Rotorua Lakes Council is putting the Holdens Bay Holiday Park on the market as the property has been identified as surplus to needs.
Money from the sale is expected to be redirected towards reducing current debt levels.
The council has owned the Stonebridge Park Drive property since 2007 whenit was acquired to facilitate airport runway extensions and civil aviation safety provisions. The business is currently operated under a management contract.
The council's chief financial officer Thomas Colle said the original strategic purpose for acquiring the holiday park had been met and the airport's interests were now protected in the new district plan. He said further protection was possible through covenants if required.
"The current management contract is coming to an end shortly, so it's the right time for the council to divest itself of the park.
"The sale of the Holdens Bay property is part of a wider strategy to identify and sell properties no longer needed by the council, and to redirect the revenue to debt reduction."
Rotorua real estate company Bayleys has been contracted to find a buyer and is expected to market the property nationally and overseas.
The 1.7 hectare holiday park property includes a manager's flat, reception/shop, conference and games room, 11 motel units, 25 cabins, ablution blocks, garages, swimming pool and 55 sites.
