Francois Pienaar said the project had been halted by four appeals currently under consideration by the environmental affairs and tourism department.

Only one of the appellants lives in Brenton-On-Sea, while the other three own holiday homes there.

In November last year the Knysna municipality gave its backing to the plans to develop the Brenton-On-Sea Hotel on the exact site the previous hotel had occupied.

The original hotel was destroyed in a fire in 2004. But since then three appeals have stalled the process, holding up job creation and impacting negatively on the area, Pienaar said.

Among the key areas of concern are continuous power outages in Brenton, apparent insufficient water for fire fighting purposes and the size of the development.

These concerns, however, have all been addressed in a letter from the development's town planner, Michael Olden, which has been sent to the department.

In his appeal Roux Cloete, a Bloemfontein resident, raises concerns about the aesthetics of the building. "The proposed development being a large, unimaginative structure is out of character with the relaxed, village-like atmosphere of Brenton-On-Sea."

But Olden said the development had gone through the proper municipal channels and officials had applied their minds to the situation before passing it. "The applicant remains of the opinion that the development proposal is desirable and respectfully requests that the provincial government dismiss the appeals submitted and grant the approval as approved by the Knysna mayoral committee and full council," he said.

Pienaar said the hotel was important as it would impact positively on the area. "The hotel restaurant, health spa, conference facilities and some 46 apartments will provide some 400 jobs and a wider support to families.

"During construction lasting 18 months 1,000 direct jobs will be created," he said.

Eastern Province Herald