A scheme by Beach Huts Resorts to create luxury beach hut developments across the UK is to begin with one in Whitley Bay, North Tyneside.

Each of the 21 huts will offer accommodation with full service facilities for 11 months of the year and sleep four to six people. Although similar in appearance to a conventional British beach hut, these feature a separate bedroom, fully fitted kitchen, bathroom, sitting area and 24-hour concierge service. Explaining the concept, Darren Baker, financial director of Newcastle upon Tyne-based Beach Hut Resorts, said: "Over the past 20 years cheaper, overseas package holidays have caused a huge decline in demand for the domestic holiday and short breaks, with the financial effect on costal towns being simply devastating.

"We are aiming to re-brand the 'staycation' holiday, to enhance all that these locations have to offer. As all of our units will be self catering the residents will be encouraged to use local outlets to eat, drink and be entertained. We will be working with local businesses to ensure our guests can enjoy the very best shops, restaurants, entertainment and services the town has to offer." In a further move designed to benefit local businesses, the company has said it will use local merchants and suppliers wherever possible and local resources for its employment requirements, estimated to be around 6-10 positions for each location.

The Whitley Bay project is scheduled to open in time for the start of the 2010 season. As part of its £35m (US$55.4m, 37.4m euro) development plan, the company is reported to be in discussions with local councils elsewhere about the creation of further sites in the UK.