St Mellion resort plans hit by slump in housing

THE ENGLISH Open golf tournament, due to be played at St Mellion International Resort in August, has been postponed until 2011 due to the effects of the credit crunch.

The news could have a serious effect on the economy of South East Cornwall, as businesses had been looking forward to a surge in trade brought by the prestigious European event.

Bill Cotton, chairman of Saltash and District Chamber of Commerce and Industry, said: "We are very disappointed to hear that the return of the English Open has been delayed by two years.

"Local businesses, many of them family-run, were looking forward to extra trade from the tournament to ease the burden of the credit crunch."

The delay has been caused by the problems of a developer building 66 new holiday homes at St Mellion, the first phase of 265 new eco homes.

Living Villages was being bankrolled by Edinburgh firm Highmore Homes, which went into administration in November after its bank, HBOS, withdrew finance.

With work on the scheme now stalled, St Mellion felt it could not host the Open, as some of the holiday homes were to have been used to accommodate the players and other people involved in the event.

Stephen Lewis, chief executive officer of St Mellion owners Crown Golf, said: "We have a long-term agreement with the European Tour to host the English Open but unfortunately like many companies the credit crunch has created additional challenges for the third-party developers engaged in developing the non-hotel golfers' accommodation at St Mellion.

"A two-year postponement provides a good time-frame for all work to be completed, and we have reiterated our commitment to the European Tour to host the English Open from 2011.

"We appreciate the European Tour's assistance in working with us."

The English Open will return to The European Tour International Schedule in 2011.

Keith Waters, Director of International Policy of the European Tour, said: "The two year lead-up will enable Crown Golf to progress the project to the high standard both they and us demand for our players."

Hugo Reeve, joint managing director of Living Villages, said: "The project has stalled with 27 homes in various stages of construction and one or two almost finished.

"Phase one was meant to be largely completed by the start of the English Open.

"Sales were slow, but we were at a very early stage and they were picking up.

"We are very sad to hear that the English Open may be withdrawn for two years."

Mr Reeve said money from sales of the homes was also to have contributed to the cost of staging the Open.

Ironically, St Mellion has just been named one of the best 100 golf courses in the UK, just five months ahead of its official reopening following a £20m redevelopment by Crown Golf.

The venue is home to the Nicklaus Signature Course, the first to be built in the UK by the 18-times Major winner.

Mr Lewis said: "We are delighted that the Nicklaus Signature Course at St Mellion International Resort is back in the Golf World Top 100 UK Courses guide.

"To feature alongside legendary courses like St Andrews and The Belfry shows just how highly St Mellion is rated as a tour-quality venue by the golf industry, and reflects the enormous amount of work that is going into making it the most prestigious golf resort in the South West."

As well as improvements to the Signature and Kernow courses, a new four-star standard 80-room hotel has been built, equipped with leisure and spa facilities, while dining, hospitality and function facilities have all been 'significantly upgraded'.