Erik Kostson
Ansys Employee

Not sure exactly what case this is but if the hole leads to a stress concentration (which it can do), and the highest stresses are found there and we need to do say some accurate fatigue calcs around that critical area, then we want a good quality mesh around the area of interest.

In your case it does not seem to be so you say, then a fine mesh around the hole is perhaps not necessary - it all depends what you want to get out of your analysis and what the goal is.

All the best