Kryal Castle fire destroys three vehicles

General Manager Bart Hamilton said the park's accommodation was at capacity through the school holidays and while the Dragons show had sold out last week, there were still limited tickets available this week.

He said insurance company representatives would visit the site of the fire today.

Mr Hamilton said the incident was also not expected to affect work on a nearby Tudor Village caravan and cabin park, which was now due to open on December 1.

Updated: The blaze wrote off three cars - including one which was towed away after the Kryal Castle carpark fire.

The intensity of the flames melted tyres, number-plates and plastic components of the vehicles. It also ignited nearby bushes.

An acrid smell still hung over the area more than eight hours after the fire.

Kryal Castle is running a popular 'dragons' promotion for the school holidays.

7.20am: Firefighters have extinguished a dramatic fire which has destroyed at least one car at Kryal Castle, leading to the evacuation of almost two dozen people.

Emergency services were called to the Leigh Creek tourist attraction at 10.35pm on Sunday to what was initially reported as a fire in a garden.

Fire Rescue Victoria said it was later discovered to be a vehicle in the carpark - which spread to other cars.

The first crews arrived on scene at 10.45pm.

As a precaution, 20 people were evacuated from the castle, which has overnight accommodation.

Ballarat City FRV personnel attended as well as the volunteers from the Mount Warrenheip and Bungaree brigades.

FRV said it was under control by 11.10pm.

Police said the fire was found to be not suspicious.

More to come.