The verdict came from council holiday parks manager Greg Hartshorne, in his report on the first six months of the 2010-11 financial year.
The report will be tabled during the finance and corporate committee meeting tomorrow.
Some of the overall decline of 15% in the campervan and tent market at Lakeview was to be expected, given a "large decrease" in the number of campervans on the road and a new holiday park opening nearby, he said.
"The impact on our figures based on the new park picking up 10 vans a night is approximately $14,000 per month and possibly twice that over the busy months," Mr Hartshorne said.
"Our close proximity to town ensures that this figure should not grow."
However, the holiday park's manager said Lakeview's association with tour groups "remains very strong".
"Although numbers are down, the number of nights they are spending with us has increased, which has led to an increase in income on rooms of approximately 15% and $108,000.
"Expenditure is well under control and, with the savings that we have achieved in wages and contract-cleaning costs, puts us into a very strong financial position."
The more family-oriented Arrowtown Born of Gold Holiday Park was slightly above budget and had strong bookings from its online booking system, Mr Hartshorne said.
"I would expect we will trade out the balance of the financial year ahead of the previous year. Expenditure is well under control and there are no surprises expected."
Bookings for the lead-up to Christmas were "considerably down" on the previous year.
However, staff were overrun with late arrivals, particularly vans without bookings, Mr Hartshorne said.
"Unfortunately, this impacted on the whole town, with many people sleeping in cars and sleeper vans without facilities.
"Although behavioural problems in the parks were minimal, there were far more incidents in the Queenstown Lakeview Holiday Park than is acceptable and all were alcohol related, unfortunately by youths who were underage.
"It is unfortunate that a large majority of these kids and their alcohol were dropped off by their parents at the gate. We are reviewing our options in this regard for next year."
The council took control of the camp at Glendhu Bay last Easter, and the one in Wanaka in August last year.
