Local businessman Graham Fry says Tenby needs to see a multi-million pound development at the former Royal Gatehouse Hotel site started soon.

"The town is in an awful mess and very, very quiet," he said, when giving an informal update on the scheme to members of Tenby Town Council prior to Tuesday night's business meeting.

Plans for a variation on conditions attached to the Royal Playhouse Cinema aspect of the development, which would enable the company behind the project to market the facility for an alternative use, were recently recommended for refusal by members of the town council.

Following extensive negotiations with planning officers, local members and interested parties, planning permission was granted earlier this year by the Pembrokeshire Coast National Park Authority's development management committee to construct 39 apartments, a 68 bed hotel, three commercial units, a public square, new access, car parking and a replacement cinema.

However, although the developers, South Terrace Properties Ltd and C2J Architects, have been able to set in motion aspects of the scheme, with contracts now in place with a successful national operator interested in developing a modern hotel facility, a replacement cinema to fill the void left by the Royal Playhouse Cinema, has proved a stumbling block for the progress of the development.

"Sadly, the cinema element is not viable. The multi-screen cinema in Carmarthen has put the death nail in that, remarked Mr. Fry. "Nobody is interested in spending £500,000 for the cinema shell and a further £500,000 to fit it out. It is a sign of the times, as sad as it is.

"Everything is moving on; the plans comply with legislation. There is a possibility the National Park wouldn't support it, but then we would go to appeal."

The application for a variation of conditions in respect of the cinema is now due to come before Pembrokeshire Coast National Park Authority on February 22.

FOOTNOTE: Later in the meeting, members of the town council asked the clerk, Mr. Andrew Davies, to write to Pembrokeshire Coast National Park to ask if the authority could bring their powers to bear to improve the state of the hoardings around the derelict Gatehouse site.