News

The caravan industry in Australia remains strong despite facing increasing challenges according to the latest Business Conditions Report from the Caravan Industry Association of Australia. The six-monthly analysis of the industry proves that Australia’s love of the RV and caravan lifestyle remains strong after picking up serious momentum in the pandemic, with current factors such as tightening household spending seen as a protective factor as it will limit international travel and allow domestic tourism to remain strong.

The strength in the industry is evident by the growth in the number of annual caravan and camping trips in Australia overtaking the 2019 levels, with 15.1 million trips and 60.1 million visitor nights recorded at the end of 2022.

Caravan Industry Association of Australia CEO, Stuart Lamont, said: “This is a significant milestone for the industry, as it is the first time that the caravan and camping visitor economy has surpassed 15 million trips and 60 million nights. These impressive figures not only reflect Australians' enduring passion for caravan and camping but also demonstrate the industry's collaborative efforts in providing diverse and tailored products and services.

“The caravan and camping industry have faced a challenging operating environment in 2022, like many industries around the country, the escalating cost of doing business due to inflationary pressures, labour shortages, and supply chain disruptions, resulting in an upsurge in material costs, overhead expenses, wages, and overtime pay, prompting businesses to increase their average selling prices. Despite these challenges the industry has continued to grow and push back against the tide.”

“We are really pleased to see the industry continue to track along a positive trend, we know the market is hotting up with increased competition from short-haul international markets and cruising. Once again, the industry is up to the challenge with a competitive advantage in its unique ability to adapt its products, services, and experiences to suit varying economic conditions, which will help to sustain its fundamentals and appeal to diverse segments of the market.

“We expect the next twelve months to remain complex for the industry, with a tight labour market and unemployment rate at just 3.4 per cent resulting in increased wages and robust consumption activity.”

Businesses across the industry share the sentiment from the broader community with concerns regarding financial, industry, and consumer sentiment. This is leading to Caravan Industry businesses expecting a slight weakening of the economy in the next six months. However, with businesses adapting to the current situation, there are still opportunities for growth and success in the caravan and camping industry.