DAVID MARTIN visits The Rock and discovers it offers more than a bit of Britain by the Med

DON'T jump red lights in Gibraltar - at least not near the airstrip, anyway. The runway, you see, crosses the main road to the Spanish border, so you might end up having a close shave with a 737. It is apparently the only road/runway level crossing in the world. And it also pretty much sums up the eccentric character of this proudly British three square-mileoutpost, its 30,000 people crammed on to every available bit of space on, around and inside the famous Rock of Gibraltar.

This massive lump of Jurassic limestone, touching 1,300ft at its highest point, and linked to Spain by a peninsula, has been fought over for centuries.

From Neanderthal man, whose remains have been found on the Rock, to the Moors of North Africa who held it as an Islamic citadel in Europe, to the Spanish, to the British Empire, Gibraltar has been a key strategic location - even now there is a fresh debate raging over its sovereignty.

Even during the Cold War, the network of military tunnels inside the Rock was expanded by the British to a full-scale nuclear bunker with its own hospital.

You can see why Gibraltar is such an important location. It commands the point where the Atlantic and the Mediterranean meet, and even on a cloudy December day, the Atlas mountains of North Africa are clearly visible only a few miles away. As such, it's also in a major shipping lane, surrounded by a belt of ships riding at anchor, including bulky oil tankers waiting to fill up at the refinery across the bay in Spain.

These days, however, it is no longer just a garrison town in the sun, the British Ministry of Defence is no longer the dominant employer, and tourism is becoming more and more important to Gibraltar, hence the stacks of new apartment blocks springing up all around the shore and the building work in progress all over.

In this place where every bit of space counts, old barracks find a new economic role, while the sheer-looking Rock sprouts cranes, radio masts, satellite dishes and buildings in the oddest places.

And you can see why it's being pushed as a tempting destination for Brits - the local currency is Sterling, it is English-speaking, but boasts rock-bottom duty free prices, has easy access to southern Spain by road and Morocco by ferry and is just two-and-a-half hours flying time from London,

And that's without all the things that make Gibraltar a unique place - the bizarre mix between crowded British coastal town and crossroads of Europe and Africa, where fish'n'chip shops and Irish theme pubs rub shoulders with mosques and Moorish ruins.

Not to mention the fantastic stalactite caves and the siege tunnels inside the Rock, and the famous Barbary apes, which live wild in its upper zones and love getting friendly with the tourists.

And if that's not enough, how about £7.50 for 200 cigarettes, and litres of brand-name spirits from about £6 upwards.

However, before you set off in a white van, the limits are strict - 200 cigarettes, a litre of spirits and two of wine is the maximum.

There's something very odd about being surrounded by Christmas decorations and music in the lobby of the four-star Rock Hotel, where we stayed, while looking out across palm trees towards Africa.

The Rock itself is an outstanding hotel, in a 1930s Art Deco style, which has been the haunt of the likes of Sean Connery in the past.

All the rooms boast a balcony overlooking the marina, (apparently there used to be rooms facing the other way, but the view of a sheer cliff of rock wasn't popular), and one of those big ceiling fans to add to the colonial atmosphere.

As well as all the excellent food and service you'd expect from a high-class hotel, there's lots of endearing touches, like complimentary fruit and sherry turning up in your room, to make it a genuinely likeable place. There's even a casino round the corner to make you feel even more like James Bond.

Fact file:

- David Martin travelled to Gibraltar courtesy of Cadogan Holidays, which operates to several hotels in Gibraltar, including The Rock Hotel, and

can arrange complete packages and flight-only deals.

Call 0870 0364532 for brochures, 023 808 28313 for reservations or see

www.cadoganholidays.com

- He flew from London Heathrow with GB Airlines (reservations 0845 77 333

77 or www.britishairways.com), a sister company of Cadogan and a British Airways franchisee which operates scheduled services to Gibraltar 12

times a week, starting from £154 return. Flights are also available from Gatwick with GB Airlines, and from Luton Airport with Monarch Airlines (Tel 08700 40

50 40 or www.fly-crown.com) from £125 return.

- Prices at the Rock Hotel range from £449-£641 per person for seven nights. Cadogan also operates trips to the less-expensive Caleta Hotel (three star) and Bristol Hotel (two star).

- David travelled to London courtesy of GNER.