A draft business development strategy released by council before Christmas outlines plans to overhaul the caravan park, aiming to bring it up to a 'certain standard'.

The plan includes reducing the number of sites from 185 to 164, significantly reducing holidays van numbers from 108 to 48, landscaping, adding drive through ensuite sites, a camp kitchen, additional barbecue facilities, a playground and recreational building.

The current leaser, who was unavailable for comment at the time of print, has managed the park for the past 32 years. Many holidaymakers said it doesn't need to change and are particularly concerned about the park losing its unique character, developed over the years.

Owning property in Sheerwater and a van at the park, Cessnock resident Mark Howe said most of the van owners feel like they have been left in the dark.

"As a ratepayer and therefore a stakeholder, I want to know why we weren't consulted before a decision was made to take over a business that has been in a family for 30 or 40 years," he said.

"What gives council the right and reason? They have other priorities that need to be addressed in this area like the roads, wharves, footpaths and lighting, rather than starting another business enterprise and monopolising caravan parks."

Council's manager of administrative services John Dougherty said letters and a copy of the business plan had been sent to the people renting the 108 van sites last week.

"The public will have the opportunity to comment when a draft business plan goes on public exhibition. We are aiming to have it out by the end of the month," Mr Dougherty said.

It is not yet known which 48 vans will be allowed to stay on site, except for three permanent residents of the park who Mr Dougherty said will be totally unaffected.

"Nothing is in concrete yet, as the site is on Crown Reserve, coming under the Department of Lands, we are legally required to submit a plan of management and a business plan, which they then approve," Mr Dougherty said.