Market Overview
UK residents prefer to visit a holiday resort, which can be anything from a lodge park to a caravan park or even a yurt. The overlapping categories make it difficult to estimate market size. Mintel estimates that the Parks and holiday centres segment revenue to be valued at £3.5bn in 2024 – a 20% growth from pre-pandemic levels. In 2023, there were 4,754 holiday parks and campsites operating in the UK, accounting for 320,901 pitchesThe highest concentration is in South West England. Approximately 230,000 jobs are supported by the sector in the UK.
Holiday parks campsites generated £12.2bn in visitor expenditure between 2022-2023. According to CBRE’s Consumer Sentiment Study 2025, 34% planned to spend their saved money on holidays. That was the second most popular answer. Furthermore, domestic holiday park and camping trips were more frequent than trips abroad. In times of low consumer confidence and economic growth, UK domestic holiday spending has increased. This is a testament to the countercyclical nature of this sector. Holiday parks are in high demand despite the economic difficulties, as these holidays are perceived to be more affordable.
Although there are few comprehensive statistics on the sustainability of UK holiday parks, the larger operators in the UK have demonstrated the benefits of sustainable practices. A survey of 666 holiday park operators by the UK Caravan & Camping Alliance (UKCCA) revealed widespread adoption of sustainable holiday parks initiatives, including:
- Encourage recycling (97%)
- Conservation of energy and water (95%)
- Support for local wildlife (83%)
- Green award schemes (78%)
- Sustainable accommodation (67%)
- Restricting vehicle movement (13%)
This article illustrates the potential value of these initiatives which could encourage broader adoption throughout the sector.
Reduce operating costs and environmental impact
Reduced energy, water and resource consumption can lower costs, providing a financial incentive for adopting sustainable practices. Smaller operators are often limited by capital when implementing sustainability programs. However, there are low-cost upgrades that can increase operational efficiency without major investment. Examples include:
CBRE has seen several independent holiday parks in the UK implement initiatives like LED lighting, smart thermostats and a reduced dependence on single-use plastics and chemical products. These initiatives show that smaller parks can reduce their consumption and operating costs.
However, for operators with investment capacity, switching to renewable energies remains the most effective long-term solution. According to the UKCCA’s surveySolar panels are installed in 44% of the holiday parks with more than 251 pitches, while 19% make use of energy-efficient heat pump systems, and 59% have charging points for electric vehicles (EVs). Parkdean Resorts’ solar installations at two sites have already delivered a 20% year-on-year reduction in power purchased from the gridThe benefits are tangible. The majority of UK holiday parks are privately owned, with the exception of those that belong to large corporates. The ownership structure of these parks makes them ideal for investing in long-term projects, since they do not have to worry about quick returns that are often associated with shorter ownership periods.
These examples show how sustainable business practices can create value in holiday parks by reducing energy consumption, costs and overheads. They also help to control expenses and improve the bottom line.
Customer retention and attraction can be improved.
According to our survey, 26% of UK visitors choose this option because it is perceived as having a lower impact on the environment. One in four holidaymakers is attracted to parks based on their sustainability credentials, and prefers those who demonstrate efforts to reduce the environmental impact.
Visitors are usually involved in activities that involve nature, such as walking, cycling and swimming. UKCCA reported that 61% holiday park visitors spent time in wildlife/nature related activities. The natural environment must be preserved to maintain the level of quality that holidaymakers expect.
Forest Holidays sites are an excellent example of how environmental stewardship can be beneficial. These sites are in or close to national parks which will attract tourists, but only if you protect and enhance woodlands. They are held accountable by the Forestry Commission for their environmental stewardship and their sustainability strategy includes:
- Low-impact Construction
- Sustainable procurement
- Biodiversity Enhancement
- Woodland management
Their model highlights the increasing demand by consumers for more sustainable holidays, and how operators could capitalise on this demand by improving the biodiversity and nature of their sites.
Reporting on climate change and environmental regulations
In the UK, there are only limited reporting requirements for holiday parks. Only parks with over 500 employees, a turnover of more than £500m, and either have tradable financial securities listed on a UK regulated market or are banking or insurance companies, are required to follow the Task Force on Climate-related Financial Disclosure (TCFD) framework.
However, the UK has committed to reducing its carbon emissions by at least 81% by 2035. This, along with the increasing risks related to climate change, indicates that regulations on sustainability will increase in all sectors of the economy. To protect their assets, operators should measure their carbon footprints and emissions to identify future climate risks.
Parkdean Resorts has followed the TCFD framework, identifying the three main climate risks: future regulatory change, flooding and drought. In response, the company created a risk management plan which included emissions measurement and monitoring. In particular, parks near river valleys or coasts are vulnerable to flooding. Climate risk assessments can help inform adaptation strategies to protect assets and ensure asset values. Aligning businesses with frameworks such the TCFD will not only help with regulatory readiness, but it will also make them more attractive to investors by focusing on sustainability.
Although it’s not mandatory for buildings that are owned by their owners (such as many holiday parks), obtaining an Energy Performance Certificate is considered a good practice. This is especially true for the central facilities of parks. There is a growing trend to include EPC initiatives in parks, particularly among the larger operators. This can make a park more appealing to informed investors, who may be influenced both by the sustainability credentials of the park and its overall marketability.
It is mandatory that new developments of holiday parks in the UK achieve a net biodiversity gain (BNG), which must be at least 10%. In rural areas this should be feasible on site. If land and capital are available, going above the minimum 10% of biodiversity enhancement and trying more ambitious measures could improve customer attraction.
Attracting Investment and Value Add
Lenders are increasing the pressure on investors to show long-term value creation. Our article discusses how to create long-term value for investors. 2025 European Lender Intentions Survey71% said that they would not loan against assets that did not meet sustainability criteria, or had a plan to improve them.
Blackstone’s 2021 purchase of Bourne Leisure which includes Haven Holidays is an example of a investment partly driven by the potential for sustainability. Prior to the acquisitions Blackstone stated They assess sustainability factors in order to identify opportunities for value creation and reduce risks. Haven has been committed to reducing carbon emissions annually by 15% since its acquisition. Blackstone’s Emissions Reduction Program. They have invested £18m into solar and energy efficiency upgrades across 39 of 41 parks – generating enough energy to power over 8,000 homes and covering approximately 10% of Haven’s energy needs. Blackstone says the upgrades were made to prepare the company for the future and to meet the growing demand of consumers. Haven’s sites are suited for the deployment of renewable energy because they have land available. Blackstone has announced that it will invest around $100bn into energy transition and climate solutions in the next decade.
Sustainability has many benefits for operators
Investors, such as private equity firms, lenders and shareholders, are driving operators to improve sustainability credentials. To achieve these objectives, we have observed the deployment of sustainability-linked financing, such as green bonds and credit facilities.
Cost reductions have a direct effect on the value of a property. This makes it more profitable, efficient and marketable. Initiatives such as solar panels, a combined heat-and-power plant or Smart Export Guarantee (SEG), where renewable energy can be sold back to grid, can have a positive impact on EBITDA by controlling and reducing variable costs, which can lead an improved capital value. Julian Such, Operational Real Estate Director, UK Valuation & Advisory Services
Evidence from a number of operators shows that sustainable initiatives in the holiday park sector can bring operational and financial benefits. As the industry evolves we expect more operators to adopt sustainable business methods to reduce their environmental impacts, future proof assets, and boost competitiveness.
Enhance your Holiday Park Portfolio for sustained growth We offer investors and occupiers tailored solutions that focus on long-term value. Please contact us to find out how we can assist you in achieving your goals.
Tasos Vezyridis
Head of Research, UK&I and Continental Europe
CBRE Hotels
