A Strategic Approach to the Caravan and Camping Industry 2012

In the past the caravan and camping sector has been regarded as a low yield, low
priority, tourism sector despite its high value in the provision of tourist
accommodation facilitation and importance to regional tourism delivery.
The impacts of government policy and actions on the sustainability of caravan and
camping tourism have not been fully recognised. Rising costs and market pressures on
revenues due to an artificial ceiling on tariffs though consumer expectations and
availability of free or low cost alternative camping areas have had a negative effect on
the industry.
Many developers report that the approvals process for new caravan park
developments and redevelopment of existing properties is too convoluted and leads
to unacceptable cost and delay. Developers have indicated that the approvals process
will cause them to deploy resources to development of parks in other states as an
alternative to Western Australia.
The availability of infrastructure services to potential new sites for caravan park
development is another issue that needs to be addressed. Government has a role in
providing appropriately zoned land with services in order to attract investors and
developers. The lack of suitable land and cost of utility services infrastructure is
offered as the reason that very few new caravan park developments have occurred in
Western Australia over the last two decades.
Economic
Market confidence is a major influence in the growth of caravan and camping tourism.
While the industry offers many products that do not require any capital investment by
the consumer (cabin accommodation, tents), a large proportion of the market makes a
major commitment and capital decision to purchase a caravan, campervan,
motorhome or 5 th Wheeler. In the case of towed recreational vehicles there is an
additional cost in upgrading transport to an appropriate tow vehicle.
The decision to purchase a recreation vehicle is often a lifetime commitment to the
tourism segment. Global economic fears have created issues for many consumers,
particularly those approaching retirement and self-funded retirees.
For the family market, unemployment is a potential issue. In Western Australia the
mining and resources boom has provided a huge economic windfall of high
employment. However, the economic benefit from mining has not flowed to other
parts of the economy. Workers with young families are being made redundant and
mining employment may not be an option due to family circumstances.
Interest rates have an effect on discretionary spending. The high cost of entry for the
high level caravan and camping consumer means that the market is negatively
affected by rising interest rates.
Were there to be any significant reduction in caravan and camping tourism the effect
on regional economies would be devastating. The multiplier effect from this market is
an important contributor to regional economies.
Market
The market is currently impacted by the growing demand for the product and
availability issues in peak season. Unauthorised camping may affect the sustainability
of licensed caravan parks if not well managed.
There is competition for market share from international travel due to the strength of
the Australian currency. Competition for tourist sites has increased through mining
and resource workers and permanent residents.
Consumers point to the need for improved service delivery for the caravan and
camping tourism sector.
General Environment
Factors impacting on development are detailed above under the various headings. The
main impediments are availability of appropriately zoned land at locations that are
acceptable to the market and viable for developers and investors. “Red tape”,
particularly in the approvals process is another barrier to increasing caravan site
inventory.
Consumer issues are the long travel distances in Western Australia compared to
Eastern States, availability of caravan and camping sites during peak seasons and
rising fuel costs.
A Strategic Approach to Caravan and Camping Tourism in Western Australia Page 55