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Caravan Park Market Review - April 2006 ( 19/04/2006 )
Some operators are reporting an earlier than usual start to the
season, although the season proper will most likely not kick off in
full until after Easter and will again depend greatly on weather
patterns in the southern states compared to Queensland.
Issues relating to land tax, fuel and Local Government roadside stays
continue to be of concern to those in the industry and for good
reason.
Last season saw fuel prices have a differing effect on Park operators
depending on their location. Operators in the far north and west of
the State bore the brunt of the fuel price hike, as was to be expected
(an ordinary winter weather wise also did not help). However, those
in the southern parts of the state reported that tourists stayed
longer at their Parks than they otherwise would, as they curtailed
their distances travelled.
There may still be a lingering effect this season surrounding fuel
prices as recent reports suggest fuel prices are yet to stabilise. In
saying that, it is expected that destinations such as Cooktown and
Karumba, with improved roads, will no doubt be a drawcard this season
despite their distance and costs associated in getting there.
Land Tax is still a concern for many operators. As we mentioned in
our last newsletter, the State Government was willing to waive land
tax on Parks with 50% or more permanent residents whilst tourist Parks
would continue to pay full land tax. The Queensland Caravan Parks
Association continues to push for the abolition of Land Tax on all
Caravan Parks in Queensland, as has been done in Victoria and South
Australia. The fact remains however, that as at midnight on 30 June
2006 all non-exempt Park owners will be issued with Land Tax notices
based on the unimproved value of their subject property. As most of
you are aware, the majority of unimproved property valuations compiled
recently by The Department of Natural Resources and Mines (NR&M)
increased substantially and as such, this will be reflected in the
amount of land tax payable.
With respect to the NR&M’s valuations, it has been a concern of some
Park operators that the increase in unimproved land values will also
mean an increase in local council rates. A NR&M valuation does not
necessarily mean that a Parks rates will increase as this is only one
component taken into consideration by local councils when determining
what services are to be provided and the revenue required to do so.
Many of you would agree that council rates are high enough as it is,
so much so that in some areas Caravan Park operators have already
joined forces to lobby local councils to reduce obscenely high rates,
when compared to the rest of the state.
Local Government roadside stays and Council Showgrounds remain an
issue to operators. It is pleasing however, to hear that in some
areas, councils will not allow a tourist to stay at a Local Council
Showground unless that tourist can show that they have exhausted their
options with existing Caravan Park operators in the area.
Some Local Governments still maintain that their funded roadside stays
are more necessary than ever as Coastal Parks close for development.
However, in reality, the majority of Parks closing for redevelopment
are predominantly permanent Parks and as such, the impact is not as
great as one would expect.
There has been much debate recently on this topic and it’s
acknowledged that there are less tourist sites now than what there was
five years ago, however, alternate answers to roadside stays and
Council Showgrounds could be:
For Authorities to reduce costs to allow further development within
existing Parks;
For Authorities to reduce costs to allow development of Greenfield
sites;
Offer Council owned land to Caravan Park developers on a long-term
lease basis.
The above options are unfortunately, in a lot of cases, easier said
than done. State and Federal bodies continue to place tougher
regulations on existing operators, inhibiting their ability to expand.
Unrealistic and costly requirements have also been placed on those
looking to develop Greenfield sites.
Despite all of this, there is still a high level of enquiries from
southerners looking for a lifestyle change. With the 05/06 financial
year almost over it is a good time for people contemplating selling to
have their financial figures up to date and available for prospective
purchasers. Yields have continued to come down further again this
year, and this has again, pushed up prices.
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