The Tropicana in Weston-super-Mare was once a shimmering art deco lido, a premier coastal jewel where thousands flocked to bathe in the Somerset sun.

But as the decades passed since its 1937 opening and an era of cheap air fares and Mediterranean holidays arrived, the lido’s lustre dimmed and it was closed in 2000. For 15 years, it sat as a hollowed-out shell, a sad monument to a left-behind town.

But on Tuesday, North Somerset councillors took a step to change the narrative for the Tropicana – and, some hope, the entire town – by voting to offer a 25-year lease to transform the Tropicana into a year-round event space with a capacity of up to 10,000 to Live Nation, the global entertainment company behind about 20 UK music festivals including Reading, Leeds, Isle of White and Download, as well as the 02 Academy venues and the Ticketmaster brand.

Alongside an upgrade to the nearly 100-year-old marine lake and renovations to the Grade II* listed, 19th century Birnbeck Pier, it is hoped that luring global stars to perform at the venue will contribute to a much-needed revival in the town.

Despite a perception of north Somerset as an affluent part of the county, Weston-super-Mare hides a starker reality. Five areas within the town rank among the most deprived 5% in England. With a high proportion of residents reporting long-term health conditions and a housing stock increasingly dominated by poor-quality Houses in Multiple Occupation (HMOs), the town is grappling with what experts call “coastal excess”– a unique burden of health and economic struggle.

Speaking from the hollowed out Tropicana on Wednesday, Mike Bell, the leader of North Somerset council, said: “We have definitely been stuck in a little bit of a cycle of decline, and you see it in our high street, where businesses struggle.” For him, the Live Nation deal is more than just a lease – it is a lifeline. “What we needed is some catalytic investment that was going to increase numbers. Build it and people will come. That, in turn, will help to support the economy and encourage growth.”

The Tropicana is no stranger to the spotlight. In 2015, the artist Banksy transformed the derelict site into Dismaland, a “bemusement park” that reportedly gave the local economy a £20m boost. While Dismaland used the venue’s decay as a prop, the new proposal seeks a permanent, sustainable future with ambitions to bring in the country’s biggest pop stars alongside a community space within the original 1930s facade.

The blueprint for this revival draws comparisons with the story of Dreamland in Margate. Live Nation’s intervention in the Kent seaside town turned a failing vintage theme park into a thriving music and cultural hub.

Eddie Kemsley, a senior vice-president at Live Nation, believes that success can be replicated in Weston-super-Mare. “We developed a live music programme at Dreamland in Margate which really put it back on the map,” Kemsley said. “Over the last 10 years, we’ve seen more hotels and restaurants open, we’ve seen a real night-time economy. I feel that’s a business we can look to and ask: how can we use some of that here?”

For people who walk along the blustery promenade daily, the renovation cannot come soon enough. Rose Swann, 71, sees the difficulties the town faces – as well as its potential. “We really need something like this in this town, most definitely, because all seaside towns are fading,” she said. “This is the help we need to bring people here. It’s pretty bad; we need upgrading. We are slowly declining. We need to boost the economy here.”

This sentiment is echoed by Adele Stitch, 46, the principal of the Adele Stitch School of Dance. Having lived in the town for 20 years, she remembers the Tropicana’s former life. “I was walking past today, and I kind of looked in and thought, what a shame I really missed it,” she said. “If they’re bringing big artists, it will bring lots of people; it’s good for Weston. It’s such an iconic place.”

The vision for the Tropicana is to move beyond the “declining, dying Victorian resort” stereotype. Bell describes Weston as a “growing, vibrant, increasingly youthful city by the sea” with a population heading toward six figures. The goal is to attract not just tourists, but high-end hotel investment.

“Our ambition now is to try and make this into a sustainable, exciting live event space that will survive into the future,” Bell said. “I want to see Olivia Dean here. I want to see Dua Lipa. Let’s get some of these big stars here. We’ve just talked about a Eurovision bid, who knows.”