Tourism experts fear the worst after Butlins announced it had put its holiday centre at Bognor up for sale.

South Coast World is on the market after owner Rank reported that its leisure group had dipped £142 million into the red.

A spokeswoman confirmed that talks with a possible buyer for Butlins and other holiday divisions, trading as Warners, Haven and Oasis, were taking place.

The announcement follows weeks of speculation and uncertainty over the future of the holiday centre, which was opened 40 years ago by the late Sir Billy Butlin.

Key figures in Bognor with a special interest in tourism say it will be a "disaster" for the town if anything other than leisure use took place on the Butlins site. Paul Wells, a member of the Bognor Heritage Project, which is campaigning to restore the town's storm-damaged Victorian pier, said: "I really hope that whoever takes on Butlins will maintain a leisure activity on that site."

Mr Wells, who is also a town councillor, added: "The centre is worth millions to Bognor and to lose it would mean an economic disaster for the town because the people who come on holi-

day also spend money in the shops."

Ian Harding, a former chairman of the Arun district-based tourism group Vista, said: "Rumours about Butlins have been rife for a month. If it went completely it would be nothing short of devastating.

"The place attracts 6,000 people a week when it is full and is worth £15 million a year to the economy in terms of the spending power of visitors."

Mr Harding said the impact on jobs would also be severe if a buyer decided to use it for a non-leisure facility such as housing.

He added: "Around 1,500 people depend on Butlins for employment and South Coast World is also the telephone booking centre for other Rank-owned holiday centres."

Rank recently spent £45 million modernising the camp, adding an indoor pavilion dubbed the Baby Dome.

The refurbishment included updating the chalets, banning single-sex party bookings to try to create a better family image and a new designer uniform for the famous Redcoats.

Pop star Ronan Keating opened the new-look facilities last year.