The challenges of getting a new caravan park up and running – and making it profitable – have been put in the spotlight in the small New South Wales town of Bellingen.
Councillors there have identified that the tourist-friendly town west of Coffs Harbour could do with a van park in order to encourage grey nomads and others to linger longer in the area.
The town’s previous van park closed several years ago after a fruit bat colony moved in sparking health concerns. Vans are currently allowed to park at the showgrounds at $20 for a powered sited and $15 for an unpowered spot.
The consultant engaged by Bellingen Shire Council to prepare a draft Employment Lands Strategy (ELS) has questioned the viability of a new van park.
“The results suggest that the establishment and operation of a new caravan park in the shire today would struggle to be viable as the Internal Rate of Return (IRR) would be too low to be considered feasible,” said Property Consultants Hill PDA. “The viability could be improved however if margins that could be made from other products such as the hiring of on-site vans and cabins … as well as the sale of food, groceries and souvenirs are factored in.”
Despite the potential problems, the Bellingen Shire Courier-Sun reports that an appropriate site for a new van park has already been identified just to the west of Bellingen. The site is supposed to be perfect.
Councillors had previously asked if grants were available to assist with the establishment of a caravan park but officers said it was premature to be talking about grant availability.
“It needs to go though the planning process including rezoning,” said the Director of Corporate Services, Peter Wilson. General Manager, Liz Jeremy said grants were generally not available for the purchase of land or employment of people.
