It’s not peak camping season, but campgrounds in New Brunswick say they are already experiencing losses.
Co-owner of seasonal campground Sussex KOA Journey and Sussex Drive-in movie theater Don Monahan said higher gas prices have significantly driven down reservations.
“In the month of May we are down 13 per cent year-over-year, and June we are down 12 [per cent],” he said. “It’s definitely not very optimistic going into the summer when we’re seeing fuel $2 a litre.”
Gas prices have been rising in New Brunswick due to international market tensions.
According to a survey by the Tire and Rubber Association of Canada, spiking gas prices will significantly affect travel plans for Atlantic Canadians, with 79 per cent of Atlantic respondents planning on cancelling and limit their road trips this summer.
Monahan said the campground is already seeing this trend, as they have noticed an increased demand for seasonal spots, instead of weekend visits, allowing visitors to leave trailers parked all summer.
Monahan said this has reduced revenue for the campground, because nightly booking are more profitable.
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Monahan added that the increased fuel prices are not only affecting their ability to get customers, but also their operational costs.
“We definitely use a lot of fuel and with an increase cost of between 40 and 48 per cent, that’s definitely having a negative impact on the bottom line,” he said.
Monahan said he has added new amenities and upgrades to the campground to adapt to the new travel trends, including upgrades to attractions to appeal to longer stays.
However, there is not much the campground can do now to offset the losses caused by higher gas prices, Monahan said, but in hopes to bring more revenue, Monahan will be instead focusing on his drive-in movie theater business this summer.
Park lowers cabin prices to attract more local visitors
Like Sussex KOA Journey, Saint John’s Rockwood Park — the city’s urban park known for its wide range of outdoor activities — has introduced new amenities and programming to help offset revenue losses driven by rising operational costs and the possibility of a slower camping season.
Amy Cleveland is the director of operations and community engagement for the Saint John Horticultural Association, which operates the park.
She said for the first time this year the park reduced cabin prices and partnered with local businesses to attract visitors.
Cleveland said while there haven’t been any significant changes to the number of reservations the park gets during this time of the year yet, inflation and higher operational costs due to the spiking gas prices have forced changes.
“It’s affecting us business wise,” Cleveland said. “We may have to reduce some of our staffing and delay our projects that we have on the go for the campground or shorten office hours.”
Cleveland said the park is focusing on attracting local visitors and positioning itself as a staycation destination by providing other services in their cabin packages through their business collaborations.
“Hopefully by offering more amenities that don’t cost a lot of money or that they can do for free in the park, it will encourage campers to come,” she said.
Cleveland added that the changes were also introduced in case they see less U.S. campers this year.
She explained the park usually gets more cross-border visitors from the states, but with the current gas prices, Cleveland said it’s hard to tell if they will change their mind.
Businesses advocate for reductions to fuel HST
Monahan, who also serves as the progressive conservative MLA for Arcadia–Butternut Valley–Maple Hills, said that he and other business owners and MLA’s have been lobbying the government to reduce a portion of the fuel sales HST.
He said the Liberal government had forecast revenue based on lower fuel prices, and with gas prices now higher, Monahan argued “Susan’s Holt government should do their part and give New Brunswickers relief at the gas pumps.”
Monahan said if the province wants to boost tourism, the government must address affordability tied to fuel costs
“If we want to drive people to the province, and we want to get New Brunswick crews out and about and enjoying the facilities and amenities we offer in this province, we need to help New Brunswickers,” he added.
