Dartmouth could be facing a new economic blow if a major caravan park on the edge of the town closes in the wake of the £80m West Dart development proposals.

Little Cotton caravan park is right inside the 100-acre development boundary designated for the construction of more than 400 new homes, employment units, sports fields and a 'community hub'.

The 30-year-old, 7.5- acre site, with room for 95 caravans, is packed with visitors for most of the holiday season.

But owners Paul and Dorothy White, who have run the caravan park since 1980, say it will close when the huge development project goes ahead.

Mrs White said the couple were expecting to see the caravan park close and had no plans to reopen it elsewhere before declining to say any more.

The possible loss of the caravan park has shocked some town councillors who fear it will have a major knock-on effect on the town's economy.

'The caravan park attracts a vast amount of money into Dartmouth,' said town councillor Dave Cawley.

He said some town councillors appeared prepared to accept the caravan park will simply disappear – along with all the visitors that stay there each year.

'They are suggesting you cannot stop progress and so on but we can say that we want to see the caravan park put somewhere else. The number of people who come in and spend money is a lot and we will lose it.'

Fellow town councillor Robin Springett was equally concerned, adding: 'That caravan park is unbelievably important.'

The Little Cotton caravan park is just yards from the town's park and ride site and a mile and a half from the town centre on a direct bus route.

The site's own website spells out that 'Little Cotton is the ideal site for visiting the very picturesque town of Dartmouth with its winding streets and excellent family shopping and excellent pubs and restaurants'.

Tourist information centre manager Sue Stone pointed out the nearest other caravan park on the main A road into the town is at Woodlands.

'Little Cotton is in an ideal location for Dartmouth,' she said. 'Its loss is bound to impact on the shops, cafes and restaurants in the town.'

Cllr Springett added: 'I would like to see the district council look at providing some land where the caravan park could move. I don't think this has been thought through and people have not thought about the impact on the town.'

Cllr Cawley added: 'I don't think anybody really realised what was going to happen.

'Now that I have thought about it, we need to do something. We are town councillors and we have to look after Dartmouth.'