A $1.8 million expansion will see 16 units and a new function room added to a motel in Port Campbell.
Corangamite Shire councillors voted to approve the extension to the existing Southern Ocean Motor Inn on Tuesday night despite four public objections to the proposal.
Concerns submitted included issues such as visual impact, amenity impact on residential properties, access and car parking, environmental risks, geotechnical issues and clarity of information provided in the application.
But coastal ward councillor Jamie Vogels said those concerns could be addressed by subjecting the permit to certain conditions and making amendments including reducing the building height by 430 mm and changing some of the building materials - including steel - to reduce noise impact.
"There is a need for more tourism accommodation in Port Campbell," he said.
"But we still need to listen to the community ... hopefully we can work together and achieve something better out of this."
Deputy mayor Geraldine Conheady said the proposal was vital to the coastal town's future.
"This application is in the commercial zone," she said.
"Port Campbell is a tourist town and its prosperity depends on tourists ... we need to support this kind of development."
Under the now-approved plans, the motel - which consists of 28 units, a motel reception building and caretaker's house - would receive an additional 21 car parking spaces while the reception and small outbuilding would be removed.
The new accommodation would be spilt into two rows of eight units. The northern row would face Lord Street and have a total frontage of 35 metres while the southern row would be located at the rear of the site and behind the existing motel building.
It's a smaller-sized addition considering in 2003 a permit application for a residential hotel of 102 units, ancillary restaurant and retail relating to the original proposal for the Southern Ocean Beach House development was overturned by VCAT.
IN OTHER NEWS
Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content:
Sign up for our newsletter to stay up to date.