Worthing Council has been forced into an embarrassing re-think over its controversial plans for promoting the town as a holiday venue.
Most people responding to a package of measures compiled by the West Sussex Tourism Initiative were upset about the proposals.
The rejection means the council has to go back to businesses and traders in the town to thrash out a new set of measures aimed at boosting tourism.
The council sparked outrage earlier this year when it announced it was halving its annual £100,000 tourism budget and giving £50,000 to the Tourism Initiative to promote the town on its behalf.
But the measures put forward by the initiative have been met by criticism from the Worthing Hospitality Association, guest house owners, West Sussex County Council and Arun Council.
Criticisms have included concerns about how the survey was conducted. Many town centre businesses said it was not thorough enough.
The council has been accused of "backtracking" and will have to go back to the drawing board.
Some of the suggestions put forward by the West Sussex Tourism Initiative included advertising in national newspapers, setting up a website and putting up promotional posters at Victoria Station in London.
There were also concerns that the initiative had been the only organisation asked to come up with a series of proposals.
Many groups said more organisations should have been given the chance to put together a presentation so a wider and more varied choice was available.
Arun Council and the county council said not enough had been done to encourage closer links with neighbouring authorities and promote the town as a gateway to other areas as well as a venue in its own right.
Businesses in the town agree there should be a review and study into how to promote Worthing as a tourist venue but there needs to be a lot more consultation as the existing options are not good enough.
Councillors at Worthing's economic development and marketing committee last night decided not to award the West Sussex Tourism Initiative the contract for promoting the town's tourism industry.
They agreed more talks and discussions needed to be held with interested parties before another set of ideas was drawn up. The £50,000 budget set aside to promote tourism earlier this year will be used by the council to develop the 2001 Worthing Guide, which features the facilities, hotels and guest houses the town has to offer.
Council bosses had hoped the guide, traditionally developed in-house by the council, would be taken over by the initiative as part of its package of proposals.
Sue Murray, of the Worthing Hospitality Association, said: " The survey was not comprehensive enough and it is not a fair and accurate reflection of opinion.
"We are willing to work closely with the council and other interested groups to make sure we really get what everyone wants.
"Tourism is on an upward trend - £65 million a year generated in Worthing alone - and this is something that needs to be built on.
Committee chairman Andrew Garrett said: "I see this as a positive step forward.
"We have commissioned a survey and asked what people want. They have responded and now we are to take the development of the tourism industry forward to create a set of proposals that will benefit everyone concerned."
Opposition councillor Bob Clare said the reaction of the public and businesses had forced a u-turn.
He said: "This is a backtrack in the face of flying rotten eggs from the public. It is a mess. We need to sit down, talk to people and draw up a new timetable of events."
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