1 Some general background notes for those new to the RV market travellers or as some say the Travelling Bank Accounts Presented by Ken Kipping AM, Director National Consumer Representative, Campervan & Motorhome Club of Australia Ltd and National Consumer Representative MoTOURing Australia For the Tasmanian Tourism Conference - - Launceston, Tuesday, July 17, 2012 Background The Campervan and Motorhome Club of Australia Limited (CMCA), with over 63,000 Members, is the peak representative body for the recreational vehicle (RV) tourist market in Australia. The Club continues to grow with over 800 new Members joining each month. CMCA was established in 1986, and proactively conducts research, infrastructure audits, and engages with a range of stakeholders to increase awareness within the industry of the economic value and needs of the RV tourist market. CMCA joined forces with several other Australian RV groups under the banner of 'MoTOURing Australia'. Representing as many as 500,000 domestic RV tourists, MoTOURing Australia was established to create a united and coordinated approach to the many issues that face this growing sector of the leisure market. The evolution of the modern self- contained RV, and the shifting expectations of RV tourists, has outpaced the capabilities and willingness of the traditional camping industry to satisfy growing demand. The newer generation of RV tourists are seeking an experience that offers freedom of choice along with a range of new options to satisfy their needs. RV tourists are looking for a unique experience; something more than the average tourist. They are now seeking a cultural, social and environmental adventure that is unique to regional Australia. It is critical that the demands of those wishing to explore Australia in a modern RV are matched by facilities developed to meet those needs in a responsible and sustainable manner. The RV lifestyle and industry enhances the quality of life experiences and social well- being of travellers through access to the unique beauty found in the natural environment and its landscapes. This contributes to mental and spiritual well- being.
2 CMCA has proven communication resources that include print and electronic media, that reach beyond our Membership. We communicate with RV tourists through our monthly magazine, The Wanderer. It features travel articles, industry news, Club news, Members Market, technical articles, new products from the trade and more. The Club produces an annual publication, The Wanderer s Mate. It includes a national list of RV Friendly Towns, dump points, and caravan parks that offer CMCA Members discounts. It also details many other Member benefits, useful guides on responsible camping, and is small enough to fit in the glovebox. The Club s comprehensive website has many features including a Member's Forum for RV questions, hints and tips. The CMCA website keeps Members up to date with Club news, and is an extensive source of information for RV travellers. CMCA also contribute editorial content to external publications and websites. Economic Benefits RV tourism has remained one of the most resilient markets during the recent economic downturn and is expected to increase over coming years, particularly as the baby boomer generation continues to retire. RV tourists are consistent spenders who purchase a range of household products and services. They spend an average of $572 per week when on the road. Their estimated spend per vehicle per year, based on an average of 197 days travel, is approximately $16,000 or $81 per day. It is important to remember that the RV tourist spends his/her money on a wide range of goods and services in a region and not just on camping fees alone. If made welcome in a region, many businesses have an opportunity to benefit from these tourists and the resulting flow on effect of the economic stimulus they offer. Those regions that permit stop- overs of 48 hours or more encourage tourists to stay longer, and have a far better chance of benefiting from an economic injection than those regions that limit stays to shorter periods. A 48 hour stop- over invokes an average spend pattern of $125. In tough economic times, every tourist represents an opportunity for regional businesses to tap into an income stream that would not otherwise be available to them. Income from tourists flows not only directly into the business itself but, in the form of wages and salaries, through numerous other businesses. This generates a flow on effect to the entire community and small regional towns as evidenced at Home Hill in Queensland, where it is estimated that the financial gain created by RV tourism is between $500,000 and $1,000,000 per annum.
3 So either directly or indirectly, tourist dollars can add significantly to the viability of small, regional areas that may be struggling. Given the relatively low costs of infrastructure, very few other initiatives can compare to the return on investment that is possible when deciding to develop RV tourism. This is a growing market, which is expected to expand by one third in the next five years. It would be prudent for state and local government and business to take heed, as the spending power of this market will have a significant impact on any town or business that wishes to embrace them. However it is equally important to note that if RV tourists feel unwelcome they will avoid any city or region that does not embrace their needs. Cultural Capital The RV tourism market plays an important role in the promotion of Australia s cultural capital due to the ability of this market to access remote areas of Australia s geography, which are often home to significant historical, cultural and Indigenous sites. The growth and attraction of this market for both domestic and international travellers alike represents the importance of this role and its potential impact on Australia s tourist industry. In a 2004 survey conducted by Balfour Consulting, travellers said the recreational pursuits they enjoyed were 'bushwalking, visiting heritage sites, national parks and museums.' This places a responsibility on the RV tourism market to ensure the protection of these unique areas of Australia s heritage and local culture to ensure the sustainable development of the RV market and the tourism industry as a whole. Human Capital Human capital is an important resource and one element of sustainable development is concerned with the impacts of health and safety on travellers and the communities that they visit. This includes appropriate management of infrastructure, hazardous materials, emissions, health requirements and disease generated by an industry s activities. CMCA manages this aspect by providing a framework for travellers to enjoy a safe, reliable and hazard free travel and lifestyle experience through the education and publication of Travel Safety Behaviours and Emergency Response Management. Community health and safety is managed and protected through the use of developed guidelines and programs such as the Dump- Ezy Dump Point Subsidy Scheme and the certified Leave No Trace Self- Containment Code of Conduct Scheme. Social Capital
4 Social capital is concerned with trust, relationships and social networks. A 2003 survey conducted by Balfour Consulting showed that 80% of local residents interviewed were very supportive of the RV market and appreciated the economic benefits, social interactions and inputs from travellers into community activities. The RV tourism market contributes to the development of social capital through a number of initiatives. CMCA and its 97 Chapters conduct a number of rallies and outings throughout the year, which develop social networks amongst travellers and the communities in which they are held. Rallies include special interest activities such as entertainment, training seminars and craft sessions, to which local communities and travellers can contribute. These activities develop local cultural capital, social capital and human capital through the skills training sessions. In March 2010, CMCA held its 24th Anniversary Rally at Carrick in Tasmania. This event attracted 2200 Club Members in 1000 RVs, over 800 of which travelled over from the mainland. The Rally injected millions of dollars into the state s economy with many Members staying in Tasmania for over six months. Local Tasmanian CMCA Chapter members also host combined Chapter rallies annually. These entice a number of mainland participants and RV tourists to the state. The 2008 event in George Town attracted 288 RVs with over 50 of these coming from other states. The spend in towns hosting these events can be considerable and the economic boost flows on to other regions as those from the mainland stay on to tour the state. Skills Utilisation of Available Human Capital The RV market also introduces skills and labour pools into the region. CMCA research has shown that almost 50% of Members participate in voluntary work of some kind. These travellers can act as a potential mobile workforce in regional areas and communities where seasonal demands or other factors contribute to shortages of labour or skills. The self- containment factor of many vehicles also eliminates the necessity for the provision of accommodation for seasonal workforces. In 2006 a summary report entitled Grey Nomads: A Potential Mobile Workforce was prepared for the Department of Employment and Training and Tourism Queensland in collaboration with CMCA to further investigate the feasibility and development of this potential mobile workforce. Key findings of the survey were: 60% were interested in undertaking paid work in some form, identifying the following key skill areas of use in rural and remote communities; - rural/fruit picking, building trades/labour - domestic cleaning, retail, teaching and health care (child/aged); and - 80% did not have a preference for which type of work. 50% were interested in undertaking voluntary work; and - Only 11% expressed a preference, with the majority choosing environment and land care related voluntary work.
5 CMCA has established a section on its website (www.cmca.net.au/volunteer) dedicated to accessing volunteer work while on the road. It includes links to established organisations that offer unpaid work around the country. In addition, CMCA s online Forum has a dedicated area where Members can discuss employment options, and there is a section within the advertisers marketplace dedicated to work opportunities and house minding. CMCA also runs regular volunteering articles in its monthly magazine, The Wanderer. Indigenous Tourism The role of Indigenous tourism will play a major part in the future of Australian and regional tourism. There is a growing demand and interest in Indigenous tourism, with domestic and overseas tourists seeking knowledge about the heritage of our traditional land owners and their culture, arts and crafts. CMCA has assisted in the support of Indigenous communities, with Members volunteering their knowledge and assisting locals with developing skills and enhancing community life. One project was assisting the Nywaigi people, the traditional owners of Mungulla Station, to cater for the grey nomad market. This is an ongoing project in partnership with the North Queensland Small Business Development Centre to develop Mungulla Station as a tourist destination. Our Green Credentials CMCA is proud to be an accountable Triple Bottom Line company and has developed and instigated many green initiatives for the RV travelling fraternity over the years. Carbon Emissions/Energy Use Initially, one would think that the RV market could be a major contributor to carbon emissions as the industry is literally driven by fuel consumption. The reality is that the total contribution of vehicles to carbon emissions in Australia is only 8%. This is further offset by the fact much of the RV market now operates on self- containment principles, which require efficient and on- board energy use. A vehicle s internal accessories, fridge, stove and lights are generally powered by gas, battery or solar energy sources. These energy sources create less carbon emissions than those generated by electricity production. Domestic energy use and subsequent carbon gas emissions on- board the RV are also less than gas emissions generated from daily energy use in households. Dump Point Scheme
6 Dump points address serious health and environmental issues, and allow safe disposal of grey and black water. In addition, self- contained RV tourists seek out locations with dump points, bringing tourism dollars with them. The safe and appropriate disposal of black and grey waste water is a basic requirement for RVs. CMCA has been involved in the installation of over 260 publicly available dump points across Australia through its own funding as well as grants from KEA Campers Australia and the Queensland, New South Wales and South Australian Governments. This number represents 40% of all public dump points across the country. To date, CMCA has installed 14 dump points in Tasmania. Leave No Trace Self- Containment Code of Conduct Scheme In 1994, CMCA introduced the Leave No Trace (LNT) Scheme, which is now available to owners of all qualifying self- contained RVs who are a member of an RV club. Participants sign a declaration to abide by an 11 point code of conduct whilst travelling. It is also available to those companies that hire self- contained RVs in Australia. Currently, there are 5,999 LNT accredited vehicles throughout the country. The Club proactively campaigns to promote environmentally responsible camping, demonstrating to key stakeholders, such as councils, the ability of the industry to leave no negative impact on the environment. To qualify for this Scheme, vehicles must be self- contained, meeting strict requirements for fresh, grey and black water holding capacity, as well as storage capacity for garbage waste. It also requires that self- contained vehicles retain all waste on board and Leave No Trace of their visit to a site, aiming to leave only tyre tracks. A declaration is signed by vehicle owners and the vehicle is identified by a logo affixed to the vehicle. Non- compliance is subject to penalties. Councils throughout Australia have embraced this Scheme, and many have been more amenable to opening up new rest areas based on the fact that todays self- contained RVs cause little or no impact on the environment. CMCA actively encourages its Members with self- contained vehicles to join the Leave No Trace Scheme. The Club s green credentials have been widely acclaimed by local, state and federal government departments. RV Friendly Town Scheme The CMCA RV Friendly Town Scheme is a national programme that encourages RV tourists to visit predominately rural and regional towns. There are currently 161 RV Friendly Towns throughout the country, with 25 of these located in Tasmania. Introduced by CMCA in 2006, this Scheme is aimed at all RV travellers as they journey throughout Australia. An RV Friendly Town (RVFT) is one that meets a series of guidelines and provides a high level of amenities for RV tourists.
7 Travellers can visit any RVFT with the knowledge that they will be welcomed and adequately provided for. CMCA research has found that Members are more inclined to stay in an RVFT than a town not participating in the program. One of the criteria for a town to be approved for RVFT status is the provision of longer term parking within 5-10 kilometres of the town centre, at a reasonable rate. The RVFT Scheme involves working together with councils and other authorities who recognise the benefit of investment in facilities to enhance the travelling experience for RV tourists. Towns that participate in the Scheme are also welcoming to RV travellers, encouraging them to stop and shop in the town, and in turn generating economic benefits for regional businesses. Australian RV Camping Forum In March 2011, CMCA convened a meeting of private and government stakeholders to try and find ways to address issues arising from the rapid growth in RV tourism. Representatives from Australian RV hire companies, plus government and associated organisations attended the meeting. All agreed that by working together we can start to address the issues facing the RV tourism industry and it was resolved to form the Australian RV Camping Forum. The main objectives will initially be to create a code of conduct for all RV tourists who hire vehicles, to create a website that can be linked to each hire company, and a government website that informs hirers of their obligations whilst travelling in Australia. Conclusion RV tourism is a growing market expected to expand by 30% in the next five years. The question is; are Tourism bodies, state and local governments ready for this influx of RV tourists, which are already struggling for adequate infrastructure? We are coming - are you ready - or not?