Why are people not opening new campgrounds/RV parks?

Thanks for the insights, Soren.

At the start of the great recession, a subcontractor of mine decided to end his multi-year search for a small, existing campground to purchase. He had 1.4 million to invest, and wanted to be in the eastern third of the US. Over a couple of years, he spent over $10k in plane tickets and accountant reviews of the books of several potential purchases.

His overall take on the situation was that most existing campgrounds he looked at were built 30-50 years ago and were built on land that was either free (the family farm) or dirt cheap. They were built before zoning and intense code enforcement, and extremely expensive utility and infrastructure requirements. He hit two deal breakers in most cases. First, the land that was almost free, back in the day, was now correctly priced by the seller at it's current market rate, which was priced based on it's highest and best use. This was often a figure that a developer would eventually pay, then level the CG and build a housing development or condo project. This often meant that there was no chance of generating enough profit to justify the purchase, much less guarantee a reasonable ROI and a fair paycheck for the new owner's efforts. The other issue was that a lot of older to elderly CG owners were spending their season working long hours and really not making anything at all. They were in the farmer mentality of, "next year will be better" and "this is what I've always done, so I keep doing it, even if it doesn't make sense on paper". Their kids didn't want to take the place over, and bust their butts for less than minimum wage, and nobody was willing to buy the place since their books looked horrible.

The DW and I hold a small stake in a private CG in Florida. It is about 70 sites, fifty years old, and really a nice property. It is extremely well run, and fully booked in the peak season. The profitability of the enterprise will always be in question, as the operation is oddly co-mingled with a larger resort that we have a matching interest in. Bottom line is, the place charges market rates, and the occupancy rate is as high as possible given the climate and location. On paper the management can show a modest profit, while discounting the benefits of being attached to the larger operation, and using their utilities and amenities. Being very familiar with the cost of the daily operations, I seriously doubt that it would be attractive to any serious investor, if it was listed for sale.

I'd be happy with a campground that is "tall camper" friendly (ie no low hanging trees or power lines) but spaces far apart. No hookups needed for us, but electric is nice. Here in CO it's nearly impossible to get a spot for a weekend in the summer unless you book it 6 months in advance, or test your luck and leave on a Thursday morning to get a boondocking spot. We lucked out to get 1 spot at a resort in the mountains in July. Resort has all the amenities, but the spot we got is pretty private. No hookups, no nearby neighbors, great view (based on photos, we'll see!). $35/night. We'll gladly pay it to have somewhere to go that doesn't require us to take the entire day off on Friday to get there. So if more parks could open like that, we'd be happy campers. But I realize we're probably in the minority.

mgirardo wrote:

trailertraveler wrote:
We love the Brunswick, Saint Marys, Kingsland area. In recent years getting into a park has been increasingly difficult. Would you be so kind as to provide the names of the new parks or links to their websites?

The first is Coastal GA RV Resort in Brunswick. It opened less than 10 years ago and the addition was just recently completed. The other is Cathead Creek RV Park in Darien.

-Michael

Thanks!!!!

trailertraveler wrote:
We love the Brunswick, Saint Marys, Kingsland area. In recent years getting into a park has been increasingly difficult. Would you be so kind as to provide the names of the new parks or links to their websites?

The first is Coastal GA RV Resort in Brunswick. It opened less than 10 years ago and the addition was just recently completed. The other is Cathead Creek RV Park in Darien.

-Michael

My dad wanted to do it. Paid for a franchise book and everything. Found a nice piece of land next town over. That town wanted $1,000,000 to create a sewage treatment plant for the park. Killed the whole thing. A private campground on the other fork just sold for $5,000,000. NY isnt business friendly and has the highest tax burden in the nation.

mdcamping wrote:

bikendan wrote:

Tyler0215 wrote:
Cost of land, environmental regulations, permits, water and sewer lines, electric service, road grading, landscaping, more permits, more regulations.
Probably more permits and regulations I haven't thought of. Plus on top of all that you are paying taxes before you even open the park.

THIS!

Sounds like the northeast...

I'm aware of 4 parks that have opened in the last 10 yrs in our area, 2 we have stayed at. I tip my hat to the owners for getting it done.

Mike

actually, it sounds like the West Coast.

It's real simple... The cost of "dirt" in places where you would want to stay.

mgirardo wrote:
There have been several new campgrounds within 20 minutes of me. One of them, just a few miles away, recently expanded.

-Michael

We love the Brunswick, Saint Marys, Kingsland area. In recent years getting into a park has been increasingly difficult. Would you be so kind as to provide the names of the new parks or links to their websites?

As we have travelled across the country, we have encountered a few new parks. The first I remember was Carolina Crossroads in North Carolina. More recently we have stayed at Star of Texas in Stratford, Tx. Western Star in Liberal, Ks is a relatively new park as is the Angel Fire RV Resort in Angel Fire, NM. Last fall we discovered the Springerville RV Park in Springerville, AZ.

There have been several new campgrounds within 20 minutes of me. One of them, just a few miles away, recently expanded.

-Michael