£31m expansion at the Raithwaite Estate is recommended for approval

The scheme, which is due to be approved by Scarborough Council’s planning committee on Thursday is believed to be the biggest tourist development of its kind on the coast for generations.

It is earmarked to be built in the 80 acres of the five star Raithwaite Hall between Whitby and Sandsend and will see a big holiday accommodation development of 71 cottages, 82 apartments and 37 lodges.

The developers. Yorkshire Ventures (Estates) says the scheme will create 278 new jobs both on the site and in allied holiday businesses in the area.

Welcome to Yorkshire, the region’s top tourism marketing organisation, said: “This will be a huge development and the benefits to Yorkshire will be immeasurable. Raithwaite Estate will become Raithwaite Bay - a world class destination for both national and international tourism.”

David Walker, Scarborough Council’s senior planning officer who was recommending approval of the development at the authority’s planning committee, said: “This will be an exciting expansion of the tourist accommodation and facilities already on offer at the Raithwaite Estate.

“It will add to the supply of quality visitor accommodation within the Whitby area and provide a boost to the local economy and tourism.”

But the scheme has been opposed by the local parish council which says: “The size is disproportionate in terms of it being adjacent to the coast and the North York Moors National Park.”

There is also opposition from Whitby Civic Society because, it says, of the scale of the scheme, traffic problems and visual impact.

Cambridge Policy Consultants which has carried out a Socio-Economic Impact Assessment on the proposal estimates that it will benefit the Whitby area economy by £6.34m a year.

Previous plans for the development, which will also include a restaurant, shop and café, were rejected on the grounds of visual and ecological impact but the latest proposals have been backed by the Borough Council and National Park Authority.

It said in a report to the council: “A key dimension of the jobs associated with the development is that they are not expected to displace or substitute for other economic activity in the area,” adding that other tourism and leisure businesses on the coast were likely to benefit because of the additional visitors.