Invest Northern Ireland is supporting the construction of five four-star self-catering cottages in Annalong by a new business that aims to tap into the anticipated boost in visitors to Northern Ireland.
The development scheme, Dunnywater Cottages, is being undertaken by John and Myrtle Haugh, as a new business venture. Invest NI has offered £100,000 of support.
Maynard Mawhinney, Invest NI's Director of Food and Tourism, said: "Invest NI is working with the Northern Ireland Tourist Board to develop our tourism sector and promote Northern Ireland as a must-visit destination. Our support for projects like this will help develop a valuable tourism infrastructure here.
"The Dunnywater Cottages project will provide quality, self-catering accommodation for people coming to Newcastle and Mourne, an area of outstanding natural beauty and one of the NITB's signature projects.
"Invest NI's support is essential in allowing this project to proceed quickly, which will add value to the tourism offering in the area."
Tourism generates 4.9 per cent of Northern Ireland's Gross Domestic Product and employs around 40,000 people. The Tourism Strategy for Northern Ireland aims to double the income generated from tourism to £1 billion between 2010 and 2020.
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