The Western Mail (p1) reports that Rick Wright, owner of the Barry Island resort, will close the camp for the season after the Vale of Glamorgan Council withheld a decision on his entertainment licence until May 14.
He said he had had two inquiries about turning the resort into a prison camp, and it would be suitable for low-risk prisoners. He has placed an asking price of£5m on the camp.
The Prison Service Agency said the idea was feasible in principle, with a spokesman saying the agency was bound to consider reasonable proposals because of the overflowing prison population.
A council committee has called for an independent report. A council spokesman said holidaymakers would be disappointed, but the council's responsibility was to ensure public safety.