Two Sectors, One Industry
Victoria’s caravan park industry has constantly evolved since the first parks were built. Today this diverse industry spans two distinct but tightly connected sectors – tourist parks and residential parks.
The industry plays an essential role in Victoria’s tourism economy, the supply of affordable housing and regional development, contributing $2.4 billion to Gross State Product and responsible for employing 17,000 people. (Source: BDO report on the Economic and Social Contribution of Victorian Caravan Parks.)
Tourist Parks: The heart of Victoria’s holiday tradition
Tourist parks, often referred to as caravan parks or holiday parks, remain the foundation of the industry, providing a much-loved and affordable holiday for families and friends. More than half of all regional Victorian holidays are spent in a tourist park. These parks typically offer a mix of:
- powered and unpowered sites for caravans, motorhomes and tents
- short-stay accommodation including vans, cabins, villas and the increasingly popular glamping tents
- amenities and recreation spaces that support the quintessential Victorian family holiday.
Many tourist parks also accommodate annuals – holidaymakers who own their caravan or cabin and rent the site it sits on under a non-renewable 12-month annual holiday site agreement. This model allows families to enjoy an affordable, consistent getaway.
Some tourist parks are actually mixed-use parks, providing both short-stay accommodation and long-term living options. These mixed-use models have become an important contributor to the housing of many Victorians, particularly in regional Victoria.
Residential Land Lease Communities: A growing, affordable housing solution
Victoria has seen strong recent growth in Residential Land Lease Communities (RLLCs). These modern, purpose-built residential developments are designed for people seeking to ‘right-size’, age in place and enjoy a safe, community-focused lifestyle.
These communities:
- cater primarily to people aged 55 and over
- often offer resort-style amenities and strong community connection
- provide residency under Part 4A of the Residential Tenancies Act 1997
- feature unregistrable movable dwellings (UMDs), purchased by the resident
Under the land lease model, residents buy the dwelling and lease the land on which it sits under a Residential Site Agreement, paying a site fee to the community operator that supports the maintenance and provision of onsite facilities.
This structure offers an affordable and flexible pathway into secure, long-term housing without the cost of buying land and is increasingly recognised as a key tool to support Victoria’s broader housing goals, particularly in regional and peri-urban areas.
One Industry, Shared Purpose
While different in operation and who they cater for, tourist parks, mixed-use parks and residential parks are united by a shared history, regulatory landscape and contribution to Victorian communities. Together, they form a single, interconnected industry that:
- drives regional visitation and economic activity
- provides essential affordable and secure housing
- supports local employment
- strengthens community wellbeing and regional resilience
Caravan & Residential Parks Victoria is proud to represent and support businesses from both tourist and residential sectors within the park industry.
