Argyll and the Islands Enterprise (AIE) has awarded the local area tourist board £324,000 towards the cost of establishing a new orientation and visitor information centre, as well as a new cinema, within the Winter Garden building in Rothesay on the Isle of Bute.

The funding package is in addition to a grant worth £150,000 which was awarded to Argyll, the Isles, Loch Lomond, Stirling and the Trossachs Tourist Board last year to convert the 'A' Listed building into the 'Isle of Bute Discovery Centre'.

The Winter Garden, a historic building made from iron and glass, is a key feature on Rothesay's seafront. It is close to the island's ferry terminal - an ideal location for such a development with visitors practically stepping off the boat and into the Winter Garden.

The 'Isle of Bute Discovery Centre' will provide visitors arriving on the island with information on activities, places of interest and accommodation and will use video, interpretation and interactive areas to tell the story of Bute's heritage. The funding will also help towards the cost of upgrading the existing cinema which is housed in the Winter Garden providing a theatre, modern cinema and presentation area.

Bute is a high priority area for AIE, part of the Highlands and Islands Enterprise (HIE) network, with above average, sustained unemployment. This project however, secures three full-time posts and is set to create a further two.

The project has been funded from AIE's environmental and tourism budgets with £137,000 coming from HIE Activity - a new EU funded scheme from the Highlands and Islands Special Transitional Programme. HIE Activity is aimed directly at developing and promoting leisure activities throughout the Highlands and Islands.

Ken Abernethy, chief executive at AIE said: "Tourism is an important source of income and employment for Bute, and the development of the Winter Garden as a major orientation and tourist information centre will boost visitor numbers as well as increase the length of their stay and hopefully encourage people to return to Bute in the future."

Area Tourist Board chief executive James Fraser said: "I'm delighted AIE have supported this project so strongly as this has enabled us to deliver a much higher quality development. In addition to safeguarding the long term future of this landmark building, it also is designed to show-case the wide range of things to see and do on the island in a contemporary and imaginative way."

The creation of the Isle of Bute Discovery Centre is an integral part of the Bute Tourism Management Programme and follows on from other successful projects like the West Island Way - a long distance walking trail providing enjoyment for walkers at every ability level, and recent upgrading work at a number of viewpoints. AIE has also helped a range of local accommodation providers upgrade their premises.