Vans get a push

Financial pressures are forcing families and young couples to look for cheaper ways to take holidays, according to Recreational Vehicle Manufacturers Association president Tony Bellamy. And that's making them think local.

The ongoing boom has encouraged Australia's largest maker of recreational vehicles, Jayco, to announce last week it is investing $35 million in a new factory and boosting staff by 150.

"Petrol prices affect the entire family budget, so people look at the most economical way to go on holidays, and it's still caravanning.

"The reality is the world oil price has an effect on virtually all forms of travel, whether it's by aeroplane or anything else.

"It hasn't affected sales because petrol or diesel is one of the lowest parts of the travel budget when it comes to caravanning.

"We've just had the Adelaide, Perth and Sydney caravan shows, and all had increased sales. The fuel price has not affected attendances."

Bellamy says other factors, including one of the major causes of world oil prices — international insecurity caused by war and terrorism — also work in favour of the local touring industry.

"With recent overseas events, people are wanting to travel in Australia because it's seen as safer," he says.

"There's also a kind of a return to family values that we're seeing now. Families are holidaying together more.

Bellamy says the industry hasn't quite returned to its glory days of the mid-1970s when more than 35,000 recreational vehicles, including caravans, campertrailers and motorhomes, were sold each year.

But it's been a dramatic rise from the industry low in the 1990s, when fewer than 5000 were sold annually.

Since then there's been an average 13 per cent annual growth each year, up to last year's 17,600 sales.

Bellamy estimates the number will be close to 17,000 again this year as the rise begins to level off.

"Caravan parks are still popular, but there's a move to offroad caravans, many with solar panels and satellite TV.

"The motorhome market is growing as well, even though they range in price from $70,000-$700,000.

"Traditional retirees are buying large caravans, but we're getting a lot of younger people, say 45 to 50, who are buying expensive motorhomes.

"A lot have higher incomes and are able to spend more."