Newfoundland and Labrador Product Development Strategy

- 175 -some suggestions that the data on site rentals provided to the Department is less than accurate.The Department has recently made some changes to its reporting forms and it is hoped thatthese changes will encourage more operators to provide the data requested).Campgrounds are not seen to be demand generating facilities. While there are campgroundmodels in other locations, primarily in the southern US that are ‘destination resort’ stylecampgrounds, Newfoundland and Labrador’s location, climate and small markets means thatthis concept is not an option for the destination. Campground facilities play a limited demandinfluencing role – obviously if tenting or travelling in a recreational vehicle is the consumer’spreferred choice, the availability of suitable facilities is clearly a factor in selecting adestination or a region. This is particularly true of campgrounds in National Parks (and to alesser degree provincial parks) that help to generate demand from the tenting segment of themarket seeking natural and wilderness experiences. For the most part, however, campgroundsare traveller services.The issue of providing support to campground facilities in the province is complicated by anumber of factors:o The overall viability of the sector – the short season combined with very low rates meansthat the commercial sector of the industry is, at best, marginally viable. The problem oflow rates is compounded by the rates charged by provincial parks, and by themunicipal/not-for-profit campgrounds, which offer generally very basic services for verylow rates.o The proportionally large resident market use of campgrounds, which is an important (andprimary) market segment to some campgrounds, which limits access for visitors,particularly in those campgrounds located in the Avalon and Eastern regions.o And the domestic recreational vehicle market is apparently growing. This market hastraditionally benefited from low prices at campgrounds, and has an expectation of lowprices. In fact, Terra Nova National Park saw a significant drop in the demand for itscampgrounds when prices were increased in 2003.o The “gravel pit camping” phenomenon in the province. Segments of the domestic markettake advantage of this and it is not unreasonable to expect that this type of use wouldincrease if prices at campgrounds are increased.The first thing that needs to happen is a concerted effort to increase the prices charged atcampgrounds generally. This will require leadership by the province to increase rates at theprovincial parks in co-operation with a similar effort by the private sector and the municipaland not-for-profit facilities. While this is likely to be unpopular with resident markets, it isessential if the viability of the commercial campground sector is to improve. There will needto be an effort to inform resident markets of the negative impacts of low rates on thecampground industry and educate them about the fact that the fees being paid now areinsufficient to cover operating costs.THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study