2020 has been a year to remember, headlines earlier in the year surrounding Brexit, Covid-19 outbreak which resulted in a national lockdown, one of the hottest Summers on Record and Exeter Chiefs reaching the European Champions Cup final, to name a few!
Many highs and lows indeed, which we have all experienced together, however many positives have come out of what can only be described as an unprecedented year!
One of the most documented positives which has resulted from the year of Staycations, is the Caravan & Camping/ Holiday Park sector, which remains incredibly buoyant through challenging times. The sector, which shows no signs of slowing down, has reported a superb bounce back in occupation rates and revenue, with many Brits travelling to the South-West and experiencing their first camping holiday.
Since the easing of lockdowns earlier in the year, and the continued restrictions on travelling abroad, the industry has experienced a big boost in UK staycations. As more family’s flock to experience a sunny coastal holiday or a cultured city break on our own doorstep, the holiday abroad has undoubtedly taken a hit. And one area that’s seen a dramatic upturn in fortunes is the humble UK holiday park.
Homegrown holidays
The minute parks and touring sites opened up their websites for bookings, many saw huge visitor numbers scrambling to secure their vacation, however rather than focusing on package holidays abroad, the South West market has been gaining the highest number of hits on record!
So what’s been the reason for this rise in staycations? leading factors such as the need to quarantine for a number of days post a overseas holiday, the risk surrounding visiting areas away from the UK, the shear expense for families to fly off to the more traditional sun-drenched destinations, and the UK public looking to support local have all resulted in the South- West experience record numbers of tourists visiting the area.
But though Covid-19 has been a big factor, the weather has, for once, also played its part in seeing the increase. With a better than average summer that carried on into a warm, and largely dry autumn, our holiday parks were on the receiving end of some record bookings. And it seems that people are, once again, discovering the homegrown gems that the UK has to offer.
Often tucked away and offering a range of camping and glamping pitches, to touring pitches and static caravan areas, holiday parks can offer families a competitively priced getaway for everyone. And nothing transports you from your creature comforts quite like a night under the stars, even with full facilities and WiFi!
Increased investment
To highlight this boost in numbers, recent research has shown that whilst there has been contraction in the sector due to the pandemic, the recovery rate is already well underway, with forecast revenue to be into the Billions to the UK’s economy. And, with staycations already on the up, together with the prolonged season, the sector is set to claw back some of the lost revenue from Quarter 2.
Building on the successes already achieved, holiday park operators have seized the opportunity to improve their facilities to reach even more “staycationers” this year, and beyond. Investment into upgrading facilities in every area, as well as adding some luxury extras is being made to ensure parks stay competitive and create further growth.
With the extra investment, it’s hoped that increased tourism numbers will follow into 2021. So, it looks like the smart money will be holiday park bound for owners and visitors alike for a while yet. And, of course, that’s only good news for the South West.
But as well as visitor numbers for holiday parks increase, so too has the desire to buy them. And here at Charles Darrow, we’ve seen a big rise in enquiries in holiday park businesses.
Healthy park sales
Some of the more recent instructions we’ve acted upon have shown that Devon and Cornwall is very much on the map when it comes to caravan and camping staycations. Always heavily reliant on tourism for their economy, Devon and Cornwall is home to some fantastic, and in-demand, holiday parks. One notable instruction between Penzance and Falmouth, was the freehold site of Lower Polladras Holiday Park, near Helston.
An exclusive self-contained holiday park, Lower Polladras is set in almost 6 acres of Cornish countryside and has certainly proved itself over the years. A popular site which is home to a mix of static caravans, hard standing touring pitches and camping pitches with electric hook-ups. Together with its generously sized owners’ accommodation and robust turnover and profits over the last 15 + years, Lower Polladras has received a huge amount of interest, resulting in the park going under offer at the beginning of Quarter 3.
Because of its location, Lower Polladras has been able to take advantage of the extensive road improvements around the local area that’s led to increased custom. Of course, its proximity to many Cornish landmarks, beautiful beaches, heritage sites and attractions all helped lead to a robust final agreed sale price.
The holiday park sector is a thriving marketplace and the demand for quality parks has never been higher, with many new “Hot” purchasers ready and waiting to secure their next site.
Continued regional growth
Recent agreed sales, and completions in the leisure sector are just a taste of the activity in the leisure and holiday park sector that Charles Darrow have been involved with recently. However, sale prices really show that the South West has high appeal for buyers looking to invest in a booming tourist market in a consistently popular region.
Because of the levels of tourists that flow into the South West annually, the market looks set to expand year on year, and Charles Darrow are looking forward to being a part of the region’s continued tourism growth.