Weak Aussie dollar fuelling growth in the domestic caravan and camping sector as more Australians shun international trips to holiday at home.

The Australian dollar is currently buying around USD $.0.77, a decrease of almost 20 cents over the last 12 months, making international travel a lot more expensive.

Ryan Lin, senior industry analyst for IBISWorld, told AAP an increase in domestic tourism is driving camping grounds, caravan parks and caravan dealers alike.

“It is becoming a lot more expensive now to travel overseas due to the low dollar,” he said.

“The travellers who are a lot more cost conscious may want to take a trip around somewhere at home as opposed to book costly travel to the United States or to Europe.”

IBISWorld says the trailer and caravan dealers industry has experienced strong growth over the past five years, thanks to retirees and young families taking more caravan holidays, but predicts that it will likely grow at a slower rate over the next five years.

According to the Caravan Industry Association of Australia, yearly Australian RV production levels for 2014 were the second highest in two decades. Current estimates suggest we are likely in for another record year of production.

Stuart Lamont, CEO of the Caravan Industry Association of Australia, said: “Our research shows that more and more, families are turning to caravanning and camping for leisure in Australia.”

“As more and more Australians hit the roads around Australia in search of that great Aussie holiday, local RV production will increase to supply demand. This is great news both for Australian manufacturing, and for the industry”.