It may come as no surprise to many in the industry but reports published this week have again underlined the strong financial performance of UK holiday parks, in light of the weakened value of the pound.
The rise in prominence of the so-called ‘staycation’ was first noted during the 2008 financial crash and has surged again since the value of the pound weakened following the UK’s Brexit vote last summer.
Following the Brexit vote last June, the pound lost a considerable chunk of its value and is now much weaker against the Euro and US dollar – meaning flights and holidays abroad cost a lot more than they did 12 months ago. However, tourists travelling to the UK now get more pounds for their Euros or dollars – providing another boost to park’s income.
A new report from Ortus Secured Finance showed that the UK’s largest holiday parks enjoyed takings of £2.7 billion last year, a 9% growth in turnover and a jump from £2.46 billion five years ago.
John Salisbury, Ortus managing director, said the increased costs facing families looking to holiday abroad means UK holiday parks are now are more obvious choice.
“Caravan, camping and holiday parks are going from strength to strength, combining value for money with high standard facilities to maximise the guest experience,” he told World First.
“The recession and the ensuing trend for staycations gave holiday parks, camping and caravan sites access to an even broader customer base, and they have been building on this ever since.”
The profitability of UK holiday parks means they have also now become targets for investment firms.
Last year Parkdean Resorts was sold for £1.35 billion to Canadian private equity firm Onex Corporation while Park Leisure was recently purchased by a consortium led by Midlothian Capital Partners for a sum of £103 million. And Intermediate Capital Group purchased Park Holidays for £362 million in 2016.