I think camping could cause an issue blocking fire exit paths. Also we don't really have much open space. It's really a quarter acre block chock full of rooms - if every room is up and functioning it's 32 private rooms crammed onto the block. Some space taken up by laundries, old fashioned clothes lines, old stables etc. I did think about removing some of the old outbuildings but don't think there is much point as council may never allow us to put anything back we're so overbuilt as it is. At least all those buildings helped me make an extra few thousand during the festival and the rest of the year are set up as a place for my Dad, TV rooms, Kids playroom etc.
Yes, I think as long as the Festival continues we won't have an issue using it as the main source to cover lots of costs for the year. There are a few other events on a smaller scale too and from this year some folk have asked about group bookings for their friends for other related things - like the line dancing championships. Provisional booking for up to 20 people for that in May.
Really the place could run two ways - a consistent level of occupancy and work from a bunch of medium term backpackers working in town with a small number of rooms set up as extra nice for booking.com overnighters. That way is less stress, easier to manage. Or it could run as feast-famine like others in town who have very low occupancy and twiddle their thumbs for a months then jump and book solid for the big things in town - some religious conventions, service club conventions, Agquip.
I'm trying to do both at once which is a bit stupid as I'll burn out but for now the extra money is great - I'll just bring casual staff on as needed, do a big bump in for an event and clear out some of the medium term, then a bump out, house clean and back to longer bookings. There is enough backpacker trade to do all of that and not be too worried if some folk get a bit annoyed for being moved on for group bookings. I'll develop a yearly calendar so I can tell everyone in advance so it's not a surprise.