05 May 2022
Words Christine Retschlag Informer 102

Camping & Caravanning Industry Reaches Fever Pitch

Last popular in the 50s, 60s & 70s, caravanning and camping has made a spectacular comeback across the nation.

National cabin occupancy

Jan 2021: 66% vs. Jan 2022: 68% 

Australia has entered the “golden era” of caravanning and camping, according to Caravan Industry Association of Australia CEO Stuart Lamont.

Mr Lamont says while other sectors of the tourism industry – such as international travel and cruising – have been hammered by the global pandemic, caravanning and camping have emerged as the unlikely winners in an industry which is perceived as “safe, affordable and attractive.” 

“We’ve been very much blessed by COVID and not many industries have been able to say that,” Mr Lamont says.

“There has still been some heartache from COVID with border closures and last-minute cancellations, but we are certainly doing better than others. 

“Across the board our occupancy is up relative to the past couple of years. Manufacturing of new caravanning products alone is up 30 per cent.

Powered sites occupancy

Jan 2021: 58% vs. Jan 2022: 62%

“In the 1970s, with Cyclone Tracy in the Northern Territory and the start of the mining boom, there were a lot of caravans with about 35,000 new units.

“In 2021, demand for new units was at 50,000.”

Mr Lamont says Australians are unlikely to abandon their caravanning holidays now that international borders have opened.

“If you’ve got $20,000-$150,000 sitting in your yard you are emotionally invested in caravan parks,” he says.

“Some people may go overseas but will still continue to go caravanning and camping in Australia too. These are high-priced items and demand for these products doesn’t seem to be abating.

Top 3 regions for powered sites occupancy

Hobart & the South: 91%

Phillip Island: 91%

Sunshine Coast: 88%

“There are still a lot of nerves within a portion of the market about overseas travel and what happens if borders close or they get sick.”

Mr Lamont has welcomed the Australian government approval of 75,000 working holiday visas as a positive injection into the industry.

“Working holiday makers are going to flood in in the future and where they will stay will be in caravan parks and renting caravan products,” he says.

“That is nice cream on top.”

QLD led Highest growth in Cabin occupancy

QLD: 15% vs. TAS: 11%

One of the current industry challenges is the corporatisation of caravan parks with big companies taking over what was once a “mum and dad” industry, according to Mr Lamont.

He says for those looking to buy a caravan park asset, they represent a great investment.

National unpowered sites occupancy

Jan 2021: 27% vs. Jan 2022: 24%

“Large companies are borrowing at next-to-nothing and their ability to pay over for caravan park assets has never been better,” he says.

“It’s getting harder and harder for mum and dad operators to take over.

“For those who can get into the industry, there is a lot of money being directed into the caravan park industry and values have absolutely held up at the moment.

“They are in the most spectacular locations in the country and have a great cashflow.”

Mr Lamont says caravanning is so popular because it is “part of the Australian psyche”.

“It’s always had a soft spot and it’s well thought of,” he says.

“There was a real popularity in the 50s, 60s and 70s and with COVID and the digital and tech era, people are looking for that reconnection.

“It’s all about ‘how can I give my kids a wholesome holiday option?’

“Absolutely we are in a golden age. The question is how long does this age go?  There is a long pipeline ahead.”

Highest cabin occupancies nationwide

Phillip Island: 92%

Central Coast NSW: 89%

Great Ocean Road: 87%