Site owners Northern Trust want to build housing on the land on Clifton Drive North – an application which is set to go before planners.

Now bosses at Ocean Parcs, the company which hold the lease for the centre, have hammered home the final coffin nail by announcing they are pulling out of Blackpool – ending decades of fun at the site.

Ocean Parcs claim the site is no longer "commercially viable" and blame spiralling costs and disappointing bookings for the decision.

Despite every other Pontin's recording sales increases and contributing to a 25 per cent rise in bookings nationally, visitor numbers to the Blackpool park dropped eight per cent.

Bosses have agreed to pump millions of pounds into five other Pontin's complexes but uncertainty about the long-term future of the Fylde site is believed to have excluded the park from much needed investment.

The site is leased to Ocean Parcs on a bi-annual basis with the current agreement due to end on October 2 – which is when the site will close.

Ian Smith, chief executive of the company, said: "It's with regret and sadness we announce we will not be extending our development plans to the Blackpool holiday park.

It was not an easy decision for the board to make but the level of investment required for a short period of time and a reduction in holiday bookings means it is not commercially viable to continue beyond the end of the current lease. We are currently in consultation with our team at Blackpool regarding the future."

The centre's 74 staff were told of the decision yesterday morning.
Consultations will be held with management over the coming four weeks with a view to moving staff to other areas of the company.

Land owners Northern Trust have put in £50m plans to build a housing estate on the site to include 370 new homes, ranging from one bedroom apartments to five-bedroom homes – including a "significant proportion" of affordable housing.

An exhibition of the plans went on view at the Solaris centre in December and residents gave them a cautious thumbs up, saying they believed the site could improve the look of the area.

Fylde Council planners say no date has yet been set for the application to be heard – due to the large-scale nature of the proposals.

Coun Trevor Fiddler, cabinet member for planning and development, said: "A planning application for the land was received at the end of last year and is currently being worked through ready to be put before the planning committee, so the possibility of a closure has been on the cards for some time.

"It's a shame this once thriving business has suffered so drastically from the economic decline, especially when tourism as a whole seems to have improved over the last year."

A spokesman for Northern Trust added: "While we're saddened by the decision, Northern Trust accepts Pontin's commercial rationale for the closure and has been informed by Pontin's that the site will be made vacant in November."

Ocean Parcs says it has not ruled out the possibility of moving to another site in the resort in the future.

In the meantime, every visitor booked into Pontin's after the closure will be written to and offered a refund or a stay at an alternative site.

The news comes as a blow to the local tourism industry.

Coun Peter Callow, leader of Blackpool Council, said: "Pontin's has been operating in Blackpool for many years so it's a great shame to hear that its time here is coming to an end.

"I understand they were only on a short-term lease which must have made it very difficult for them to make plans for the future.

"This is an important site and although it doesn't fall within the Blackpool boundary I will ensure that we are involved in any discussions about its future use."

Peter Taylor, from StayBlackpool, added: "This is very sad news for Blackpool. Pontin's is a big draw for visitors who enjoy the holiday camp experience.

"My fear is, in the absence of other holiday parks they will simply go elsewhere which will have an effect on the wider tourism economy."
The centre played host to many themed weekends this year and groups who have used Pontin's also spoke of their regret.

Alan Gater, owner of Noches De Salsa, took part in a dance weekend in April which drew in hundreds of dancers from nationwide.

He said: "It is disappointing to hear this news but to be honest we were expecting it. The centre is looking quite old but we had no complaints, it wasn't exactly four- star standard but then you don't pay four-star prices."

- As well as the £50m already announced, Pontins bosses plan to invest around £100m in its park in Southport.

This would involve a complete redevelopment and create an extra 250 park jobs and 600 construction jobs.