Concerns have been raised about plans for 45 beach hut-style cabins on the site of the former swimming pool.
The pop-up tourist accommodation proposals, from Duke Marketing Ltd, have already been backed by the town's local authority.
A meeting was held last week for local residents who say no input from residents or local business was sought before the plans were published.
Commissioners say the income generated by leasing the site could help regenerate the area but local resident, Katryna Baptist said there are worries about parking, increased traffic and pollution.
She added that other accommodation-providers could struggle to compete:
One nuisance cyclist ticketed in more than three years
New ministerial post created by chief minister
Huge floating book fair to arrive in Douglas next month
Stay safe for Hop Tu Naa tonight
Special Olympics fundraiser needs you
Peel ready for bonfire and fireworks later
Government: "UK never told us about child murderer"
Farm shop's newest worker needs your name suggestions
