Pontins is closing its Brean Sands resort in Somerset for three years.
The company said the resort will undergo a major refurbishment, including upgrades to its 600 chalets and improvements to wifi.
It will then be used as accommodation by workers at the Hinkley Point C nuclear power plant, following an application from plant owner EDF Energy.
An EDF spokesperson confirmed: “EDF has taken over the site for three years in order to house 900 Hinkley Point workers and undertake a multi-million-pound refit of the park to ensure the accommodation is of a high standard for workers.
“After three years, the park will revert back to tourism use.
“There are around 50 Hinkley Point C workers staying at the site currently and we expect that to rise to 900 by the end of the year. We expect to finish the refurb later this year.”
It added the improvements ‘will provide a long-lasting benefit to tourism in the area’.
The holiday park will revert back to a tourist resort by November 2025.
The BBC reports local tourism market group Discover Brean was ‘shocked’ at the announcement the park will close for three years.
Chairman Alan House said: “It’ll have a massive impact on the local economy, particularly during the tourism season.”