THE cost of saving a popular Dales youth hostel from closure could be up to £500,000, it has been revealed.

The facility at Aysgarth, in Wensleydale, was one of ten earmarked for closure and sale by the Youth Hostels Association (YHA) in March because of the crippling financial effects of the foot-and- mouth crisis.

But the decision provoked outrage among residents and local authorities, who quickly launched a determined campaign to stave off the threat of closure.

The YHA responded by announcing a feasibility study, which will lead to a business plan being drawn up in the hope of identifying new markets for the hostel.

But bosses warned that securing European funding, as well as a contribution from regional development agency, Yorkshire Forward, towards the £500,000 cost of refurbishing the centre, is now crucial.

The YHA is spending £20,000 on initial preparations to revive the hostel, so that no time is lost should grants be made available.

YHA regional manager for Yorkshire and the Humber, Simon Ainley, said local people were behind the fight to save the facility, but sounded a note of caution.

"I'm delighted the commun-ity can see the potential value of the youth hostel as a place for young people to meet, a venue for events and an advice centre, as well as a base for IT skills training. It can also strengthen links between local people and visitors staying at the hostel," he said.

"However, I must stress that we first need to secure external funding to meet the costs of redevelopment of the youth hostel and then ask YHA's board of trustees to look at the issue again before we know whether it will be kept open."

The YHA has set an autumn deadline for funding to be in place, but John Blackie, leader of Richmondshire District Council, is confident of success.

"The councils and our partners in North Yorkshire and the Yorkshire Dales National Park will continue to work closely with the YHA to find a viable alternative to closure for the youth hostel and the contribution of local residents to this process is essential," he said.