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The Lubavitcher Rebbe's view on Jewish summer camps
Excerpts from the Rebbe's talks
(free translation - unedited)
As was mentioned several times, there is a special advantage in the education that is received in the summer camps, one that is even greater than the education that is received in the schools. Being that in the summer camps the child is found in an atmosphere of Judaism and holiness throughout the 24 hours of the day (not only for a few hours a day as in school) and not just for one day, but for a continuous period, i.e. several weeks, it is understood that in such an environment the educational affect is much greater. So much so that during this period he goes from "strength to strength" in all aspects of Judaism and holiness. 
(22 Sivan, 5745, 1985)
In such summer camps [such as those mentioned above] there is stronger emphasis that physicality and spirituality are not in contradiction and conflict with each other, on the contrary, they help one another - for a healthy and rested body comes together with an increase in holy matters. These two aspects together create a healthy and successful summer camp in both physical and spiritual matters. 
(19 Sivan 5750, 1990)
As we enter the summer days (after the "completion" of [a school year, which is] a considerable step in a child's education, when the summer commences) there is free time from many aspects of learning. This free time must be utilized in order to add in Judaism, the Torah and its Mitzvos, the love of Hashem and the fear of Hashem. Specifically regarding the involvement in the educational guidance of Jewish children, the children's free time is to be directed (during the summer vacation) to add in Torah and Judaism. This is done with the knowledge and recognition that the true existence of a Jew is "for the Jewish people shall be unto me as servants (Vayikrah 25, 55)". Therefore the true "vacation" of a Jew is through this that he adds even more in the "service" to Hashem. As Rashi [the foremost commentator on the Torah] says "the servant of a King (every single Jew, man, woman and child) is a king" (Rashi, Devarim 1,7). Therefore [the Jewish people] have the power of Hashem, so to speak, and in the things that they wholeheartedly want, Hashem will help them fulfill their desire with a healthy soul and body. 
(17 Sivan, 5749, 1989)
During the summer days, many children have much free time because the school that they study in during the rest of the year is closed (for whatever reason it may be). Therefore, there are several more free hours every day, specifically on Shabbos and Erev Shabbos. Since it is not advisable to leave a child with spare time devoid of Jewish content - although the child may not realize this, in truth, if there is no Jewish content, the time is "empty" (as emphasized many times in our Torah which is called "the Torah of Life" - [which means] directives for life) - therefore there is an obligation to use out this time with proper content. 
(17 Sivan, 5746, 1986)