Brands included in these sales figures are: Prairie Schooner, Yellowstone, Canyon Trail, Mako, Kingsport, Trailmaster, Conquest, Innsbruck, Amerilite, Streamlite, Gulf Breeze, Emerald Bay, Visa, EnduraMax and Track & Trail.

The Nappanee, Ind.-based, privately owned RV manufacturer has already increased production 25% in May, and anticipates another 20% increase for June production to assist dealers in replenishing their inventory levels, according to a news release.

“We have seen a greater surge in February through April this year than in the past. The trend is phenomenal, particularly over the past few weeks,” said Steve Jacobs, national sales manager. Gulf Stream Towables Division has added many new dealers so far in 2010.

Gulf Stream Coach attributes it’s success to providing their customers with innovative products that are high quality and offer tremendous features for the money.

In order to accommodate for the explosive growth, RV Rental Outlet has nearly doubled the fleet size of Class C motor homes and moved from a 1/4-acre location in Mesa to 1 and 1/2 acres in Tempe. The additional space has allowed RV Rental Outlet to expand services with onsite secure RV customer storage facilities, an RV parts store, RV service and repair, propane sales and a waste dump station. They even offer firewood. The new services and growth in rentals has also resulted in new jobs, with a 50 percent increase in staff size.

“The growth we have experienced from 2008 through 2009 is evidence that people are not letting the economic times take away valuable vacation time spent with their families and friends,” said Donn Kaebisch, co-owner of RV Rental Outlet. “Our goal is to be a complete service provider to the RV renter, whether for personal travel or business, as well as a convenient location for complete recreational vehicle services.”

In the period of January-July 2008, RV Rental Outlet had 276 RV rentals reserved for an average of four days. During the same period in 2009, RV Rental Outlet booked 435 rentals for travelers taking the vehicles out for an average of six days. RV Rental Outlet also contributes the rapid growth to new service programs offered in 2009 including concierge services, an elite partner program, business travel services, temporary housing, and travel agent incentives. They also have seen new business result from local affiliate marketing programs and social media programs.

RV Rental Outlet is a recreational vehicle rental center in Arizona. They offer a wide variety of Class C motor homes, toy haulers, travel trailers and tent campers from Winnebago, Sandstorm and Rockwood. RV Rental Outlet is a member of RVDA, RVRA, KOA and GoRVing.com. RV Rental Outlet, co-owned by Mike Ciardullo and Donn Kaebisch, is located at 2165 East Apache Boulevard, Tempe, Arizona. For rental information and pricing, visit www.rvrentaloutlet.com or call 888-461-0023.

Source: RV Rental Outlet

Camping in Central Ohio region state parks is up 22% compared with last year’s pre-Fourth of July period. In addition, fishing license sales are up approximately 15%. State park managers are reporting a surge in day use visitors enjoying hiking, biking, picnicking, golfing and more.

“Access to nature should never be connected to one’s ability to pay,” said ODNR Director Sean Logan. “Whether it’s families sharing time at a state park campground, a grandfather on a riverbank teaching his grandson to tie a bass jig or an individual who seeks out the needed serenity of a natural area, natural resources and recreation are available to all Ohioans.”

This year, the ODNR Division of Natural Areas and Preserves has tripled the number of nature interpretive programs it offers and has seen a significant rise in participation. The special events provide unique opportunities for nature lovers to visit state preserves and develop a greater appreciation for the spectacular resources that make Ohio unique.

The fun is not reserved only for land lovers. ODNR Division of Watercraft reports an increase in canoe and kayak registrations. In 2008, there were 80,640 Ohio-registered canoes and kayaks, a 34% jump since 2003. The registrations have generated more than $500,000 for the Waterways Safety Fund, which funds all Ohio programs for safe boating education, law enforcement, capital improvements and administration.

In addition to providing needed access to nature, ODNR is further supporting Ohio’s recovery by putting young Ohioans to work. Through the Recovery Conservation Corps (RCC) program, a partnership between ODNR and the Ohio Department of Job and Family Services (ODJFS), federal stimulus money is being used to put crews of young Ohioans to work on maintenance, repair and improvement projects on Ohio’s public recreation lands. Crews have begun working at Burr Oak, Buck Creek, Barkcamp and Shawnee state parks. The Little Darby Scenic River and several other state parks around Ohio will soon also have improvement crews on site.

The success of this business is you. The question on your mind should be, “what do I need?” and “what do I bring to the table?” You need all the talents of a major business or you have to get them. Are you a critical thinker? Are you a creative thinker? Do you or your partners have skills that will be valuable in this business? Do you have the discipline to budget? Do you have what it takes to handle the uncertainty of running a small business? How much risk tolerance do you have? Does your personal life fit in the mix? You will never find the perfect campground as every campground has some problem. You should have some specific requirements in mind when you start considering buying a campground. It could be the area you want to buy, the size, the home or the property.

How important is location to you? The buyer should contact the zoning and planning departments of both the county and city governments. Also visit a banking institution in the area who knows commercial real estate better than the banker who makes the loans. Do you want to be near an attraction to assure continued business? This means you are obligated to that attraction for your success or failure. And, with a major attraction there will be more competition. Ahh, imagine a country setting away from attractions providing a camping experience that is serene and captivating with no road noise. But this will be though as you will be generating your business. What about a lake or other body of water? Some successful campgrounds don’t even have a pool. Or, maybe you don’t care where it is as long as you can see a profit.

Gathering information You need to obtain income and expenses for the past three years. Off the books income. Substantial gains or losses. The competition. Check on liens, business licenses, sales tax and employer requirements. Unemployment and Workers’ Compensation. Get an environmental assessment of the property. Make sure the property is in compliance with state and federal requirements. Additional expenses may be incurred due to a change in ownership. What makes this property unique and an opportunity? When was it built? What improvements were made and when? The contract for sale and purchase. A business plan, convincing the bank. Closing process. Dealing with attorneys and accountants. Visit RV types to helping you choose the right motorhome for you.

Allocation of purchase price What is Allocation? When you buy a campground you are buying many things. These include the land, buildings, equipment, the customers and their addresses/records, and software that runs the registration program. Why allocate? 1) Closing costs. Many states require payment of fees based on the real estate sale. You can separate the land from other items, reducing these fees. 2) Establishment of the depreciation schedule. Buildings (long-term write off) and equipment (short-term write-off) can be depreciated. The land can not be depreciated.

Determining the profit of a campground Profitability is difficult to measure but here are four steps to help. 1) Adjustments to the tax return – a campground tax return will never give an accurate answer to profitability. Generally, there are seven adjustments to be made on the tax return. 2) Non-cash benefits – estimate the value of housing, utilities, insurance and other perks. 3) Tax benefits – possible tax free salary, profit and benefits, possible tax refund the first two years in business, and possibly pay less tax through capital gains (upon sale). These tax breaks significantly change an owner’s profitability and his anticipated return on investment. 4) Future value – equity build up. What could the campground be worth in three years or right now? Generally as a business increases the value increases.

Arriving at a price for the campground The goal: Both parties should arrive at a price that is reasonable and based on rational thought. The buyer has to be realistic with his finances; a down payment is the first limitation. The seller has needs like taxes and a new home. Both parties should look at comparable sales and use this as a starting point, look at the campground at hand and come to a price, also look at the future and not the past of the campground. Some sellers have put their heart, sweat, and tears into the campground and want to be paid for this. Some take specifics about real estate sales in the area and apply it to their campground. Some compare their campground with another that just sold. Some make a judgment without much of the key factors that go into arriving at a price, such as income, bottom line, and problems unseen in the park. The buyer needs to look at what has recently been sold and what is currently on the market. The campgrounds year-end statement and tax return to better estimate the actual profit. Look at recent park sales to see how the park compares. Look at basic information about campground businesses that are currently on the market. And, what the competition would be if you put your park on the market.

What parks have sold for Everyone wants to know how much a park is worth. How do you compare the bits and pieces regarding the park you are considering buying? Here is some help. Down Payment as a % to Sales Price, Average Gross Income Multiplier (GIM): The income multiplier is calculated by dividing the actual price of the campground by the reported gross income. Gross Profit Multiplier (GPM): Gross profit is gross income minus cost of goods sold. This multiplier is calculated by dividing the sales price of the campground by the gross profit. This multiplier is similar to the Gross Income Multiplier, but eliminates cost of sales. This can be more accurate in the case of a campground with a large convenience store or gas sales, etc. Price Per Site (PPS): This is what parks have sold for on a price per site basis. Gross Income Per Site (GPS): This measures gross income on a per site basis. This is calculated by dividing the total gross income of each campground by the total number of designated sites. Parks with gross incomes categories: Less than $125,000. Between $125,001 to $300,000. Between $300,001 to $600,00. Greater than $600,000.

Sorted by Gross Income: All Parks
1. % Down payment to Sales Price ?
2. Gross Income Multiplier ?
3. Gross Profit Multiplier ?
4. Price Per Site ?
5. Gross Income per Site ?

Expenses of campgrounds What do campgrounds spend on average for payroll, insurance, advertising, repair/maintenance, etc.? The following is a list of expenses to consider. Cost of goods, adjusted operating expenses, accounting/legal, advertising, automobiles, insurance, office expense, payroll (not owner’s), repairs/maintenance, supplies, taxes, utilities, other (bank fees, travel, royalties, dues, licenses, etc.), total adjusted operating expenses, total cost of goods, and operating expenses. Cost of Goods: This is what the park owner pays for items they resell, such as groceries, gifts, propane, etc. Adjusted Hard Operating Expenses: These expenses do not include any mortgage payments, depreciation or owner’s salary.

Making an offer After you have found a campground that meets your requirements, make an offer that you can live with. You will not offend the seller by offering what you can afford. A contract is a serious offer to buy. An offer in writing helps the buyer learn more about himself and it makes the seller confront a real buyer. The asking price and the first offer are opening bids. Realistically, the seller does not expect a buyer to buy his park at the exact price and terms he is offering, and you should not expect a seller to accept your first offer.

Getting your banker to say yes to your request It is hard to get bank financing? Usually a banker has no experience with campground loans, no understanding of the business, and no campground loan applications. The banker tries to modify other commercial loan applications to fit your campground request, but this is not the same. Your job is to educate them with a business plan in writing. You need to make them want to be a part of this wonderful business that will be important to the community and their bank. Here is a checklist for writing a business plan and assembling your loan package for your financial institution. The banker’s perspective, the loan committee, tax return, an adjusted financial worksheet, and other items the banker needs.

Failing campgrounds Very few campgrounds fail. Unlike residential real estate, location is not the total determination of a successful campground. Location near an attraction brings its own problems including competition and high purchase price with resulting high mortgage payments, although generating a good deal of business. But, if the attraction goes bust, you will struggle or fail. If the lakeside or mountain campground has been purchased and marketed right then the outcome may be better. But, if the lake dries up, you will have a problem. Fortunately, there are not too many of these instances around. Visit used shuttle bus for information on buying a used shuttle bus. Visit semi truck parts for information on buying parts for semi trucks.

Not having enough money is the most likely failure. This problem stems from the buyers who pay too much for a campground. Buyers don’t do the numbers and the excitement to buy overcomes good sense. Owning a small business will always put you under the gun. From health care plans to how to invest your retirement money. Where to advertise, how much to spend, which improvement comes first, which problem to fix first, which one to let go and so on. You will be surprised on how well you do if you have a goal and a step by step plan of getting there. But, if your goal is to just do better than last year then you might have a difficult time meeting it – rv campground for sale.

which the owner claimed he did not have any business records at all. This should have

brought a great big red stop sign into focus at once; unfortunately, it did not.

The prospective buyers were trying to figure out the value of the property on the basis of

the existing facilities without any business. They wondered if I could help them analyze

the value of the roadways, restroom buildings and other elements of the infrastructure.

Perhaps such things have some value from a purely cost of replacement standpoint. That

value diminishes rapidly, however, if there is no business. What value are roadways if no

campers drive over them to reach a site? What value are electrical pedestals if no RVs

occupy the sites they serve? What value is a restroom building if no campers are inside it

enjoying hot showers? My answer to these questions is a simple “Not much!”

I recently drove through a 285-site park located on 119 acres with restrooms, store, pool

and a 250,000 gallon water tank. What would you guess was the value of the park? The

asking price was less that $1,500 per site, and I’ve heard that it sold for even less than

the asking price.

Why? Very simple. There was very little, if any, camper business. The store was doing

well from the local neighborhood, so at least the buyer knew he would probably make

enough to pay for the property. If the park never did any business, he had 119 acres of

land, lots of water and a pool to enjoy.

Information for all buyers

The point is this. Accurate, honest, authentic records of income from every source, the

day by day occupancy and detailed expenses should always be kept. If an owner is

serious about selling, this information should be made available to any prospective

buyer. If such information is not available, any prospective buyer should be extremely

cautious.

We live in an age when the practice of the Golden Rule is often laughed at in the

business world. Pulling the wool over an uninformed, trusting buyer seems to be

accepted. Operating upon the “I am all that is important” philosophy seems to be the

norm. While we must all watch out for our own interests, this must be coupled with a

sense of awareness that “we are also our brother’s keeper.”

If you could hear some of the stories I hear! If you could see the frustration on the faces

and hear the fear in the voices I have heard when individuals who have been that

uninformed, trusting buyer come to me! Those buyers stir anger in me – not at them but

at the sharpie seller who knew very well that he had outfoxed them.

The buyers invested their life savings and assets in what they hoped would be a pleasant

and enjoyable experience of owning their own business and being their own bosses.

They had pictured a future with a new, less stressful lifestyle. Now those dreams were

shattered. They were barely eking out a living. The taxes were due; the mortgage was

overdue; and their dreams had turned into a gigantic nightmare.

There wasn’t less stress; there was more. It seemed worse than any other stress

because it was financial stress. Was there any way to keep from losing everything? Was

there any way to avoid a dreadful bankruptcy?

You might ask: “Aren’t you being overly dramatic?” No, I don’t think so. I believe it

illustrates my points well. Every seller has wrestled with the problem of how to price his

park once he decided to sell it. Over and over. Would be buyers ask: “How do I know if

the price being asked is in line with what I should pay?”

There are several theories regarding that issue. Often the price is set by multiplying the

park’s gross by a certain factor or number ranging up to a high of 4 or 5. Others suggest

a price determined by a dollar factor for camper nights.

Others simply look around for comparable properties recently sold or on the market.

Finding such a property is almost impossible because no two parks are exactly alike.

There are just too many variables to develop a comparison.

Perhaps others just pull some number out of the sky or figure what they feel they need to

retire.

Is there another method that ought to be considered if a park is to be priced reasonably

or justifiably? I believe so, and it’s fairly simple.

Another method

For example, let’s say that park A has an asking price of four times its gross of $250,000

or $1 million.

It has 80 sites and runs at 50% occupancy year round. The average daily rate is $18,

but, with weekly, monthly and other discounts, the average site rental is $13.70. Income

from site rentals, then, is $200,020. The store grosses $40,000 and the laundry $10,000.

The park is open 365 days a year from 8:00 a.m. to 10:00 p.m. The owners work five

days a week, 10 hours each day. The owners have been taking $500 per week draw in

addition to the other labor cost. Note, this $500 per week might sound okay if housing is

supplied, but it amounts to only $5 per hour for the hours worked – hardly a livable wage.

Total expenses for the park including payroll, taxes and cost of goods sold amount to

$146,573. This leaves an operating profit of $103,427. Sounds pretty good, doesn’t it?

But, wait, there are a couple of more things to consider! Let’s look at them.

The owner is asking $200,000 down, and there is an existing first mortgage on the

property of $450,000 at 10% running 20 years. The payments on this run

$4,342.73 per month or $52,112.70 annually. This leaves $51,314.30 operating profit.

The current owner (the seller) is willing to carry back a second mortgage in the amount of

$350,000 at 8% interest amortized over 20 years. The payments on this second

mortgage are going to be $2,927.58 monthly or $35,130.90 annually.

The operating profit now is $16,982, and we still are not done. There’s a 15% selfemployment

tax due to the IRS on the $26,000 draw, and the $3,900 IRS bill shrinks the

operating profit to $13,082.

Since the down payment is $200,000, the capitalization rate or return on investment

would be 6.5%.

Let us look at this situation in another way. We have two people working 50 hours a

week for $5.00 – hardly a realistic 20th century wage, right? So, let’s add the wages

($26,000) to our operating profit ($13,082) and see what our wages per hour and ROI

really are. If we divide $39,082 by the 5,200 hours our couple has worked, we see that

they have made a whopping $7.52 per hour with no return on their $200,000 down

payment.

In this situation, there are only three things the current owners can do if they are to

present a viable park to potential buyers.

1) Raise prices and average site rental to $18 per night while holding costs steady.

2) Raise the annual occupancy average to 65%.

3) Lower the asking price for the park.

Reducing the asking price to $800,000 with all other amounts being the same as in the

preceding scenario, except amortizing the second mortgage of $130,000 over 15 years,

leaves an actual operating profit of nearly $31,000. This is still a close call for the buyers.

If, we were to raise their wages to a. reasonable level of even $10 per hour, we still

basically have no return on the $200,000 down payment investment.

The only logical way

To me, the only logical way to determine the proper selling price or, for that matter, the

asking price of any park anywhere is simple. If a buyer cannot make a livable wage, a

decent return on his down payment investment and pay the expenses and payments on

a park, both the buyer and seller are headed for disaster.

Without an owner’s furnishing prospective buyers with complete and accurate information

relative to a park’s profit history, the prospects will be incapable of making accurate

projections for their own operation of the facility.

Undoubtedly, prospective buyers will envision improvements and changes that they want

to make in the operation and amenities of the park. Unless they have good records of the

park’s history, they won’t be able to do that.

Easy to over-simplify

Even with such records, doing so is a difficult task for those entering the industry.

Improving the park and increasing the occupancy and income seems simple to buyers

who are blinded by their own emotions and the anticipated fulfillment of their dream.

Just as overly enthusiastic individuals planning the building of their own parks have a

tendency to overestimate the simplicity of building a successful and profitable clientele,

so do new buyers often view a purchase.

Prospective buyers should be extremely careful about estimating the cost of anticipated

upgrades and changes to a park. The same cautions needed in estimating the time

required to increase occupancy and revenues.

Other factors to consider

There are other factors a prospective buyer must consider:

1) Often the design and utility hookups are outdated. RVs being marketed today require

more space to handle their slideouts and more power at the electrical pedestal. The

demand for telephone connections at the pedestal is constantly increasing.

Accommodating today’s RVs might require an almost total revamping of the sites and

utilities. Efforts to turn two sites into one will drastically reduce park revenue and

operating profits unless there is land for expansion available. Either approach will be

costly.

2) Deferred maintenance is also a significant problem in some parks where the profit

margin has been slim. Astute owners who are serious about selling their parks should

make every effort to eliminate any such condition prior to listing the park for sale.

3) Deposits might be required. One new owner recently told me that he and his partner

were totally surprised by the nearly $10,000 in utility security deposits they were required

to post since they did not have a history with the utility companies in that area.

The fair market price has always been defined in the real estate industry as the price on

which a willing seller and a willing buyer agree.

Should we say that an honest, fair market price is that which the seller has arrived at

after examining his own complete, accurate, detailed records regarding the financial

affairs of the business and determining that a new owner can make a livable wage and a

reasonable return on his investment under a proposed purchase agreement. At that

point, he shares those records with the prospective buyer who feels comfortable with

them and is willing to consider the purchase price.

This
Memorial Day weekend, an estimated 18 million RVers will pack up and
set out for campgrounds across the country to mark the official start
of summer by spending time in the Great Outdoors.

In the Campfire Canvass
survey of RV owners conducted by RVIA, 58% of RV owners said they plan
to take their RVs out this Memorial Day weekend. A strong 90% reported
that they will travel as much or more this season as they did last
year.  Despite a challenging economy, RVers have made it clear that
they will not stay home, although some will alter their plans to save
money.

A total of 36% percent of
owners said they would travel shorter distances in their RVs this
summer, while 42% said they would stay longer at a single destination
to help cut costs.  Nearly 60% of RV owners said they would travel to
destinations closer to home.  One fan of Go RVing on Facebook echoed
the sentiment of many RV owners when he said, “We’re headed for a local
lake this evening (40 miles away). Will stay there through the holiday.
We are so ready to get away!”

RV vacations are 27-61% less
expensive than other vacations with over 86% of RV owners agreeing that
an RV trip is a very affordable way to travel. So while the travel
industry as a whole has taken a hit because of the bad economy, more
Americans are opting for affordable RV vacations over traditional
fly/drive/hotel vacations. Reservations at RV campgrounds are up 41
percent over last year as families abandon expensive travel plans to go
RVing.

Fans of Go RVing on Facebook
have been abuzz with excitement about the coming travel season, sharing
their plans for RV travel, campground recommendations, and even making
plans to meet each other in person. One fan posted, “First trip of the
year!! We are headed up to the Berkshires to visit with some old
friends and we can’t wait!”

Whether traveling to the
opposite side of the country or just down the road, RVers intend to
travel and travel heavily this season. 
 

Combine a global economic recession with fears of pandemic disease, and it looks to be another dismal summer season for the travel industry. But for one sliver of the accommodations industry – the small business-dominated private campground business – things are looking up, according to BusinessWeek.

All the gloom and doom about job loss and the economy translates into “one more piece of good news for me,” says Rick Yeager, whose family owns Rose Point Park Campground in New Castle, Pa. He employs up to 10 people seasonally; annual revenues are about $350,000. Bad news is often good news for family campground owners, he says: “People are not going to go on a cruise, and a lot of them will look for a closer vacation that’s more secure. Sad to say, but September 11 was actually a boost for our business because people were afraid to fly or go to Disneyland.”

There are about 8,000 privately owned or operated campgrounds in the U.S. The industry is dominated by small-business and family-business owners, says Bob MacKinnon, a former Disney executive who started a campground consulting firm, MacKinnon Campground Consulting, after he retired. (He says another 8,000 campgrounds in the U.S. are owned and operated by national, state, and local agencies.) “There are mega-parks out there that have thousands of campsites, corporate players that own multiple campgrounds, and KOA, which is a franchisor with close to 500 parks nationwide,” MacKinnon says. “But over 50% of the industry is still individual owners who have small parks. Many are multi-generational family owners.”

Gene Zanger, one of the owners of Casa de Fruta Orchard Resort in Hollister, Calif., has four generations of family involved in running the RV park that started as a cherry stand in the late 1940s with a loan from A.P. Giannini, the founder of Bank of America. Today the operation is a must-see stop off the main inland route from Southern California to San Francisco and includes a restaurant, train, carousel, seven fruit stands, and a tasting room for Zanger Family Vineyards. “This summer we’re real hopeful that people are going to come out. Reservations are above last year for the season and we’ve recently been getting more phone calls,” Zanger says.

A big part of the reason, of course, is that the cost of a local camping vacation is far less than a trip that includes airplane tickets and hotel accommodations. A study by PKF Consulting and sponsored by the Recreation Vehicle Industry Assn. found that the average camping vacation would run 21% to 67% cheaper than a fly-drive-hotel vacation. “Historically, when there’s been downturns in the economy, our segment of the industry has done pretty well. We will remain fairly stable because we’re so value-oriented, even in times of recession,” says Mark Anderson, president of Camp Chautauqua in Stow, N.Y., and chairman of the National Association of RV Parks and Campgrounds (ARVC).

Even though gas prices and the credit crunch have pushed down sales of campers and trailers over the past two years, people who already own RVs continue to get as much use out of them as possible. Far-flung campgrounds suffered last summer because of record-high gas prices in most of the country, Anderson says, but most people camp within 200 miles of home, and the industry as a whole was not hurt too badly.

Campground owners spend much of the off-season upgrading and adding to their properties. Anderson says his family spent this spring supervising the installation of new road paving, higher-grade electrical outlets (even tent campers require electricity these days, he says) and remodeled restrooms. “We just switched a lot of our heating over to natural gas from propane and oil,” he adds.

Like many of the most successful campground owners, the Zanger family will incorporate more social activities this summer for their guests. Campers love old-fashioned options like hay rides, ice cream socials, nature hikes, and crafts classes, he says. In recent years many campground owners have also added more up-to-date amenities such as outdoor movies, cable television, yurts, cabins, and Wi-Fi.

But it may be the nostalgia factor that is the campgrounds’ main draw. “People come for the experience, not because they want to stay somewhere cheap. They want to make a campfire and be in a place where kids can run free and they don’t have to watch them every minute,” Yeager says. That feeling of safety within the boundaries of the private campground, where some families return year after year, may be especially attractive in a society where stress and fear often dominate.

“This reminds me of the north side of Pittsburgh in the ’30s and ’40s,” Yeager says one customer told him last summer. “It’s a throwback to where people grew up, when they knew their neighbors and everybody talked to everybody else.”

Sunday May 17, 2009, 5:00 AM

With just a few days to go before the Memorial Day weekend kicks off the summer season, retiree Richard Sevic still has much of the riverfront at the Double R Ranch Resort near Belding to himself.

He slid his 27-foot Coachmen Chaparral into its seasonal spot, parked his fishing boat at the water’s edge and set out a refrigerator on the green turf carpeting that serves as his patio. Soon, he will hang up his hummingbird feeders and plant his small garden.

“I always thought it was the best-kept secret in Michigan,” said the East Lansing resident, 79, who has been summering at the campsite for three decades.

Lance Wynn | The Grand Rapids PressRichard Sevic, 79, left, of East Lansing, was one of the first campers this season to move his trailer into the Double R Ranch Resort near Belding. He has been camping there for more than 30 years.

He can plan on more company this year. With less money to spend, more people are expected to head to campsites to keep their summer getaways affordable.

A struggling economy likely will translate into another tough year for Michigan’s $12 billion tourism industry. But that’s not necessarily so for its 1,080 private campgrounds and 218 state parks and campgrounds, where people can park their tent or RV for anywhere from $15 to $50 a night.

Reservations at some private West Michigan campsites catering to those who travel by recreational vehicle are up over last year, local owners say. At Double R Ranch, for example, reservations surpass last year’s totals at this time by 25 percent, operators say.

“Anytime there is a downturn in the economy, our segment does well,” said Linda Profaizer, chief executive officer of the National Association of RV Parks & Campgrounds. The organization represents more than 8,000 private parks nationwide.

“People continue to camp because they have the investment in the equipment and it’s affordable.”

Cheap vacation

While the Michigan Association of RV Parks & Campgrounds is a few weeks from polling its members, vice president Tom Briggs said reservations at campgrounds appear to range from flat to double digit increases.

Briggs helps operate Grand Rogue Campgrounds in Plainfield Township. Season-long reservations, the smallest part of the business, have increased nearly 20 percent, he said. Short-term stays are flat so far but he’s hoping for a boost starting next weekend, as summer’s unofficial start — Memorial Day weekend — approaches.

He has heard from one Arizonan who plans to stay at the 25-acre campground instead of the Grand Rapids hotel where she will take part in a Cribbage tournament.

“People are going to recreate,” said Briggs, whose 110 campsites at the convergence of the Grand and Rogue rivers go for $20 to $33 a night. “They are just going to do it in a thrifty manner.”

Tesha and Steve Gauthier don’t own a fancy recreational vehicle, but they stayed at the Oak Grove RV Resort in Ottawa County’s Park Township last weekend to see the Tulip Time Festival.

At $55-a-night for a small cabin with air conditioning, heating and cable, the accommodations beat what they could get at a hotel for the same price — even though they had to bring their sheets and walk to a camp restroom, Tesha Gauthier said.

Staying at the campsite and bringing food they could cook over the campfire helped the family of four keep their two-night trip under $200.

Improved facilities

Oak Grove owners Ron and Betty VandenBerg bought two new 33-foot Springdale campers to rent this year. They say the $32,000 investment already is paying off.

“We just got them and have 15 weeks rented,” Betty VandenBerg said.

There also is demand for the campground’s three cabins, with reservations up 10 percent over last year, she said.

Although most campers bring their own accommodations, they often are looking for many of the same amenities offered by hotels and resorts, including cable TV, pools and golf courses.

Hollyn Johnson | The Grand Rapids Press Max Gibbs, park director of Sandy Pines RV Park in Hopkins Township stands on the newly installed waterslide at the private campground. Sandy Pines figures to fare well this summer with vacationers facing a tough economy.

Sandy Pines, a 900-acre campsite in Allegan County’s Hopkins Township, poured $2 million last year into a waterscape featuring three swimming pools and two splash pads — plus improvements to the recreation facility housing a teen center.

“I would dare say our amenities top a hotel,” said Max Gibbs, park director.

The campground also features a 262-acre lake, an 18-hole golf course and its own recreation department.

Owned by its 2,190 members, Sandy Pines is something of a rarity in the private camping world. There are only about 500 membership parks across the country, according to Profaizer.

Nearly four decades after the park opened, this could be the year the camp sells off the final six of its 2,220 lots. Reservations are up 6 percent for Sandy Pines’ 65 public campsites and 11 percent for the camp’s cabin and on-site trailer rentals.

“I think people are staying closer to home,” said Gibbs, noting 1,200 of the camp’s members live in the Grand Rapids area.

Statewide, licensing for campers dropped about 8 percent last year, from 40,039 to 36,870, according to Secretary of State records.

That could be a sign people aren’t using their campers or they are parking them at campsites for the entire season, said Gibbs, who is also past chairman of the National Association of RV Parks & Campgrounds.

At the Double R Ranch, for example, the request for seasonal sites is up 50 percent, prompting the family to raise its usual cap of 12 sites to 18.

While seasonal campers can guarantee a site will generate at least $1,650, there is a downside. Weekenders tend to spend more on activities such as horseback riding, canoeing and golf, said camp manager Steve Reeves.

Those activities can generate half the camp’s revenues — though the profit margin isn’t as great because operation costs are higher.

As he drives his truck along the dirt road of his family’s 50-year-old campground, Reeves likes what he sees.

It’s not even Memorial Day weekend and nearly a quarter of the Double R Ranch’s 100 sites are occupied by trailers.

“Our numbers are up and our local addresses are up,” said Reeves, noting reservations for daily sites are up 25 percent, from 658 to 881, over the same time last year.

With gas averaging $2.32 a gallon at area stations last week, the price is down 41 percent from a year ago, according to Gasbuddy.com. It was $3.96 a year ago.

Still, more travelers are expected to stay staying closer to home, according to Michigan AAA.

Reeves said he is seeing an increase in campers from neighboring communities like Lowell and Greenville.

“They (tourism officials) said this would happen last year, but it didn’t quite happen like it is this year.”

Constant investment

Operating a campground is similar to farming, said Reeves, whose grandparents turned their dairy farm into the Double R in 1959.

“It’s very much weather-impacted,” said Reeves, who manages the 300-acre campground for his parents.

Like a farm, there is constant investment in new equipment or improvements. Last year, the camp spent $10,000 to remove 35 oak trees to widen roads and expand campsites.

But that pales in comparison to the $2 million the family sunk into building a golf course in 2001. That has drawn a customer base beyond traditional campers.

“People want to see new things every year, and if we don’t have an idea where they will be financially, it’s hard to make the investment,” Reeves said.