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By definition I go on vacation to get a break from my coworkers and spend time with friends and family.

I also generally get to decide the activities on vacation. Many things the company might fund that are fun for some people, like skiing, aren't activities that I'm interested in but would be obligated to participate in.

What you described is a work retreat, not a vacation. I have been on such a trip. It was good for work relationships. It definitely wasn't a vacation.