Surf Beach Holiday Park is one of five operated by Kiama Council. Other park operators are interested in forming a partnership with council. Photo: Kiama Coast Holiday Parks.
Another two holiday park operators have signalled an interest in Kiama Council’s five parks, following an initial approach from Reflections Holidays.
Just days before councillors met to discuss its controversial 2026-2027 budget and proposed cuts to a raft of services, council received an “unsolicited proposal and offer” from Reflections Holidays to potentially enter into a long-term joint venture leasing arrangement in regards to council’s Kiama Coast Holiday Parks.
At the time, Mayor Cameron McDonald said the proposed partnership between council and Reflections could “help shape the future of our tourism assets, while significantly improving council’s financial position”.
Council operates five holiday parks – Kiama Harbour Cabins, Surf Beach Holiday Park, Kendalls Beach Holiday Park, Werri Beach Holiday Park and Seven Mile Beach Holiday Park.
Since Reflections showed an interest, council has received a further two proposals from other park operators and is now starting a process to explore future opportunities for the parks.
Cr McDonald said the level of interest reflected the quality and value of Kiama’s holiday parks and presented council with a genuine opportunity to consider options that could improve its long-term financial position.
“Our holiday parks are extremely popular and valuable and the fact we’ve now received multiple proposals puts council in a strong position,” he said.
“What this creates is a competitive environment where we can properly test the market and ensure we achieve the best possible outcome for our community.”
Council is not proposing to sell the holiday parks. Four of the five parks are on Crown land, with Kendalls Beach Holiday Park situated on council-owned land.
The process will focus on exploring long-term leasing, joint venture and management opportunities.
Council will start an expression of interest (EOI) process, followed by a selective request for tender, in consultation with Crown Lands.
Cr McDonald said the process could deliver a range of positive outcomes for the community.
“This is an important decision which could have a significant impact on our budget planning for 2026-27,” he said.
“What we know from these offers is that it provides the potential to help council balance our budget at the end of the next financial year, generate revenue and realise capital investment in our parks.
“That combination, improving our financial position while continuing to support local services and infrastructure, is exactly the type of outcome we should be exploring.
“This kind of solution is worth considering, so we have encouraged our CEO Jane Stroud to progress the EOI and tender process for this concept as quickly as she can.”
Council will undertake a three-stage assessment process, including concept review, preliminary assessment and detailed proposal evaluation, before any decision is made.
Council needs to make up a deficit of $4.5 million by the end of June next year to meet the requirements of the performance improvement order (PIO) which was implemented by the NSW Government four years ago. Its proposals for potential closures or cuts to services such as youth, cultural and tourism, alongside reduced hours at libraries, created furore in the community.
The draft budget is now on public exhibition until Sunday 24 May. Key strategies include:
- Continued operational efficiencies
- Service reductions
- Staffing reductions to “rightsize” council’s operations
- A special rate variation included as an alternate in the Long Term Financial Plan but is not a preferred scenario “at this stage”
- Capital works reductions
- A $10 million loan for Blue Haven Terralong fire safety work which is needed to ensure the retirement village complies with regulations
- OneCouncil implementation – financial and operating software platform.
Cr McDonald has urged the community to provide feedback on the draft budget, promising that “you will be heard”.
