Plans have been drawn up for 40 new “holiday lodges” at Drayton Manor Theme Park.
The tourist attraction near Fazeley wants to expand the opportunity for guests to stay overnight, following the creation of an on-site hotel in 2011.
The theme park also offers caravan and camping spots but says there are now “capacity issues”.
It now wants to build an initial 20 lodges with a further 20 to follow in the future.
A statement supporting the planning application said: “It is estimated that the development of holiday lodges within the theme park would create around 16 new jobs, or may offer extended working hours for some of the existing staff.
“The bulk of these jobs would be created in the housekeeping and kitchen/food service areas, with others possibly created in administration, reception, maintenance, waste collection and entertainment roles.”
The theme park says that the lodges would help achieve its long term aims to build on the 1million visitors a year.
And it warned that failure to offer new accomodation options could lead to it falling behind rival attractions.
The statement added: “Drayton Manor Park has a growth strategy which involves gradually replacing older rides with more popular, higher capacity rides which will attract additional visitor numbers, many of which will want to maximise their visit to the Park by staying overnight.
“This will lead to a need for additional accommodation on site as the Drayton Manor Park Hotel is already frequently near to capacity particularly when there is a conference or event on at the hotel.
“If Drayton Manor Park is not able to move forward and offer a greater choice of accommodation they run the risk of potential customers, unable to find suitable, available accommodation at Drayton Manor Park, choosing to go to an alternative theme park instead.
“Alton Towers is within 45 minutes and has a much larger accommodation offer, it is therefore a viable alternative option if Drayton Manor Park is unable to provide adequate accommodation supply.
“Without additional accommodation on site the overall appeal of the theme park will suffer, as will its position and role as a regional and national tourist destination.”
People can give their views and see the full proposals via Lichfield District Council’s planning website.