IN its heyday, it was a major tourist destination visited by tens of thousands of Scots travelling "doon the watter" for their annual summer holiday.

Now Rothesay on the Isle of Bute is hoping to regain its popularity thanks to a £1.5 million cash boost. The town, the most popular Scottish holiday resort of the 1930s, received the award as part of Heritage Lottery Fund (HLF) grants in Scotland totalling more than £3m.

The heart of the town, Guildford Square, adjacent to Rothesay’s medieval royal castle, is set to be the main beneficiary of the investment and Councillor Len Scoullar, chairman of the Rothesay CHORD Project Board, called the HLF boost “fantastic” news for Argyll and Bute.

He said: “The local community has been fully supportive of the plans to regenerate the town centre from day one.

“We have some wonderful historic buildings in Rothesay, and Guildford Square is right at the heart of them. This announcement means these former jewels in the town’s crown are now to be restored to their former glory, and we all look forward to working to ensure that Rothesay regains its reputation as one of Scotland’s most beautiful and most popular visitor destinations.”

Rothesay, with its Victorian seaside grandeur, was visited by holidaymakers from the west of Scotland and further afield who travelled by paddle steamer every year to reach the island.

Changing holiday habits took the shine off the seaside spot. Dereliction and demolition has left prominent gap sites, raw gable ends and tatty frontages.

In November 2008, Argyll and Bute Council agreed to an ambitious programme to assist regeneration and economic development in five of its waterfront towns – Campbeltown, Helensburgh, Oban, Rothesay and Dunoon.

It agreed to allocate more than £30m to the project, since named CHORD.

In the latest round of HLF awards, a grant of £1,735,300 and development funding of £25,000 was also given to Parkhead Cross in Glasgow’s east end.

Parkhead Cross was awarded the cash for the second phase of a project aiming to breathe life into the rundown area.

First-phase successes included saving the Post Office by relocating it to a restored building and creating a community hub.

The next phase will focus on the restoration of 20 shop fronts and provide short-term lets for artists, traditional crafts people, and start-up businesses.

Liz Cameron, executive member for Development and Regeneration at Glasgow City Council, said: “Parkhead Cross is a not only an outstanding example of Edwardian architecture, but also a historic civic and commercial hub in Glasgow’s east end.”

Colin McLean of the Heritage Lottery Fund said: “Against the current economic downturn, the futures of Rothesay and Parkhead Cross are looking positive.”