There may be a lot of costs involved in running a caravan park, but they can be highly lucrative enterprises. Just ask Warrnambool City Council.
The local government authority in south-west Victoria has just announced it is expecting a $1.03 million profit next financial year from its two foreshore venues.
The Standard newspaper reports that total revenue from the Surfside Holiday Park and Shipwreck Bay Caravan Park next financial year is tipped to hit $2.484 million, while costs are estimated at $1.45 million. The expected profit will be $115,000 higher than the current financial year’s expected surplus.
Tourism services manager Peter Abbott told the newspaper that about 120,000 people a year stayed in the parks and profits were ploughed back into improvements which will include three toilet blocks next financial year.
“One of our biggest costs is electricity use and upgrading power supply because of the heavy drain by holidaymakers,” he said. “Nowadays, many of them bring the washing machine, fridge, television and airconditioner.”
The Surfside Holiday Park website says the fees for a powered site for a couple in peak season is $56, while they will pay $33 in low season.
The nearby Moyne Shire expects to make $91,116 profit from its seven caravan parks which will generate around $3m revenue and entail $2.93m expenditure.
According to the shire’s budget papers, the major caravan parks returned a 33% dividend to general revenue with the Gardens and Southcombe Park venues accommodating 135,000 people a year.
Glenelg Shire expects to get a $97,000 profit from its Portland Bay Caravan Park which it has managed since 1930 while its Casterton Caravan Park will be a $33,800 drain on council finances. Southern Grampians Shire expects to lose $33,000 on its caravan park operations.
Staying in more low cost & freebies now and so are most of my freinds. We now support those towns that are RV friendly and who need our dollars to survive.
I agree Bob
No iam not surprised.I see they winge about the electricty.We would not use anything like they charge for a stay $34 plus.
STEVO. Yes fully agree with allan and bob,have stopped staying at over priced parks, visit small parks that are reasonably priced with friendly service and value for money,something the big parks have lost.Also steer clear of all parks that during mining boom said they didn’t need grey nomads and unfriendly RV towns.We also avoid towns like Bundaberg that seem hell bent on ripping you off no matter were you go.We also like allan are fully self sufficient and use little or no power and only require a place to park.Most of us grey nomads are too old and wise too be ripped off now.I wonder if they realise just how much the word of mouth is worth.Anyhow that’s my winge for the day. Cheers Stevo.