Victor Harbor has won the Tourism Industry Council of South Australia's (TiCSA) top tourism town and people's choice award for 2023.

The chief executive officer for TiCSA, Shaun de Bruyn, said the award was a recognition of how well the town was promoted as a destination.

The Mayor of Victor Harbor, Moira Jenkins, said she believed Victor Harbor had moved from being "just a summer destination" to attracting a far greater number of tourists in the traditionally quiet winter months as well.

She said the town had been boosted by the reopening of the SA Whale Centre in December after two years of major renovations, and that visitors would soon be able to enjoy "behind the scenes" experiences at the horse-drawn tram.

Ms Jenkins said while Victor Harbor had much to offer, there was still a need for more accommodation and conference facilities in the town to be built in the right place to "treasure the natural environment".

"We are keen for the Anchorage Hotel development to go ahead," she said.

"But it does seem to have stalled."

The City of Victor Harbor voted in March to spend $30,000 on public consultation after a developer put forward an idea for a $350 million development in the town at the base of The Bluff.

The decision to provide the funding for public consultation was reversed earlier this month after the Ngarrindjeri Aboriginal Corporation provided a briefing to council members on the importance of the area to their community.