Plans to house asylum seekers at a hotel in Clacton have been thrown out amid fears it could devastate the town's tourism trade.

Councillors on Tuesday night threw out plans to house asylum seekers at the Chantry Hotel in Orwell Road.

Pierre Oxley (Con, Southcliff) said: "If the Chantry was to go to this sort of accommodation, that's nearly 12 per cent of the available bed space gone.

"Let it be known to any housing association or company which wants to come to Clacton and buy up property after property and turn it into other uses, this council will not let that happen."

He told Tendring Council's planning sub-committee one company in the town was reviewing how much it would invest because of the current situation. There are no asylum seekers at the Chantry but there are dozens at the nearby Royal Hotel.

Action is currently being taken against the Royal as it has not made a planning application to accommodate the potential refugees.

Councillors rejected the plan for the Chantry as the site was in an area which protects hotels and it was thought the plan would be detrimental to residents and to tourism.

Roy Smith (Lab, Golf Green) said: "This is a holiday area and if we are not really careful we shall lose the whole of the holiday shop window. If we lose further accommodation we will be in a disastrous situation."

The plan by Roundside Housing Services was to house "disadvantaged" people for up to two years.

Various improvements and refurbishments have already taken place at the hotel.

Peter Balbirnie (Ind Con, Little Clacton) said: "I'm wondering who will be the more disadvantaged in the long term if we allow any more hotels to go, we will have a job to pick up a holiday trade."

Cornelius Olivier (Lab, Brightlingsea East) questioned whether the scheme would be treated differently if it was outside the protected area.

Planning officer Nigel Hebden said the matter of the change of character to the area would still be relevant and there would be a more intensive use as people would be living at the hostel and it would be full most of the time.

He added that the plan involved housing 40-45 people and there had been an objection from the council's tourism officer.

In a letter she said there was "grave concern" over the matter and that the council should take action to safeguard the town's hotels.

Converted for the new archive on 19 November 2001. Some images and formatting may have been lost in the conversion.