Te Kūiti Holiday Park Shuttered by Recurring Losses

Waitomo District Council Closes Te Kūiti Holiday Park After Six Years of losses

The Waitomo District Council has announced the closure of the Te Kūiti Holiday Park,effective Monday,marking an end to six years of unsuccessful operation. The decision, made at the council’s monthly meeting on may 27th, comes as the park consistently failed to cover its operating costs, resulting in a significant financial burden on local ratepayers.

Council chief executive Ben Smit described the holiday park, which commenced operations in April 2019, as an “unusual asset” for a local government to own. While the Waitomo district Council also operates the Marokopa Holiday Park, the Te Kūiti facility struggled to attract visitors, averaging only between 200 to 250 guests annually.

“It never really had a heyday,” Smit remarked. The ongoing costs for maintenance and operation amounted to approximately $45,000 per year, with revenue generated only around $13,000. This deficit meant ratepayers were subsidising the park by roughly $30,000 each year.

Mayor John Robertson echoed these sentiments, labelling the Te Kūiti Holiday Park a “drain on rates ever since it opened.” he highlighted that the facility was “hardly used for the purpose it was built” and sometiems “used inappropriately.” The significant initial construction cost, coupled with the continuous operational losses, prompted the decisive closure.

The council’s strategic review indicated a belief that running holiday parks may not be the council’s core business. Plans are reportedly underway to lease out the coastal Marokopa Holiday Park to a suitable external operator.

Smit suggested that the district’s appeal to freedom campers, with several designated locations offering good environments, might have contributed to the under-utilisation of the Te Kūiti Holiday Park. “There’s no real drive for them to use the Te Kūiti holiday Park,” he stated.

In a statement, the council confirmed that the motorhome dump station located near the now-closed park will remain accessible to the public. Moreover, plans are in motion to relocate the kitchen and bathroom facilities from the Te Kūiti Holiday Park to the Marokopa Holiday Park, replacing existing aging infrastructure. Other assets from the Te Kūiti site will be repurposed within the district.

What impact will the closure have on the local employment rate?

the Closure and Its Impact on Te Kūiti Tourism

The Te Kūiti Holiday Park,a long-standing fixture in the Waitomo region,has permanently closed its doors,citing sustained financial losses as the primary reason. The park’s closure marks a significant shift for tourism in Te Kūiti and the wider King Country, impacting both visitors and the local economy. This article delves into the factors contributing to the park’s demise,the consequences for the community,and potential future developments. We’ll explore the challenges facing regional holiday parks and what this means for travellers seeking accommodation in the area.

Key factors Contributing to the Closure

Several converging factors lead to the arduous decision to close the Te Kūiti Holiday Park. These weren’t isolated incidents but a culmination of pressures impacting the park’s profitability.

Declining Visitor Numbers: Over recent years, the park experienced a steady decline in occupancy rates. Competition from newer, more modern holiday parks and the rise of alternative accommodation options like Airbnb contributed to this trend.

Rising Operational Costs: Increasing costs associated with maintaining the park’s infrastructure, utilities, and insurance premiums significantly impacted the bottom line. Specifically, water rates and compliance costs related to environmental regulations proved particularly burdensome.

Infrastructure Investment Needs: The park required ample investment in upgrades to meet modern traveller expectations.Aging facilities, including bathroom blocks and communal areas, needed renovation or replacement – a cost the park could no longer absorb.

Seasonal Dependence: Like many regional holiday parks, Te Kūiti Holiday Park was heavily reliant on peak season tourism (summer and school holidays).Low occupancy during off-peak months made it difficult to generate sufficient revenue to cover year-round expenses.

Impact of COVID-19: The pandemic and subsequent travel restrictions severely impacted the tourism industry, and Te Kūiti Holiday Park was no exception. Reduced domestic and international travel contributed to significant revenue losses.

Consequences for Te Kūiti and the Waitomo Region

The closure of the holiday park has ripple effects throughout the Te Kūiti community and the broader Waitomo region, known for its glowworm caves and outdoor adventures.

Reduced Tourism Revenue: The loss of the park represents a decrease in tourism spending within Te Kūiti. Visitors who previously stayed at the park will now likely seek accommodation elsewhere, diverting revenue to other towns.

Job Losses: The park’s closure resulted in the loss of several local jobs, impacting families and the local employment rate.

Strain on Remaining accommodation Providers: The remaining accommodation options in Te Kūiti – motels, hotels, and smaller B&Bs – are now facing increased demand, potentially leading to higher prices and reduced availability.

Impact on Local businesses: Businesses that benefited from tourism generated by the holiday park, such as local cafes, restaurants, and tour operators, may experience a decline in patronage.

Reduced Accessibility for Budget Travellers: The holiday park provided affordable accommodation options for families and budget-conscious travellers. Its closure limits accessibility for this segment of the market.

The Wider Trend: Challenges Facing Regional Holiday Parks

The Te Kūiti Holiday Park’s situation isn’t unique. Many regional holiday parks across New Zealand are facing similar challenges.

Competition: Increased competition from a wider range of accommodation options, including Airbnb, boutique hotels, and glamping sites.

Changing Traveller Preferences: Modern travellers often seek more amenities and experiences than customary holiday parks can offer. Demand for Wi-Fi, modern bathroom facilities, and on-site activities is increasing.

Regulatory Compliance: Increasingly stringent regulations related to health and safety, environmental protection, and building codes require significant investment to maintain compliance.

Maintenance and Upgrades: Aging infrastructure requires ongoing maintenance and upgrades, which can be costly and disruptive.

Staffing issues: Finding and retaining qualified staff can be a challenge, particularly in regional areas.

Accommodation Alternatives in and Around Te Kūiti

Travellers planning to visit Te Kūiti and the Waitomo region now have fewer accommodation options. Here’s a breakdown of alternatives:

Motels: Several motels in Te Kūiti offer standard room accommodations.

*Hotels