How much does it cost to open a campground?

Opening a campground costs $100,000 to $1 million depending on land costs, number of sites, and amenity level. A basic tent camping operation on owned land starts at the lower end, while a full-service RV park with 50+ hookup sites, bathhouse, and recreation facilities approaches $1 million. Land and site development are the two largest costs.

Is owning a campground profitable?

Well-managed campgrounds can be quite profitable with net margins of 20 to 40 percent once established. Revenue comes from nightly fees ($25-$80), seasonal rates, and ancillary income from camp stores, firewood, and activities. Campgrounds near national parks and lakes perform best. Seasonality is the biggest challenge, as many operate only 6 to 8 months per year.

What is the difference between a campground and an RV park?

RV parks require significantly more infrastructure. Each RV site needs a level pad, electrical hookups (30/50 amp), water connections, and sewer access at $3,000 to $8,000 per site versus $500 to $1,500 per tent site. However, RV sites command $35 to $80 per night versus $20 to $40 for tent sites and attract longer-stay guests.

Campground Startup Cost Comparison

McAllen, TX vs Los Angeles, CA

McAllen, TX

$78,000 - $716,000

COL Index: 82.5

Los Angeles, CA

$172,000 - $1,798,000

COL Index: 166.5

Detailed Cost Comparison

Expense	McAllen, TX	Los Angeles, CA	Difference
Business Registration & Licenses	$1,200 - $5,000	$4,000 - $14,400	-66%
Land Purchase or Lease	$17,000 - $226,100	$75,000 - $1,000,000	-77%
Site Development & Infrastructure	$24,000 - $240,000	$40,500 - $405,000	-41%
Bathhouse & Facilities	$12,000 - $96,000	$20,300 - $162,000	-41%
Equipment & Amenities	$8,000 - $50,000	$8,000 - $50,000	Same
Business Insurance (Annual)	$4,000 - $18,000	$4,000 - $18,000	Same
Marketing & Reservation System	$3,000 - $15,000	$3,000 - $15,000	Same
Working Capital (6 Months)	$8,300 - $66,000	$16,700 - $133,200	-50%
Total Estimated Cost	$78,000 - $716,000	$172,000 - $1,798,000	-60%

Local Market Factors

Factor	McAllen	Los Angeles
Cost of Living Index	82.5	166.5
Commercial Rent ($/sqft/yr)	$8 - $18	$30 - $85
Labor Rate Index	0.8	1.35
Sales Tax	8.25%	9.5%
Minimum Wage	$7.25/hr	$16.78/hr
LLC Filing Fee	$300	$70

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