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Opened in November on a trial basis, the Thomas Burns St site has hosted about 3000 overnight stays in its first three months.
In the process, it has taken the pressure off freedom camping sites in Warrington, Ocean View and Brighton.
Dunedin City Council parks and recreation group manager Robert West said reducing that pressure was the "whole rationale'' behind the trial.
In November, 540 vehicles stayed overnight at the Thomas Burns St site, compared with 571 at the Warrington site and 385 at the Ocean View site.
In December, 968 vehicles stayed overnight at the Thomas Burns St site, compared with 714 at the Warrington site and 391 at the Ocean View site.
January figures were still being finalised, but it appeared the Thomas Burns St site had hosted more than 1500 vehicles during the month, Mr West said.
Waikouaiti-Coast Community Board chairman Alasdair Morrison said having the Thomas Burns St site had been a big help in reducing pressure in Warrington, where freedom camper numbers were down 35%.
At yesterday's annual plan meeting, he asked councillors to continue with the Thomas Burns St site and look for more.
"It has really helped Warrington, but there's more to go yet,'' he said.
Freedom campers at the Thomas Burns St site regularly spent money in the city's bars and restaurants in the evenings and were part of the tourism economy, he said.
However, not everyone is pleased with the proliferation of freedom camping sites.
Leith Valley Holiday Park and Motels owner-operator John Aubrey said the availability of freedom camping spots had "definitely'' affected his business.
There were some nights when his holiday park had vacancies and he would see "30 to 40'' vans at the Thomas Burns St site.
"They may not all choose to come to a camping ground like ours, but some will. It's really tough because we're a small business; we're paying rates. I don't see it as a core responsibility of the council to be supplying free camping areas to freedom campers."
As a residential and commercial ratepayer, he was "disappointed'' the council was "using our money in opposition to us''.
Mr West said there had been only one complaint since the Thomas Burns St site opened - about a leaky tap - and the council had issued one infringement in November but none since.
"What we are finding is that the freedom campers are being respectful of the demarcation line into the leased car parking, which was something I was a little worried about,'' he said.
Reviews from campers about the Thomas Burns St site had praised the central location and site facilities.
Campers were being encouraged to fill out questionnaires about their experience.
"At the end of this season, we hope to have data on what people are doing and spending in the city.''
The freedom camping trial at Thomas Burns car park will continue until April, after which the area will revert to casual parking and the council will assess the value of the trial.

Campers embrace inner-city facilities
Christin Firchow, Janice Lohs and Anne Schmautz, all of Germany, arrived in Dunedin on Monday night and left mid-week.
Talking to The Star on Tuesday, they said they planned to be in the city for two days, and would stay in the car park for both nights.The friends said they liked that the car park was centrally located, free and had toilet facilities and drinking water.
Ms Schmautz said the site was different from others they had stayed in "because it's in the city''.
Other freedom campsites they had stayed at were usually "in nature'', so it was nice to have a mixture, she said.
The toilet facilities were "OK for a free campsite''.
They planned to spend their time in Dunedin exploring the city, in particular the railway station and street art, Ms Firchow said.
Dunedin is just one stop on their three-week trip of New Zealand.
The trio have been working and travelling in Australia and holidaying in New Zealand.
Comments
Fee stuff for freedom campers paid for by you the ratepayer. At this pace, the minuscule contribution of freedom campers to Dunedin's economy is probably well truly negative..well done DCC! Another brilliant plan paid for by ratepayers and camping ground/motel owners.
The commercial operators might find their business is somewhat affected but they have the ability to up their game and attract more business. It's called competition. The residents of the other freedom camping locations around Dunedin likewise pay rates but they have no way to mitigate the negative affects on amenity values that too many campers bring to the locations in their neighborhood so it is right and fitting that part of their rates be used by council to solve the problem.
Well done DCC for stepping up with such an innovative and effective solution!
There is a whole bunch of land set aside for non existent bike riders in South Dunedin that could easily be used for freedom campers. They could stay all day in some streets.
people like things being free without reason? stop the press.