A Strategic Approach to the Caravan and Camping Industry 2012

CURRENT PROFILE OF THE CARAVAN PARK INDUSTRY
Status of the Caravan and Camping Industry Sector
Australia
Tourism Research Australia’s National and International Visitor Surveys estimate 8.2
million domestic visitors (40.9 million nights) and 321,400 international visitors (4.5
million nights) stayed overnight in caravan or camping accommodation across
Australia in 2009. There has been virtually no annual change or fluctuations over the
last 10 years in spite of total domestic visitation dropping 6 percent over the same
period. Whilst the number of international visitors has grown by around one percent
for the last 10 years, the number of international visitor nights has declined by one
percent (average annual change). This indicates more international caravan and
camping visitors are coming to Western Australia, though staying for shorter
durations. 8
Caravan and camping accommodation accounted for 16 percent of total domestic
nights and 12 percent of total domestic visitors in 2009. Domestic caravan and
camping visitors spent an average of $117 per night and international visitors spent
$115 per night, compared to other domestic and international visitors who spend
$176 and $253 per night respectively. 9
According to IBIS World, “the industry is largely sensitive to trends in domestic
overnight travel and international visitor arrivals. Overall demand originating from
these groups is driven by growth in household disposable income and the frequency
and length of holidays taken. The continuing escalation in overseas travel by
Australians due to the strong exchange rate is also dampening domestic travel
demand.
The industry is estimated to generate $1.31 billion in revenue during 2011-12, up 1.1%
for the year due to steady demand from domestic and international tourism. This
growth also contributes to an estimated average annual growth rate of 1.3% for the
five years through 2011-12. The industry is forecast to comprise about 1,435 longterm
and short-term stay enterprises, down 0.2% from the previous year, largely due
to the closure of caravan parks as property values increased and owners sold assets.
Industry employment is expected to increase by 0.7% to around 10,650 workers in
2011-12.
Over the next five years through 2016-17, total industry revenue is expected to
increase by 1% per annum to around $1.38 billion. Site numbers and site capacity
levels are expected to continue to decline at a slow, steady rate in future years.
Domestic visitor numbers are anticipated to remain relatively stable, while
international visitor numbers will decline due to the high Australian dollar.” 10
IBIS World reported that caravan parks and campgrounds weathered the recent
economic downturn better than most others in the wider accommodation sector due
to a combination of lower pricing, growth in site tariffs and increased demand for
better-quality facilities, such as cabins, which command higher rates.
IBIS World noted that “in 2006-07 and 2007-08, higher fuel prices directly affected
domestic travel patterns and cheap domestic airfares led to a rise in interstate travel
and less use of motor vehicles for towing caravans. Furthermore, Australians travelling
overseas and interstate travellers were more likely to take advantage of combined
cheap airfare and accommodation packages at hotels and resorts, rather than staying
at caravan parks. For 2007-08, total caravan park establishments fell by 0.8% and total
site capacity by 0.2% to 233,500. Site nights occupied rose 1.8% to 45.1 million as the
average site occupancy rate increased only marginally to 53%.” 11
Industry outlook
IBIS World predicts that “future industry revenue levels are expected to rise due to
the continuing availability and popularity of better quality on-site cabins and units at
higher nightly tariffs. Some caravan park owners are expected to take advantage of
high land prices and sell their properties. This will result in both decreases in actual
site capacity and increases in occupancy rates in existing caravan parks.
Less seasonal patterns of use compared with powered and unpowered sites and an
increasing use of RVs by tourists on extended holiday trips will also aid growth for
industry operators over the next five years. Use of long-term caravan park sites will
spike further, due to ongoing reduced affordability of residential housing, for either
purchase or rental. A further rise in profit margins is anticipated from industry
8 Caravan or Camping in Australia Snapshots 2009 Tourism Research Australia. 2010
9 Caravan or Camping in Australia Snapshots 2009 Tourism Research Australia. 2010
10 IBIS World Caravan Parks and Campgrounds in Australia July 2011
11 IBIS World Caravan Parks and Campgrounds in Australia July 2011
A Strategic Approach to Caravan and Camping Tourism in Western Australia Page 8