Competition for user fees
moves to the country

Steps are under way to foster cooperation among public and private campground operators.

By Douglas McEwen and
Robert Espeseth

Most park administrators are familiar with the debate over the role of the public versus the private sectors in the provision of recreational facilities and sevices. Operation of ice arenas, tennis centers, racquetball centers and golf courses by both private and public agencies are examples where there can be overlapping responsibilities.

In outdoor recreation, the operation of campgrounds — the role of the state park system versus the private operator — is part of this long debate. A session at the 1985 Illinois Park and Recreation (IPR) Conference focused on this issue with representatives from both the public and private sectors. The following comments summarize that debate.

The private sector case

The private sector operates campgrounds for a profit, and this issue is most central to its complaints. It has been long known that most private campgrounds suffer from a lack of profitability in their operations. The private sector has almost twice as many sites available for use as the public sector. Yet, a recent national survey by the Nielson Corporation reported that nearly two-thirds of all Recreational Vehicle (RV) camping and nearly three-fourths of all tent camping occurred in public campgrounds.

Economic and social survey data indicates relatively little difference between the public and private sector campers. Why, then, are so many people camping in public campgrounds? There is a feeling that some elements of unfair competition might explain the high attendance at public facilities.

Fee competition

One of the main complaints centers around unfair fee competition. The average nightly rates of private campgrounds in Illinois range between $10 and $13. Private owners contend these rates reflect real costs plus a small profit margin.

On the other hand, rates at State parks in Illinois range between $2 and $6. The private sector claims these rates do not reflect the actual cost of operation; therefore, in effect, the State subsidizes camping through tax dollars.

This position has some merit. National studies have shown that fees by state park systems reflect only 25 to 50 percent of the cost of daily operation and maintenance, with no consideration of initial costs for capital development. The private sector would like to see state parks raise their rates to a level which reflects the real cost of operation. This would make it easier for private operators to charge rates which would give them a better margin of profit.

Other complaints

The private sector also believes that

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state parks generally have the advantage of (1) better signing along state highways, (2) publication on state maps and (3) wide distribution of brochures describing their campgrounds and facilities. New campground construction at state parks in those areas where private facilities/campgrounds have been meeting the camping demand also brings ire from the public sector.

Not all complaints are reserved for state parks. There have been charges that RV campers are permitted to stay overnight in rest areas along interstate highways, thus robbing campground owners of revenue.

This same charge was brought against a grocery chain which permitted RV campers to stay overnight in its parking lot under the assumption that they would buy food in the store. All of these actions take potential users away from private campgrounds.

Perhaps one of the most controversial policies thrust upon State parks in Illinois is the provision that senior citizens may camp free on Tuesdays through Thursdays. The private sector charges that this is an unneeded subsidy, since most seniors with large RV units have as much or more disposable income than the general public. Private operators also feel this tax-supported subsidy is a great disservice to their campground industry which generates tax dollars for State and local uses.

The public case

Family camping in National Parks and U.S. Forests,and some state parks, began in the early 1900s. In Illinois, campgrounds were being developed at least by the early 1930s. While there were some private campgrounds in the '30s, most of those in operation today were developed in the 1960s. Therefore, there is historical precedent for the public sector to provide camping.

Traditionally, it has been a more rustic style of camping. Some state park systems, including Illinois, do provide modern amenities such as electricity and sewer hookups at sites, but most public systems prefer to leave these amenities, along with swimming pools, recreation halls and video games, to the private sector. Hence, public campground managers argue that they provide a different type of camping and are not in direct competition with the private sector.

Illinois has built new campgrounds in its State parks during the last 15 years. (Photo courtesy of the Illinois Department of Conservation.)

Illinois' situation

New Illinois State park campgrounds have been built within the last 15 years, and some of these compete with private campground facilities. On the other hand, it should be noted that the State has closed several campgrounds that did not meet minimum health or design standards during the same time period.

It must be realized that Illinois' State park system, as a public agency, operates within the political arena. The legislature, responding to special interest groups, passes laws that the Illinois Department of Conservation (DOC) and its managers are obligated to implement.

State park officials in Illinois and elsewhere have considered raising campground fees to help recover more operating costs. However, when an agency generates more income from fees, lawmakers have a tendency to reduce its appropriation. Many times, then, there is little incentive for the agency to raise its fees. Why invite camper complaints while knowing that the overall budget will not change dramatically?

Finally, managers of public campgrounds are encouraged, and indeed rewarded, for operating their facility efficiently. These managers like to report high attendance levels, and they make attempts to attract campers. When they hear campers asking for electricity, water and other amenities, there is pressure to satisfy that clientele.

Public campground managers also attempt to keep their maintenance and operational costs as low as possible and are rewarded appropriately for budgetary efficiency.

Cooperation

While competition, fair or otherwise, is evident between the public and private sectors, there are some areas where both sides feel that cooperation can be initiated. Florence Gerstung, executive secretary of the Association of Illinois Rural Recreation Enterprises, has initiated discussions with the Illinois Department of Conservation and other State agencies. She has been invited by the DOC to speak at workshops involving State park rangers and managers. Thus, the dialogue

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is beginning to develop between the two sectors.

From the private point of view, state park systems should work toward some fee increases. The New Hampshire and Indiana State Park Systems are almost totally supported with fee revenue. While this might not be possible in Illinois, the operation of public campgrounds on more of a cost basis would lessen the difference with private sector fees.

Amenities

The private sector also feels that state parks should not invest in luxury amenities for campgrounds, prefering that state parks serve the market segment which prefers more rustic settings. There is a potential for advertising a broad spectrum of campground services to attract users into areas where the state and private campgrounds are in close proximity and can each serve specialized demands.

Private campgrounds have more flexibility in offering group rate reservations and recreational events. In addition, they can provide facilities for special events which could attract groups of campers who would prefer not to use state campgrounds.

State campgrounds could make brochures available which list surrounding private campgrounds for those campers who prefer amenities not available in state facilities.

Lastly, there is an opportunity for a cooperative venture between the two sectors to encourage new people to enter the campground market. Special rates and rental equipment fees can make it convenient for first-time campers to experiment with this activity.

Some state parks in Illinois are currently operating a tent rental program for first-time campers. The private sector might do the same, or rent receational vehicles on site.

Final thoughts

The debate over competition and cooperation between the public and private campground sectors will not be solved in a day or in a year. As conditions and markets change, managers must change with them.

If both sides continue to meet and communicate openly, a coordinated effort can result in improved services and camping opportunities in Illinois.

ABOUT THE AUTHORS: Dr. Douglas McEwen, Ph.D., is an associate professor at Southern Illinois University, Carbondale. Robert D. Espeseth is an associate professor and outdoor recreation specialist in the Office of Recreation and Park Services at the University of Illinois, Urbana.

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