Ever since Brexit began to loom, foreign holidays have slowly crept up in price. The fall of the pound has seen travelling abroad to be an increasingly expensive option for holidays. This is far from bad news however as the British tourist industry seen a rise in those staying at home for a vacation. Alongside this, visitors have still been coming to the UK to take advantage of the reduced-value pound. This has resulted in a boost to the economy, more jobs in tourism, and a rise in the standard of UK holiday park facilities, which is a win-win for all.
As a reaction to Staycations, holiday homes in British holiday parks have been experiencing a resurgence in investment. This is both through private equity groups and other sources. Parks have been seeing investments through people buying their own holiday home, and private investors investing in the parks. Consequently allowing them to provide a higher standard of accommodation and facilities for those holidaying at holiday parks in the UK. This investment is a welcome boost, and has helped greatly in the popularity of holiday park vacations.
According to research carried out by Ortus Secured Finance;
In 2015, at the 100 largest holiday parks, turnover rose from ￡2.66bn to ￡2.67bn.
Managing Director of Ortus, John Salisbury, said: “Caravan, camping and holiday parks are going from strength to strength, combining value for money with high-standard facilities to maximise the guest experience.
“The recession and the ensuing trend for Staycations gave holiday parks, camping and caravan sites access to an even broader customer base. They have been building on this ever since.”
VisitBritain recently published figures for the first quarter of 2016, showing that inbound visits to the UK were up 6% on the previous year, which they predict to keep rising if the pound stays as weak as it has been.
This increase in holidaymakers within the UK is not just Brits deciding to stay at home and holiday in the UK, but also those from abroad who are keen to take advantage of the weak pound, in turn giving them a better holiday deal. The UK has much to offer overseas visitors, including luxury holiday parks in a wide variety of locations all over England and Wales.
From the point of view of holiday parks, holiday home sellers and others within the industry, this Staycation trend couldn’t be better. There is rising popularity of UK holiday parks. With this comes the increase in those looking to buy holiday park homes, static caravans and mobile homes. This allows them many advantages including cheaper and more convenient holidays moving forward and improvement in Britain’s economy.
In addition to the park home industry seeing an increase in revenue via the site fees themselves, additional extras on the park such as revenues and extra on-site activities, have shown a boost to the park economics too. This has allowed holiday parks to invest in these services that have proved so popular. Therefore enabling those who choose a static caravan or park home for a holiday to enjoy great food, atmosphere and activities due to improved on-site facillities.
From now on, it is vital that investment is maintained. This is in order to keep British holiday parks an attractive and enjoyable holiday experience. Operators should be thinking ahead. They should be setting aside provisions for future repairs and improvements as well as renovations.
In terms of the property market, Brexit has demonstrated a time of uncertainty.The camping and caravaning market, and UK park home industry, is one sector however that will find advantage. Through new travel regulations as well as the weak pound, the holiday home industry will see improvements.
Camping and caravaning has come a long way since they became popular in the 50’s and 60’s. Consumers are demanding high standards, either through luxury lodges, or ‘glamping’ style camping facilities. Holiday park operators are only too happy to cater to this new market too. They are also determined to provide leisure facilities to rival any resort abroad.
These tumbling exchange rates might be to blame for more people staying at home for their holiday. However, as we have discussed, this is no bad thing, and this has also given international tourists a reason to come to Britain and spend their money in our economy.