Scottish ministers have rejected plans for a large-scale holiday village in rural Perthshire.
Edinburgh company Exclusive Resorts had its bid for 30 lodges, a network of cycle paths and woodland walks at Bankfoot blocked by councillors last year.
The firm appealed to the Scottish Government in a bid to have the decision overturned. It argued that the development would bring “outstanding benefits” to the local and national economy.
A spokesman claimed that Perth and Kinross Council had set a precedent for rural tourism projects when it approved a separate application to transform Taymouth Castle into a hotel.
The project earmarked for land at Gellybanks Farm had hinged on the company also winning consent for 10 luxury homes at the edge of the site. Money made from selling off the private properties would provide crucial backing for the tourism venture, agents said.
Both proposals were thrown out by members of the management development committee, amid fears it could impact on water supplies and cause traffic problems, and that it would be out of character for the surrounding area.
The Scottish Government’s Directorate for Planning and Environmental Appeals has now dismissed Exclusive Resort’s bid and refused planning permission.
Don Rankin, appointed to investigate the case, said: “On balance, I conclude that the economic benefits do not outweigh the harm arising from the speculative housing element of the proposal.”
Objectors said the scheme could lead to a loss of privacy and noise problems.