Lying by my infinity pool, listening to a waterfall cascading over rocks carved with Buddha figures, while gazing across palm-filled gardens, it feels like the set of The White Lotus. Yet despite the sumptuous spa and bungalow-style suites at the plush Asia Gardens Hotel, this isn't Bali. I'm in Benidorm - on the Costa Blanca, a resort not synonymous with refinement. So what is going on? The answer is that Benidorm is hoping to go upmarket and compete with ritzier resorts. 'There is room to grow in the premium sector,' says Leire Bilbao, the director of Visit Benidorm. 'We believe Benidorm can bring in big-spending tourists.' It's a huge change in direction for the resort. Benidorm was the birthplace of the package holiday in the 1960s, transforming a fishing village into a metropolis that is now Spain's third-largest tourist economy, behind Barcelona and Madrid. Irish tourists have long been a key part of that, including many retirees, families seeking affordable breaks and party-loving youngsters. With Alicante airport a 45-minute drive away, two sandy, Blue Flag-winning beaches and a microclimate that brings balmy temperatures and little rain in winter, it's not just venues such as The Bulldog, The Red Lion and Morgan's Tavern - where the sitcom Benidorm was filmed - that pulls in the visitors. But the move upmarket is adding another dimension. And it has begun with three higher-end 'destination' hotels.The first, Asia Gardens, has regulars including Bruce Springsteen and Penelope Cruz and is nestled in the hills of the Sierra Cortina, above the beaches. Nearby is Melia Villaitana, modelled on a Costa Blanca village, with two golf courses and outstanding sports facilities. Between these two is the reincarnation of the former Grand Luxor Hotel and Village, which has just been transformed (in May) into the Four Points by Sheraton Costa Blanca, offering two and three-bedroom villas with private pools beside the Terra Mitica adventure park complex. And all three offer facilities, restaurants, and spas. The Old Town lies between Playa de Levante and Playa de Poniente, the two vast stretches of golden sand that each have a very different vibe. The former reaches east, while the latter lines the seafront to the west, a more residential area where the beach tends to be less crowded and the city's most expensive real estate is found. Set on an outcrop between the two is what is known as El Castillo de Benidorm, an excellent spot to take in the sunset. Set back in a labyrinth of narrow, cobbled streets is where you can jostle at the counters of bars in 'tapas alley' or - for a taste of Benidorm's growing high life -splash out on a ninecourse tasting menu at the restaurant in Villa Venecia. This five-star hotel has a swanky dining room with floor-to-ceiling windows and some of the best views in town. Meanwhile, other restaurants worthy of mention include La Falua set back from Playa de Poniente, a fish specialist offering excellent paella, and La Fava in the old town, where chef Fran Burgos makes traditional Valenciano dishes with a modern twist. Then there's El Senyoret, a restored farmhouse known for tasteful banquets and parties looking out over the Serra Gelada natural park. The best way to admire the skyline, though, is from the water itself. You can take a ferry to Benidorm Island, the hulk of uninhabited rock that lies some two miles offshore. TRAVEL FACTS Ryanair flies to Alicante from €60 return. Doubles at Asia Gardens Hotel from €405 B&B (asiagardens. es); doubles at Melia Villaitana from €140 B&B (melia.com); doubles at Four Points by Sheraton Costa Blanca from €157 (marriott.com); doubles at Villa Venecia from €360 B&B.