From the President

Issues of Importance

DAVID BASHEER - AHA | SA PRESIDENT

WATCH VIDEO: https://youtu.be/hWIUhfiIb5c

After two years of COVID-19 heartache, we are in calmer times with our doors open, our tills ringing and our staff again enjoying their work and trusting in job security. Today, the issues affecting our membership centre around regulatory overreach:

• interest rates - a concern, as debt in our sector increased by 15% during COVID-19

• rising power and wage costs

• inflationary pressures

• a worrying Federal Government IR agenda that will hurt our family-owned hotels most.

LABOUR SHORTAGES

As important as these issues are, they pale into insignificance in comparison with our acute labour shortage that is placing substantial constraints on our post-COVID-19 recovery.

As operators scramble for workers, they are forced to reduce trading hours, making fewer rooms available and baulking at business investment.

Make no mistake, our labour shortage was closing in on us well before COVID-19 exacerbated the crisis. If anything, the pandemic has saved the blushes of a succession of State and Federal Governments of both persuasions who long ignored our concerns - and we are paying the price.

More action - less theatre is required.

We did not need to wait for the talk-fest of September’s jobs and skills summit to enlighten us we should engage older workers back into gainful employment, nor that migration numbers and visa processing times were issues. The AHA|SA membership, having lived the problem, has been agitating those points for some time.

We were lectured at endlessly during the pandemic and told to pivot and be imaginative. Well, now it is the turn of our political leaders to do just that and search for solutions which may not be deemed appropriate in a more regular labour market.

Employing overseas workers cannot be at the expense of locals, however, right now, migration is central to our solution. The pandemic has laid bare previous concerns that migrants are stealing local jobs. When it comes to attracting overseas workers, we are the ‘lucky country’ no more.

After the damage our COVID-19 over-reaction inflicted on brand Australia, Governments must rethink their assumption that migrants will happily float back to our workforce. Their trust has been broken and, in a competitive global market, we are now seen as a difficult destination to do business with.

Employing overseas workers cannot be at the expense of locals, however, right now, migration is central to our solution

On April 3, 2020, Prime Minister Scott Morrison told our 200,000 foreign workers to go home. Overwhelmingly, they have not returned.

There are more than 100,000 unfilled job vacancies in the hospitality industry.

Only now are more resources being thrown into processing migrant visas that were taking more than seven months to clear the desks of the bureaucracy with fees up to $25,000 per application.

Migration caps will increase by 35,000 people through 2023. Unsurprisingly, we feel we need a greater number.

But there is an elitist focus on highly skilled migrants. Some of our industry’s needs are for skilled labour. The majority of our vacancies are in the semi-skilled space. We are calling for the introduction of a lower skilled visa category to ensure our members are not frozen out of the migration system.

Currently, we can only sponsor key roles like cooks and managers for two years. Increasing this to four years would provide a pathway to permanent residency, giving us the opportunity to retain international talent.

Highly sought-after experienced chefs are too often denied access to permanent residency due to being over 45 years of age. Increasing this age barrier, if only in the short term, would be an important win.

With migration caps lifting, it is critical South Australia receives its fair share of the migrant intake, and we await announcements from the Malinauskas Government, to ensure these workers are not lost to Sydney or the Gold Coast.

The AHA in South Australia has lobbied for a range of measures centring around education and training to relieve our shortages.

With our pool of workers dwindling, the mindset towards VET courses must change.

We acknowledge Education Minister Blair Boyer for acting upon our direct approach and, in a joint federal partnership, opening up 3000 fee-free positions here for TAFESA courses in hospitality and tourism next year.

Vocational education can no longer be regarded as the poor cousin of a university qualification.

Wider recognition is required to ensure a trade in hospitality is recognised as a noble and worthwhile pursuit.

The AHA|SA has long advocated the length and complexity of our four-year cooking apprenticeships do not fit our modern, fast paced and highly digitalised society, and the new working structures that have evolved from it.

Successive governments have ignored industry’s calls for a more nimble training system, and here we stand with chef shortages at a dangerous level and apprentice dropout rates at an unsustainable 50%.

This State’s fabulous food culture is under threat.

We need milestone payments to incentivise the Gen Z chefs of tomorrow to stay the course. It has been suggested by Federal Skills and Training Minister Brendan O’Connor that such payments should be prioritised towards the jobs of the future.

During COVID-19, AFTER our industry was sacrificed for the purpose of public health, we lost many of our staff. We are a priority right now.

Tools of the trade and other measures to assist young apprentices were strangely abandoned by the Weatherall Government and there is no more appropriate time than now to restore those important cost of living concessions.

To ease our staffing emergency, we implore Governments to deliver real solutions with practical outcomes - not populist headlines dressed up with big price tags.

BIG BROTHER

There remains routine calls for greater control measures in the sale of alcohol and use of gaming machines in our venues.

I am proud to be a member of an industry that takes its obligations in these areas seriously and responsibly.

Perhaps it’s a hangover from COVID-19 when Government have been in our lives like we could never imagine, but we have adopted a few meddling academics together with some politicians who have appointed themselves as our moral guardians and exert unreasonable influence over how we live our lives and run our businesses.

Once, Australians prided themselves on being fun - but common senseindividuals. Today, we have lost all proportion.

98% of Australians are not problem gamblers. Not everyone who raises their voice at the pub needs to have their alcohol consumption monitored or restricted.

I absolutely acknowledge we must look after the vulnerable.

That is a shared responsibility of industry and government.

So, too, education and information. We have a history of constructively working alongside government to develop appropriate safety measures and supports.

But once informed, most adults can decide what we will drink, when we will drink it, and how much we can safely drink without Big Brother sitting on our shoulders.

Just because we see the top of a poker machine from 50 metres away or a gaming advertising sign

Those who have the need to tell us how to safely live our lives, presumably live their own sensible life. They should trust the rest of us to do the same.

LIQUOR CONSUMPTION AND RESTRICTIONS

Governments that approach consultation with key stakeholders as an opportunity - not an obligation - always produce the best outcomes - and last the longest.

If the hysteria is to be believed, alcohol consumption is out of control.

Alcohol consumption per adult in Australia peaked in 1974 at 13.1 litres per year. Today, it has fallen to 9.5 litres per adult.

Over the past decade, with a greater focus on health and wellbeing, there has been a 40% shift in beer drinkers from full strength to mid strength alcohol. And our most recent phenomenon is the growth of zero alcohol products

Of course, the facts don’t suit the argument of these very impressively funded organisations whose agenda is to impose themselves onto our businesses.

Due to the trend of drinking less, the kids of this generation are drinking far more responsibly than many of us in this room did at the same age.

The difference today is any indiscretion is captured by a phone camera and splashed across social media or the 6 o’clock news.

Our industry has been pro-active in driving a culture shift in attitudes towards alcohol consumption. This has been achieved through measures including the independent

We don’t deny there are pockets of abuse. But knee jerk reactions to the sale of alcohol are both unhelpful and too often counterproductive.

The laws around liquor purchasing are quickly being tightened.

Restrictions have been introduced on the amount and type of alcohol that can be purchased in Ceduna, Coober Pedy, Port Augusta and Whyalla.

This regulation is being used as a tool to address alcohol-related harm and violence, along with anti-social behaviour.

Staff are required to scan a person’s driver’s licence and record where every liquor purchaser in those regions lives, along with the amount and items they purchase. Discussions about introducing similar regulations to the Adelaide CBD have commenced.

In 2022, South Australians require a license to drink.

If you are in an affected area wanting to buy alcohol for your daughter’s engagement party, or maybe a corporate wanting to entertain clients, consider the unintended consequences.

Under this regime, every individual entering a bottleshop is considered a problem and must have their identification scanned and recorded.

I hope the hackers don’t get wind of this.

History has shown this lowest common denominator approach too often mean the masses are penalised for the errant behaviour of a few.

The AHA|SA maintains that restriction of supply is a blunt instrument that simply moves the problem, rather than delivering lasting benefits.

We must find improved measures to support the health and wellbeing of affected families who are crying out for greater access to support and health services.

The problem is significant and complex and has resulted from generations of failure.

GAMING TODAY

Like many aspects of retail sales, gaming in our venues is performing strongly.

This has again led to hysteria surrounding the issue.

Some perspective is required.

For the past 20 years, revenue growth from gaming in our State has been at below-inflation levels.

In fact, the growth in gaming revenue is less than half of the growth in retail sales for the same period.

Like declining liquor consumption, these facts do not suit the narrative of the anti-gambling industry.

Calls for even more stringent regulations solely aimed at pubs and clubs, displays an ignorance to what is happening in the online world.

According to a 2022 report by Gambling Research Australia (a partnership between the Commonwealth and State governments,) gambling participation in Australia declined from 64.3% in 2011 to 56.9% in 2019. In that same period, online gambling has doubled from 8.1% to 17.5%. That same study found problem gambling rates online were more than double that of the traditional gaming cohort.

In 2011, 12.6 % of problem gamblers participated in on line activities. Staggeringly, that number had sky rocketed to 30.7% by the 2019 study.

The growth in online gambling has been driven by faster internet speeds, the convenience of betting on smartphone apps, extensive advertising and creative betting options- all of which is strictly prohibited in bricks and mortar venues.

South Australia’s pubs have long led the way with our customer protection package that includes:

• facial recognition – a harm minimisation measure the rest of Australia is now seeking to adopt

• automated risk monitoring that alerts staff to gamblers potentially betting beyond their needs

• a range of maximum bet and cash access restrictions.

The modest load up limits on gaming machines in this State are a world away from casinos or NSW pubs and clubs that have load up limits 50 times greater than allowed in South Australia. This means the risk of money laundering is virtually impossible in our venues.

Beyond that, the AHA|SA has its self-funded early intervention agency Gaming Care - brilliantly led by Anna Moeller - that has taken staff training and harm minimisation measures to be a nation-wide leading model.

Meanwhile, online gambling is allowed to flourish, with the proceeds overwhelmingly travelling offshore, on platforms with little or no player protection.

In an era when anyone can have a casino in their pocket, online gambling reform is considered too hard. Instead, our members remain the tangible target.

South Australian hotels pay the highest rate of gaming tax in the nation.

By comparison, the tax levied on that online casino based out of Uzbekistan is zero.

In 2017, our state was the first to introduce a point of consumption tax to be paid by online corporate bookies.

Other states have not only adopted this tax, but raised it to a higher rate than South Australia - allowing for a more level playing field

Queensland is now leading the nation and I commend the Palaszczuk Government’s changes that will ensure foreign-owned bookies, like Sportsbet, will finally pay a fairer share of tax.

It’s not just the Queensland racing industry that benefits from the changes. Queensland pubs thatlike us - rely on Pub TAB revenue, will also be more competitive.

It’s an important tax. If you make a living from Australians have a bet, you should contribute a fair go.

We call on our Government to initiate similar policies to Queensland that back pubs and the racing industry here.

TOURISM AND EVENTS

South Australia’s pre-COVID-19, $8.4billion annual visitor economy is recovering strongly, with some recent months topping prepandemic levels.

Before the COVID-19 wrecking ball, Adelaide had 3000 new hotel rooms committed, meaning achieving preCOVID-19 numbers should merely be considered Base Camp.

South Australians have also rediscovered their own backyard, and new regional opportunities await.

In a budget with many competing interests, we cannot lose sight of the fact that conferences, events and major sporting attractions transfer into money in the bank and extra hours on the roster for our staff.

We give great credit to a Premier who supports this and has demonstrated a willingness to get dirt under his own fingernails to bring the State to life.

$40 million over four years pledged to an event fund is a strong start.

Bravo on the return of the VALO 500. Bring on AFL’s Magic Round and LIV Golf where early ticket sales domestically and International have been phenomenal- and the State of Origin next May.

Premier….many in this room and their staff back in their venues are most appreciative of this important post-COVID-19 stimulation

There is such a positive return on investment with a significant multiplier effect for bars, restaurants, taxi drivers, tour operators, retail shops and more.

And we know visitors extend their stay to explore our regions and become advocates for the Statereturning back with their families.

We should not set limits to the events and conferences Adelaide can host. So Premier, I do look forward next year to remarking how South Australia has secured a Bledisloe Cup match, or in a change of pace--- maybe hosting a World standard flower festival rivalling the famous Chelsea Flower show.

THE NOISY MINORITY

Of course, there are people in this State whose preference is to preserve the peace at any cost.

Hate the thought of this beautiful city, or this state, progressing in any way.

A few are in the camp of University of SA’s Dial a Quote Professor, Adrian Esterman.

A man who, secure in the knowledge COVID-19 restrictions will never risk his academic salary, rejects the idea of events sustaining anyone else’s income for fear of the next COVID-19 case.

Sorry Professor, that ship has sailed!

For others, any thought of a bold proposal, especially if it involves infrastructure, is met with a reflex rejection.

As other cities become more dynamic, Adelaide remains stagnant to keep the noisy minority silent.

The city-changing Adelaide Oval redevelopment is a case in point. It was only approved by the skin of its teeth. Those who opposed it must feel pretty silly today.

Courageous leadership is required to remove that minority’s ability to veto crucial state developments.

Progress in this State is jeopardised when perfectly sensible plans like the Adelaide Crows shifting their base to first the Aquatic centre and now Thebarton are thwarted by paranoid short sightedness.

Now, I am not easily identifiable as a Crows’ apologist. I subscribe to the theory there are two types of football supporters. Those who barrack for Port Adelaide and those who wish they did.

But it sends the wrong message when an organisation that earns millions of dollars for our economy and gives so much back to the community, can twice be sabotaged by a few squeaky wheelers.

Much-needed new hospitals on previously forgotten sites or any building more than a few stories high, meet the same close-minded opposition.

I am not advocating for Adelaide to destroy its fantastic heritage and green spaces to become another Sydney or Melbourne.

But surely this debate can have a sensible centre.

Not every blade of grass in Adelaide is untouchable

I will guarantee not every proposed new development will trigger the end of civilisation as we know it.

With investment being driven away, if the next generation want to visit a bigger city, they will be packing their bags for Newcastle.

Adelaide rightly celebrates its past. That can not be at the expense of a bright and exciting future.

SOME ACKNOWLEDGEMENTS….

Bill Spurr AO

It was with sadness we learnt in July of the passing of a great friend and mentor to many.

Bill Spur was the most influential person in tourism and hospitality in South Australia over last generation.

He developed life-long friendships when CEO of the AHA|SA between 1982 and 1986.

Bill is remembered as a tourism pioneer taking many leadership roles including:

• The Adelaide Convention and Entertainment Centres,

• SA Tourism Commission

• The then Sealink,

• Study Adelaide

• Australian Major Events.

His death drew tributes from current and former Prime Ministers, Premiers, Federal and State tourism ministers, and Lord Mayors, along with many in this room. However, even the finest display flaws of judgement, and in 1986 Bill recommended a 29-year-old Ian Horne as CEO of the AHA|SA!

Bill’s wife Helen, and children Debbie and Craig, know Bill’s legacy will long be cherished.

Ward Matthews

The hotel community was shocked only a few weeks ago with the sudden death of Ward Matthews.

Part of the famed Matthews Hospitality Group, Ward is greatly missed at both a personal and professional level.

Our deepest sympathies are extended to Colleen, Lisa, Scott and their families.

Awards For Excellence

Congratulations to the Stirling Hotel, Loxton Hotel and Eos by SkyCity for achieving best in class in their respective categories at our State Awards for Excellence.

In a stunning achievement, the Bridgeport Hotel, the inspiration of Ian Tregoning and Graham Hobbs, beat the country’s finest to be awarded the best Hotel for Regional Australia at our national awards.

Greg Fahey

The most prestigious award our Association Australia-wide can bestow is the Johnnie Walker Hall of Fame. It was an honour to be present to see Greg Fahey inducted in Hobart.

This award is not handed out lightly and acknowledges Greg as one of the most influential hoteliers in the nation.

As comfortable talking to the plumber as he is the Premier, Greg now walks on the national stage with hospitality giants, and we are proud to count him as one of our own.

Bronte McCarthy

After serving as the AHA|SA’s finance manager of 18 years, Bronte McCarthy will soon retire.

A succession of AHA|SA office bearers have soundly placed their head on the pillow thanks to Bronte’s stewardship.

Thank you Bronte – you have been a rock for the Association!

THANK YOU

Thank you to our corporate partners, we can’t do what we do without your support.

We value our partnership with you both personally and the companies you represent.

To the AHA|SA Executive and State Council, thank you for your support and assistance.

Through COVID-19 you stepped up and made selfless sacrifices of your time to help get us trade under the best possible conditions. Your efforts continue to make a difference for every member venue in this State.

The AHA|SA membership is truly blessed to have a fantastic team looking after their interests, led by Ian Horne. Ian is a political juggernaut who knows what our political leaders are thinking even before they do.

He is ably supported by Anna Moeller and a team of dedicated professionals who are the best in the business.

MERRY CHRISTMAS

Ladies and gentlemen, thank you for the honour of your attendance today and the support you offer AHA|SA members. Here’s cheers for a Merry Christmas and enjoyable holiday season.

During this period, our thoughts will be with those affected by the River Murray floods and we certainly wish them well.

At this event last year, then Opposition leader Peter Malinauskas first outlined his vision for the management of COVID-19 should he be elected Premier.

We are grateful that upon forming government, he wasted no time in changing policy direction and his government has since held its nerve amongst calls for a re-introduction of restrictions.

In doing so, he has secured the future of those in our industry.