Butlins has vowed to turn Bognor into one of the world's best holiday resorts.
The holiday company plans to transform the destination by 2013.
Butlins is in the process of obtaining planning permission to build a second shoreline hotel, the first of which opened last year at the cost of £10 million.
Butlins managing director John Dunford said: "We want people to come back here in five years' time and be overawed by the quality of the resort.
"We plan to take Bognor to where it will not only be the best holiday resort in the UK - but in the world."
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