development of caravan park - karnataka tourismkarnatakatourism.org/policy/caravan_park.pdf · 2.1....

DEVELOPMENT OF CARAVAN PARK Project Structure Report

PROJECT REPORT

TOURISM PROJECTS FOR INVESTMENT

OPPORTUNITIES

INVEST KARNATAKA 2016

January 2016

GOVERNMENT OF KARNATAKA

INITIATIVE

DEVELOPMENT OF CARAVAN PARK

Development of Caravan Park

GOVERNMENT OF KARNATAKA INITIATIVE

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Table of contents

1. Introduction ....................................................................................................................................... 4

1.1. Background ..................................................................................................................................... 4

1.2. Objectives ....................................................................................................................................... 4

1.3. Approach and Methodology ........................................................................................................... 6

2. Sector Profile ..................................................................................................................................... 7

2.1. Tourism Industry overview ............................................................................................................. 7

2.1.1. Context of India .................................................................................................................. 7

2.1.2. Context of Karnataka .......................................................................................................... 8

3. Caravan/Caravan Park Industry Overview ....................................................................................... 11

3.1. International Scenario .................................................................................................................. 11

3.2. Indian Scenario ............................................................................................................................. 12

4. Tourist locations in Karnataka ......................................................................................................... 14

5. Caravan and Caravan Park ............................................................................................................... 20

5.1. Caravan/RV: .................................................................................................................................. 20

5.2. Caravan Park ................................................................................................................................. 20

5.3. Design/layout of caravan park: ..................................................................................................... 21

5.3.1. Assessment of Location .................................................................................................... 22

5.3.2. Preliminary Feasibility Evaluation ..................................................................................... 22

5.3.3. Authorities and Approvals ................................................................................................ 23

5.3.4. Layout design .................................................................................................................... 23

5.3.5. Cost Drivers ....................................................................................................................... 24

6. Project Cost ...................................................................................................................................... 26

6.1. Area Assumptions ......................................................................................................................... 26

6.2. Key Cost Assumptions ................................................................................................................... 26

6.3. Revenue Generation ..................................................................................................................... 27

7. Government Intervention and project structuring .......................................................................... 29

8. Annexure : Case Stucies ................................................................................................................... 31

8.1. Big 4 Adelaide Shore Caravan Park: .............................................................................................. 31

8.2. Tudor Caravan Park ...................................................................................................................... 35



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List of Tables Table 1: Investments in Tourism Sector .............................................................................................. 8

Table 2: Annual footfalls in Karnataka Beach Destinations (2014 Data) ........................................... 14

Table 3: Coastal destination in Karnatak ........................................................................................... 16

Table 4: Cost Drivers for Caravan Park .............................................................................................. 25

Table 5: Area Break-up ...................................................................................................................... 26

Table 6: Cost Assumptions ................................................................................................................. 26

Table 7: Rent per night for Caravan Park ........................................................................................... 27

Table 8: Revenue Assumptions .......................................................................................................... 28

Table 9: Revenue Generation / month .............................................................................................. 28

Table 10: Accommodation options in Adeliade park......................................................................... 32

List of Figures

Figure 1: Approach to the project ....................................................................................................... 6

Figure 2: Caravan production statistic, Australia ............................................................................... 12

Figure 3: Surathkal Beach .................................................................................................................. 15

Figure 4: Ullal Beach .......................................................................................................................... 15

Figure 5: Someshwara Beach ............................................................................................................. 15

Figure 6: Malpe Beach ....................................................................................................................... 15

Figure 7: Rabindranath Tagore Beach ............................................................................................... 16

Figure 8: Om Beach ............................................................................................................................ 16

Figure 9: Bara Chukki in Chamarajanagar .......................................................................................... 17

Figure 10: Dubare Elephant Camp, Kodagu ....................................................................................... 18

Figure 11: Jog Falls in Shimoga .......................................................................................................... 19

Figure 12: Caravan ............................................................................................................................. 20

Figure 13: Caravan Interior ................................................................................................................ 20

Figure 14: Caravan Park with Casual Occupant ................................................................................. 20

Figure 15: Caravan Park with Permanent residency.......................................................................... 21

Figure 16: Differnt layout of Caravan Park ........................................................................................ 24

Figure 17: Accessibility from CBD ...................................................................................................... 31

Figure 18: Glenelg beach ................................................................................................................... 31

Figure 19: Layout of Adelaide Park .................................................................................................... 35

Figure 20: The RV parking bay ........................................................................................................... 36

Figure 21: Accessibility....................................................................................................................... 36

Figure 22: Winter camping ................................................................................................................ 36

Figure 23: Old Orchard audlt only area of the park ........................................................................... 36

Figure 24: Camping area in the park .................................................................................................. 37

Figure 25: Tariff details ...................................................................................................................... 37

Figure 26: Category of seasons .......................................................................................................... 38

Figure 27: Layout of the park ............................................................................................................. 38



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1. Introduction

1.1. Background Department of Tourism (DoT) Government of Karnataka (GoK) is determined to

boost the tourism industry in the state. The Tourism Sector has been identified as

one of the key sectors propelling the country’s economic growth. Karnataka State

has been ranked as the 3rd preferred destination among domestic tourists in the

tourism sector. Karnataka’s thriving economy has created many opportunities across

the State in the last decade.

For GoK, the tourism sector constitutes a real priority because it is an important

sector for the generation of employment; therefore various initiatives are being

undertaken with the involvement of all stakeholders, both public and private, that

will foster more favorable environment for the development and consolidation of

the tourism sector. One of the initiatives in this direction is the formulation of

Karnataka Tourism Policy for 2015-20.

GoK intends to encourage the investors to invest in the tourism sector. A host of

incentives and concessions are provided to the investors in tourism sector, in the

New Tourism Policy for 2015-20. A large emphasis has been laid on enhancing

hospitality services and standards, promoting innovative developments and

rejuvenation of older tourist attractions, with the aim of offering visitors the

experience that will be commensurate with higher expectations.

With this background, DoT laid down policy and guideline for development of

caravan parks in Karnataka through public, private and PPP mode. The concept of

caravan tourism gained popularity across globe because it provides flexibility.

Increase in disposable income for urban population, young population, and growing

demand of wildlife and adventure tourism would create huge demand for caravan

tourism if quality, standards and safety norms are adhered.

1.2. Objectives

GoK intends to develop Caravan Park to:

i. Attract footfalls, encourage extended stays and provide a wholesome

experience to the tourists.

ii. Encourage entrepreneurship and economic benefits for the local communities.

iii. Encourage and promote Private Sector Participation in the development of

tourism sector.



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Department of Tourism, Government of Karnataka, the agency responsible for

promoting tourism in Karnataka has been at the forefront in attracting large number

of tourists to the state and branding Karnataka as a tourist destination.

The Tourism Policy 2015-20 would act as a catalyst to promote development of

tourism infrastructure and related facilities without straining the budget of the state.

The utmost importance would hence be given to the developments under Public

Private Partnership (PPP) framework.

One of the key initiatives of DoT in the regard is to explore the possibility of setting

up caravan parks in the State of Karnataka on a Public Private Partnership (PPP)

basis.



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1.3. Approach and Methodology

The approach to the entire assignment is depicted in the flow chart below.

Figure 1: Approach to the project

Data Analysis

Case Studies

Estimation of Project Costs



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2. Sector Profile

2.1. Tourism Industry overview 2.1.1. Context of India

India is fast emerging as tourism destination in the World. The campaign "Incredible

India" which showcases the best that India has to offer to the tourists has now

attracted worldwide attention. The proactive policies of the Government of India

have ensured that tourism enjoys an important priority among all the States.

Indian tourism industry is one of the fastest growing in the world, ranking among the

world’s top five most popular tourist destinations. India has lot to offer as thriving

tourism destination, however, lags in certain regulatory aspects brought its tourism

competitiveness index ranking to 62 among 133 countries.

Infrastructure development holds the key to India’s sustained growth in the tourism

sector. Therefore, Ministry of Tourism made consistent efforts to develop quality

tourism infrastructure at tourist destinations and circuits. To focus on development

of infrastructure at places of national and international importance, the Ministry,

through its scheme of providing financial assistance to the State Governments and

Union Territory Administrations. There are various initiatives under the New Tourism

Projects as declared by the MoT. There is higher focus on Rural Tourism, Cruise

Tourism (Ocean and River), Golf Tourism, Adventure Tourism, Medical Tourism,

Wellness Tourism and Sustainable/Eco Tourism. The individual states also have their

own Tourism policies which are drawn in line with MoT and also with the vision of

state to promote the sector. It is expected that the tourism industry has the

potential to bring in revenue worth US$ 51.4 billion by 2019.

The present growing demand for eco, adventure, wildlife and pilgrimage tourism

involves visiting and staying in remote areas, forests, deserts and riversides. There is

shortage of decent and affordable accommodation at remote tourist destinations

and in few places where a permanent construction may neither be permissible nor

feasible. In such a scenarios, caravan tourism will effectively meet the growing

demand.

In 2010, the Union ministry of tourism came out with a policy for the development

and promotion of caravan and caravan camping parks. The plan was to set up parks

using a PPP model. The policy moots parking bays equipped with tourist amenities

that will provide electricity, water and sewage disposal and so on.



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So far, Madhya Pradesh is the only state with a national permit for its three official

state caravans. Karnataka is getting there too with the state government, in

September 2012, sanctioning Rs. 40 lakh to initiate a caravan tourism project.

2.1.2. Context of Karnataka

The tourist flow into the state has steadily been increasing with a growth of more

than 16 per cent. There has been major thrust to further improve tourism in

Karnataka and it is proposed that all 30 districts in Karnataka will soon have their

own tourism master plans. This is expected to attract tourists to little known places

with potential and thus improve the prospects of Karnataka becoming one of India’s

leading tourism destinations.

Karnataka has been witnessing a tremendous influx of international and domestic

tourists that has added to foreign exchange earnings. Therefore, increased demand

for accommodation coupled with need for elevated authentic experience has led to

tourism infrastructure gaining importance. The Torusim Sector is attracting

significant investment by domestic and global players as infrastructure is being

ramped up to meet the needs of the growing tourist activity

Table 1: Investments in Tourism Sector

Measures & Indicators/ Projections 2005 2010 2020

Arrival of Foreign Tourists (in lakhs) 2.53 3.23 5.26

Employment generated by tourism (in lakhs) 4.49 5.72 9.32

Arrival of domestic tourists (in lakhs) 244.89 359.82 776.83

Revenue due to tourism (in Rs. lakhs) 28,587 46,039 1,19,413

Forex earnings due to tourism (in Rs. lakhs) 39,153 49,970 81,396

Tourism contribution to State GDP (%) 13 15 25

Source: Govt. of India, Department of Tourism, Market Research Division, Final Report on 20 year Perspective Plan

for Development of Sustainable Tourism in Karnataka – March 2003 Prepared by Dalal Mott MacDonald

Karnataka has one of the highest per capita (Rs. 5,217) plan expenditures in the

country and there has been a continuous increase in the share of plan expenditure

(42 per cent) in total expenditure in the state. The Economic Survey of Karnataka

estimated its Gross Domestic Product (GDP) at constant prices to grow by about 8.2

per cent during 2010-11, driven by higher growth in primary and tertiary sectors.

The per capita Net Income (per capita NSDP at factor cost), at current prices, is

estimated at Rs 60,000 for 2010-11 as against Rs 51,858 for 2009-10, which brings



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the growth in per capita net income at 15.7 per cent during 2010-11 as against 12

per cent during previous year.

Karnataka has been repeatedly show-cased as

Manufacturing hub for leading Auto & Auto components

Global outsourcing hub for IT & ITES

Preferred destination for outsourcing of IT projects/product design &

development

Home for Drug discoveries & Biotech clusters

Leader and pioneer of BT Revolution

Base for several international apparel brands for various international brands like

Tommy Hilfiger, NIKE, GAP, Wal-Mart

Aero-space hub and base (Bengaluru) for aviation majors such as HAL, NAL, GE,

Honeywell, Rolls Royce

Base for oil and gas majors – MRPL (ONGC), excellent connectivity to Ports

The tourist flow into the state has steadily increased from 3.87 crore in 2010 to 8.41

crore in 2011. The Karnataka economic survey report 2012-13 reported the tourist

flow registered a whopping growth rate of 117% in the past two years. There are

various measures by DoT to further enhance the tourism sector as discussed earlier.

There have been various initiatives such as Master Planning of Heritage areas,

creation of tourism circuits, focus on improving infrastructure and encourage entities

for construction of caravan parks with concession and investment subsidies.

The state has very conducive environment to attract investment in various tourism

products. Karnataka Tourism Policy (KTP) 2015 – 2020 emphasizes upon undertaking

an effort for developing projects such as golf courses, cruise tourism, large

entertainment studios, entertainment parks (small, medium and large), cable cars,

tourism trains, filmcity, etc. to cater to different user segments. The tourism policy

also identifies various tourism products and defines them suitably.

Caravan Park is one of these 18 products identified under KTP 2015 – 2020. The

Department of Tourism (DoT), GoK has prepared separate guidelines for caravan

parks. As per the Policy, various concessions and incentives are offered by the GoK

for developing caravan parks which are mentioned below:

a. Exemption on Stamp Duty

b. Concessional Registration Charges

c. Reimbursement of Land Conversion Fee

d. Exemption on Entry Tax



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With rising hotel prices making park cabin accommodation more attractive, it’s a

great time for State of Karnataka to turn seasonal camping sites into year-round

earners.



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3. Caravan/Caravan Park Industry Overview A recreational vehicle (RV) the general term for a motor vehicle or trailer equipped

with living space and amenities. Several definitions exist for RVs and vary by region,

including "caravan", "camper van" and "motorhome". The earliest motorhomes

were built on truck bodies in Canada in 1910 and by 1920s the RV was well

established in US with RV camping clubs established across the country, despite the

unpaved roads and limited camping facilities. In North America many campgrounds

have facilities for RV and are known as RV parks which is similar in the UK and

known as Caravan Parks.

Trailer parks/Holiday park on the other hand are made up of long term or semi-

permanent residents occupying mobile homes, park trailers or RVs. All of the mobile

homes are either available for rent from the land owner, or pitches are leased on a

long-term basis from the land owner and the lease's own mobile home placed on the

pitch. Permanent sites owners lease includes the provision by the land owner of

water, sewerage and general site and grounds maintenance. Some parks includes

small campsite for those touring the area, where they can pay to pitch tents or site

touring caravans and motorhomes. Touring campsites have full access to the Holiday

parks facilities, including clothes washing and showering. Most holiday parks include

a central entertainments block, which can include a shop, restaurants, and a multi-

purpose theatre used for both stage and activity-based entertainment.

3.1. International Scenario Caravan Industry is in matured state in UK, Australia and USA. In its latest report, the

National Caravan Council (NCC) of UK found that combined sales from static caravan

and park home manufacturers were up by more than 6%, with sales to UK holiday

parks up more than 9% in 2014.

According to figures released by the NCC, 4,770 touring caravans were produced

between August and October 2014, an increase of 5.1% over the total in the same

months in 2013. This brought the moving annual total (m-a-t) of production to

19,249 tourers at the end of October 2014. Glass Business UK reports that dealers

and park operators have seen a significant increase in sales of units in the £35,000 to

£40,000 price range, in a sign that consumer confidence is coming back, and people

are looking for higher quality models.

Demand for Australian-made Recreational Vehicles has grown strongly in recent

years and in 2010 it reached a 30-year record of more than 21,000 units. That’s the

most Caravans and Recreational Vehicles made in Australia since 1980 and it reflects

https://en.wikipedia.org/wiki/Motor_vehicle

https://en.wikipedia.org/wiki/Amenities

https://en.wikipedia.org/wiki/Travel_trailer

https://en.wikipedia.org/wiki/Camper_van

https://en.wikipedia.org/wiki/Motorhome

https://en.wikipedia.org/wiki/Recreational_Vehicle

https://en.wikipedia.org/wiki/Caravan_Park

https://en.wikipedia.org/wiki/Mobile_homes

https://en.wikipedia.org/wiki/Mobile_homes

https://en.wikipedia.org/wiki/Clothes_washing



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how people appreciate the freedom and enjoyment to be had in a quality Australian

Recreational Vehicle. In the four years since 2010, Australian Recreational Vehicle

production has continued

to exceed 20,000 units per

annum.

There are over 100

Caravan manufacturers,

160 Camper/slide-on

manufacturers and 15

Motorhome/Campervan

manufacturers within

Australia.

In terms of engineering

and compliance, the

Recreational Vehicle

Manufacturers Association

of Australia (RVMAA) provides this service to its manufacturing Members. 96% of all

recreational vehicles are manufactured in Australia with the remaining 4% imported

from Canada, North America, South Africa, Europe, China, New Zealand and the UK.

Holiday park/trailer park/caravan park provides basic facilities such as parkign bay

with fitted electricity, dump area, toilet and shower area, swimming pool, kids play

area, small convenient store and/or restaurants etc. for staying overnight .

3.2. Indian Scenario India is in nascent stage in caravan tourism and slowly picking up its velocity.

Caravan travel initally started as foreign-friendly activity, however, the idea of wild

camping is catching up and involves backpacking.

Basecamp has launched India’s first ever Caravans range in India on October 2012 in

New Delhi. The debutant lineup has two different models – HYMER Sporting Style

465 and Dethleffs Newline 410tk; priced at Rs. 22 Lakhs & Rs. 16 Lakhs plus taxex

respectively. Basecamp has collaborated with Bharat Petroleum Corporation Limited

(BPCL) as their strategic partner. The philosophy behind this partnership is to

facilitate parking and other travel utilities to caravan owners on the highways whilst

travelling pan India. Basecamp is also working with state tourism development board

to facilitate caravan parking facilities and also promote tourism using the Caravans in

India.

Figure 2: Caravan production statistic, Australia



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Basecamp projected to sell approximately 600 units in the first year and the target

group of the customers which include tourists, NGOs who might use it as mobile

health vans, actors using it as their vanity vehicle, construction companies may use it

for their site staff and engineers etc. The Caravan will be attached to the pulling

vehicle with special clamp and it will be electrically connected with the vehicle and

use the brake light inputs and turn indicators and also the braking inputs from the

vehicle pulling it.

PCP Motors, a division of Kolkata-based Paracoat Products, has also plunged into the

fledgling caravan or motor home market in the country with the launch of its Terra

Home Car, the first ever locally-made recreation vehicle (RV), which typically

includes an air conditioner, heater, refrigerator, microwave, washroom, shower,

kitchen and a stereo and multimedia system, it sleeps six. PCP Terra costs Rs. 31

Lakh.

However, the lack of infrastrcutre such as safe parking place with basic and/or

advace amenities and lack of standard licensing regime, uniform designs and

homogeneous price points, caravan tourism in India is still in the left side of the

growth chart.

Holiday on Wheels, a MP Tourism caravan concept becomes the first state in the

country to introduce Caravan Tourism. The vehicle has a microwave, a fridge, an LCD

and is fully air-conditioned. One can parks the vehicle at parking bays of MP Tourism

units.

The GoI, under its caravan tourism policy, described "caravans as a unique tourism

product that promotes family tourism in destinations without adequate hotel

accommodation". Under the policy, it proposes to build modern caravan parks under

public-private partnerships to park tourism campers and motor homes.



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4. Tourist locations in Karnataka

The state has following three geographical zones

The coastal region

The hilly region comprising the Western Ghats

the Deccan plateau

Being a part of the Arabian coastline below mentioned locations (Table XX) could be

considered ideal for developing caravan park projects. Most of these destinations

have more than one lakh annual tourist footfalls a division of which will be

involuntarily diverted towards the newly developed caravan park project.

Table 2: Annual footfalls in Karnataka Beach Destinations (2014 Data)

District Location Domestic International Total

Dakshin Kanada

Surathkal 2,00,000 50 2,00,050

Ullal 2,00,000 200 2,00,200

Udupi Malpe Beach 10,09,355 426 10,09,781

Maravante Beach 5,30,625 290 5,30,915

Someshwara Beach

4,36,931 284 4,37,215

Uttar Kanada Rabinadranath Tagore & Deva Bagha Beach

6,38,000 2,320 6,40,320

Gokarna 4,70,000 13,565 4,83,565

Yana 1,32,700 115 1,32,815

Murudeshwara 8,41,500 3,875 8,45,375

Om Beach 9,27,200 12,360 9.39,560

Sheltered by the soaring Western Ghats on the east and bordered by the blue waters

of the Arabian Sea, Dakshina Kannada is blessed with abundant rainfall, fertile soil

and lush vegetation. Pristine beaches, picturesque mountain ranges, temple towns

and a rich culture make it a sought after tourist destination. Dakshina Kannada is

well known for Yakshagana- a fabulous costumed dance drama form, Kambala- the

sport of buffalo racing by farmers, Kori-katta (Cock Fight) and Bootha Kola.

https://en.wikipedia.org/wiki/Western_Ghats

https://en.wikipedia.org/wiki/Deccan_plateau



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Figure 3: Surathkal Beach

Figure 4: Ullal Beach

Udupi district is an ideal place for promoting tourism activities through developing

Caravan Parks. The district is bound by Arabian Sea in west and Western Ghats

(world heritage site) in the east. Land nearer to sea is plain with small hills, paddy

fields and coconut gardens etc. Land bordering the Western Ghats in the east is

covered with forests and hilly terrain; the forests are very thick in some parts.

Someshwara Wildlife Sanctuary is located near Hebri and Kudremukh National

park is only 16 km away from Karkala near Mala. The area surrounding Kollur is also

thickly forested and villages are located in between forest area. Some parts of

Kundapur Taluk and Karkala taluk are covered with forests and greenery as well as

has rich cultural values also. The district is harbouring rare species of flora and fauna.

Tiger, King Cobra, deer, bison are some of the wildlifes seen in the district. Flora

include rose wood, teak wood, some of rare plants and fungus.

Figure 5: Someshwara Beach

Figure 6: Malpe Beach

Clinging to the south western flank of the Indian Peninsula, Uttara Kannada (Karwar)

is a tropical paradise redolent with myths and legends. The gift of life to this strip of

land between the Arabian Sea and the Wall of Mountains known as the Western

Ghats is brought by the monsoons.



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The natural luxuriance has filled it's art forms with a lushness visible in the carvings

that embellish the temples and in the gold jewellery that women wear which picks

it's design from seeds, buds, flowers, snake heads and tiger claws. As also in the

vibrant costumes of the Yakshagana performers which reflect the colors of nature

itself. This scenic coastal district has 24 beaches which lend themselves beautifully to

the worshipers of the sun and sand. With more than 70% of its area under forest

cover Uttara Kannada is a colourful canvas of nature. The Sahyadri or the Western

Ghats covers a prominent part of the district with its rich hilly forest tracts

picturesque valleys, spectacular designs of lofty monolithic rocks.

Karwar is well connected to prominent cities in India through rail (Konkan Railway)

and road (National Highway). Ample number of buses plies from the district to

various cities including Mumbai, Pune, Bangalore, Manipal, etc.

Figure 7: Rabindranath Tagore Beach

Figure 8: Om Beach

Apart from the coastal attractions, other renowned tourist destinations are enlisted

below which includes the forest covers, heritage sites and hill stations.

Table 3: Coastal destination in Karnatak

District Location Domestic International Total

Chamarajanagar B.R. Hills 12,58,027 1,065 12,59,092

Bandipura 1,18,643 2,166 1,20,809

Chikkamagalur

Bababudan Giri 1,40,050 8 1,40,058

Kemmannugundi 3,36,954 43 3,36,997

Bhadra Project 1,19,000 -- 1,19,000

Khudremukh 80,000 320 80,320

Hassan Belur 19,65,541 23,880 19,89,421

Halebid 8,81,500 34,966 9,16,466

Kodagu Cauvery Nisargadhama 5,58,907 -- 5,58,907



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Nagarahole National Park

58,942 6,509 65,451

Mandya Krishnarajasagara 25,86,276 -- 25,86,276

Melkote 11,41,600 -- 11,41,600

Mysuru Chamundi Hills 20,93,949 -- 20,93,949

Shivamogga

Jog falls 11,44,831 874 11,45,705

Sakrebylu Elephant Camp & Gajnuru Dam

1,00,876 872 1,01,748

Augumbe 2,00,000 -- 2,00,000

Uttar Kannada Dandali Wild Life sanctuary

2,36,600 445 2,37,045

Chamarajanagar is mostly preferred by travellers from Bangalore. There are many

tourist places in Chamarajanagar, which are frequently explored by the travellers.

Tourist attractions in Chamarajanagar are Gopalaswamy Betta, Bara Chukki.

Chamarajanagar can be visited in summer, monsoon or winter.

The existence of hilly terrain and Western Ghats could be utilized to design Caravan

Parks near various tourist destinations in Karnataka.

Figure 9: Bara Chukki in Chamarajanagar

Chikkamagalur is situated in south western part of Karnataka. The district is named

after its headquarters town of Chikkamagalur. The major commercial crop is coffee.

The hill stations around Chikmagalur are famous summer retreats since they remain

cool even during summers. Mullayangiri, the highest peak in Karnataka is 12 Kms

away from Chikkamagalur. The district is dotted with many holy spots and tourist

places. Number of rivers originates from the hills of Chikmagalur district and flow in

http://www.holidayiq.com/Gopalaswamy-Betta-Chamarajanagar-Sightseeing-963-11439.html

http://www.holidayiq.com/Bara-Chukki-Chamarajanagar-Sightseeing-963-13097.html



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all the seasons. Thus, Chikkamagalur could also be considered as one of the perfect

place to develop caravan park projects.

Kodagu is rated as one of the top hill station destinations in India. Some of the most

popular tourist attractions in Kodagu include Talakaveri, Bhagamandala,

Nisargadhama, Abbey Falls, Dubare, Nagarahole National Park, Iruppu Falls, and the

Tibetan Buddhist Golden Temple. The annual tourist footfalls are also quite high in

this district. Hence, developing caravan park projects in this district will help

attracting more tourists in this location as well as strengthening local economic

activities.

Figure 10: Dubare Elephant Camp, Kodagu

Mysuru district has natural attraction as well as built attractions. Renowned tourist

destination Chamundi Hills could be made further attractive by developing caravan

park projects overlooking the valley.

Shimoga is a true nature's gift, spread with waterfalls, enchanting natural scenery of

hills, dense forests, flora & fauna, forts, swaying palms and abundant paddy fields

make for picturesque locales. Shimoga district situated more or less in the mid-

south-western part of Karnataka. The western part of Shimoga district includes

tropical forests and beautiful hilly areas and the eastern less dense but has several

lakes and river valleys.

Jog Falls is one of the renowned tourist destinations of Shimoga district which

attracts most of the tourist footfalls. Developing a Caravan park project near this

location overlooking the view of Jog falls would provide a thrust in order to enhance

the tourist footfalls.



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Figure 11: Jog Falls in Shimoga



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5. Caravan and Caravan Park

5.1. Caravan/RV: Caravan/RVs are defined as either motor

vehicles or tow-able trailers and are

primarily intended for leisure activities such

as vacations and camping. RVs are usually

found in RV Parks or campgrounds. RVs can

also be rented in most major cities

and tourist areas. They are occasionally used

as mobile offices for business travelers and often include customizations such as

extra desk space, an upgraded electrical system, a generator, and satellite Internet.

Recreational vehicle types include the motorhome (class A, B, B+, and C), travel

trailer, fifth wheel trailer, toy hauler, popup

trailer, and slide-in camper (which fits in the

bed of a pickup truck). The interiors are quite

comfortable with features like Beds, dining

areas, toilet and bathroom, kitchen, lots of

storage space and cabinets, windows, etc.

giving the occupants a quite comfortable an

home like experience when they are on a

vacation or any outdoor trip or travel.

5.2. Caravan Park Caravan Park is a facility developed for

parking of Caravans in allotted spaces

and includes other amenities. Caravan

parks are now used by many different

groups of people for different

purposes. There are two major groups

of tenants in a caravan park. The first

group is casual occupants, both short-

term and long-term and the second is

permanent residents. Within the

group of casual occupants there are

sub-groups. One is short-term

residents that stay for periods of time

ranging from overnight up to a few weeks. The other major group is long-term casual

Figure 12: Caravan

Figure 13: Caravan Interior

Figure 14: Caravan Park with Casual Occupant

https://en.wikipedia.org/wiki/Vacations

https://en.wikipedia.org/wiki/Camping_(recreation)

https://en.wikipedia.org/wiki/RV_park

https://en.wikipedia.org/wiki/Campgrounds

https://en.wikipedia.org/wiki/Tourist

https://en.wikipedia.org/wiki/Mobile_office

https://en.wikipedia.org/wiki/Internet

https://en.wikipedia.org/wiki/Pickup_truck



21

occupants that lease a site on an annual basis and own their own van that remains

on the site all year round. These long-term sites often become very well established

and function more as a holiday

house rather than as a moveable

caravan. The second major use of

caravan parks is permanent

residency. The more major groups

are retirees, first home buyers and

other people looking for a more

affordable form of housing. The

most important issue in the mixing

of these two very different groups

of tenants is the relative positioning

of the tenant groups with respect to

each other. The permanent

residential section should be situated in a separate part of the park to the short-term

and long-term casual occupants. This is to ensure the privacy and living conditions of

the permanent residents.

Caravan parks may provide a range of accommodation products to meet visitor

demand such as;

Powered and unpowered camp sites,

Minimal service RV sites, on-site vans, cabins, chalets and eco/safari tents.

Caravan parks also provide permanent structures such as caretaker’s

dwelling/manager’s residence, shop/office, café, games/ recreation room,

ablution facilities, camp kitchen and camp laundry.

Many different accommodation products and permanent structures are generally

permitted in caravan parks in globally. The details can be found later in Case Study

chapter in this report.

5.3. Design/layout of caravan park:

Whilst flexibility of accommodation products and permanent structures are

permissible, and required for commercial viability, planning considerations exist as

to the positioning of these products and structures in constrained areas. For the

purposes of this report, constrained areas refers to a specific portion of land that

may have restrictions in use due to environmental factors (e.g. steep slopes, flood

plains, coastal hazards, bushfire prone areas). Accommodation products located in

constrained areas should be removable from the site within 24 hours, this may

require the need for additional equipment such as a crane.

Figure 15: Caravan Park with Permanent residency



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Permanent structures should not be permitted in constrained areas. Some cabins

and chalets can be affixed to a site (e.g. on a slab) and therefore may be considered

permanent structures; as well as this, some camp kitchens, camp laundries and

offices may be transportable or donga type structures that can be removed within 24

hours. Discretion should be used when considering these.

The establishment cost of new caravan and camping park is substantial, therefore,

care must be taken while assessment. Few important stages of planning process are

discussed below:

5.3.1. Assessment of Location

In an overall assessment of the proposed location of the park it is necessary to:

Consider distance from major population centers and relationship with

interstate highways and major roads.

Consider existing tourist locations and examine occupancy levels

Factors to be considered in assessing the occupancy potential of the specific local

area include:

Likely seasonality and periods of peak demand.

Whether the area is a holiday destination or a transit overnight location

The nature of visitor attractions in the area

The suitability of the proposed site can be assessed through the following

parameters:

It should not occupy a particular feature, such as an attractive beach, but be

located a short distance away to obtain benefit from it.

It must have all weather access

It should be easily located and accessible by motorists

Hollows and low lying land subject to for or inundation should be avoided

Gradients more than 1:15 are difficult to develop. However, small gradients

can make drainage easier than level areas and add to the aesthetics and

landscaping.

The site should have provisions for at least 5 parking bays to a maximum of

25 parking bays for every 2 acres.

5.3.2. Preliminary Feasibility Evaluation

It is essential at an early stage to determine the board scale of the proposed park,

features to be included and the associated capital costs. The cost can be

substantially altered by the facilities included in the park and these should be



23

considered in the feasibility analysis. Trend towards on-site vans, cabins and en-suite

facilities may mean that van sites will be reduced and these other facilities with

higher potential earning capacity will be added.

An assessment of anticipated operating costs, together with projected income levels

should be undertaken to produce a preliminary indication of commercial prospects.

5.3.3. Authorities and Approvals

Prior to purchasing land or incurring expense for design work relevant authorities

should be consulted to ensure that the project can proceed. For example, in South

Australia the caravan parks have different category under South Australian Building

Act 1976 and are subject to the rules and regulations contained therein. In India

caravan parks are required to have all necessary trading licenses / no objection

certificates (NOC) from Department of Tourism and Local Statutory Body.

The local development authority should be consulted for the necessary

building and planning approvals and requirements under the Health Act.

Coastal Regulation Zone (CRZ) notifications should be consulted to ascertain

any stipulations with regard to location.

If the project proceeds to the design stage it may become necessary to consult the

following departments/orgnisations:

Electricity board/distribution Company for uninterrupted power supply

Water supply board

Local municipality for sewage disposal

Local fire authorities to ascertain necessary fire protection

Effective coordination with local hospitals.

5.3.4. Layout design

It is necessary to obtain an accurate scale plan of the area. The layout design should

at least consider the following:

Park bay

Building plan (specifications for amenities block, administration block etc.)

Sewage and water plan

Electrical plan (in Australia at least 50% of the site are provided with

electricity)

Leisure/entertainment zone

Parking area for cars



24

Landscaping plan

The layout plan should be done in a way to achieve privacy, screening and security.

Table below are shown the layout of few existing caravan parks in UK.

Figure 16: Differnt layout of Caravan Park

5.3.5. Cost Drivers

This clause would provide guidance for the range of possible costs which could be

considered during any feasibility analysis. This list is not exhaustive nor is it expected

that all the items will be applicable in every instance.



25

Table 4: Cost Drivers for Caravan Park

Capital Costs drivers Running Costs drivers Advertising costs drivers

Land purchase/Lease Building Roadway construction Water reticulation,

hose and sprinkler purchase

Electrical distribution service

Surface drainage construction

Subsurface disposal system (including dump point, sullage drainage)

RV purchase Lawnmower purchase Laundry facilities Fencing Adequate fire

protection On-site vans and

equipment, CCTV Garbage disposal

facilities Landscaping Septic tank and

effluent disposal Provision for

barbecues, car wash, playgrounds

Purchase of office equipment

Telephone installation Food court/kitchen Toilets and shower

rooms Gas connection Gazebo Swimming pool Registration of

business name

Maintenance:

RV Petrol, oil and Gas

supplies Lawn cutting, Tree pruning Rubbish disposal Laundries Buildings Roads and sealed areas Weed controls Cleaning materials and

equipment Sullage drains

General:

Printing, Stationary Stamps, Telephone Advertising

Labor Cost:

Wages Payroll tax

Insurance:

Workers compensation Machinery equipment Public risks Buildings

Charges:

Fire brigade levy Accountancy charges Audit fees Trade association fees Power charges Lease fee Loan repayment Sales tax Water & Sewer rates Land tax Income tax Company tax

Initial advertising (all forms)

Promotions Brochure

production



26

6. Project Cost This section captures the key financial highlights of the project components.

6.1. Area Assumptions

Various Facilities has been provided along with the Construction of Caravan Park. To

make this a unique experience many facilities like shop, laundry, play area, food

court, and gazebo etc. are proposed to be developed along with parking bay.

Table 5: Area Break-up

Area Break-up Acres Sq.Ft

Total Land Area 5 217,800

RV bay and car park area 1 43560

Service block

WCs ,Shower rooms, dressing area and baby changing

room, Urinals, Laundry room, Administration building,

Security rooms

0.2 2000

Restaurants and shop 3000

Play zone

Half basketball court 0.3 2350

Badminton court 1760

Kids play area 1000

Swimming pool (25 meter * 15 meter) 4037

6.2. Key Cost Assumptions

The key cost assumptions are derived with the development of park along with basic and

advanced amenities.

Table 6: Cost Assumptions

Capital Cost Per Sq.Ft Total

Area

In

Lakhs

Construction of RV bay with 75 mm thick cobble stone 100 20000 20

Construction of parking area for cars with cement

concrete

55 20000 11

Roads (7.5 meter width) and Drainage network 150

Construction of Service block 1800 2000 36

Construction of food court and shop 2000 3000 60



27

Capital Cost Per Sq.Ft Total

Area

In

Lakhs

Kids play area with amenities such as jumping pillow, slope etc. 15

Construction of cemented half basketball court

including all fittings

260 2350 6

Construction of badminton court (PPC base and rubber

painting)

400 1760 7

Gazebo 60000/unit 4 units 3

Construction of swimming pool 3000 4037 121

Buying RV vans 30 lakhs per

van

5 vans 150

CCTV with fittings 40000/unit 4 1.6

Landscaping, circulation path, gardening, lawn 100 87120 87

Total hard cost 668

Plumbing costs (15% of project cost) 100

Electricity fitting costs (15% of project cost) 100

Project Cost 868

Contingency (5%) 41

Total Project Cost 927

Yearly Operation & Maintenance (7% of Total project cost) 65

6.3. Revenue Generation

The rent of caravan in the different caravan park in UK and Australia are noted down in

order to assume the cost of tickets.

Table 7: Rent per night for Caravan Park

Name Accommodation Country Rent/night

Robin Hood Park, North Yorkshire Deluxe 2 bedroom for

6 sleeps

UK 7000

Big 4 Adelaide Shore Caravan Park Budget cabin for 6

sleeps

Australia 6720

Tudor caravan park Tourist brings their

own caravan

UK 2304

Ashley gardens caravan park Tourist brings their

own caravan

Australia 3600

Total revenue estimation has been done with the assumptions of footfalls, entry per

person and revenue from associated facilities.



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Table 8: Revenue Assumptions

Revenue Assumptions

Number of Caravan 5

Total tourist capacity in Caravan 20

Weekdays (30%): Occupied Caravan 2

Weekends and Holidays (80%): Occupied Caravan 4

Minimum night stay 2

Rent of a Caravan Rs. 3600/- per night

The Assumptions of Footfalls are been calculated to generate revenue and the facilities

are also calculated for revenues. The total revenue is calculated as per assumptions per

month basis.

Table 9: Revenue Generation / month

Revenue In Rs./month

Weekdays Revenue/week: Rs. 14400 172800

Weekends Revenue/week: Rs. 28800

Car parking ticket/day: Rs 100 12000

Restaurant and Shop rent (150/Sq. ft./month) 450000

Play Zone: Entry fees and equipment renting (100/person for maximum of

3 hours)

12000

Camping (Rs. 300/night/for 2 persons) 400000

Swimming pool (Rs. 250/person for 6 hours) 400000

Washing machine / loading: Rs. 50 4500

Total Revenue / Month (in Lakhs) 14.52



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7. Government Intervention and project structuring

As discussed in Chapter 2, GoK proposed to offer various concessions and investment

subsidies to eligible entities for developing caravan parks in the State of Karnataka.

Cost of civil works and investment in fixed assets would be eligible for investment

subsidies. Costs incurred towards civil construction (including toilets, access to differently-

abled, electrification) and for providing utilities such as safety equipment, water

purification, DG sets, air conditioning, lifts, sewage treatment plant, rain water harvesting,

solar heating/ lighting systems, bore wells and equipment necessary to undertake tourism

related activities would be considered for subsidies.

Project Cost does not include costs towards purchase of land, interiors, lighting /

chandeliers, furnishings, kitchen utensils, ceramic products, etc.

As per the Karnataka Tourism Policy 2015 – 2020, based on the location the Caravan Park

may be eligible for the following investment subsidies:

Taluka

Investment Subsidy

General Category

Women, SC, ST and

differently-abled

entrepreneurs

Category 1 Upto 35% of EPC subject to a maximum of Rs. 105 lakhs

Additional 10% of EPC subject to a maximum of Rs. 5 lakhs




HKR Upto 40% of EPC subject to a maximum of Rs. 120 lakhs

Focus Tourism Destinations(FTDs)*

Upto 40% of EPC subject to a maximum of Rs. 120 lakhs

* An additional 10% investment subsidy (over and above project specific investment

subsidies) shall be provided for development of tourism circuits within a Tourism Cluster.

A tourism circuit is defined as a route within a single Tourism Cluster, in which at least

three Focus Tourism Destinations are located such that none of these are in the same

town, village or city.



30

Therefore, private entities/parties are encouraged to develop Caravan Parks as per the

Department of Tourism, GoK guideline to.



31

CBD

8. Annexure : Case Stucies

8.1. Big 4 Adelaide Shore Caravan Park:

Big 4 Adelaide Shore Caravan Park is situated on stunning 1.2 Kms coastline at West Beach

Adelaide, Australia. A unique location, capturing the best of beach and city life, makes

Adelaide Shores the ideal base for exploring Adelaide’s vibrant beach suburbs, and for

discovering the Adelaide Commercial Business District (CBD) and beyond.

Adelaide Shores is just a 20 minute drive from the Adelaide CBD, and with bus stops right

outside the Resort & Caravan Park, it’s easily accessible for those without their own

transport.

Adelaide Shores is surrounded by a range of shopping and restaurant precincts including

Jetty Road Glenelg, Henley Square and Harbour Town. One can easily make Adelaide

Shores as base to explore Adelaide’s vibrant beach suburbs, or to discover the Adelaide

CBD and beyond.

Figure 17: Accessibility from CBD

Figure 18: Glenelg beach



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With a choice of sites in addition to spacious self-catering cabins, there is an option for

every budget. Below are different accommodations and park bays at Big 4 Adelaide Park.

Table 10: Accommodation options in Adeliade park

Types Space Amenities Price ($) – Twin share

Seaspray Cabin: Sleep 5.

Nestled at the far end of the Park by the sand dunes, these deluxe cabins offer a home away from home with a deck and outdoor dining area.

2 bedrooms and 1 bathroom

Air conditioning

Alarm clock

Ceiling fans

DVD player

Full kitchen

Hairdryer

In-room heater

Iron & ironing board

Opening windows

Radio

Refrigerator - full size

Shower

Tea/Coffee Making

TV

$ 179

Deluxe Cabin: Sleep 6.

Sea breeze & Rivergum cabins are bright and spacious with a deck and outdoor seating


Air conditioning

Alarm clock

Ceiling fans

DVD player

Full kitchen

Hairdryer

In-room heater


Opening windows

Radio


Shower

Tea/Coffee Making

TV

$ 159

Budget Cabin: Sleep 6

Great-value cabins offer open-plan kitchen/dining and a private external


Air conditioning

Alarm clock

In-room heater

Kitchenette (basic facilities)

Opening windows

$ 112



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bathroom directly behind.

Radio


Shower

Tea/Coffee Making

TV

Eco Tent:

Sleep 4

Permanent Eco tents offer the perfect ‘glamping’ experience or introduction to camping.

1 Bedroom Balcony / courtyard

Fans

Non-smoking only

Opening windows

Shared bathroom

Wireless / WiFi

$ 83

Ensuite Powered Site:

Each of these sites has its own private bathroom on-site and our Premium Ensuite Sites enjoy views over West Beach. Ensuite sites have a concrete slab base.

No bedroom and 1 bathroom

Caravan not included $55

Tourist Cabin:

Sleep 5

A wonderful option for families, these open plan cabins are close to the action of the kids’ play area.


Air conditioning

Alarm clock

Ceiling fans

Full kitchen

Hairdryer

In-room heater


Opening windows

Radio


Shower

Tea/Coffee Making

TV

$ 129



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Powered Site Slab:

Concrete slab caravan site, up to 24 feet.

NA Caravan not included

$38

The park has below common facilities:

Splash Zone, 2 jumping pillows

Lagoon type swimming pool

Games room with coin-operated arcade games including racing cars, air hockey, pool and more

Indoor toddler playground

Telephone

Half court tennis

Half-court basketball

Go kart for hire

Sports equipment for hire

Kitchen, BBQ facilities

Coin operated washing machine

Sewage dump point



35

The Layout

8.2. Tudor Caravan Park

Tudor Caravan Park is a quiet country site park at Slimbridge village, Gloucestershire,

England. Set in a picturesque location - right alongside the Gloucester-Sharpness ship

canal with the views of the Cotswold Hills in the background.

Figure 19: Layout of Adelaide Park

https://en.wikipedia.org/wiki/Gloucestershire



36

The park is well signposted from the A38 Highway and only 0.7 miles away from famous

WWT Slimbridge Wetlands Centre.

The park is open all year round with many all-weather gravel pitches and heated shower

blocks. The adjacent Tudor Arms pub &

restaurant is also open all year as is the WWT's

Slimbridge Wetlands Centre at the bottom of

the road.

The site has hedging around most of the

perimeter with the Gloucester-Sharpness canal

running along one side where camper may see

a paddle-steamer or the occasional tall ship

passing. This meadow backs onto the canal and

has lovely views over the fields towards the Cotswold Hills.

The Old Orchard area of the park is an adults only area all year round. This is all hard

Figure 20: The RV parking bay

Figure 21: Accessibility

Figure 22: Winter camping

Figure 23: Old Orchard audlt only area of the park



37

standings with electric hook-ups suitable for caravans, motorhomes, camper-vans, and

RVs. This area is quieter and more secluded as well as being close to the amenities.

It is shielded by hedges and has a selection of both old and new apple and plum trees -

many of which are local heritage varieties.

The site has lot of open space on well-kept grass for camping in tents. The site is well-

equipped for camping with two shower & toilet blocks including 4-star facility which

includes a laundry and baby-changing. Electric hook-ups are also available for tents if

required. There are two washing-up areas and free use of the site freezer.

Considering the extreme weather condition

during winter time in UK, the park offers seasonal

price: low season, mid season, high season and

peak season. The tariff was designed on the

season basis and the parking bay (Non electric,

electric or normal tent) a tourist prefers to avail.

All tourists are privileged to use general facilities

which are mentioned below in Figure 26.

However, Wi-Fi and Gazebo are available with

extra pounds; £1.00 and £3.00 per night. Extra person, child below 12 and dog are charged

Figure 24: Camping area in the park

Figure 25: Tariff details



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at different rate.

The Layout

Common Facilities:

Toilet and shower block

WCs, washbasins, hot showers

Free hot water

Electric hook-ups

Camping Gaz

Laundry with washing machines and dryers

Dishwashing areas

Free use of common freezer

Chemical and waste water disposal point

Motorhome service points

Sewage dump point

Shops, pub and restaurants

Figure 26: Category of seasons

Figure 27: Layout of the park

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