SCARBOROUGH'S famous Spa - scene of some of the biggest political party conferences in the last century - needs a £3m facelift if it is to win new business, says a major report by the resort's tourism chief.

Peter Dahl, director of tourism, says the imposing landmark building in the South Bay, owned by the council, needs refurbishing and its structure, layout and design upgraded to enhance its appeal to conference organisers.

"The Spa is at a crossroads from which it could slip into decline or it could follow a new path by providing up to date facilities to attract new markets," said Mr Dahl in his report to the borough council's cabinet next week.

He adds that The Spa, with its Grand Hall, ballroom, theatre, restaurant, bars and function rooms, is seen as a flagship project in the council's 20-year regeneration plan of Scarborough. "There is an urgent need for a conference development and marketing strategy combined with immediate investment in the fabric of The Spa."

The 2,000-seat Grand Hall, where all political parties have held their conferences, needs modern IT and lighting, more flexible seating, increased stage depth and better backstage facilities, says Mr Dahl. "There is considerable scope for change and rebuilding of the theatre, Regency Room, Green Room cafe, and ballroom."

And, says Mr Dahl, it is possible for a hotel to be built adjoining the Spa, together with residential apartments. The nearby South Bay pool area, which has now been reclaimed, provides an opportunity for other visitors attractions.

"The redevelopment of The Spa should focus on its historic core and make the Grand Hall and theatre work effectively."

A four-stage programme is envisaged to redevelop The Spa which is being recommended for approval by the cabinet.

Improving The Spa's amenities will generate more income and reduce its burden on the council taxpayers as a result, says Mr Dahl.

Updated: 09:57 Wednesday, February 25, 2004