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Newfoundland and Labrador Product Development Strategy

Newfoundland and Labrador Product Development Strategy

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- 52 -A niche market within the recreational vehicle market is RV caravans. These are organizedby tour companies (e.g Tracks to Adventure) or owners’ associations (e.g. Winnebago) <strong>and</strong>might involve up to 25 recreational vehicles in a group. They tend to be a higher end marketsegment, with flexible schedules <strong>and</strong> a desire to experience the destination they are visiting.Our interviews with several operators in the province suggest that this is becoming animportant market segment, particularly in some regions. These caravans might spend two tothree days in one location, participating in a range of activities while there, <strong>and</strong> they spend upto two weeks in the province.Other trends being seen in the RV sector is “boondocking” or dry camping – stoppingovernight at WalMart sites or other unofficial campgrounds. There is a small but growingsegment of the market that is using RVs as secondary, or even primary, homes providing themwith the independence to travel when <strong>and</strong> where they wish. There is also a trend to smallgroups of RVs, 2 to 4, travelling together.On the tenting side, the dem<strong>and</strong> appears to be relatively stable with some 20% of all camperspreferring tents.ConclusionsOn a province-wide basis, there appears to be a sufficient supply of campground facilities forthe present, although there may be a few selected areas where there are gaps in the supply or aspecific niche opportunity.However, there is clearly a need for upgrading, particularly of the services needed toaccommodate the recreational vehicle market including increased power capacity, larger <strong>and</strong>pull through sites <strong>and</strong> other services. There also is a need for increased capacity <strong>and</strong> qualityin comfort stations as well as some st<strong>and</strong>ards for the size of sites. Many of these items will beaddressed with the introduction of the Camping Select program which may mean that somecampgrounds will have to upgrade their product in order to meet the minimum st<strong>and</strong>ards.The real issue with the private campground sector is viability. Is it feasible for campgroundsto upgrade <strong>and</strong> add these services? Are they likely to be able to repay BDP loans, forexample. Our conclusion is that a prerequisite in this sector is to create a viable environmentwithin which campgrounds can operate <strong>and</strong> afford to upgrade. A critical issue in this respectis the rates charged for camping facilities - this needs to be addressed in a co-ordinated effortif there is any chance of ensuring a viable private campground sector. And it will require theparticipation of the provincial <strong>and</strong> municipal/not-for-profit players in the campground sector.Our experience travelling around the province in September <strong>and</strong> early October suggests thatthere are still campers (recreational vehicles) in the province yet few campgrounds are open.Campgrounds should publish later opening dates <strong>and</strong> stay open longer, even if only minimalservices are provided.THE ECONOMIC PLANNING GROUP of Canada <strong>Newfoundl<strong>and</strong></strong> & <strong>Labrador</strong> Tourism <strong>Product</strong> <strong>Development</strong>D. W. Knight Associates <strong>Strategy</strong> <strong>and</strong> Accommodation Needs Study

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