A historic former hotel could be turned into a house despite objections from villagers.
The rural Burpham Country Hotel at Burpham, near Arundel, traded until 2004 before changing to a bed and breakfast called The Old Parsonage.
According to an Arun Council report, the hotel was hit by a big fall in American visitors after the September 11 terror attacks and the foot and mouth epidemic.
The new owner upgraded the property's ten bedrooms but was told by the English Tourist Board that a further £100,000 needed to be spent to maintain a three-star rating.
Tourism South East said the loss of quality hotels was a major concern.
It acknowledged it was hard to make a go of a country hotel with such a limited number of bedrooms but said there were successful examples in the region.
The council received 11 objections on the grounds that the property was important to local tourism and leisure.
Despite the protests, councillors meeting on January 10 have been advised to support the conversion of the business to a house.
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