Owning a campground can be a profitable venture. Campgrounds typically create a return on investment between 10% and 30%. Your specific profits will depend on your industry expertise and your willingness to put in work. Owners maximize income by leveraging peak seasons, particularly summer months when most campers are vacationing.
A study by the Camping Industry Association in 2023 revealed that campground owners in the United States have an average annual income between $50,000 and $100,000.
Exploring additional opportunities like selling items found while camping or offering guide services can further increase profitability. Campground franchising is also considered profitable when managed well.
Today’s families often look for an all-inclusive experience, combining nature with modern amenities which can make your campground more appealing.
How much money can you make owning a campground?
RV parks, seen as a subset of campgrounds, can yield annual returns from 10% to 20%, making them one of the higher yielding real estate asset classes.
Financing a Campground
Various federal loan programs exist with down payment requirements lower than traditional bank financing, and state and local programs may offer low-interest loans.
What Makes a Campground Appealing?
Ease of access, shade trees, landscaping, amenities like a pool, and brand loyalty are key factors in a campground’s appeal.
Construction and Operating Costs
New campground construction can cost $10,000-$30,000 per campsite with expenses such as roads, utilities, and bathrooms. Insurance costs range from $450-$1,500 per $1 million of liability coverage.
RV-friendly sites, particularly those with level pads and full hookups, can rent for $1,500-$2,500 annually, contributing to the potential earnings of $50,000-$100,000. Diversifying revenue through stores and activities is also a recommended strategy.
Success Strategies
Proper planning, understanding legal risks, creating emergency plans, researching permits, securing financing, and hiring qualified staff are critical to the success of a campground business.