Michelle Gorman, managing director at Visit Durham, said the lack of visitor accommodation in the area meant people were not staying longer.
She told the meeting: “We have a fabulous coastline and much has been done over the last 20 years to improve it.
“It is one of our fastest-growing areas, the challenge we have is the lack of visitor accommodation.”
A 400m buffer zone is currently in place along the Durham Coast to protect wildlife and sea life and prevent developments.
“To get any visitor accommodation is really challenging,” Ms Gorman added.
“We are trying to get more family-friendly accommodation because the coast gets really busy with day visitors.”