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December 2014

 

 
Esperance: 'already meeting travellers' needs'

Esperance: 'already meeting travellers' needs'

'Does not own right to brand a town RV Friendly'

Caravan industry fires
broadside at CMCA

Have your say

THE Campervan & Motorhome Club of Australia has copped a caning from Western Australia's caravan industry.

It came in a submission to Esperance shire council which was considering a request from the 66,000-member club to join its RV Friendly Town scheme.

This would involve the south-east coastal  town ‒ population around 10,000 ‒ providing free or budget camping, water, dump point, signage and other benefits for travellers.

But the Caravan Industry Association Western Australia (CIAWA), which represents 150 caravan parks and 100 caravan-related businesses, is fiercely opposed to the plan.

"Esperance already is the regional service centre and the supplying of free accommodation in the town, subsidised by ratepayers, will not add value to local businesses or change the important role that Esperance already provides to the RV sector," its submission argued.

"The need to implement RV Friendly overnight camping is not necessary.

"Other than a very small and vocal market segment, whose desire is to not pay their way, consumer demands are currently being met by the existing commercial operators."

The council had considered providing a low-cost, self-contained camping area for a 12-month trial from December 12.

But councillors decided that while they supported the RV Friendly concept, they should defer CMCA's application until after a strategy to manage parking and camping for "drive/road-based tourism" was developed with locals.

CIAWA said its submission was made on behalf of caravan parks in the shire and the wider interests of the caravan and camping sector.

"CIAWA fully supports the diversification and development of new and additional caravan and camping sites, development that is equitable and on a level playing field," it said.

"It is estimated the current cost of developing a new caravan park that complies with current legislative requirements is currently between $50,000 and $60,000 per site, at the minimum viable size (80 to 100 sites).

"A total development cost could be in the vicinity of between $4 million and $6 million.

"With dilution of the market through 'RV Friendly' free or low cost short stay sites, new development of commercial caravan parks in these circumstances is highly unlikely."

The submission pointed out that the CMCA was limited company with shareholders.

"The suggestion that RV Friendly status is conferred by the Campervan, Motorhome Club of Australia is incorrect, any community can promote itself as RV Friendly," the CIAWA said.

"By endorsing the CMCA version, the provision of services to this company by the Shire of Esperance is construed as providing a service to a business not available to others, an unfair commercial advantage and one that shows unconscionable conduct by SOE `(Shire of Esperance) to leaseholders paying the SOE commercial rents.

"Esperance is already the regional service hub for caravan and campers and will not 'lose' any business if it does not have CMCA endorsed 'RV Friendly status'.

"CMCA is NOT an industry body, it is in fact a limited company with a paid up membership of likeminded consumers."

CIAWA rejected claims from the CMCA that it wielded 'considerable market power'.

"Other membership-based organisations such as BIG4 with 180,000 members and Top Tourist Parks with 209,000 members are significantly larger," it said.

"Furthermore, CMCA does not own the right to brand a town RV Friendly and CIAWA asks what sort of organisation genuinely interested in the best interests of growing the RV market would brand a locality 'RV Unfriendly' simply by not doing what this limited company demands?"

The submission said that based on the commercial caravan and camping sector, research showed how strong visits to the region were.

Significant amounts of money were  spent through travellers' involvement with visitor centres, the Regional Tourism Organisation, Tourism WA and CIAWA, who all cooperatively marketed Esperance as a
destination.

"None of this will happen with a free or low cost facility and there is more likelihood that visitation to the region would diminish rather than increase," CIAWA added.

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