NORTHERN Grampians Shire Council is seeking to develop Halls Gap into a tourist resort town.
Council resolved to establish a project control group to drive the development at Monday night's meeting in Stawell.
More than one million people visit the Grampians each year, with Halls Gap providing accommodation for 5000 overnight stays.
A report to council said the direct and indirect economic impact of tourism in the region was more than $200 million a year.
Cr Paul Russell, who was appointed to the project control group at the meeting, said tourism was a major industry for the municipality.
"The majority of people come for its relaxed atmosphere and the facilities that are there," he said.
He said it was important to build on Halls Gap's strong foundations.
"There's a push these days tourists now want more bang for their buck," he said.
Issues outlined for the project control group to investigate include: a strategy to strengthen and improve the retail sector; opportunities identified through market research organised by Grampians Tourism, including the Grampians Destination Management Plan, Peaks Trail and proposed digital strategy; opportunities to build on projects such as the Halls Gap Community Hub; and input into a review of visitor information services and planning policies.
Cr Russell said the project control group could bring different visions together.
"We want to establish what some people want and what other people want and put them into a workable model one that's going to be best for the entire Halls Gap community and the entire shire," he said.
Representatives from Grampians Tourism, Parks Victoria and Halls Gap Tourism will be invited to join the group.
The report suggested up to four representatives from the business and community sectors be appointed.
Cr Tony Driscoll said Halls Gap was unique.
"The importance of the Halls Gap tourism industry to the Northern Grampians Shire and its economic prosperity is integral," he said.
"Hopefully the project control group will help make Halls Gap into a premier tourist destination."
Cr Kevin Erwin also threw his support behind the initiative.
"You can see with Dunkeld the difference one great development can make," he said.
"All these issues must be worked through, but Cr Russell has a good handle on Halls Gap and the people out there and we'll just see what comes of it."