Holiday parks give most income back to their communities

Monday, 16 September 2019

Holiday parks contribute an average of 86% of their expenditure to their own regions and add further value through social, environmental and community contributions, a new report has found.

In combination with its ongoing Visitor Expenditure research, Holiday Parks New Zealand commissioned Angus & Associates to investigate the value of holiday parks to the communities in which they are based. The report examined the expenditure and non-financial contributions of a range of holiday parks across the country.

The average total expenditure of the holiday parks featured in the study was $1.11 million for the year ending March 2018. Expenditure most likely to be made in a park’s own region included rent, salaries and wages, indirect taxes, security, repairs, replacement and maintenance, cleaning and laundry, accounting and legal fees, and motor vehicle expenses. On average, more than 90% of expenditure in these categories occurred in-region.

Holiday parks’ average expenditure per region has grown compared with the 2016/17 and 2017/18 studies. In particular, the proportion of expenditure spent within the region for a small holiday park increased to 77 percent from 71 percent in 2016/17.

Salaries, wages and other employee costs were the largest expenses for holiday parks, with small and medium holiday parks spending a fifth of their expenditure on capital improvements, such as ablution blocks and solar panels. Large holiday parks may have a stronger focus on replacement and repairs, the report suggests.