A report into the viability of Dreamland, written just months prior to the park's opening, warned the project was 'highly speculative' and carried 'substantial risk'.

The report, commissioned by Thanet District Council and written by property advisers GVA Grimely, is dated February 5, 2015, just five months before the park opened in June.

It warns the council: “There is considerable risk associated with the viability of a scheme of this nature particularly in a secondary/tertiary coastal location.”

Former Thanet councillor Ian Driver claims the report was not shared with the majority of councillors and was only seen by the senior executive.

On his blog, the Green Party activist said: “Thanet council bosses appear to have suppressed this important report and kept it secret from elected councillors.

"No mention of it was made by senior council officers and council leader Iris Johnston (Lab) at the cross-party members briefing on the Dreamland project held on February 23, 2015, at which I was present.

"No mention of it was made at the council’s governance and audit committee held on March 17, 2015, at which councillors reviewed TDC's corporate risk register.

"In fact, at that meeting councillors were advised that the risk of Dreamland project failing 'would reduce significantly' to a medium to low classification because Sands Heritage had recently been appointed as the Dreamland park operator.”

The report highlights poor market conditions in the leisure sector generally, and though it concedes that some attractions have opened in the last few years that remain successful, points out there are few in a similar location or of a similar size to Dreamland.

In a statement, Thanet council said it was right to seek independent advice when choosing an operator for Dreamland.

It said: "The report approved the council’s process and confirmed the lease and concession represented best value for the council.

"The report was not published by the council as it is a commercially-sensitive document.

"The complexities and risks of a unique project of this scale is something that has been acknowledged by the council and its partners throughout.

"The council is perfectly satisfied it followed due process and adopted the recommendations of the report.

"Extracting comments from a report and taking them out of context is inappropriate and misleading.

"The council is delighted the first phase of this major regeneration project for Margate is helping to raise the profile of the district and bringing more visitors and business opportunities to Thanet.”

This latest revelation comes less than a week after the release of letters from the Heritage Lottery Fund, raising “significant concerns” about the process of appointing the management of the theme park.