11

RV Futures 16/05/2017

Presented by Stuart Lamont

State of the Industry

2

Our research is undertaken in partnership between the National Associationand the Individual State Caravan and Camping Industry Associations. This joint

investment allows the industry to undertake research at a level not seen previouslyto support advocacy, benchmarking and marketing initiatives across the country.

Caravan Industry Association of Australia is proud to work collaboratively witheach individual State Association to lead and champion a robust, compliant and

sustainable caravan and camping industry.

WORKING COLLABORATIVELY WITH STATE ASSOCIATIONS

3

General Trends

BACKDROPTO THE INDUSTRY

+ In Review

4

8 Issues Shaping the Global Tourism Industry T h e W o r l d i s a C h a n g i n g

Changing Business models and distribution systems

Augmented and Virtual Reality, Artificial Intelligence, Machine Learning

New Tourism and Travellers Digital TourismLow Cost Carriers, Aviation Routes, Alternative Fuel Vehicles, Driverless Cars

TransportPolitical (BREXIT, US, CHINA), Terrorism.

External Shocks

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5

8 Issues Shaping the Global Tourism Industry T h e W o r l d i s a C h a n g i n g

Inbound, Outbound and Investment Patterns EU and the right to travel

BRIC Economies Visas and Freedom of Travel

The new 30s and 55+ - the experience economy.

Lifestyle and Segmentations

Educational, Employment, VFR

International Tourism and Short-term Migration

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6

April 2016 April 2017

Industry Sentiment

7

Australia B a c k d r o p t o o u r I n d u s t r y

Leadership, policy and populism Influencing purchasing decisions

Politics Consumer ConfidenceShift in the Cultural Base and Rise of the Millennials

Demographic ChangesInterest rates, underemployment, household savings and disposable income.

Economic Conditions

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8

General Trends

MANUFACTURING

Softening market, yet 2016 was the second largest year for outputs in the last 37 years and represents the seventh consecutive period over 20,000 units.

+ In Review

9

Highest Recorded Output – 37,000 units

Lowest Recorded Output Highest Outputs

in 37 Years

Global Financial Crisis

RV Manufacturing 1975 to 2016

4500 Units

21,841 Units

(-3.8%)

10

Australian RV Manufacturing Outputs (Rolling Annual) and Monthly Percentage Change on Previous Year

18500

19000

19500

20000

20500

21000

21500

22000

22500

23000

-30%

-20%

-10%

0%

10%

20%

30%

40%

Jan-

11

Mar

-11

May

-11

Jul-1

1

Sep-

11

Nov

-11

Jan-

12

Mar

-12

May

-12

Jul-1

2

Sep-

12

Nov

-12

Jan-

13

Mar

-13

May

-13

Jul-1

3

Sep-

13

Nov

-13

Jan-

14

Mar

-14

May

-14

Jul-1

4

Sep-

14

Nov

-14

Jan-

15

Mar

-15

May

-15

Jul-1

5

Sep-

15

Nov

-15

Jan-

16

Mar

-16

May

-16

Jul-1

6

Sep-

16

Nov

-16

Tota

l Out

puts

Mon

thly

Cha

nge

on P

revi

ous

year

(%)

Comparative Monthly Growth Total Manufacturing Outputs

11

Tent Trailers

1%

Camper Trailers

19%

Pop Tops25%

Caravans55%

2016 v 2015 Towable Analysis

Tent Trailers

2%

Camper Trailers

18%

Pop Tops23%

Caravans57%

2016 2015

Caravan and Camper Trailer Outputs down 8% and 2% from 2015, Pop Tops Up 3%

12

2015 and 2016 Motorised Analysis

Up 19.8% - Growth in C Class Motorhomes (+26%) leading the way

A Class Motorhomes

1%

B Class Motorhomes

33%

C Class Motorhomes

53%

Campervans13%

A Class Motorhomes

0%

B Class Motorhomes

31%

C Class Motorhomes

55%

Campervans14%

2015 2016

13

Y/E January 2016

RV RegistrationsCaravans and campervans on Australia’s roads have been steadily increasing over the last five years, with caravan registrations growing by 30% since 2011 and campervans growing by 20%.

+ In Review

60,957

+4.42% +4.95%

554,344

Campervan Registrations

Caravan Registrations

14

General Trends

Visitor Economy

Record breaking year witnessed 21 consecutive periods of growth in domestic caravan and camping overnight trips in Australia.

+ In Review

15

51.6 million+16%

11.7 million+9%

4.9 million

-2%

355,167+12%

Caravan and Camping Key Figures 2016

Domestic Nights

Domestic Overnight Trips

International Nights

International Visitors

16Domestic caravan and camping visitor trips (rolling annual) and quarterly percentage change on previous year

-14%

-9%

-4%

1%

6%

11%

16%

Mar

200

0 Ju

n 20

00 S

ep 2

000

Dec

200

0 M

ar 2

001

Jun

2001

Sep

200

1 D

ec 2

001

Mar

200

2 Ju

n 20

02 S

ep 2

002

Dec

200

2 M

ar 2

003

Jun

2003

Sep

200

3 D

ec 2

003

Mar

200

4 Ju

n 20

04 S

ep 2

004

Dec

200

4 M

ar 2

005

Jun

2005

Sep

200

5 D

ec 2

005

Mar

200

6 Ju

n 20

06 S

ep 2

006

Dec

200

6 M

ar 2

007

Jun

2007

Sep

200

7 D

ec 2

007

Mar

200

8 Ju

n 20

08 S

ep 2

008

Dec

200

8 M

ar 2

009

Jun

2009

Sep

200

9 D

ec 2

009

Mar

201

0 Ju

n 20

10 S

ep 2

010

Dec

201

0 M

ar 2

011

Jun

2011

Sep

201

1 D

ec 2

011

Mar

201

2 Ju

n 20

12 S

ep 2

012

Dec

201

2 M

ar 2

013

Jun

2013

Sep

201

3 D

ec 2

013

Mar

201

4 Ju

n 20

14 S

ep 2

014

Dec

201

4 M

ar 2

015

Jun

2015

Sep

201

5 D

ec 2

015

Mar

201

6 Ju

n 20

16 S

ep 2

016

Dec

201

6

6

7

8

9

10

11

12

QTR Growth Total Domestic Trips

Tota

l Ove

rnig

ht T

rips

Qua

rter

ly C

hang

e fr

om P

revi

ous Y

ear (

%)

17

Domestic Caravan and Camping Dispersal

+19%

+14%+13%

+21%

+15%

+7%

+23%

18

Lifestyle Segments National – Domestic Caravan and Camping Trips

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Young/midlife no children

Parent with children still living at home

Older working

Older non-working

Market Share

Year ending December 2011 Year ending December 2016

19

Lifestyle Segments National – Domestic Caravan and Camping Nights

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Young/midlife no children

Parent with children still living at home

Older working

Older non-working

Market Share

Year ending December 2011 Year ending December 2016

20International Core Markets

21

International Visitors to Australia – Not Caravan & Camping

0200000400000600000800000

100000012000001400000

Visit

ors New Zealand

United KingdomUnited States of AmericaSingaporeJapanMalaysiaChina

22

International Expenditure in Australia – Not Caravan & Camping

0 2 4 6 8

China

United Kingdom

New Zealand

United States of…

Korea

Singapore

Malaysia

Hong Kong

Japan

India

Germany

Taiwan

Expenditure ($AUD)

Billions

2016 2005

23

Thank You