Plans to hold the English Open golf championship at St Mellion this summer, have been delayed.

The prestigious event was to be held in August but has been put on hold until 2011 because of financial problems.

One of the third party developers building 264 on-site homes at St Mellion went into administration in November.

Edinburgh firm, Highmore Homes, who were working in partnership with Living Villages, had problems during phase one of the project, building 66 homes on the site.

'We have a long term agreement with The European Tour to host The English Open but unfortunately, like many companies, the credit crunch has created additional challenges for the third party developers engaged in developing the non-hotel golfers' accommodation at St Mellion,' said the chief executive of owners, Crown Golf, Stephen Lewis.

'A two year postponement provides a good time frame for all work to be completed and we have reiterated our commitment to The European Tour to host The English Open from 2011.'

The announcement has come as a great blow to tourism in the region because the event was expected to attract Europe's top golfers and thousands of spectators.

'We are very disappointed that it is going to be delayed because local businesses were hoping for the boost to help with what they had lost because of the credit crunch,' said William Cotton, chair of Saltash and District Chamber of Commerce and Industry.

'The knock on effect could be as far as Looe and Polperro and it is a massive blow to the whole area,' added tourism ambassador for Caradon, Edwina Hannaford.

It is hoped the redevelopment and the return of The English Open to The European Tour international schedule in 2011 will put Cornwall on the map in the golfing world and attract overseas golfers and tourists.

'The two year lead-up will enable Crown Golf to progress the project to the high standard both they and us demand for our players,' said Keith Waters, director of international policy of The European Tour.

Owners Crown Golf remain positive their £20m redevelopment and five year contract to host the English Open will provide a major boost to the region.