Tourism, heritage, and food and drink projects representing a total investment of up to £1.6m are set to benefit from the Investing in Unst fund. The fund aims to boost the island's fortunes following the withdrawal of the RAF from its Saxa Vord base in 2006.

The creation of Britain's most northerly caravan site, the restoration of historic Belmont House and the expansion of a salmon hatchery are just some of the exciting projects underway on Shetland's furthest-flung island.

Investing in Unst is made up of £500,000 from the Scottish Government, administered through HIE Shetland. Businesses themselves are investing a further £284,849 and HIE Shetland is committing £194,943 towards developments. A range of other funders will contribute towards the community projects.

The investment will create eight full-time and four part-time jobs over the next three years, and help safeguard a further seven positions.

The Investing in Unst panel consists of Ann Black, area director of HIE Shetland; Fiona Stirling, HIE's north isles team leader; Joan Ritch and Alan Clark from Unst Community Council, and Douglas Irvine from Shetland Islands Council (SIC) Economic Development Service.

Ann Black said: "Investing in Unst has secured an outstanding range of new developments that will contribute to the island's long-term future. We've been able to invest in a good mix of projects including innovative business start-ups, growing existing businesses and enterprising community projects."

Fiona Stirling added: "The fund was launched in March of this year. We held two workshops to support potential applicants and two rounds of approvals were made by the five member panel. In total, HIE Shetland's north isles staff received 41 enquiries about the fund which led to12 excellent proposals coming to fruition."

One of the successful business applicants will be exporting for the first time as a result of investment in a salmon hatchery. Davie McMillan of Lakeland Unst Freshwater Ltd said: "Lakeland has been committed to Unst since 1990. The cool, clear oceanic water around Unst, and the fact that no lice treatments are required, are the main selling points for our fish.

"We've a current opportunity to expand our production due to demand for salmon ova in Chile, Norway and Ireland. Investing in Unst assistance has come at the right time to help us realise our expansion. This will create new employment in Unst, allow us to invest in staff training and consolidate our position in the market."

Mussel grower David Niven, Director of Unst Shellfish Ltd, said: "Thanks to Investing in Unst, we are now able to process our mussels ourselves. Washing and grading them at our own shore base means that we can maximise our return.

"The new equipment means we can now retain smaller mussels and grow them on to harvest. The assistance we received has helped us to achieve full-time employment and we hope this will lead to an opportunity to provide much-needed employment in the north isles."

Belmont House and Gardens is a community beneficiary of the Investing in Unst fund. Built in 1775 by Shetlander Thomas Mouat, the house is one of the finest examples of Georgian houses in Scotland. Fully restored, the house will be used for community and public use, offering a stunning venue for art, music, weddings and gatherings. Douglas Irvine, SIC's head of business development said: "I am delighted that the community has been so positive, and responded so well, to the opportunities presented by Investing in Unst.

"The willingness of the community to think about new enterprise, in the face of the situation that it found itself in, is commendable. I would go so far as to say that Unst can now lead the way for communities who may find themselves in a similar position."

Community council and panel member Joan Ritch added: "The fund has given our community the means to help develop our small companies and start up some new ones, which will create much-needed employment. Unst is a strong community, especially in the face of adversity, and I think we have shown that we have risen suitably well to the challenge that faced us."

Ann Black summed up: "We are delighted with the widespread community interest that has come in response to Investing in Unst. Some excellent projects have come forward and I am confident these will make a significant contribution to the economy of Unst."