Caravan Industry Victoria chief executive Daniel Sahlberg calls for more regional tourism funding

Victoria’s caravan industry warns regional towns will suffer as a result of a decline in camping trips and funding cuts to tourism marketing.

Victorian caravan bosses say the industry’s tourism potential is being ignored by the government

A sharp decline in caravan trips to Victoria’s regions could spell doom for the industry which has been “neglected” amid major cuts to tourism marketing funding, caravan bosses say.

A nine per cent drop in caravan and camping visits across Victoria last year has sounded alarm bells for the state’s caravan bodies which fear the drop since the pandemic could “hurt” regional communities.

Caravan Industry Victoria chief executive Daniel Sahlberg said regional tourism needed more support, claiming caravan holidays were “not being supported enough”.

“Going back a few years the (state) government created a 10 year strategic plan for tourism and caravanning and camping wasn’t even mentioned,” he said.

“They don’t understand how big the industry is and what it does in the tourism space in particular. That’s probably the underlying point.

“We know that caravanning has always been popular but it’s just not supported from a tourism perspective. We’re about nine per cent down in caravan and camping visitors to the regions.

“It’s about supporting what we have in our backyard and it’s an affordable way to do it and then we can spend money in the regions.”

Caravan Industry Victoria chief executive Daniel Sahlberg (left) says the industry’s tourism potential has been neglected. Photo Luis Enrique Ascui

In the year to June 2025 revenue for caravan, camping and cabin sites was $91.8m — nearly 10 per cent down on the previous year, according to Tourism Research Australia.

Likewise, occupancy rates at caravan and camping sites in Victoria have been below the national rate for every month this year.

It comes as the state government slashed funding for Visit Victoria destination marketing budget in the 2024/25 state budget from $32m a year to $15m over three years.

Mr Sahlberg said he feared Victorian tourism would lose out to the other states as a result.

“Queensland has the highest caravan registrations and we need to be telling them to come here for their caravan holidays, there’s so much that can be done in that space,” he said.

Terry Harbor, who manages the Numurkah Caravan Park, said caravanners often spent “three to four times more money” in the regional towns they stay in.

“People stay will stay one or two nights longer at our park because of our location and while I may get an extra $38 the town will get an extra $100,” he said.

“It’s the towns that really benefit.”

Likewise a recent evaluation done in Marlo in East Gippsland found caravaners spent about $400 in the town for every $100 spent at the caravan park.

Caravan and camping trips in Victoria have decreased by nearly 10 per cent.

About 93 per cent of Australia’s caravans and RVs are built in Victoria, with manufacturers employing nearly 10,000 people statewide.

Caravan Industry Victoria tourism manager Fiona Sweetman said the industry had failed to kick on after a boom during the pandemic.

“Pre-Covid we were the biggest domestic traveller within our state but that has changed,” she said.

“We’re selling caravans but people don’t know what to do with them.

“We’re in a spot where the government has done some goodie deals but really not spent Commonwealth Games money in the regions and tourism hasn’t had its flow down.

“We should be able to shout it out that we’re building these things that are easy to move around the state and we have wonderful short trips.”

In the most recent budget the Allan government allocated $6m to “nature based tourism” along the Great Ocean Road and $11m to regional tourism boards.

A Victorian Government spokesman said the state had a “huge calendar of regional events” to attract tourists.

“We want as many Victorians as possible to enjoy the great outdoors. That’s why we’ve provided strong support to the caravan industry and continue to invest in projects that attract more tourists to Victoria and provide more spots for caravans,” he said.