Arran Campers Ltd is developing the Kings Caves motorhome facilities at Machrie on the island in a move that will create one full-time and one part-time job.
The motorhome pitches are being built to larger than standard size to enable enhanced social distancing. They will have water, free wifi and electric hook-ups.
The project includes the construction of a reception and check-in cabin, vehicle parking, toilet and shower facilities and full waste disposal facilities for visiting vehicles.
There will also be a chemical toilet waste disposal point, which is sorely needed in the area with the number of visiting motorhomes increasing.
As well as creating new jobs, it is expected to bring more than £50,000 annual turnover to the local Arran circular economy.
Morag Goodfellow, HIE area manager for Argyll and the Islands, said:
“Tourism is hugely important to our area. We have seen a significant increase in domestic tourism and a large element of that is campervan and motorhome holidays. Arran is an attractive destination for visitors and this project will enhance the island’s offering, providing facilities that will help accommodate more campervan and motorhome visitors and also benefit other local businesses in a collaborative and co-operative way.
“I am delighted we have been able to provide support and look forward to seeing this new venture succeed.”
Angus Smith, MD at Arran Campers Ltd, said:
“It was a tremendous boost to the project to receive this funding. The much-needed new facilities for motorhomes on the island will cater well for the growing demand for overnight stops and help the local community cope better with the increasing numbers of visiting vehicles.”