A £120M theme park is set to restore a North Yorkshire town to its traditional place as one of Britain's most popular tourist resorts.

And developers behind the scheme believe it could spark a renaissance among the country's coastal towns.

Council chiefs in Scarborough believe the proposed new-look North Bay will transform the town and region's economy.

Leisure consultant John Anderson said the plans should be seen as an important scheme in the wider context of UK seaside resort regeneration.

He said: ''As well as providing an exciting new destination for Scarborough, it is likely to be seen as a landmark project by central Government and will prove that seaside resorts can take on their foreign competitors and win back market share.''

Developer Benchmark Properties has submitted a £120m plan to build the 770,000 sq ft complex.

The application includes proposals for a leisure centre, conference hotel with health and fitness club, hillside apartments, forest and seafront apartments, shops, restaurants and bars, a nightclub, family entertainment facilities, a casino, beach facilities and car parks.

Residents of Scarborough and groups in the town now have the opportunity to comment on the plans.

Initially, the company was considering a more ambitious scheme costing more than £200m, but scaled down its plans to a more managable level.

The news has been welcomed by the regional development agency Yorkshire Forward.

Chairman Graham Hill said: ''A major North Bay development would make a significant contribution to the long-term economic future of Scarborough.

''The town's renaissance programme, about delivering an aspirational vision for Scarborough, will give the private sector confidence to invest more money in such ambitious projects, playing a major part in transforming the town.''

The leader of Scarborough Borough Council, Eileen Bosomworth, said she was delighted with the application.

''It is excellent news that the application is now in and we are making positive steps towards providing new leisure facilities for our residents and visitors,'' she said.

''The submission of this outline planning application sends out a clear message to investors that Scarborough means business.

''It is now up to the people of Scarborough to look at the application and give us their views.

''This proposal represents a very exciting opportunity for the town and it is vital that it has the support of our residents every step of the way.''

The council's chief executive, John Trebble, said he could understand residents' frustration at the time it has taken the scheme to get this far.

''A major scheme of this magnitude does not come together quickly and the formal application and the signing of the agreement are the culmination of a great deal of hard work by Scarborough Borough Council and by the developers.

''There is still a long way to go and much work to be done, not least the securing of operators to run the attractions.

''But we, and the developers, remain optimistic that there is demand out there and that today we are seeing the start of the next phase of a very exciting project for this borough."