Economic climate changes camping ground market

LOUISE RISK
Last updated 05:00 23/07/2012

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Short of hopping on a plane, Kiwis can only dream of having a summer holiday at the moment but investors have a real opportunity to buy into the dream, with at least four camping grounds for sale in the Waikato and Coromandel region.

TourismProperties.com tourism and hospitality business broker Malcolm Teesdale said it was standard to have "at least one" camping ground in the area on his books at any given time.

At present he has three, two in the Coromandel - Whitianga Campground and Anglers Lodge - and the Top 10 holiday park at Port Waikato. Settlers Motor Camp in Whangamata is for sale too but not on Mr Teesdale's books.

Mr Teesdale said the economic climate meant camping grounds were no longer being snapped up for developments, as was the trend before the recession. "There's not too much in the way of developments these days. Camping grounds are remaining camping grounds."

However, he said camping grounds were still at risk of disappearing and owners needed to diversify to stay viable.

"What's happening is the market is moving between camping in tents and paying for more expensive motels."

Mr Teesdale said camping ground owners with "hard accommodation" such as cabins, lodges and backpacker-styled rooms, as well as power sites for campervans, could turn a profit all year, not just in the summer months.

The three owners he was dealing with were selling for personal reasons or because they felt it was time for a change.

Statistics NZ data showed nationally there had been a 0.5 per cent decline in guest nights to 31,679,426 in the year to May 2012, despite the Rugby World Cup.

But in the same timeframe guest nights in the Waikato were up 3.7 per cent to 1,090,311.

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- © Fairfax NZ News

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