PERMISSION has been granted by the narrowest of margins for a controversial hotel expansion at Salcombe's South Sands beach.

At a South Hams Council development management committee meeting, delayed for an hour and a half due to an IT failure, councillors passed the proposals for the Tides Reach Hotel by six votes to five.

Luxury chain the Eden Hotel Collection plans to demolish the existing, unoccupied building and replace it with a much larger and more imposing hotel.

The plans attracted opposition from locals, who fear the impact it will have on the Area of Outstanding Natural Beauty, as well as Salcombe Town Council, which described the proposed building as 'dominant', 'overbearing' and 'not in keeping' with local architecture. The South Hams Society also felt the hotel was 'too big for its site'.

But most people felt the old building needed to be replaced and still be run as a hotel. The economic benefits of the development were what persuaded councillors, according to committee member Cllr Julian Brazil.

He said: 'I didn't support it, but it was the economic argument that swayed it. I don't think anyone was that impressed with the design, even those who were in favour, but people obviously felt the ­economic benefits outweighed the visual impact.

'There is no staff accommodation and only two staff parking spaces, but they say they are going to employ something like 62 members of staff.

'It's going to be parking chaos down there.'

Mayor of Salcombe Mike Fice said: 'We're a bit disappointed. In some respects you can understand where South Hams Council is coming from – we desperately want to see a hotel there too. But we felt this one was too big and we would have liked to have seen it made a bit smaller.

'The fun starts now, when we find out how they're going to knock it down and rebuild it.'

Samantha Short, Kingsbridge vice-chair of the Kingsbridge and Salcombe Chamber of Commerce, said: 'This is ­tremendous news for the area as it represents a huge boost for tourism and employment. To see such a financial investment made in the South Hams is an endorsement of all that we endeavour to achieve and something we should be proud of. Congratulations to all those involved.'

James Spencer, Salcombe KSCC vice-chair, said: 'The improved and enlarged hotel will bring immediate and long-term benefits to the businesses of Salcombe and the surrounding areas.

'Tomorrow must see a renewed and vigorous drive for more affordable rental homes in the area to accommodate the 100-plus additional resident staff required for the Tides Reach, the Cottage Hotel, the Salcombe Harbour Hotel and of course the many other businesses now overspilling the business ­premises in Salcombe.

'But for today, local business can enjoy the boost that this great news brings.'

KSCC chair David Hanmer said: 'This is very good news indeed, which will be good for Salcombe. I hope the same will happen for the Cottage Hotel in Hope Cove, which badly needs updating and modernising.'

Rigby Group, owner of the Eden Hotel Collection, said it would not comment until it had received formal notification of the planning decision.