IT WAS a colourful cast and a fairytale backdrop – but a Mad Hatters' Tea Party carried a serious message about how plans for a castle cafe could turn a wonderland village into an economic nightmare.

Around 100 residents of Dunster, in Somerset, took part in the event on Saturday to protest against National Trust plans to open a cafe and restaurant within the historic building's grounds.

Campaigners have cited a survey carried out on behalf of the trust which they say indicates that around two thirds of visitors would eat at the new facility, instead of venturing 200 metres into the village for refreshments. Residents believe around 14 catering establishments could be affected and they fear the Dunster Watermill, leased from the National Trust, may have to close, with the owners losing their home.

Yesterday the Dunster Action Group – some dressed as Alice in Wonderland characters – officially submitted a 9,500-signature petition calling for the plan to be abandoned.

Group member Christine Moore, owner of Chapel Crafts, said: "We are hoping that the trust will take into consideration the strength of feeling, and the damage that this will do to the village."

She said any new facility would effectively "corral" visitors in the castle, and would have a "huge impact" on the village's eateries. Local councillor Brian Leaker has estimated that half the businesses would have to close, causing 20 redundancies.

Yesterday, nobody from the castle was available for comment. But on its website, a statement says its research showed that visitor flow into the village would not be affected.