For a number of years RV sales have been red hot. But, at least within 400 miles of where I live I haven't seen a new campground or RV park open in probably 30 years. It seems to me like it could be a very good and secure investment. If they didn't sell another RV for a decade there would still be far more of them out there than full hookups to put them in.

Uh....it's expensive. Land in California? There's this REALLY NICE 98 acre parcel not far from me with it's own pristine lake. The homes around it? $1,000,000 and up. When I saw this parcel, the first thing I thought was "Perfect high end RV resort." But, by the time you did all the infrastructure, permitting, ect., ROI would be decades.

Actually, if you want to make money you should build an RV storage lot. That's where most of those RVs are spending most of their time. Very few full-timers or part-timers relative to the number of RVs. Most are used just a few weeks a year.

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.

It's only a good investment if you can charge enough to people who are camping to cover the costs of running the campground and the capital expenses of building it, amoritized over some reasonable period, and still make a reasonable profit. That's very often an iffy proposition at best in practice between real estate costs, zoning and environmental regulations, payroll, etc. etc.; and frequently there are other businesses or uses for land that offer a better return with less risk for the investors.

All of the above are true. best thing is to find one that is already zoned and doesn't need anything more than some updating. cheaper off the bat and in the long run. you would just need to build the customer base back up, from what a previous owner possibly did...….WOW! this sounds easy, why didn't I think of this before?!!!

Why are people not opening new campgrounds/RV parks?

ferndaleflyer
Explorer III
Jun 03, 2020
Sorry for 3 posts----site keeps kicking me off
ferndaleflyer
Explorer III
Jun 03, 2020
Depends
Seattle_Steve
Explorer
Jun 03, 2020
And on top of everything mentioned above, don't forget that RVers tend to be cheapskates, and complain about the price being too high no matter what it is. They want Disney's Fort Wilderness quality at Passport America prices.

Speaking of which, I expect to see discounts like PA going away in more and more places. Discounts are given to fill vacancies. With fewer vacancies comes less need to offer discounts. The places left that do offer discounts will be the kind of places you won't want to stay.
zb39
Explorer
Jun 03, 2020
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 right here. I have been a developer for 30 years and it's tough.
2_Retired
Explorer
Jun 03, 2020
Don't forget the taxes - property, income, capital gains, etc. Land values in many parts of the U S A are skyrocketing, and the 'highest and best use' of land is almost never an RV Park! In the Myrtle Beach area, where it seems everyone goes for vacation and many in RVs, parks are packed - but as far as I know only 1 new one in many years - and it's almost in North Carolina! The land is just too useful for new housing projects and commercial use.
midnightsadie
Explorer II
Jun 03, 2020
x2 and I,m the only one that can camp there.
2oldman
Explorer II
Jun 03, 2020
The only kind of RV 'park' I'd be interested in running is a dirt lot with a few trees, no employees, no services, CC swipe, security cameras, nobody on site. Just in and out for travelers.
Lwiddis
Explorer II
Jun 03, 2020
If you plan on putting all or most of your eggs in an RV Park I’d get some experience and do a very careful analysis. Hire a consultant
schlep1967
Nomad
Jun 03, 2020
Most of the problems were covered above. A campground owner I know bought an old campground with hopes of expanding. Using the sewage tanks that were already in for sewer hook-up was easy. When he wanted to add a tank ... Permits, Department of Environmental Protection, etc, all get in the way.
Imagine the business plan you would have to present to the bank when going in for a loan to open a new campground. You need to provide enough water to service 100-200+ units. Enough electric capacity to supply 50 amps to each unit. Enough sewage capacity for all of them to dump at once on Sunday morning. And then there are the bath houses, swimming pool(s), mini-golf, camp store and golf carts to rent. Oh yea, employees and insurance.
linnemj
Explorer
Jun 03, 2020
Seattle Steve wrote:
Actually, if you want to make money you should build an RV storage lot. That's where most of those RVs are spending most of their time. Very few full-timers or part-timers relative to the number of RVs. Most are used just a few weeks a year.

I think if you had a good independent RV tech who could open a service area along with a storage lot it would be an excellent business. The lot could have both covered and uncovered storage along with wash bays and a dump station. People could have service done while the RV is not being used and in storage at the same location.