The recession has caused difficulties for many people and companies the world over, however it now seems that the improvement of the economic climate in some countries is actually detrimental for the motorhome manufacturer and motorhome insurance industries. One company, Tourism Holdings, has recently announced that the amount of profit they predicted for the full year will now be lower than previously expected due to the fact that there has been a fall in demand for motorhome holidays from foreign tourists, as the New Zealand and American dollar is now stronger than before.
Previously, the company predicted that they would gain a gross year’s profit of $19.3 million, and a net profit of £6.7 million, however now they have stated that their full year profit up to June will be between fourteen and sixteen million Australian dollars before interest and tax, and a bottom line of between just three and four million Australian dollars. The company believes that most of the loss will come from the Australian market whilst the New Zealand and United States businesses will still gain the amount of profit originally predicted.
The company said: “The strong and sustained rise of the Australian dollar against currencies of core in-bound tourism markets is entrenching perceptions that Australia is an expensive destination.” The company have also claimed that tourists are now choosing to trade-in their campervans and motorhomes in order to buy cheaper models and that many motorhomers are now choosing to go to different countries on their travels. Currently, Tourism Holdings is the largest motorhome manufacturer in the Australian and New Zealand areas, which generates over half of the industry’s revenue, with their main competitor being Apollo which only gain a smaller amount of the market’s sales.
Motorhome holidays are generally thought of as cheap alternatives to traditional holidays; however one of the biggest costs of a motorhome holiday besides the vehicle itself is spending money whilst on location. Due to the very nature of motorhome holidays, travellers generally spend most of their money on food and petrol, which is difficult if the currency is extremely strong compared to that of your own country.