The Minister for Regeneration says 'new life' could be breathed into Barry Island as a tourist destination.
Huw Lewis AM said: "The way people spend their time and money is different from the 1960s and 70s, but people are still looking for a quality day out. Barry has a fine beach... we need to make sure the facilities are here to match the natural environment."
The first tranch of a £3.3m investment from the Welsh Government has been announced, focusing on Barry Island.
The money will be used to regenerate the eastern half of the seafront and the old Butlins site.
More top news
It's not too bad out there tonight. A few showers over northern areas, but dry elsewhere with temperatures degrees milder than last night.
Traders across Wales have told ITV News the migrant crisis in Calais is having a 'devastating' impact on their business.
The Balmoral is back but for how long? Volunteers appeal for public support to keep her sailing the Bristol Channel.