One of the north's most famous 'royal' hotels is to undergo a £1.36 million (pounds) upgrade as part of a drive to attract more visitors from America and Europe.

The upgrade will take the Royal Golf Hotel in Dornoch up to four star status, bringing it into line with its two sister hotels - the prestigious Golf View and Newton hotels in Nairn that are all part of Morton Hotels Ltd.

It will also create nearly 15 full-time jobs and pave the way for all-year round opening.

Major improvements will be made to the appearance and layout of the hotel by April, along with the refurbishment of 25 bedrooms. The construction of six luxury self catering lodges will complete the development by spring next year.

Grant Sword, managing director of Morton Hotels Ltd said: "These new facilities and the reputation enjoyed by the Royal Dornoch Golf Course as one of the best in the world, will help us grab a bigger slice of the expanding American and European golf holiday market. We are presently in discussions with golf tour operators, about adding the Royal Golf Hotel to their holiday itineraries."

Caithness and Sutherland Enterprise, is backing the project with a £310,000 (pounds) funding package which includes £155,000 from the European Objective-One supported HIE Standards programme.

Susan Smith, CASE senior business development manager said: "As well as creating local jobs, this development will increase the number of visitors to Dornoch.

"This will boost local spending and benefit neighbouring areas, as golfers travel to experience what other courses have to offer."

With up to 6% of all visitors taking part in golf during their stay, golfing tourism is becoming increasingly important to the Highland economy. A new company, Golf Highland, which has members drawn from golf clubs, tourism businesses and various public agencies, was set up in 1999 to help Highland golf clubs and tourism businesses develop and market their services for golfing visitors.

The company has a full-time manager and is currently undertaking a range of training and market research activities, as well as a marketing programme which includes a website (www.golfhighland.com), promotional materials and attendance at UK and overseas travel trade exhibitions.