Silves Câmara is planning to build a campsite and caravan park in the small town of São Marcos da Serra.
According to the Mayor of Silves, Isabel Soares, the work should begin next year.
The site will be located close to the Odelouca river in São Marcos da Serra in an area with olive trees.
The Mayor of Silves believes the facility will strengthen the economy of the interior part of the council of Silves, by attracting more tourists inland.
The council has also planned a project to create a fluvial beach in the same area.