BRIGHT FUTURE AHEAD FOR FOREST HOLIDAYS

27/07/2006
Britain’s public forests are set to become top holiday destinations following a £35 million capital investment programme that will transform recreational facilities at holiday sites on Forestry Commission land. This will follow the transfer of the Forestry Commission’s 24 Forest Holidays cabin, camping and caravanning sites to a new public-private partnership joint venture between the Commission and The Camping and Caravanning Club. The new partnership, which will continue to be known as Forest Holidays, will invest £40 million of private-sector capital over the next five years in upgrading facilities at the 21 camping and caravan sites, and building a new cabin site on Commission land. The new partnership was launched today (27 July) at Forest Holidays’ Keldy cabin site, near Pickering, North Yorkshire. Simon Hodgson of the Forestry Commission said,

“This venture brings tremendous benefits for the Commission and the taxpayer. If frees the Commission from day-to-day responsibility of running the business. It brings access to private-sector business acumen and much-needed capital to invest in upgrading and expanding the facilities; and it brings access to a huge new pool of potential customers in the form of the Camping and Caravanning Club’s existing members and customers. “Very importantly, it ensures we can continue to deliver a high-quality Forest Holidays experience with a partner who shares our values of sustainable tourism, healthy living and offering people high-quality enjoyment of the natural forest environment.”The Camping and Caravanning Club sees the venture as a logical move which will bring its sites’ capacity back into line with recent exceptionally high membership growth. Its Director-General, David Welsford, said,

“The Club will invest £10 million in Forest Holidays site improvements in the early days, as part of the overall £40 million investment plan. As well as correcting a capacity imbalance, this venture will expose the Club to potential new members and, most particularly, to a younger audience.”For Forest Holidays, the joint venture will mean improved site facilities and the potential of additional sites on Forestry Commission land in the future. Gary Fletcher, its chief executive officer, commented,

“This is a partnership where everyone is a winner. It paves the way for better-managed sites with better facilities which, in turn, will increase visitor numbers. It will enable us to provide all the wholesome, natural education and entertainment of a forest environment, together with the best in cabin, camping and caravanning facilities.”The formation of the partnership was aided by Partnerships UK, a Public-Private Partnership (PPP) which aids government departments with all aspects of creating and operating PPPs. Claire Phillips, Partnerships UK's project director for Scotland, added:

"As a co-sponsor of this ground-breaking initiative, Partnerships UK is delighted to have worked alongside the Forestry Commission, focusing our specialist skills and resources on the key stages of the process that led to the successful creation of this PPP holiday business"NOTES TO EDITOR:

The Forestry Commission is the government department for forestry in Great Britain. It manages 1 million hectares (2.5 million acres) of public forest land across England, Scotland and Wales for benefits including sustainable timber production, nature conservation, public recreation, and rural and community development. It supports other woodland owners with grants, regulation and advice, and advises Ministers on forestry policy. Its Forest Research agency undertakes scientific research and technical development relevant to forestry for internal and external clients. For further information visit www.forestry.gov.uk and www.forestresearch.gov.uk .
Forest Holidays was, until 8th May this year, a business unit within the Forestry Commission. It manages 21 camping and caravan sites and three log cabin sites. For further information visit www.forestholidays.co.uk
The Camping and Caravanning Club claims to be the world’s oldest and largest club for all forms of camping, with more than 400,000 members and nearly 100 sites throughout the UK providing quality accommodation for nearly three million campers a year, members and non-members. Its members also have exclusive access to 1200 other sites. It also offers supporting services to its members, such as insurance and members’ benefits at campsites abroad. It has its roots in the Association of Cycle Campers, founded in 1901. For further information visit www.campingandcaravanningclub.co.uk.
Under the terms of the joint-venture partnership, the Camping and Caravanning Club holds 51 per cent of the shares and the Forestry Commission 49 per cent. The Commission continues to own the sites, which have been leased to the partnership for 75 years. The club will invest £10 million over the next two years in upgrading the infrastructure of the 21 camping and caravan sites. The business plan allows for the investment of £40 million over five years in upgrading existing infrastructure, including the provision of “lodges” at camping and caravan sites, and establishing a new cabin site at a location yet to be decided. The new company will also be able to search the Forestry Commission estate for potential new holiday sites to expand the business.
As a government department, the Forestry Commission cannot borrow money for capital investment. So in order to undertake the needed refurbishment of the three Forest Holidays cabin sites the Government awarded the Commission £9 million from its Capital Modernisation Fund to refurbish the two English sites, and the Scottish Executive funded the refurbishment of the Scottish site. The Government’s grant was made on condition that the Commission enter into a public-private partnership to obtain the funds for upgrading the camping and caravan sites. The Commission therefore sought, and obtained in March this year, changes to the Forestry Act through a Regulatory Reform Order by Parliament, enabling it to enter into such partnerships and joint ventures.

NEWS MEDIA CONTACTS:

Forest Holidays – Bob Lapworth, 01295 770532; mobile: 07950 357102;
Forestry Commission - Charlton Clark, 0131 314 6500; 07810 181067;
The Camping and Caravanning Club – Ruth Walmsley, 0247647;
Partnerships UK - Malcolm Graves; 020 7270 5161; 07785 316773.

e-mail: charlton.clark@forestry.gsi.gov.uk

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