Brighton reinvented itself as a party town and creative hub thanks to Norman Cook and its large student and gay scenes and its fast links to London.
Worthing and Eastbourne became popular spots to raise a family for London telecommuters (two days a week in a London office is viable from there, and property is a fraction of the price).
Margate and Folkestone became artistic hubs, after the last of ex industrial inner London got redeveloped.
Whitstable became a foodie mecca and well-heeled daytripper spot, Borough-Market-on-sea or so.
The Suffolk and North Norfolk coastal towns do a nice line in second homes for the Range Rover and XC90 set.
Many, if not most of these places were pretty desolate in the 90s. Others are still to turn the corner. Hastings is on the way up but still a lot of junkies and the generally down-on-their-luck in temporary B&B accommodation. Herne Bay is still rough as. Lots of South Essex coastal towns are grim and deprived, maybe not as bad as Blackpool but definitely struggling.
Rediscovered, maybe. It has long been a party town, from the Pavilion - a faux-Indian palace put up by a Prince Regent in a previous century for seaside parties - Quadrophenia-era nightclubs to being the gay capital of England all before Fat Boy Slim was born.
It’s also the south coast town closest to London, with a direct railway line. Huge geographical-economic advantage over Blackpool.
It was a wonderful place to be a student in the ‘90s.
Bournemouth (middle of the South Coast) took a slightly different path and some of the accommodation was repurposed to house students from Europe studying English. IIRC the contiguous strip comprising Bournemouth, Poole and Christchurch is one of the largest non-industrial conurbations in Europe. I moved to Bournemouth in 1988 for work reasons and it always seemed to me like a large studenty-town that happened to be near the Sea rather than a 'seaside town' (i.e. one that is structured around the beach and bucket-and-spade shops). It's also viewed as Brighton's straight cousin. Christchurch, on the other hand, is known locally as 'the last resort' because of the large proportion of retirees in the population.
I also can't resist the old joke that Cleethorpes isn't twinned with any other town but is in a suicide pact with Grimsby.
I must be getting old since Barton on Sea is becoming more attractive as residential destination by the day...
Why play on the cold, stone covered beaches on the few days of sun a year when you can fly for a couple hundred UKP to Spain and have reliable sunshine, warm weather, and sand.
Destinations on the South Coast were not affected in the same way though and have remained a popular choice with more affluent clientele.