Ron Young lodged plans with Aberdeenshire Council to build the facility on land at Dunnydeer Home Farm South.
The site, which is surrounded by the Insch Golf Club course, will have space for 21 static caravans. A washroom will also be built featuring toilets, a store area and laundry space with washing machines.
Each caravan on the site will be privately owned, but no full-time permanent residents will live on the park.
Mr Young wanted to develop the site to create a “new and sustainable business” while providing job opportunities for locals.
He hopes the facility will encourage tourists to visit the area and lead to an economic boost in the village, as visitors support local services and facilities.
Each caravan is expected to have between two to three-bedrooms and will include a parking space.
The caravans will be placed around a central area featuring a large communal space and a landscaped play area for youngsters. Six additional visitor parking spaces will also be created.
It is anticipated that work to clear the yard site along with the park’s construction would create five jobs.
Once open, the caravan park would have one full-time member of staff – a manager who would live in a house to the north of the site.
Three part-time roles will also be created to cover gardening, cleaning and site maintenance. But if the business proves to be a success, it has potential to expand in the future.
As Mr Young owns land next to the site, he has revealed his hopes to create a touring and camping site, or even provide equestrian facilities.
Members of the Garioch area committee considered the proposal last week.
West Garioch councillor Moray Grant said it would be an “improvement” to the site and urged his fellow members to approve it.
His view was supported by fellow ward councillor Sam Payne: “The north-east of Scotland is a top tourist destination with Good Housekeeping naming Aberdeenshire the top 2023 holiday destination. We should be encouraging the tourism industry after a difficult few years.”