A Strategic Approach to the Caravan and Camping Industry 2012

each of competitive neutrality principles under National Competition Policy that
government organisations are required to follow.” 73
Its key findings are as follows:
“The review of council overnight RV camping services found that councils must adhere
to the principles of competitive neutrality and should apply a full cost attribution
approach when operating these services. Each council-owned service in Tasmania is
highly likely to be competing with a privately-owned caravan park, either within its
own municipality or in surrounding municipalities, and needs to price its services to
reflect costs.
Providing free or low-cost camping services by a council may be a useful short-term
solution to some of the amenity issues facing councils, for instance to prevent RVs
parking and camping on the side of the road and to attract visitors to the area.
However, these measures discourage private caravan parks from investing and
operating in the area and reduce the benefits from a competitive market. These
benefits include efficient market prices (reflecting the costs to provide and operate
such services), customer choice through a wide range of services and the development
of services that customers want, leading to economic development. Setting cost
recovery prices will, in the long term, enable councils to contribute to a more
sustainable overnight camping industry and promote the tourism industry in the local,
regional and State economy.” 74
Best practice methods to reduce development and operating
costs
There are few references to concessions or subsidies offered specifically for caravan
parks and campgrounds (outside of the general tourism grants programs and regional
development funds). The main method used to manage the high development and
operational costs is for Governments to develop caravan and camping facilities which
are then leased to operators with attractive lease arrangements. Outside of this, land
tax and/or stamp duty concessions appear to be the only other concession offered to
reduce operating costs.
Victoria
A Land tax exemption for caravan parks exists in the State of Victoria
Queensland
A partial exempting from Land Tax applies for caravan parks in Queensland, but only
where 50 percent or more of the sites are allocated to residential use, as is the case in
New South Wales.
In reviewing the current policy, titled Recreational Vehicles - Development and
Management of Facilities 2008, LGAT and the Tasmanian State Government found it
no longer appropriate and recommended a revised policy which includes cost
recovery requirements and address competitive neutrality. The Directions paper
includes a decision-making guide “to support open and transparent decision-making
on the pricing of camping services” 75 and a Full Cost Attribution Checklist.
73 Consultation Draft Statewide Directions Paper – Review of Council Recreational Vehicle Overnight camping
Services (October, 2011)
74 Consultation Draft Statewide Directions Paper – Review of Council Recreational Vehicle Overnight camping
Services (October, 2011)
75 Consultation Draft Statewide Directions Paper – Review of Council Recreational Vehicle Overnight camping
Services (October, 2011)
A Strategic Approach to Caravan and Camping Tourism in Western Australia Page 59