An application to create two, one-bedroom short-stay units to the tune of roughly $250,000 each at 71 Curdievale Road has been lodged with Corangamite Shire Council.

The possible bed and breakfast-style units on the 814-square metre parcel of land would also include a bathroom and an open-plan living and kitchen area.

South-west ward councillor Kate Makin said the application was the latest signal of great things to come.

"Timboon is becoming a destination everyone wants to come and visit which is great," she said.

"With COVID, most people sold the houses they had for Airbnb and short-stay accommodation so now there's really limited availability.

"We're trying to get all that happening again in Timboon to get people to stay and look at what else we have to offer."

In July, the town won silver in Victoria's Top Tourism Towns Awards.

With Deloitte expecting the number of tourists visiting the Great Ocean Road to reach 8.6 million by 2026-27, Cr Makin said the challenge was bringing those tourists inland.

"We'd love to expand on that growth and make it a destination where people have to stop," she said.

"Tourists go and visit the 12 Apostles but we want them to come inland and see what great things the little town of Timboon has to offer including the distillery, ice creamery and all the nice little cafes and boutique shops as well.

"The trail continuing on from Timboon to Port Campbell should be open in the near future and will make it easier for people to come down.

"But the tourist companies take them to Port Campbell where they turn around and head back home."

Solving that problem will be top-of-mind at a community forum in the Senior Citizens Centre on September 28 between 7pm and 8.30pm.

Cr Makin said the previous meeting in June produced great suggestions.

"It came up with almost 50 ideas from beautifying the town centre to environmental projects and developing new events," she said.

"Our community is set to grow in the coming years and it's really important to have residents involved at every step of the way."

To accommodate that growth, the council is investigating ways to fast-track land in the Unlocking Housing - Timboon Project.

Cr Makin told The Standard in 2021 the move would create 30-40 serviced residential lots next to the transfer station.

"Sales data shows Timboon is popular with tree-changers, people downsizing from farms, retirees and families because it has a hospital and school and close to bigger towns with higher level services," she said.

"The plan is to create a subdivision on about four hectares of council-owned land."