Mepa has approved an application for the former Mgarr Hotel in Gozo to be converted into 41 apartments and 68 garages.
The application was approved without objection and board chairman Austin Walker said it would lead to an improvement of the Mgarr skyline overlooking the harbour because the development would be recessed.
Mr Walker however, cautioned that the board would in future take a tough line over other applications for the change of use of buildings which had originally been granted permits in order to benefit Malta's tourism, more so when the properties were outside development zones.
Mr Walker said he was not referring to this application, but said permits originally granted for tourist developments in ODZs would henceforth fall through if a change of use was sought.