Plans for 45 beach hut-style cabins on the site of a former swimming pool in the west of the Isle of Man have been backed by the town's local authority.
Duke Marketing has bid to install temporary tourist accommodation on land owned by Peel Commissioners to cater for visitors during the TT races.
Commissioner Alan Jones said income generated by leasing the site could be used to "regenerate the area".
But some residents have called for the site to be kept for recreational use.
Katryna Baptist said although the site was an "eyesore", it was still "really well used".
Under the proposals, the cabins would be in place on Marine Parade between May and September this year to provide accommodation during the island's road racing events.
They would replace an existing skate park at the site, which is already earmarked to be removed.
The company's chief executive Peter Duke said similar accommodation had been successfully used in Douglas during previous TT events, and the firm could "see the potential for the type of unit" in Peel.
Mr Jones told the Local Democracy Reporting Service the board backed the proposal in principle as "overall there is a lot of positive", but stressed the authority would also consider alternative suggestions.
He urged those with concerns to "look at the facts" of the proposal before making formal objections to the plans.
Ms Baptist said a recent meeting about the application had heard objections to the site being occupied during peak season when people living in the town "want to use it as well".
Many people had been "really hoping" to see investment in the existing facilities, which had been "forgotten about" by the local authority, she added.
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