R
eport
South African RV market
Words Francois Huysamen Digital Editor at CaravanSA
Small market, amazing potential The past decade has been a turbulent but also exciting time for the South African RV market. From weaking exchange rates driving up the price of vehicles due to import costs of parts and accessories, to the near-collapse of the oldest and biggest caravan manufacturer in the country on the one side, to an explosion of innovation and new manufacturers on the other. While new caravan sales had dropped by just over 40% from 2009 to 2019, things were actually starting to look up Pictures supplied by Caravan & Outdoor Life
T
ourism data released by Statistics South Africa (Stats SA) – which analyses accommodation revenue and occupancy rates – showed that in March 2019 the income for caravan parks and camping sites in the tourist accommodation industry had grown 27% year-onyear. April 2019 income in this sector was on par with the previous year, but May showed an unbelievable 44,6% increase.The start of 2020 also saw a record attendance for South Africa’s largest caravan, camping and motorhome exhibition show: The Caravan Show at Gallagher Hall in Johannesburg. Totalling over 15000 m² floor space, with over 900 exhibitors (manufacturer attendance constituted more than 90% of the South African market), organisers recorded over 32665 show visitors – an impressive growth of 7500 attendees from the previous. Covid hits camping industry Then the Covid-19 pandemic hit, and on 15 March 2020, the President of South Africa, Cyril Ramaphosa, declared a national state of disaster. Immediate travel restrictions were put in place, and on 27 March 2020 a national lockdown came into effect. Within the first month of the lockdown, three million South Africans had lost their jobs, and in December 2020 it was reported by the Department of Small Business Development that 42.7% of small businesses in South Africa had closed due to the economic impact of the lockdown. The outdoor recreational market was basically forced to a standstill. With non-essential businesses closed and economic uncertainty setting in, manufacturers in the RV market saw local sales plummet. Concurrently, with leisure travel prohibited by the government, camping and caravanning resorts had no option but to temporarily close, hoping to be able to survive until restrictions were lifted. After a successful holiday season and start to the year where caravan parks and campings sites saw good year-on-year growth in income from accomodation (15% in December 2019, 22% in January 2020, 25% in February), Stats SA report that both April and May 2020 saw a grim 100% negative year-on-year growth in income from accommodation. The latest figures for 2021 show a 36,6% yearon-year decline in January and 50,6% year-on-year decline. Optimism for RV sales While the past couple of years have been difficult for the RV market in South Africa, there does appear to be light at the end of the tunnel. Many manufacturers and dealership are seeing an increase in sales over the past six months. Ina Dreyer, from Jurgens Campworld, says: “We are currently experiencing a spike in sales – due to Covid restrictions and people choosing to stay in their ‘own’ accommodation rather than shared accommodation such as hotels and guesthouses.” This trend is echoed by Allan Keyzer from Aloe Caravans: “There is an improvement in the motorhome market as local citizens want to be to-
28
