Baby boomers defined Baby boomers and the RV market Sector breakdown/ opportunity Industry contribution What does this mean to Tasmania

Baby boomers defined Born between 1946 – 1964 (Wikipedia) In Australia have been labelled Currently years (Bernard Salt ‘The Big Shift’) While in 1961 there were 3 million “Baby Boomers” in Australia, this swelled in 2000 to over 4 million through immigration

Characteristics Take leisure trips more frequently (Mackay 1997) More time and higher disposable incomes (Mackay 1997) Need for instant gratification (Mackay 1997) Generally fitter and healthier than previous generations (Mackay 1997) Seek meaningful significant and authentic experiences (Mackay 1997) The price for a leisure trip is less important than other factors (Malley 1998) Due to greater access to superannuation funds and greater opportunities to build personal wealth (ABS 1999), baby boomers do not face the level of limitation on their personal discretionary funds as previous generations Baby boomers will not retire, retirement is for “old people”. Boomers will never grow old; their parents grew old (Salt 2003) While in the process of ageing they will cling on to the last vestiges of youth (Salt 2003) Avid consumerism and a need to buy the latest gadgets (Townsend 1988)

7 million visitors (aged 18+) in the last 2 years

9.3 million Australians intend to holiday in our Industry in the next 2 years

Nearly 2.2 million baby boomers intend to holiday in the sector

Compared to 2.9 million Generation X

And 800,000 retirees

85% of Australians have visited at least once in their lifetime 42% in the last 2 years 69% of users expect online booking facilities

Are most important with additional features appealing to different segments Caravanning & Camping holidays are perceived as being easy to plan, simple, and offer very good value at all times compared to other accommodation

People are less likely to stay in free camps and more likely to stay in Caravan Holiday Parks

There are 424,153 Caravans registered in Australia (9,782 in Tasmania) (ABS) There are 50,653 Campervans registered in Australia (4,284 in Tasmania) (ABS) The ratio of caravans (89%) to campervans (11%) registrations has stayed the same between 2008 and 2011 (ABS) 7% of Australians have a desire to by a RV product within the next 2 years Caravan & Campervan registration across Australia rose by 14.56% between 2008 and 2011 to 474,806 registered vehicles (ABS)

Tasmania has nearly twice as many registered Campervans per head of population than any of the mainland states. (ABS) This is perhaps as a result of the costs associated with transporting vehicles and caravans across from the mainland A return trip for a vehicle and caravan from Melbourne to Devonport can cost $950 depending on the size - this is before passenger tickets are purchased A mid-range 2-3 berth campervan can be hired for approximately 10 days for the same price

The average age of Australian campervans in January 2011 was 17.8 years (ABS) This is the oldest of any vehicle type in Australia (ABS) 53% of campervans in Australia were manufactured before 1996

In 2010 Campervans travelled approximately 607 million km’s This is the equivalent of driving to the moon and back 790 times (ABS)

2,500 Caravan Holiday Parks (CRVA) 1,638 with greater than 40 sites (ABS) 45.2 million overnight stays in caravan holiday parks generating $1.3 billion (ABS) 69.3 million total visitor nights (TRA) 96% is domestic demand (TRA) 231,500 site nights available on nightly basis, over 106,000 left vacant (ABS) Average occupancy 54.2% (ABS) Industry contribution

76 Caravan Holiday Parks (CRVA) 46 with greater than 40 sites (ABS) 5,200 site nights available on nightly basis, over 2,300 left vacant nightly over March quarter 2010 (ABS) Average occupancy 54.5% (ABS) 272 direct employees (ABS) In Tasmania

Level of capital intensity is high (IBIS World) Industry is labour intensive (IBIS World) – requiring direct labour for taking bookings and reservations, settling accounts, cleaning, undertaking repairs and maintenance and personal interaction with guests High proportion of overheads to total revenue and so they are sensitive to changes in revenue (IBIS World) Integral component of local economy

In 2003 Kiama Council commissioned the Illawarra Regional Information Service to examine how the Kiama economy would change if 5 council Caravan Parks closed. Average Occupancy Rate 33.6% with Sales Turnover $5.3 million Generating 41 Full time jobs and $982,000 in Household income After the flow on effects of operations and the direct and flow on effects of tourist expenditure the total impact on the local community would be a loss of: $13.14 million of Turnover 119 Fulltime employees $3.2 million of Household Income

Of people interested in Caravanning and Camping, only 26% have holidayed in Tasmania in the last 3 years Of those who have visited Tasmania only 45.9% had a Caravanning, Motorhome or Camping holiday

72.9% of people would like to take a Caravanning or Camping holiday in Tasmania in the next 3 years

Actively mobile and have time Large numbers Interest in adventure & quality tourism Seeking value High propensity to spend Summary

Tasmania is a desirable location and has Caravanning capacity however access and quality are perceived barriers