CIAA Voice: Caravan and Camping State of Industry Report 2022

Caravan and Camping State of Industry Report 2022

In 2021, the caravan and camping industry achieved record highs across all areas, contributing a staggering $23.8 billion to the Australian economy.

While the caravan and camping industry was fortunate to weather the economic fallout of the COVID pandemic bett er than many, some downturn still occurred. However, the sector experienced a strong rebound in response to the nation’s pent-up desire for travel, even despite the challenging and uncertain operating conditions. The most recent Caravan and Camping State of Industry Report reveals that the caravan and camping visitor economy generated 12.6 million trips (over 19 percent), 50.6 million visitor nights (over 23 percent) and $7.4 billion (over 29 percent) in visitor expenditure for 2021. Compare this to the growing but constrained growth of the overall domestic visitor economy, which only grew by 13 percent in trips and 17 percent in nights. In fact, the caravan and camping sector took the number one spot in 2021, supplying more holiday nights than any other accommodation type nationwide. Showing that Australians don't stop travelling, they just change how they travel. Caravan park occupancy levels also hit the ball out of the park, exceeding pre-pandemic levels across all site types. national occupancy for cabins increased by eight percentage points to 52 percent compared to the previous year. Powered sites occupancy was recorded at 44 percent, nine percentage points higher than in 2020. With record occupancy levels, comes revenue growth. $2.2 billion in revenue was generated by caravan parks in 2021, an impressive increase of 30 percent, equating to an extra $522 million compared to 2020. The family market remained the largest lifestyle segment, taking 4.5 million trips (over 23 percent) and generating 16.4 million nights (over 25 percent), beating the ‘Older Non-Working’ segment in nights generated for a second year running. Shorter trips continued to dominate in 2021, with trips two to three nights long accounting for 43 percent of all trips. We did however see a strong rebound in growth in the ‘Older Non-Working’ segment, (22 percent increase in trips and a 24 percent increase in nights), indicating that some confi dence towards long-haul travel has started to return.

Turning to manufacturing, recreational vehicle manufacturing broke a fourdecade-long manufacturing record, reaching 23,931 units in 2021, an astonishing 42 percent increase from 2020 and even a 12 percent increase compared to pre-pandemic conditions in 2019.

This has been the largest volume of RV production seen since 1979 when the impact of cyclone Tracy increased demand for portable housing. Add to this a startling 79 percent increase in the supply of imported caravans and the result is over 42,000 recreational vehicles entering the market for the year. Recreational vehicle registrations also grew, seeing an increase of 4.2 percent overall and 4 percent in new caravan registrations. As of January 31, 2021, recreational vehicle registrations in Australia totalled 772,598. The resilience of the industry in times of crisis is underscored by the fact that these record heights were achieved against a backdrop of COVID-19 travel restrictions, state border closures, business lockdowns, international supply disruptions, and a diminished labour force. This further emphasises the importance of the sector in how it can, and has, supported the Australian economy when other sectors falter.

It is not surprising that caravan and camping has recorded these strong numbers with Australians still looking for safe, aff ordable, and memorable holiday experiences that will satisfy their holiday needs, especially in the absence of international travel. The caravan and camping industry remains uniquely positioned in being able to off er product, services and experiences that can adapt to diff ering economic conditions and cater to varying tastes and budgets. Thus, despite global uncertainties and rising infl ation having impact on consumer confi dence we continue to remain very optimistic about the future of the industry and the contribution that it makes to the health and wellbeing of Australians in the economies of many regional and rural communities around the country.

Stuart Lamont

CEO, Caravan Industry Association of Australia

Australians don't stop travelling, they just change how they travel