Caravan park investment: A smart bet with big payoffs
Stuart Lamont, CEO of CIAA, challenges Canberra to back a sector that consistently delivers when investment is made.
By Stuart Lamont, CEO of Caravan Industry Association of Australia
When it comes to business, one principle still rings true—regardless of industry, if you don’t invest in the future, you won’t have one. This couldn’t be more relevant to the caravan and holiday park sector.
The real and tangible link between operator upgrades to parks—whether by adding new cabins, improving accessibility, or enhancing recreational facilities— they are making a calculated bet that consumers will respond. And time and again, the evidence shows they do.
First published in the new Autumn print edition of AccomNews HERE
Yet, despite this clear return on investment, too often the infrastructure that supports our nation’s drive tourism economy is overlooked when it comes to its ability to deliver sizeable outcomes for regional growth and economic development.
As we work through the federal election process, there is an opportunity—indeed, a responsibility—for government to recognise that caravan park infrastructure investment is more than just spending. It is an investment in business growth, in tourism expansion, and in the regional economies that depend on them.
As much as we have seen growing private funding in the sector, it cannot be relied upon to lift all boats. While we have seen an explosion of well-targeted corporate investment, the sector in many cases is still largely tied to tight operational budgets out of small independent operators with limited ability to draw down on deep equity pockets to expand their offering.
In too many cases, parks are forced to delay or scale back much-needed upgrades, missing opportunities to grow and strengthen their business. This is where well-designed government funded programmes can make a difference—accelerating business investment, expanding capacity, and ultimately driving financial returns.
We’ve seen this firsthand through the success of the Albanese Government infrastructure upgrades grant, a programmes that helped over 100 park operators upgrade and expand their offerings and which kickstarted investments equivalent of 3:1 to the government seed investment.
The results are also striking, with operators who received funding overwhelmingly reported increased bookings, nearly half of which seeing double-digit percentage growth within just six months of completing their projects. That is not speculation—it is proof that when investment happens, returns follow.
More importantly, these returns extend beyond a single park’s bottom line. When a caravan park attracts more guests, the entire local economy benefits. Tourists don’t just stay within the park gates—they visit the local café, fill up at the petrol station, buy groceries from the independent grocer, and stop at local attractions. The caravan park is often the anchor that draws visitors into town, supporting a web of local businesses that rely on tourist dollars to survive.
One of the most exciting aspects of investment in caravan park infrastructure is how it broadens the market. Australians love to travel, but not all accommodation options are accessible or affordable for every demographic. Caravan parks have long been the great equaliser of tourism, providing an affordable and flexible way for families, retirees, couples, and solo travellers to explore the country.
Targeted investment expands this inclusivity. In recent years, we have seen a surge in parks upgrading accessibility features, ensuring that more Australians—regardless of mobility challenges—can enjoy the road trip experience. Investment has also supported the development of new family friendly facilities, helping to attract younger generations and secure the future of the industry.
These are not just feel-good outcomes; they are commercially strategic decisions that widen the consumer base and create long-term revenue stability. The added advantage of strategic investment in caravan park infrastructure is that its benefits ripple far beyond the park itself.
It directly supports jobs—both during the construction phase and in ongoing operations. Many parks that have undergone upgrades have had to bring on extra hands, whether for maintenance, cleaning, or front-desk operations.
But the real employment story is bigger than that. Local tradies get the contracts to build new cabins. Local
suppliers provide the materials. Small businesses in town see the effects as more visitors flow through their doors. In regional areas, where job opportunities can be scarce, even a handful of extra positions can make a meaningful difference, with the multiplier effect seen many times over.
Now is the time for policymakers to recognise the immense value that targeted infrastructure programmes for the caravan park sector brings—not just for operators, but for regional Australia as a whole. The current funding programmes have delivered strong results, but there is clear demand for more, with the most recent programme heavily oversubscribed.
Further to this, the majority of operators who have already received support say that if additional funding were available, they could have expanded their projects even further, delivering even greater returns for their individual businesses and their surrounding communities.
What’s needed now is long-term commitment. Caravan parks are a critical part of Australia’s tourism infrastructure, yet they often fly under the radar in government tourism strategies. That needs to change. A federal government serious about regional development should see investment in the sector as a no-brainer—it is a low-risk, high-return opportunity that supports local businesses, drives domestic tourism, and strengthens regional Australia.
The return on investment is clear, the economic benefits are undeniable, and the demand is there. Now it’s just a question of whether those in Canberra are willing to back an industry that has proven, time and again, that when investment happens, real results follow.
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Why Attend? Our industry is facing some of the most interesting times in recent history. Geopolitical tensions, economic uncertainty, climate concerns and the rising influence of artificial intelligence are just some of the factors reshaping Australia’s caravan and camping sector. It’s crucial to adapt your operation to this changing landscape. The 2025 Caravan Industry National Conference will provide you with the insights and tools to do just this.
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