Call for government rebate on new caravans

The Caravan Industry Association of Australia is proposing a government subsidy to reduce the cost of a new caravan or motorhome, as a way of stimulating the tourism and RV manufacturing sectors during the coronavirus pandemic.

CIAA CEO Stuart Lamont told The Advertiser that the Federal Government should consider subsidizing the cost of RV purchases to help boost domestic tourism spending. The proposal is for a 10 per cent discount on the cost of a new caravan, motorhome or camper trailer up to $150,000, paid for by the Government.

Lamont said an additional 3.2 million regional tourism nights could be generated for every 5000 extra RVs that hit the road as a result of the rebate.

He claimed the government hand-out makes economic sense as it would deliver "a $58 return for every $1 invested by the government".

“If people get a nice 10 per cent kick back in cash, they will go out and spend it while they are travelling," Lamont said.

"Australians need to be encouraged to get out and spend, and caravanning not only will provide benefits for the health and wellbeing of Australians desperate to get out in the great outdoors when travel restrictions ease, but will contribute significant returns to the Australian economy, not only in the short term but over the 17 year lifetime of each RV manufactured," he said.

Lamont also called on the South Australian government to follow the lead of Northern Territory and Tasmania and introduce a holiday voucher scheme to encourage regional spending.

The NT scheme gives eligible Territorians a travel voucher worth up to $200 if they contribute $200 of their own money during a trip. Tasmania is running a similar 'holiday at home' scheme with vouchers worth up to $100 on offer.

RV manufacturers and caravan parks across Australia have been hit hard by coronavirus restrictions in place since late-March. Caravan park bookings in many popular tourist regions have plummeted due to travel restrictions including state and international border closures, while more than 50 RV manufacturers have been forced to shut down for six weeks due to a Stage 4 lockdown in Melbourne.

However, many RV-related businesses have benefited from state and Federal government hand-outs designed to keep businesses afloat, including the JobKeeper wage subsidy.

Public responses so far to the 10 per cent rebate proposal have been mixed, with some suggesting that the move would encourage price hikes, similar to what has happened with state-based solar panel rebates and first home buyer grants.

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