A popular Catlins campground which clocked up more than 17,000 stays last year could remain closed for its busy summer season amid uncertainty over its lease.

Southland District Council is racing to find a solution for the Curio Bay campground – a council-owned site situated in an area home to Hector’s dolphins and a petrified forest.

The campground has been closed since April and the expiration of its long-term lease had not yet been resolved, a council report said.

“Curio Bay is a busy campground, with booking records showing around 17,300 nights of use in 2025, most of these over the summer months.

“Despite this, the current arrangements have not returned anything to council.”

In June, a 20-year lease between the council and the South Catlins Charitable Trust expired. The trust is the operator of  the campground and nearby multi-purpose facility Curioscape that has a cafe and visitor centre.

Day-to-day operations of Curioscape had been sublet since it opened, but the trust’s most recent operator left earlier in the year, the report said.

Both the campground and Curioscape had been closed since April.

The council said it was advised by the trust that the lease was not fit for purpose and would need revision ahead of a long-term commitment.

Under the previous arrangement, the council charged a “nominal” rent while the trust received all revenue from the campground and cafe.

That arrangement had not been financially beneficial to the council, as it spent $84,000 in the last financial year alone on water, rubbish, maintenance and a contribution to the trust.

A further complication was the ownership structure at play.

While the council owned the land where the campground and Curioscape sat, the trust owned the amenity block and Curioscape building, including its public toilets.

The council identified a new operating model was needed long-term, but hoped to open the campground for the upcoming season without losing money.

An extraordinary council meeting will address the issue on Monday.

Options include independently engaging an operator, implementing an automated system with a caretaker, or keeping the campground closed.

The trust said it would soon be looking for a Curioscape cafe operator, and had agreed to include campground operations in the mix — another option for the council.

The council report acknowledged there had been limited reporting under the old lease and it had only recently received its first “detailed picture” of how the campground was used.

“Tariffs, revenue and operating costs are still unknown to council,” it said.

According to booking data for 2025, there had been 17,300 stays, of which about 61% were in summer.

LDR is local body journalism co-funded by RNZ and NZ On Air.