Luxury eco cabins, full-serviced campsites and a 200-seat multi-function facility will be built at Killalea Reserve as part of a multi-million dollar redevelopment.
A $6.5 million state government grant will fund the project upgrading Killalea Reserve Holiday Park into a tourism destination.
The project will upgrade existing facilities and include the development of a multi-function facility, 15 luxury eco cabins, 53 full-serviced campsites, a playground, walking trails and outdoor recreational equipment.
Kiama MP Gareth Ward said the project will allow more people to enjoy the natural beauty of the region.
"The project aims to establish Reflections Killalea Reserve as an iconic NSW tourism destination to increase visitation and extend length of stay from interstate and international visitors," Mr Ward said.
"We know there is already so much to see and do here in our region and this project will provide an impressive new attraction to entice first-time and return visitors," he said.
The project is one of 10 tourism projects that will share in $62 million in funding.