Newfoundland and Labrador Product Development Strategy

- 49 -o There are challenges finding staffo Obtaining funding for expansion is difficult.Future Planso Many of the campgrounds interviewed had plans for expansion or were in the process ofadding sites, or additional infrastructure such as upgraded power service, expanded/newcomfort stationso Several had or were looking at adding cabins/cottages, or in some cases camping cabinso Several identified a need to develop facilities to serve the growing Recreational VehicleCaravan Market; this seems to be a particular issue in Central Newfoundland which hasbeen active (and apparently successful) in targetting this market segment.Market Readiness and Best Practice Issueso Most campgrounds had brochures but many were photocopieso Some had web sites; some were looking for help to build web siteso There was a lot of confusion among campground operators as to how they might go aboutattracting new markets – but a recognition that an effort was needed to expand the seasono Many did little marketing, and/or did not know where they were spending their marketingbudgetsIndustry PerspectivesInterviews with key persons involved in the province’s camping sector identified a number ofkey issues and opportunities:o The viability of private campgrounds is a critical issue. A combination of low prices anda short season are behind this problem. Prices for camping in the province havetraditionally been very low – while there have been some recent moves to increase prices,the rates are still a long way from where they need to be. Provincial markets have aparticularly strong resistance to increasing rates and need to be educated as to the realcosts of camping. Low rates at provincial campgrounds and at municipal and not-forprofitsites are compounding this problem. As a result many campground operators areeither retired or have other businesses as well.o At the same time, there is pressure to invest to upgrade facilities and services, particularlypower, for the growing recreational vehicle market. Most of the service in the province is15 – 20 amps whereas 30 amps should be the norm, and the RVs are starting toneed/demand 50 amp.o Competition from municipal, not-for-profit and provincial campgrounds is a majorconcern to the private sector. A particular issue is municipal and not-for-profitcampgrounds which are perceived to be accessing ‘free money’ through governmentprograms to upgrade and add facilities and services used by camping markets, and also tohave access to student labour through HRSD. This is seen to be creating unfaircompetition (“its not a level playing field”) and the concern is compounded when thesefacilities charge low rates forcing the private sector to stay in line with these prices.THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study