5 minute read
Success Is Infectious
from Hotel SA May 2024
by Boylen
From the CEO
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As you may know, I was born and raised in country South Australia.
I am passionate about this state, the hotel industry – and making sure our regional members have the same advantages as our metropolitan members.
That’s why the success of this year’s Gather Round and LIV Golf events was so pleasing.
Gather Round was held during the Victorian school holidays, which provided an amazing result for hotels. Indeed it is fair to say that the timing of the event had a significant impact on the incredible success the event enjoyed.
For example, members in the South East said they had “never experienced anything like it before”. On the Easter Monday when trade is normally quiet, venues were booming. Some were sold out.
The AHA|SA has also called on the State Opposition – with whom we have a very good working relationship - to publicly provide bipartisan support for these events.
Gather Round’s success is infectious. This year it provided an incredible $8.3m accommodation uplift compared to a normal April. It has been backed up by LIV Golf - a great advertisement for South Australia, streamed into 67 countries – this is advertising that money can’t buy. We need politicians of all persuasions to back it in.
Events like LIV Golf and Gather Round benefit more than just golf and footy fans and the accommodation hotels and hospitality venues that enjoy the sugar hit they provide. They provide a return on investment to the state that boosts our economy and assists in funding other sectors in desperate need of resourcing.
Premier Peter Malinauskas, the architect of these events, talks about “the dignity of work”. Well, when hotels and pubs are full, that means more shifts for our staff, and the flow on benefits of money that enters and quickly re-enters the local economy, in turn creating further opportunities.
Our industry has a lot of dignity to give. As the Premier said some years ago about our total employee numbers: “26,000 people is not a small number.”
The Winter Void
Growing SA’s tourism, conference and cultural events remains a prime goal of the AHA|SA.
We’ve loved Mad March, Amazing April and Magnificent May. Now we need Jumping June because, to quote Game of Thrones, “winter is coming”.
South Australia is on a roll and we need keep the momentum strong – but each year, our hotels suffer through the winter months.
Our sector delivers in excess of $4 billion to this state's coffers. We are a key driver of the economy –a driver that stalls as we enter the black hole of winter.
I have spoken about having an “opportunity mindset” in previous columns and we must all be open to new ideas in order to achieve Jumping June, Awesome August and Sensational September.
Many ideas have been floated, including our President’s suggestion of a show stopping horse race that attracts the best jockeys, trainers and horses from around the country.
Again, bipartisan support will be crucial.
The Handbrake Tax
This industry suffered the brunt of Covid like few others. Some of our own didn’t make it. Many limped out of it. Most are repaying debt that was incurred while they were forced – by decree – to close their doors.
We are now facing a cost of living crisis, multiple rate and wages increases, energy and product cost increases and yet our members remain incredibly resilient.
We need a break – not a brake!
The twice-annual CPI excise on alcohol hurts our industry. It puts a handbrake on growth.
One influential media voice dubbed it “The Lazy Tax” and it’s clear that resistance to the unchecked increases on the humble pint is now gaining traction in the general community.
Behind the scenes, in Canberra and around the nation, hotels associations continue to push for at least a freeze - but in time this harmful tax must be reduced.
On A Happy Note
It was pleasing to see a judge rule in favour of the Lord Exmouth Hotel, in a case where a new neighbour tried to have live music shut down.
The Advertiser reported: “A Port Adelaide institution’s longstanding owners are celebrating a big win over a local NIMBY, with a court throwing out a neighbour’s case to effectively shut down their hotel over afternoon “soft rock” live music sessions.
“The Lord Exmouth Hotel at Exeter, known as the Monkey House to locals, has been serving drinks since the 1850s – making it one of the state’s oldest licensed premises. “Judge Gilchrist said pub owners Graham and Barbara Cox –previously described by former Australian Hotels Association general manager Ian Horne as “living history” – were “competent, well-respected publicans” and dismissed Ms McCarthy’s application.”
In NSW, they have laws to stop NIMBY neighbours from shutting down pubs with vexatious noise complaints, including protections from complainants who move into an area where a hotel has been long established.
It’s high time South Australia followed suit.