut Beach (444 4644), which has candlelit tables in the sand on Grand Anse, is good for simple creole cooking: curried conch, grilled shrimp and saltfish. Mains are about £8.
  
  
  
  Going independently: although you’ll miss out on discounts this winter, it is easy to put together your own trip. The cheapest flights to Grenada are with Excel from Gatwick, bookable through Golden Caribbean (0870 777 6911, www.goldencaribbean.com). Fares in November start at £324. Also try British Airways (0870 850 9850, www.ba.com) and Virgin Atlantic (0870 380 2007, www.virgin-atlantic.com), both with fares from £600. For accommodation, contact the Grenada Board of Tourism (020 8877 4516, www.grenadagrenadines.com).