The holiday company has joined with the town's University of Chichester campus to launch a degree course next month.

The foundation degree in musical theatre performance has recruited a cohort of students ready for their first tutorials.

It represents a pioneering partnership between the two biggest influences on Bognor's economy, separated only by the A259 Upper Bognor Road but which have never before joined forces.

The course will see Butlins marry its practical experience of the demanding entertainment business with the educational expertise at the university.

For Butlins, it is another step in the determination of the company – better known for Redcoats than mortar boards – to move upmarket as shown by the growth of its second hotel on its holiday resort.

The course is one of two in the creative industries which the university is launching in Bognor for the new academic year as part of its move to help the town's regeneration. The other is a foundation degree course in graphic design for 30 students.

It is also intended by the university to create incubator units, or serviced offices, for designers as part of the development of a business centre on the campus.

The courses will be followed next September by a drama degree and a popular music, or Rox, academy to develop music and entrepreneurial skills.

These are just the start of far-reaching changes to the Bognor campus.

Two further subjects will be centred there – a school of enterprise, leadership and management and the sports science department.

University vice-chancellor Dr Robin Baker said the changes would help to raise the skills levels of residents – essential if the town is to be revived economically – and take advantage of the campus's location close to Felpham and Bognor Regis community colleges.

"Young people will be able to move painlessly along an escalator of skills from college level through further education and on to higher education. We want the campus to become a one-stop shop for education.

It is also hoped that Chichester College will site some of its courses at the Bognor campus in subjects such as catering, library, sports and information computer technology.

"We are keen to play as big a role as we can in transforming the economy of the town and the educational, cultural and sporting opportunities of its citizens through the development of our courses and the facilities on our handsome campus," said Dr Baker.