From the President

DAVID BASHEER – AHA|SA PRESIDENT

Watch David's August Update Here: https://youtu.be/8KK17xtChZY

Proper Compensation Must Be Planned Now

The AHA|SA acknowledges and appreciates the $100 million support package for all business impacted during the seven-day lockdown. But as most other businesses get back to normal, hotels of all sizes have been left behind.

Even when we reopen, restrictions such as 25% capacity, sit down drinking and compulsory mask use make trading conditions marginal at best.

Hotel operators and our staff should not lose their income and in many cases, go into debt, while keeping their fellow Australians safe.

While hotels want to continue to play our role in a safe COVID-19 recovery, a ‘set and forget’ approach is not appropriate.

For as long as we have capacity limitations to our business, we need financial compensation. A revenue drop below 30% appears to be the established benchmark.

The AHA|SA believes an eligible business should receive support from $1,500 per week up to a maximum of $10,000 per week. Similar support exists in NSW and Victoria.

The AHA|SA is not a lone voice with key peak bodies for business, tourism, accommodation and wine regions joining the call.

CITY AND COUNTRY; NOT THE SAME

CBRE has revealed that office vacancy rates in the Adelaide CBD are the second highest in the country at 12.7%.

Border closures are crippling tourism and yet office workers are told to stay home. It is very clear that CBD venues, particularly accommodation venues must not be a victim of a set and forget policy.

Many of our regional and remote venues are paying a very disproportionate price for the ‘sins’ of the metropolitan area and certain regional issues.

I would urge the transition committee to make a more compassionate risk assessment when dealing with communities hundreds of kilometres away from any COVID-19 cases.

NON-ESSENTIAL?

As business realists we understand our operations will continue to be compromised for some time to come.

But if we are viewed as non-essential, subject to lockdowns and sentenced to loss-making restrictions, there needs to be a clear formula for financial protection from governments. In addition, it must be understood ahead of restriction changes.

The time for making it up as we go along is long past.

I am also putting on the public record my objection to the term “non- essential”. “Non-essential” is a term coined by the people making all of these decisions. They classify themselves as essential. They have not lost a single hour of salary. They do a fantastic job but they do not struggle to pay the rent.

On the other hand, in this ‘new normal’, apparently our family and small businesses are all non -essential.

That is very dismissive of the:

• $1 billion a year our members pay in wages

• $1.3 billion a year we pay to our supply chain

• $445 million we pay each year in taxes, levies and charges

• $4.3 billion we directly contribute to the Gross State Product.

WE NEED UNITY

This time last year, National Cabinet was lauded for its effectiveness. It was hailed as the model for future Federal and State Government engagement.

Twelve months later, businesses like ours that rely on the leadership of key decision makers in a time of crisis have sadly seen National Cabinet crumble to a loose affiliation of warring tribes. Our fate is in the hands of eight State and Territory Governments and their chief health officers.

Decisions resolved at National Cabinet seemingly never stick, adding to the confusion and anxiety of those of us considered non-essential.

PUBS WITH HEART

Thank you to all of our member hotels that are continuing to support the less fortunate in communities across the state.

On page 15 you will read a story about the latest donation made by Pubs with Heart (formerly known as Hotel Care). On behalf of hotels, we are helping the invaluable work down by Catherine House and the Hutt St Centre.

Since inception, the funding has provided over $21 million across 150+ South Australian causes – vulnerable groups, people with disability and childhood diseases to name a few.

Pubs with Heart was established in 1994 by the South Australian Hotel Industry and Licensed Clubs Association, through the Independent Gaming Corporations and generates a pool of funding through its hotel and club members to give back in the way of community support.

Pubs with Heart is exactly that – showing the generosity of industry to assist those in need. A generous industry willing to support others.

Our members with gaming machines have generously supported causes like Cranio Facial, Autism SA, Bedford, Blazeaid, SAHMRI, along with 1500 worthy causes. Also, over the past three years, we funded the purchase and installation of 150 life-saving defibrillators across SA country pubs.

Life is very difficult for many members as we battle COVID-19 and its consequences. Yet I am heartened that the generous nature of publicans continues to shine through. At an industry level and at a pub level, we continue to say “yes” when we are asked for donations.

Why? Because it is essential.