Income Potential
While it’s challenging to provide an exact figure, a 2023 study by the Camping Industry Association revealed some interesting insights. Campground owners in the United States reported an average annual income ranging from $50,000 to $100,000.
Owning a campground is profitable and rewarding. You get to be your own boss. Campgrounds, RV parks, and resorts are cash businesses. Profits depend on factors like the number of sites, cabins for rent, amenities, expenses, and loans for the land. Give yourself time to learn managing a campground or resort.
Profit Factors
- RV parks are high-yielding investments, with 10% to 20%+ returns on money.
- Costs to build a campground or RV park are between $20,000 and $30,000 per site.
- Campground Hosts need to be at least 18 and have their own food and water.
- Estimated investment to open a KOA franchise is $26,750-$4,462,925, with a franchise fee of $7,500-$30,000.
- A smaller campground with more liabilities makes less profit than a larger one with the same liabilities.
- Park operators with 50 sites at 50% capacity all year could make over $273K annually charging $30 a night before expenses.
- Industry experts say average owners make $30,000-$50,000 profit per year.
Starting Costs and Considerations
How to Start
Starting a campground can cost between $100,000 to $2 million. This will cover buying an existing campground or purchasing land to build a new one. The startup cost for an RV park or campground differs based on various factors, such as whether you’re building a new site or buying and revamping an existing one.
A new campground often costs about $15,000 to $50,000 per site. The estimated investment for a KOA franchise is between $26,750 and $4,462,925, with an initial franchise fee of $7,500 to $30,000.
Costs and Revenue
Profitability hinges on several factors:
- Monthly overhead for 50 sites at 50% occupancy can earn over $273,000 annually.
- Climate and seasonality affect the number of guests.
- Upfront costs and amenities influence the profit margins.
Owners aim for returns between 10% and 30% on investment, which means owning a campground can be very profitable. It provides an opportunity to work outdoors and be your own boss, catering to campers who now often seek resort-like amenities.
Additional Revenue Streams
- Campground hosting allows hosts to earn free stay.
- Tour guide services can add income.
- Selling found objects like plants or shells can be profitable.
The startup costs for a high-end campground business range from $1.5 million to over $5 million, including the facility, equipment, furnishings, and inventory. This doesn’t include the essentials like fire pits, WiFi antennas, and picnic tables, which may add $500 to $1,000 per campsite, plus $50,000 for central building appliances and furniture.
With 75 to 100 sites being common for new campgrounds, total build costs often range from $750,000 to $1 million. Financing options include federal loan programs and state and local low-interest loans.
The potential for profit in campground ownership is significant, influenced by location, amenities, size, and seasonality. Campgrounds allow for an outdoor lifestyle and business ownership, offering services to the community and the chance for substantial financial returns.