August 2010

Caravan production soars by nearly 30 percent

Booming demand for RVs keeps manufacturers happy

MORE Australians are holidaying on the road than ever before, according to the Recreational Vehicle Manufacturers Association of Australia.

Jubilant manufacturers turned out nearly 20 percent more RVs during the 2009-2010 financial year to meet the booming demand.

Caravan production soared by an incredible 28.4 percent while 20.9 percent more camper trailers rolled off assembly lines.

In fact, some factories indicated the strongest growth in the entire Australian manufacturing sector in the wake of the global financial crisis which saw several well known caravan brands disappear from the market.

And with more Australians now turning to touring caravans for their holidays, other types of holiday accommodation in the country could suffer.

RVMAA president Richard Raven believes strong growth in the manufacturing of recreational vehicles is due to Australians increasingly seeing more value in holidaying at home than travelling abroad, according to a report in Australian Property News.

"Fluctuating currencies and expensive airfares are making Australia a much more attractive travel destination than ever before," he is quoted as saying.

The report said that increased consumer demand for the caravanning lifestyle contributed to the caravan and holiday park industry exceeding $250 million in revenue in the March quarter, for the first time in history.

Caravan, RV and Accommodation Industry of Australia chief executive officer Ben Yates is reported as saying the strong financial and manufacturing figures demonstrates the resilient of the caravan and holiday park industry.

"Our industry has proven that it's practically recession-proof," he said. "In the midst of shrinking revenue levels across the board in almost all our competitor markets, the caravanning and holiday park industry continues to boom."

Mr Yates was unaware whether this would directly impact on other tourism sectors such as holiday homes, but in the report he referred to the flat growth in other tourism industries compared to a 8.7 percent rise in revenue for the caravan and holiday park industry during the year ending March 2010.