The Papatowai Camping Ground, which is owned by the Department of Conservation (Doc), closed last November when the lease ran out, and yesterday Doc confirmed it would not be open at all during the 2009-10 summer season.
Doc coastal Otago area manager Robin Thomas said the camp's waste disposal and associated facilities, built in the 1980s, could not cope with the extra demands from the increasing number of visitors.
In August 2008, Doc invited proposals from interested parties to upgrade and operate the camping ground. It had been negotiating for several months with one party but talks had recently broken down.
"Unfortunately, the negotiations broke down, as the proposer wasn't able to commit to the necessary development work the concession requires," Mr Thomas said.
But in a statement yesterday, he said Doc was able to immediately enter into talks with another interested party, and expected it would soon lodge an application to lease the camping ground.
"I'm optimistic that we'll see positive moves towards the camp re-opening in 2010, with the necessary standard of facilities and under commercial management."
Doc recognised the importance of the camping ground and wanted to see it back in business, Mr Thomas said.
To get there, it wanted to explore all opportunities for its commercial operation.
Once Doc has approved any application, the public will get to see it and make submissions.
