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May 2015

 

 

'More facilities and better accommodation"

Caravan and camping industry has 'reinvented' itself, say analysts

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CARAVAN parks and camping grounds have "reinvented" themselves over the past decade to meet a changing market, according to industry analysts.

IBISWorld claimed they had moved away from their original core services and now offered more facilities and better accommodation.

"Operators weathered the economic slowdown of 2007-08 and 2009-10 better than other tourist accommodation providers by offering a combination of low-cost and high-quality accommodation," it said.

"The industry has become a more significant component of total tourist accommodation in Australia, competing fiercely with other forms of budget accommodation such as motels and backpacker hostels."

The analysts said newcomers to the industry faced low barriers but there had been no new parks or camping grounds built Australia-wide during the last five years.

"The relatively low potential investment returns relative to other lucrative tourism accommodation service providers do not give new or existing operators sufficient motivation," IBISWorld said.

"Due to rapid development along coastal regions and near popular holiday spots over the past half century, there is little land available for caravan parks, which normally require 10 hectares or more.

"There are generally higher yielding uses for land than building caravan parks, especially in high-price locations."

It said trailer and caravan dealers had gone "from strength to strength" over the past five years, with growth driven by the ageing population, positive consumer sentiment and rising discretionary income.

The proportion of the population entering retirement was increasing, with the burgeoning grey nomad market boosting industry demand.

The analysts believed the trailer and caravan dealer industry was in a growth phase of its life cycle.

"Despite a significant fall in revenue at the onset of the global financial crisis, the industry has been boosted by Australia's ageing population and the resources boom," IBISWorld said.

"At the same time, demand from high-income earners with young children created a new sales market for many dealers, creating further growth in industry value added (IVA).

"Sales growth has expanded the number of players in the market."

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