The historic walled market town is popular with overseas visitors, but if they arrive in a left-hand drive coach at the drop-off point, they have to step out into moving traffic.
The drop-off point could be widened to provide a walkway on the right side for foreign-registered coaches.
Residents have expressed concerns coaches are avoiding the town.
The work would cost Â£85,910.
A report by Marianne Jackson, Conwy council's head of community development service, says: "The existing coach drop off and pick up point in Conwy is well located from a passenger point of view, but presents a growing road safety risk with the lack of separation from the flow of traffic through the town centre.
"This risk is amplified as we strive to increase the market share of continental visitors to Conwy, as any overseas visitors arriving by continental coach when entering or disembarking will be on the off-side of the coach.
"This means that, without a footway on the off-side of the coach, they do so into and from the adjacent live carriageway, thus presenting a considerable road safety hazard."
Deputy mayor of Conwy, Bill Chapman said: "If it's a bus from another country, from France, from Germany, people can get off and walk straight into the traffic so there is a danger to our visitors.
"We need our visitors here in this town and we don't want to have them killed on the streets of Conwy."
Toby Tunstall, chairman of Conwy chamber of trade said the work was much needed.
"It can be quite frightening," he told BBC Wales. "We see people getting off coaches and going straight across the road with traffic driving pass.  Getting back on the coach, they will cross the road with cars coming across their path.
"We need the coach trade to keep the tourist industry in Conwy going.  The foreign visitors at the moment in particular are really keeping us going at a quiet time of year.  These improvements are a really good idea."
The council is proposing taking part of the car park away to give buses more room to park and providing a pavement on the other side of the lay-by to keep pedestrians safe.
Conwy council's cabinet is being recommended to approve the money needed for the work to take place.

Details of a major hack emerged last week, but officials have now given details of a potential second breach.
It is feared that the attack could leave US security personnel or their families open to blackmail.
The agency involved, the Office of Personnel Management (OPM), is yet to comment on the reports.
Officials, who spoke on condition of anonymity to the Associated Press (AP) news agency, believe the attackers have targeted the forms submitted by intelligence and military personnel for security clearances.
The document includes personal information - everything from eye colour, to financial history, to past substance abuse, as well as contact details for the individual's friends and relatives.
A 127-page vetting document called Standard Form 86 may have been accessed. Among the questions potential employees are asked:
A White House statement said investigators had a "high degree of confidence" that background information on government employees had been accessed.
Joel Brenner, a former US counterintelligence official, called the data a "gold mine" for hackers.
It is also believed the breach of personal data of US government workers announced last week may be far larger than previously reported.
Initial estimates put the number of people potentially affected at four million, but officials close to the investigation told AP that as many as 14 million might be involved.
The US has said the hackers, thought to be behind both attacks, are believed to be based in China. Beijing called the claims "irresponsible".
The Obama administration meanwhile announced further measures to beef up cybersecurity on Friday.
"Recent events underscore the need to accelerate the administration's cyber strategy and confront aggressive, persistent malicious actors that continue to target our nation's cyber infrastructure," a White House statement said.
A scheme to make the medieval town of Conwy safer for foreign tourists who arrive by coach is set for approval.
[NEXT_CONCEPT]
Hackers with suspected links to China appear to have accessed sensitive data on US intelligence and military personnel, American officials say.