RESIDENTS have vowed to fight the closure of a youth hostel which they say is a vital cog in the local economy.

Aysgarth is among ten hostels around the country which the Youth Hostel Association (YHA) wants to shut down.

The organisation lost £5m as a result of the foot-and-mouth crisis last year and intends making savings to pay for a nationwide modernisation programme, bringing surviving hostels up to modern day standards.

But Wensleydale's business community has not been convinced, claiming the association is "selling off the family silver" to cover the cost of a foray into the property development market.

County and district councillor and Yorkshire Dales National Park Authority member, John Blackie, has suggested a short-term loan could help the YHA bridge the funding gap until it has recovered sufficient revenue to invest in its properties.

He is also urging the association to consider an application for a grant from Brussels, which has already agreed that parts of the Yorkshire Dales should qualify for European investment.

"We have to fight this decision. I hope during the course of the season we can build a campaign to stop this closure - the Aysgarth hostel is vital to tourism in Wensleydale," said Coun Blackie.

"If the hostel were to close, it would mean fewer young people visiting the area on low-cost holidays. Usually, these are the people who come back time and again as they get older, bringing their own families with them.

"If we close the door on them now, we are losing one of the best ways we have of introducing young people to the Yorkshire Dales."

The hostel's manager has also admitted she was disappointed that Aysgarth is among the ten earmarked for the axe.

"The hostel has so much potential and, although we do need investment, it is not stopping people coming," said 34-year-old Kerry White.

"We are very busy and are fully booked this weekend."