Resort News - July 2019

Registered by Australia Post Print Post No. 100023799

Issue 275 | July 2019 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

Cover Profile Focus Apartments: Reparation from within

www.accomnews.com.au

Secrets on the Lake: A magical woodland haven

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The legal stuff...

The views and images expressed in Resort News do not necessarily reflect the views of the publisher. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. We recommend professional advice is sought before making important business decisions.

Inside our July issue Front Desk Editor's Note: It’s a small world......................................... 05

Advertising Conditions

Industry

The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement. The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material.

News in Brief............................................................................. 06

Disclaimer Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein.

Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law.

Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2019 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

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Person of Interest: Mike Phipps – Modern-day transformer.........................10 ARAMA Report: Protecting consumer funds in accommodation...................................................................12 State Report: NSW Trust accounts................................................................13 BCCM Report: Part 1 – Annual general meetings: Meeting basics and key timeframes.................................................................14 SCA Report: Apartment owners have their say......................................15 Management Legal Ease: Schedule of duties – good or bad?....................................16

By All Accounts: Single touch payroll extended to all employers........... 17 Thinking MR: The tired stock challenge......................................................18

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Motel Market: Booking direct – making it happen.................................. 20 Fire safety: Active v passive.................................................21 Intonet: Have a go with Google.......................................................... 22 Housekeeping speed and efficiency hinge on planning ahead......................................................................... 23 Special Report: High-rise rectification: Build quality in the spotlight............................................... 26 Harnessing the full potential of your PMS software............................................................. 34

PO Box 1080, Noosaville BC, Queensland, Australia 4566 Phone: (07) 5440 5322 Fax: (07) 5604 1680 mail@accomnews.com.au www.accomnews.com.au

EDITOR Trish Riley, editor@accomnews.com.au STAFF WRITERS Kate Jackson

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DESIGN & PRODUCTION Richard McGill, production@accomnews.com.au

PMS Case Study: Ivory Palms Resort.............................. 38 Tourism Tourism Report......................................................................... 40 Tourism International............................................................ 42 The Last Resort........................................................................ 43 Events & Appointments Events........................................................................................... 44 ARAMA Industry Events Calendar................................... 45

ADVERTISING Stewart Shimmin, advertising@accomnews.com.au

People.......................................................................................... 46

SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au

Development News.................................................................47

CONTRIBUTORS Andrew Morgan, Arvo Elias, Bob Hook, Chris Irons, Col Myers, John Mahoney, Jonathan Hanaghan, Mike Phipps, Simon Barnard, Trevor Rawnsley and Victoria Rosenthal.

AccomProperties Sales Report......................................... 50

Developments Property New Manager Profiles: Bargara Blue, Bargara & Carrington Court.................... 50 Agent Profile: Charles Nurse, Stratacorp................................................... 52 Profiles

KEY Commercially funded supplier profile or supplier case study Supplier information or content Suppliers share their views in one-off, topical pieces General editorial. Case studies and features may cite or quote suppliers, please be aware that we have a strict ‘no commercial content’ guideline for all magazine editorial, so this is not part of any commercially funded advertorial but may be included as relevant opinion. Happy reading!

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60 FRONT DESK

Focus Apartments: Reparation from within......................................................... 56 Secrets on the Lake: A magical woodland haven................................................. 60 Preferred Suppliers The Preferred Supplier Directory...................................... 62 ResortNews | July, 2019

EDITOR'S NOTE

It’s a small world…

I appreciate that this subject has been covered before and as adult business owners we all have a fair grasp on the importance of communication, but typically, we don’t talk too much about the things that are going right – what people talk about are the difficulties, the problems that we can’t sort out ourselves so we look to others to share them with.

We network. We seek counsel.

We communicate…

The crux though is to ensure when you do reach out, that you are speaking with the right person/s, and that you’re not relying on ‘third-hand’ feedback from someone who may or may not understand your specific circumstances, or the implications of their advice.

Typically, the more complex the issue, the greater the need for a specialist industry perspective.

“conversationally competent,” the level of industry knowledge a professional commonly needs in order to be effective in applying their learned expertise in the industry.

Trish Riley, Editor editor@accomnews.com.au In reality, managers are rarely looking for industry expertise in the sense that a professional is an expert in key technical or operational aspects of their operation. An attorney is not going to be an expert in establishing maintenance or housekeeping programs or expediting a channel manager.

When we talk about professionals having industry expertise, we are really talking about their ability to understand the implications of industry issues and apply deep professional expertise, be it legal, financial, technology etc., to that issue.

Perhaps a better term would be

Despite being a trillion dollar sector, covering 2.6 million lots and directly employing 9000 people nationwide, the actual size of the community-living (strata/management rights) industry remains relatively small in terms of influencers, and it has the unique benefit of having a core number of specialists that have grown with the industry since it began, as well as those who joined along the way and have developed a passion for advancing it and seeing it succeed.

As an industry we still have access to those who have been instrumental in guiding and even driving legislative change, ensuring that the industry is represented where it counts and taking positive steps to regulate and improve the conduct and professionalism of the sector.

We have industry associations and support networks that

have established training courses, networking and resources that have helped bolster participants industry knowledge and give them the confidence to engage and with governing bodies, owners, guests and the greater market.

True involvement therefore is really the yard-stick for industry expertise, and you are encouraged to take advantage of it. Reach out to those in the know when you need to, the chances are they will have a far greater understanding of the broader industry and your particular circumstances than you might think.

To this end, ResortNews will be introducing a new section where readers will be able to raise questions about topical and current industry issues that we will then pose to a panel of experts – and that way we all benefit.

Do let us know how we can help, and as always, your comments and feedback are appreciated.

Please enjoy this issue.

Our Selection Centres are truly unique and have been created to inspire and inform builders, developers, architects and plumbers within the construction industry.

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NEWS IN BRIEF

How open banking will reshape lending In what has been described as a “seismic shift,” July 1 marks the beginning of the transition from a closed banking system where each financial institution keeps and controls its customers’ information, to an open model in which consumers have control of their data and can share it with any institution they choose.

Over the next two years, a phased implementation of open banking will be carried out, with the majors leading the way. According to two authorities on the matter, open banking will not only “take the friction out of banking,” but will lead to the rise of a whole new class of products and services as it restructures competition in the financial sector.

Open banking will directly address many of the concerns around responsible lending, a topic that has dominated the industry space, with ASIC recently announcing plans to update its responsible lending guidelines.

“This is one of the big issues in Australia from the royal commission. For responsible lending, you need to be able to verify income and expenditure.

Open banking enables you to do that because you can go through and see the transaction

information to improve their ability to make comparisons between the banks easier to understand,” said Wiebusch.

data, and see exactly where money is actually being spent,” said Stuart Stoyan, founder and CEO of MoneyPlace and member of the Federal Treasurer’s Fintech Advisory Group.

This true verification is crucial as even the best-intentioned borrower often struggles to remember and recount their expenses with full accuracy.

Stoyan continued, “Consumer advocates will argue, ‘There will be a cohort of people that are going to become unlendable because you’ve got all their information.

What do we do about that?’

“Well, that’s what it means to be a responsible lender. If somebody is in a position where they should not get a loan, and the data shows that, then they shouldn’t get a loan.”

However, the risk-based pricing that seems likely to arise as a result of the new environment also has the potential to bring more customers into serviceability.

“While higher-risk customers will potentially pay a higher price, the benefit could be that they get access to finance that they would otherwise not have been able to access," said Paul Wiebusch, Deloitte Australia’s open data lead partner. The sharing of data will also likely push organisations to identify and address currently unmet needs that are made more apparent through the new system.

“Open banking pivots the basis of competition from a productbased mindset and focus, to a customer mindset and focus.

When a broader range of banking organisations have access to data, it facilitates opportunity for new ideas around product and services that can be created to deliver value to consumers,” said Wiebusch.

Additionally, financial institutions will begin to share their product information as well.

“That enables organisations, price comparison websites, or other third parties, to get standardised

This will assist borrowers in finding the product or service that best meets the needs of their unique set of circumstances. “Data being available, accessible, and digestible makes advice focus more on value-added as opposed to just helping you navigate the myriad of options that are available,” he said.

Further, open banking will make financial advice more accessible, as the easier processing of data and ensuing decrease in necessary manpower means that insight will be made available even on lower value products or investments that might not otherwise have been deemed worthy of attention.

“One of the biggest inhibitors to open banking is customer adoption,” said Stoyan, who went on to say that 60 percent of those surveyed would consider utilising open banking, while 40 percent refused outright.

He explained, “The key element that will drive the take up of open banking in Australia is the ability of organisations to deliver value to the consumer [as a result of their data], and to be able to communicate the value that they are creating in a way that is convincing to consumers and brings them on board.”

Source: Broker News

Population growth driving greater housing demand According to recent analysis of ABS figures

by CoreLogic, the last 12 months to December 2018 saw population growth increase by 1.6 percent.

This marks the largest increase in raw number terms since September 2017 and also the third quarter in a row to see the rise in annual population figures increase over the previous quarter. Overseas migration was

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responsible for the most amount of population growth, followed by natural growth, according to the data. CoreLogic research analyst Cameron Kusher noted this year’s natural growth of 156,337 is at the highest level since March 2015 and 8.5 percent more than the year prior. Meanwhile, net overseas migration is at 248,446 people and sits at its highest level since September 2017. Mr Kusher pointed out that population growth is strongest in New South Wales and Victoria. “Population

increase in New South Wales is primarily driven by natural increase and net overseas migration, accounting for 37.0 per cent of national net overseas migration,” Mr Kusher said. “Victoria has seen 34.6 percent on net overseas migration nationally over the past year and has also recorded the second highest rate of net interstate migration (behind Queensland). “Over the coming quarters, it is expected that similar trends will continue with strong population increases in New

INDUSTRY

South Wales and Victoria driven by overseas migration and strong rates of net interstate migration for Victoria and Queensland.”

In addition, Mr Kusher said Victoria, Queensland, Tasmania and the Australian Capital Territory are all seeing positive rates of net interstate migration, with more people arriving from interstate than leaving. All of this growth, he noted, is generating more housing demand.

Source: Smart Property Investor

ResortNews | July, 2019

Expedia splits from Booking.com on controversial commissions Expedia will not follow Booking.com’s lead and charge commission on the controversial booking fees imposed by numerous international hotels, a senior figure has revealed.

The platform will instead downgrade in its website sort order the hotels that charge such fees.

Three weeks ago, Booking Holdings began charging commissions on the resort fees widely condemned by customers as hidden charges for services such as pool and gym use, wifi access and newspapers.

While resort fees are illegal in Australia, they are a rapidly growing feature of the US accom industry and are also charged by properties throughout Canada, Mexico, the Caribbean and the United Arab Emirates. It is alleged hotels use the charges to disguise the true cost of a stay, making rates look more appealing on

charge resort fees will be. Ranque revealed Expedia teams were actively working on placing hotels that charge resort fees lower in the sort order on the company’s websites, the partnerships chief saying he believes resort fees have a detrimental impact on traveller experience. price-comparison sites and until recently, avoiding paying OTA commissions on the additions.

Expedia lodging partner services president Cyril Ranque told Skift that Expedia had heard from “several disenchanted and even furious” hotel partners about Booking.com’s move to impose commissions on hotels’ resort fees.

“Booking’s unilateral and, frankly, blunt move is pretty typical of their playbook with hotels,” Ranque told the media company.

“We’ve seen this many times in Europe where their position allows

them to get away with this kind of approach. And this is simply not how Expedia Group conceives the partnership we want to have with the lodging industry.” While it has long faced global industry ire over the levels of its commissions, Ranque believes Expedia’s current relationship with hotels is better than it has ever been. In Australia, the group won kudos this year for ditching rate parity clauses in its contracts with accom operators – although most believe failure to maintain rate parity will see them ‘darkened’ in the same way that Expedia says hotels continuing to

He told Skift that Expedia sought to “reduce the level of anxiety” among hotel partners that Expedia would match Booking’s policy and impose commissions on resort fees, which provide a substantial source of revenue and profit for some properties, such as those in the competitive tourist markets of Las Vegas and Hawaii.

Asked about the potential lost revenue from resort fee commissions, he said some properties are reducing availability or not using Booking.com while giving Expedia more business, leaving the platform “in a good position” long-term.

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July, 2019 | ResortNews

hotelinteriors.com.au • 1300 876 055 INDUSTRY

07

Property investors missing out on big tax cuts Analysis has found Australian property investors are, potentially, not claiming a collective of nearly $3 billion in tax deductions.

Analysis from MCG Quantity Surveyors found that property investors could be missing out on deductions of approximately $20,537 if they aren't using a depreciation schedule at tax time.

These projections are based on estimations and analysis of data from 1,000 investors in the MC Quantity Surveyors database.

For managing director Mike Mortlock, the results were “an extraordinary outcome”.

“If you extrapolate our findings across the nation’s total investor population, Aussie landlords are potentially short $2.886 billion on their claimable losses,” Mr Mortlock said.

By not having a depreciation schedule, the analysis found investors lost an average of 3.58 years of deductions.

“When these results are replicated across the nation’s total investor population, there’s potentially 140,525 Aussies who’re missing out on deductions,” Mr Mortlock said.

“Given the average unclaimed amount was $20,537, this equates to a total potential loss of $2,885,967,347 in missed depreciation write-offs.

“We even had one investor who waited almost 18 years to do a schedule and lost $41,000 in tax breaks as a result.”

Why do Australians skip over schedules?

Often, there is a lack of knowledge about depreciation and how it can impact an investor’s tax return, according to Mr Mortlock.

“Tax can be a complex subject for most people, and some property investors remain underinformed about the benefits depreciation can bring at the end of the financial year,” he said.

“The longer you put off ordering a depreciation schedule on your property, the more you lose in benefits because you can only back-claim two years of depreciable items under normal circumstances.”

“Australian investors already contribute their fair share through income tax, GST, stamp duty as well as Capital Gains Tax and land tax, so any opportunity to reduce the impost should be taken.”

Source: Sasha Karen, Smart Property Investor

Australia’s high-end property owners turn to Airbnb Ultra-luxe holiday makers along with highend property owners will have a few more accommodation options or diversified income streams to tap into, with accommodation disrupter Airbnb launching its newest platform targeting the luxury market.

Airbnb Luxe is the startup’s newest category, opening 50 Australian-based luxury properties, of more than 2,000 handpicked homes around the world.

Australian properties include a Bondi Beach penthouse available for $4000 a night, and a "sky loft" in Darlinghurst overlooking Sydney harbour for $1200 a night.

Across the ditch, 14 homes are included in Airbnb’s "upper echelon" of luxury rental accommodation in New Zealand’s picturesque South Island, with the most expensive property Te Kahu (lead image) to set you back up to $33,000 a night.

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INDUSTRY

Analysts believe the luxury travel market is worth more than $200 billion, a sector expected to grow.

Last year Airbnb recorded a 60 percent rise in bookings for accommodation costing $1000 a night, or more. Airbnb said the new rental range meets the demand for luxury properties and experiences.

Airbnb co-founder Brian Chesky says each property had to pass strict evaluation across 300plus criteria to meet standards in both design and function.

“Today’s luxury traveller is craving more than just high-end accommodations; they seek transformation and experiences that leave them feeling more connected to each other and to their destination.”

Travellers will have a range of places to choose from, including homes in South Africa, castles in France and historic Tuscan villas.

“With Airbnb Luxe we are applying the same approach we’ve used since we launched Airbnb more than 11 years ago” Chesky said.

Source: Urban Developer

ResortNews | July, 2019

MANAGEMENT

DIRECTORY

Google announces $1bn housing plan

FOR RELIEF MANAGEMENT & POSITIONS VACANCIES

Google has announced it will invest $1 billion toward the development of 15,000 new homes in the San Francisco Bay Area with the aim of tackling its housing shortage and affordability crisis in the area... that it kind of helped create.

severe shortage of affordable housing options for longtime middle and low-income residents,” Pichai said.

Google’s chief executive Sundar Pichai made the announcement recently, as the tech giant plans to roll out the billiondollar pledge back where it all began, the Bay Area.

Over the next 10 years Pichai said Google will repurpose $750 million of its land to residential, most of which is currently zoned for office and commercial space.

Starting out there more than 20 years ago, Google is one of the Bay Area’s largest employers.

And one of the region’s standout issues today is housing.

The rise of tech hubs, such as Silicon Valley, is why many believe the area is home to some of the world’s most expensive real estate.

“The lack of new supply, combined with the rising cost of living, has seen a

“Solving a big issue like the housing shortage will take collaboration across business, government and community organisations, and we look forward to working alongside others to make the Bay Area a place where everyone who lives here can thrive.”

“This will enable us to support the development of at least 15,000 new homes at all income levels in the Bay Area, including housing options for middle and low-income families.”

To give context, Pichai said only 3000 homes were built in the South Bay last year.

The second part of the tech giant’s plans, Google will establish a $250 million investment fund for developers.

Latest international spend figures Total international visitor spending grew 5 percent to reach $44.3 billion in the 12 months ending March 2019 according to the latest International Visitor Survey published by Tourism Research Australia today.

Download Tourism Australia’s international tourism snapshot for an overview of the spend, arrivals and aviation data from Tourism Australia’s 15 target markets.

July, 2019 | ResortNews

RELIEF MANAGEMENT

POSITIONS VACANT

ASTRID AND BRUCE MARTIN Mb: +64 2 7595 6650

MANAGEMENT POSITION

Husband and wife team with 10 years experience in property management

We are one of Cairns Northern Beaches largest Holiday Resorts which is rated at 4.5 stars and we are currently seeking a reliable and highly motivated Management Rights couple who are honest and hardworking with a strong desire to succeed.

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Available for casual relief management

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Available from August 2019 onwards

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Sunshine Coast area preferred

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Very handy with maintenance

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Knowledge of booking programs

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Contact by email to selindenpark@gmail.com

Salary negotiable depending on experience

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Resident letting licence required, at minimum

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Candidates with previous Hirum Reservations Software experience and managing 3rd party booking sites with Hisite Channel Manager an advantage

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Marketing and social media experience a distinct advantage

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Maintenance and gardening experience required

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Applicants must have the ability to work in a team environment

MIKE McCALLUM Mb: 0417 716 385 • Puma, Hirum, REI Master, Satin, RMS and Motelier Experience • Prepared to Travel • 15 Years as a Relief Manager • Previous Owner Operator of M/Rights Area of Service

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BR

SC

WQ

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GC Location Key: (GC) Gold Coast (SC) Sunshine Coast (WQ) West Qld (VIC) Victoria

(BR) Brisbane (NQ) North Qld (CQ) Central Qld (NSW) New South Wales

Please forward all resumes to admin@bluelagoonresort.com.au

To advertise, call Gavin Bill on 07 5440 5322 or email service@resortpublishing.com.au © 2019, Resort Publishing. The Relief Management Directory is provided by Resort News to provide CONTACT details only of individuals and organisations promoting services in temporary and permanent management positions. Parties should satisfy themselves as to the competency and suitability of advertisers prior to ordering any services. We accept no responsibility for the standards of service.

INDUSTRY

09

Mike Phipps:

Modern-day transformer

By Trish Riley, Editor

One gets the impression when speaking with Mike Phipps, founder and director of Mike Phipps Finance that his calm demeanour belies the fact that in his head he’s orchestrating a myriad of negotiations, transactions and items on his ‘to do’ list, while simultaneously only just managing to contain an energy level and sense of humour that is effervescent to say the least.

Speaking to him for this interview, it’s clear that Mike is a modest master of transformation. To those in the know, Mike’s ability to adapt just ahead of an industry waning might appear lucky but, if analysed, it's easy to see how just as one opportunity was hitting the downside of the bell curve, there was Mike out front with a new position, a new goal and an uncanny ability to drive change and to stay ahead of the curve.

Mike grew up in western Queensland and was schooled in Toowoomba. By his own admission, he found a job in a

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credit union totally by accident and straight out of school, before realising that he had quite a knack for finance.

After a few years at the credit union he heard rumours that Metropolitan Permanent Building Society might be acquiring a banking license and was putting plans in motion to launch a full service Queensland based bank (later Metway Bank) so he embellished his resume and was surprisingly (again by his own admission), appointed branch manager in Brisbane. He and his wife moved to Brisbane and at 26, Mike was one of the youngest branch managers in the group.

Mike managed various branches in Brisbane for four years, becoming the area manager and realising that he thoroughly enjoyed, and was good at selling finance, but he really did not like city living. Might have had something to do with pursuing an armed bandit and being confronted with a sawn-off shotgun. His dream was always to find a job that would enable him to support his young family but allow them to relocate and live in Noosa – where he and Lee-Anne had spent their honeymoon.

When Metway merged with QIDC and Suncorp to became Suncorp Bank, Mike transitioned

again into commercial lending and convinced the bank to develop a team of specialists that understood specialist industry, and before long Suncorp Commercial Banking was looking to focus on specific industry opportunities. Mike remembers being given carte blanche to build and manage the new initiative and even though the management rights industry was still getting established, he recognised the potential of the sector and it wasn’t long before the very successful Suncorp specialist strategy was recognised as a genuine alternate to NAB and ANZ in the management rights financing space.

In 2009, as the impact of the GFC curtailed lending and devastated the financial sector, Mike recalls knowing that the writing was on the wall, and that despite it being the riskiest time to venture out on his own, that was the decision he made.

Mike Phipps Finance began out of the back room of his house on Sunrise Beach 10 years ago, and despite being “absolutely terrified”, as by then he had a young family to support, Mike is also unabashedly grateful to the well-known players of the management rights industry like Ian Crooks, Jake Clarke and Rod Askew – operators, brokers and banks alike – for

INDUSTRY

their tremendous support during his early years.

“Three years later, when I realised I couldn’t continue working 24-hour days, I bought premises in Noosaville, Paul Grant and Simone Cuthbertson came on board, and we’ve grown exponentially from there,” says Mike.

“Cameron Wicking, our second broker came on board 18 months ago and we have now put on two more support staff. To our knowledge we’re now the largest specialised finance broker of our kind in the country.”

The bargaining power of being a $200m a year client with $1b of assets under management is obvious. “The banks know that I am invested in this business, and service obsessed, so our transactions tend to get prioritised.”

Mike Phipps Finance also handles a lot of motel business – between 30 and 50 motel and caravan park transactions a year – all over Australia. Mike says that the days of needing an office in every town and city are well and truly over. “ The trick is to combine personal service with a digital business model and reach clients who would otherwise have no access to the free services we provide “ Mike says.

ResortNews | July, 2019

As an integral player in the management rights industry, I asked Mike for his thoughts on how the industry appears to be evolving.

“Management rights remains the lowest risk going-concern business model in Australia, period (and you can quote me on that!). It remains the only business where you can get a 70 percent lend as a going concern – there is no other business I can get this gearing on, with the exception perhaps of the McDonald’s in Bondi Junction.

“Management rights businesses don’t suffer from the ‘normal’ issues that send businesses broke,” says Mike. “They don’t have bad debts, there are very limited debtors and creditors– and if there is the manager is in control of that, the cash flow cycle tends to be 30 day max and even then, the resident manager gets paid first, you have security of terms and the rights to buy into the management of a multi-million -dollar asset for a fraction of that.

“I’ve said this before management rights is about communication skills and people management, and the issues being experienced within the industry are primarily due to a lack of both.

“The parties involved simply don’t appreciate the vital importance and value of regular communication of all forms, and there appears to be a lack of capacity to communicate honestly and manage stakeholder expectations.

“I’ve yet to come across a relationship – business or otherwise, where you don’t

need to be able to have honest and frank conversations while still maintaining the relationship. It takes skill to de-escalate with authority, and unfortunately too many people are being too quick to pull the trigger on the legal option.

“Another aspect that managers need to consider is that owners and committee members are increasingly paying more attention to the salaries being paid and what they’re getting for it in terms of value.

Unfortunately, the industry as a whole promotes management rights as a ‘lifestyle: huge salary with not much to do’… it actively needs to be repositioned as what it is; a fair dinkum business where the managers are generally run off their feet, working extremely long hours and shouldering significant responsibility.

are almost forced into ripping owners off – it’s a dangerous self-perpetuating situation.

“The very best model of management rights is the combination of business and residence – where you have a dedicated manager living on site. Managers have skin in the game and their every action has a direct impact on their bottom line. For corporates, one hopes that they incentivise salaried staff to do exceptional jobs and link their KPIs to relations with owners, an increase in letting

revenue and guest feedback.

“Personally,” says Mike, “I would not buy into an unmanaged building.”

So, what’s next for the transformer? Mike says that he has stepped back from the dayto-day working in Mike Phipps Finance in order to be able to work on it, and to develop Transaction Management Consultants (TMC), the burgeoning syndication/ partnership businesses developed with Tony Rossiter of Holmans. Watch this space…

“And managers, getting back to the communication aspect – ensure your owners know what you’re doing and how involved you are, and if times are lean sometimes the best option is to take a little of the pain yourselves and promote it to the owners. Invest in goodwill – give a bit away to defend your turf.

Last but not least, and Mike acknowledges that this is a ‘sensitive’ issue: “The industry and accounting profession as a whole, needs to review and be more courageous about the way P and L’s are presented and to ensure that sustainable numbers are reflected. Any other scenario creates long-term difficulties with the bank and other professional service providers, there is not enough allocated for labour and new managers

Our Selection Centres are truly unique and have been created to inspire and inform builders, developers, architects and plumbers within the construction industry.

STAPYLTON

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SUNSHINE COAST

July, 2019 | ResortNews

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TRADE ONLY BY APPOINTMENT

07 3297 3700

TOWNSVILLE

INDUSTRY

11

ARAMA REPORT

Protecting consumer funds in accommodation As the owner of a shortstay accommodation lot, have you ever been told by an agent managing your property that you won’t be paid for 90 days?

With the rise of non-traditional travel agents, overseas-based travel agents and other disrupters such as Airbnb, there are more and more cases of money being held or delayed for longer than what the management rights industry would describe as normal. It raises important questions around the handling and protection of consumer funds.

In order to own and operate management rights in Queensland, all resident property managers are required to obtain and maintain a real estate agents’ licence, either a Resident Letting Agent’s Licence (RLA)

Trevor Rawnsley, CEO, ARAMA

or a full licence (LREA). Similar licensing requirements are in place in New South Wales.

Other states are being encouraged to follow the Queensland lead. In these states you require a licence to collect rent from tenants on behalf of long-stay investor owners but ignore the protections that licensing provides for investors of short-stay apartments.

A licensed real estate agent is required to open and maintain a trust account with strict rules in place relating to the management of it, including random auditing, annual reports and monthly balancing. While trust accounts add cost and complexity for operators, they also ensure that monies paid to a management rights business is protected the instant it is received.

For investors, this means that if their unit falls within a management rights business they can be safe in the knowledge that their funds are being protected and that there is scrutiny of those funds and stringent rules about how they are managed. The investor’s income is protected and usually processed within 30 days of the guest’s departure or tenant`s rental cycle.

There is a growing trend however, for some travel agents and ‘car park cowboys’ to simply take money from consumers without putting it into a trust account. Often this is done to avoid incurring the costs associated with managing a trust account, and the desire to accrue interest on funds that simply do not belong to them.

However, if these businesses suddenly become insolvent, all the funds are unprotected.

Australian Resident Accommodation Managers Association is the peak industry body representing the interests of people who are involved in management rights.

For membership enquiries:

national@arama.com.au | www.arama.com.au 1300 ARAMA Q (1300 27 26 27)

12

In addition to unit investors putting themselves at risk of losing their income if the agent or operator folds, guests hoping to enjoy the property can also be left in the lurch without being able to get a refund on their deposit or fees paid.

INDUSTRY

The recent news of the demise of yet another dodgy online travel agent sinking thousands of dollars of consumer funds was met with widespread concern by consumer groups and the management rights industry.

It is yet another demonstration of just how robust the management rights business model is in best serving the interests of unit owners and guests alike – but the importance of consumer protection is something we often don’t talk about.

For many years ARAMA has worked with state governments at a policy level to ensure a legislative environment supportive of the management rights industry as a whole.

We have also built close ties with the regulator, the Office of Fair Trading (OFT), so that we can provide insight into emerging trends or challenges facing operators that may then feed into the development of new policy.

With numerous online travel agents in the market – both large and small – and the increasing popularity of Airbnb, management rights will continue to offer the greatest outcome for consumers.

The protection of funds offered by a management rights operator is something that will continue to elevate our industry – in the eyes of regulators, investors, tenants and guests.

Help us share this news with our investor owners and our guests. It is what truly sets us apart from other operators.

ResortNews | July, 2019

The following people must have their trust accounts audited if they received or held trust money during the financial year ending 30 June 2019: •

a licensee (corporation or individual);

•

a former licensee (corporation or individual); or

•

If a trust account audit is not submitted by the due date, licensees could be disqualified from holding a licence and possibly prevented from renewing a licence.

Who can conduct the audit?

Col Myers, Small Myers Hughes

a personal representative of a licensee.

now be completed and submitted online by the auditor through the Auditor’s Report Online portal. Licensees will now receive emails from Auditors Report Online as their audit progresses through the various stages.

In most cases, it is the licensed corporation that receives and is responsible for trust funds.

Therefore, a trust account audit must be effectuated by the licensed corporation. However, if an individual licensee receives and is responsible for trust money, then a trust account audit must be effectuated by the individual licensee.

When must the audit be submitted?

All audits must be submitted to the Secretary within three months after the end of the audit period and no later than 30 September 2019.

Who is required to submit an audit?

All trust account audits must

Auditors must be registered with the Australian Securities and Investments Commission (ASIC) or be qualified under section 115 of the Property Stock and Business Agents Act 2002.

Registered audit companies, authorised company auditors and members of a Professional Accounting Body holding a Public Practising Certificate or Certificate of Public Practice can conduct the audit.

Professional Accounting Body is defined under the Australian Securities and Investments Commission Act 2001 e.g.

CPA Australia, the Institute of Chartered Accountants of Australia and the National Institute of Accountants.

Unique identifying trust account numbers Another minor change which commenced some time ago but received little exposure at the time was the introduction of a unique identifying number when opening or maintaining a general trust account.

Licensees who open a general trust account are now required to obtain from NSW Fair Trading a unique identifying number and provide it to the authorised deposit-taking institution at the time of making the application.

These unique identifying numbers issued by Fair Trading to agents operating general trust accounts are to ensure that banks account for the interest in respect to all these general trust accounts.

Liability limited by a scheme approved under Professional Standards Legislation Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

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July, 2019 | ResortNews

INDUSTRY

13

STATE REPORT

NSW Trust accounts

BCCM REPORT

Part one of a three part series

Annual general meetings:

Meeting basics and key timeframes Not surprisingly, one of the most common inquiries received by the Office of the Commissioner for Body Corporate and Community Management is about general meetings of a body corporate.

The queries are often about the timeframes involved as well as some of the more basic processes.

Given that a general meeting is the primary forum through which lot owners are able to get involved in decision-making for their scheme, it is essential that these things are clearly understood.

With this in mind, I intend to

Firstly, this article covers key timeframes and basics of the AGM process. The scheme’s financial year will determine the timing of the meeting. Importantly, “financial year” in this context is not necessarily the standard July – June financial year.

Chris Irons,

Commissioner, Body Corporate & Community Management

explore some common issues over three parts. In this first part, I will spell out some of the key timeframes and basics for an annual general meeting, which I’ll refer to as an AGM. In parts two and three, I’ll provide some AGM tips.

PROGRAMME

This months suppliers to the programme The Mattress Company

BEDS & BEDDING BODY CORPORATE MANAGERS

Strata Jem Green Finance Group

FINANCE

Kudos Universal Pty Ltd

FURNITURE - OUTDOOR SWIMMING POOL SUPPLIES/REPAIRS

Noosa Pool & Spa Centre

All Preferred Suppliers have been recommended by other accommodation properties for their service and have qualified for inclusion in the programme. The next time you need to use a new supplier, why not make life easier and use a Preferred Supplier.

To find a Preferred Supplier see the directory on page 62 >

(07) 5440 5322

14

For further information about how the financial year may be determined, visit https://www. qld.gov.au/law/housing-andneighbours/body-corporate/ committees-meetings/generalmeetings/annual/when-to-hold.

Bear in mind also that a scheme’s financial year may have been changed by order of an adjudicator on application by a body corporate.

The AGM is then required to be held within three months of the end of the financial year.

As per my previous point, an adjudicator’s order may be sought to hold the AGM outside of the required timeframe if there are reasons to warrant that.

Unless there have been changes to the financial year or AGM via an adjudicator’s order, then there really should be no surprises to a lot owner or committee about the timing of an AGM each year and thus, owners and committees have the ability and time to plan for how they will engage with the AGM. In relation to other formalities of the process, the secretary calls the AGM and should be calling it three to six weeks prior to the end of the financial year, together with a call for nominations for the committee as well as for any motions to be placed on the agenda.

This is the opportunity for owners to put forward any motions they want other owners to vote on at the meeting.

Remember, agenda items can’t simply be raised from the floor at an AGM – they must be submitted in advance, so that all voters can consider them.

INDUSTRY

At least 21 days prior to the AGM, the secretary must send out the relevant papers, including the notice of meeting with the agenda, committee ballot paper and other documents as required by the relevant regulation module.

There is a requirement for the agenda to include statutory motions, in other words, motions which body corporate legislation requires must be considered at every AGM. An example of a statutory motion is a motion about whether to have an audit undertaken.

If the body corporate is distributing papers via post, then it is important they take postal timeframes into account to ensure it meets that “at least 21 days prior” requirement.

Decisions purportedly made at an AGM can be declared void by an adjudicator if this time period is not complied with.

All of the previous information is for schemes that are already established and operating.

For new schemes, the first AGM must be held within two months after the first of either the following events: •

More than 50 percent of lots are no longer owned by the original owner (developer); or

•

Six months after the establishment of the scheme.

This article is only a basic overview of AGM processes. It is not meant to be comprehensive advice and there may be several other aspects of these meetings of interest to your scheme.

For further information please contact the Information and Community Engagement Unit of my office on 1800 060 119 or visit our website www.qld. gov.au/bodycorporate.

ResortNews | July, 2019

High-rise apartment developments can take several years to evolve from the initial planning phase to the day residents are able to move in and begin their lives in their brand-new homes.

Buying off-the-plan requires a significant leap of faith for purchasers and benefits that they once valued may have lost some of their lustre by the time the boxes are unpacked.

Developers continually try to follow current trends or build-in prescient additions to new projects, but with technology advancing at an astounding rate, sometimes they back the wrong horse or come up short.

The recently completed Australian Apartment Advocacy (AAA) survey aims to provide an accurate representation of residents’ and owners’ views to the strata industry allowing them to better meet the needs of the community. AAA received more than 3,300 responses from WA, Qld, NSW, and Vic, supplying representative data to analyse trends from not only those states, but compare nationally as well. AAA worked in partnership with SCA and provided SCA (Qld) with a copy of our state-focussed report and it has been a fascinating read.

Over 90 percent of residents who responded lived in one or two-person households, with nearly half of respondents of working age and in professional occupations. This statistic is somewhat unsurprising given the high number of one and two-bedroom apartments that have been built in recent years, especially in the state’s south-east. However, the question must be asked; are households choosing smaller apartments because they are small or are households small because there are not enough large apartments?

Whatever the answer, it appears July, 2019 | ResortNews

surface, with four in ten residents desiring more storage space, and, while only 22 percent would prefer their current apartment to be bigger overall, the vast majority preferring at least a two-bed two-bath as their next home. One and two-bedroom units may have been the recent trend, but it looks like developers will need to start catering for those looking for larger lots soon. That’s if developers can regain owners’ trust.

Simon Barnard, President, SCA, Qld

that it may have been the case for some time with the data showing that nearly a quarter of respondents had lived in their home for over ten years. Only one in ten had resided in their lot for less than one year with nearly 70 percent spending at least three years at their current address.

Unsurprisingly, the majority describe their apartment as being within walking distance of facilities and amenities such as shops, public transport, and green space, which may be an important benefit that keeps strata residents in their lot, with the location being a major factor in the decision to purchase for 91 percent of residents.

The survey respondents expressed considerable reticence in purchasing a lot off-the-plan. Only two in five residents were extremely, very, or moderately comfortable with buying a unit before the development was built. Display apartments, construction and design guarantees, and longterm estimated strata levy

The good news in favour of the strata lifestyle is that 76 percent of owners found the (sinking fund and administrative) fees to be “fair, good, or excellent” value for money, with only one in ten expressing a different view. Adding to this point, 62 percent of respondents were happy to continue to pay the same amount to maintain the apartment complex and its value. One in ten was even happy to pay more than they are currently! Surprisingly, perceived value for money was not related to the level of fees, with those in the lowest fee bracket just as likely to believe their contributions wasted as those with higher levies.

Of course, it wasn’t all positive, and the survey provided several areas of improvement, especially for developers. The old complaint about strata lots continues to INDUSTRY

schedules would all help make potential purchasers more comfortable, but with defect alerts hitting the news each week, developers may have their work cut out to rebuild the industry’s reputation.

Overall, there appears to be a considerable level of satisfaction amongst apartment residents in Queensland, with a 98 percent positive response from residents.

There is always room for improvement but, considering it’s hard to get nine out of ten people to speak positively about icecream, I think the state’s strata industry is doing pretty well.

If this data has piqued your interest, please contact Australian Apartment Advocacy for the full report.

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

DISPUTE RESOLUTION

www.mahoneys.com.au 15

SCA REPORT

Apartment owners have their say

LEGAL EASE

Schedule of duties – good or bad?

For as long as I can recall there have been conflicting views in the management rights industry as to whether specific duties schedules in caretaking agreements are a help or a hindrance.

While I was for many years, ambivalent about them, over time I have come to a strong view that a well drafted schedule of duties can offer more benefits than disadvantages. Note the qualification that it must be a “well drafted” schedule.

I am well aware that some difficult committees will come up with their own amateurish schedule of duties that goes way beyond what might be considered reasonable. My experience however, is that this is the exception rather than the rule and I would always oppose such defective schedules.

Where a committee engages a qualified and genuinely independent professional person to prepare a schedule of duties, it is invariably the case that the duties will be specific to the complex and fair and reasonable to both the body corporate and the manager.

Such a schedule sets out clearly and concisely what specific duties are required under the agreement and the frequency with which they should be carried out. The duties are generally broken down into daily, weekly, monthly, quarterly, six-monthly and annual intervals.

A sensible manager will use the schedule to prepare a checklist to follow to ensure that there is compliance with the agreement.

duties that the general wording of the caretaking agreement requires the manager to perform.

The requirement in the schedule to perform a particular duty, at certain intervals, is simply clarifying that to fulfil the general obligation in the agreement relevant, the particular duty should be performed at the specified frequency.

John Mahoney Mahoneys

the manager have the same expectations. Many of the “grey areas” that arise from generic agreements without such a schedule can be overcome.

Tasks that require specialist contractors, such as highpressure cleaning or spreading of mulch, can be properly identified eliminating two of the most common arguments we see.

Some managers fear that such a schedule increases their workload, makes them too accountable and gives the body corporate the opportunity to breach them for missing the simplest of tasks. In reality, if the schedule is properly drafted, it gives the body corporate little, if any, greater rights than it would otherwise have.

A detailed schedule of duties does not expand the manager’s duties – it merely sets out in an orderly and specific way all of the

Even without the detailed schedule, if a manager is in breach of the general obligation (which is likely where the particular duty is not being carried out as frequently as a schedule might specify), the body corporate can issue a breach notice in relation to the relevant item.

It is also important to remember that just because a manager does not perform a duty – general or specific – the issuing of a breach notice does not of itself have any serious adverse consequences. It is only if the manager does not comply with the breach notice within a reasonable time (at least 14 days must be allowed) that the body corporate might then be able to take any further action. Even then there are many further steps to be taken before the agreement could ever be terminated.

On the other hand, if a manger uses the schedule as a checklist of what has to be done at the

The reality is that many new managers struggle to comprehend the various duties they have to perform to meet their general obligations under the caretaking agreement. It is generally not the case that they do not want to perform the duties, it is more the case that they do not know what the specific duties are, or the frequency the general obligations require.

Demonstrated compliance with the specific schedule also allows a manager to deflect any criticism from the committee about failure to meet the general obligations in the caretaking agreement. For example, if the schedule specifies that the pool must be vacuumed daily, and the manager attends to that each morning, the committee cannot complain that at the end of the day leaves or other debris have blown into the pool.

Usually the preparation of a detailed schedule of duties is also accompanied by a review of the remuneration to make sure that the two match. It is common for the incorporation of a schedule of duties in a caretaking agreement to lead to an increase in the manager’s remuneration. If that is the case then a manager can hardly complain that the schedule is too onerous or imposes too much accountability. After all, the body corporate is paying for particular services and is entitled to expect that they be provided.

The inclusion of such schedules in caretaking agreements is a trend that I predicted some years ago would continue to the point where it very much becomes the norm. That prediction has proved to be correct, and as I commented back then, if that leads to less disputes then the industry is better off.

Those who have read previous articles I have written about disputes will be aware of my view that a principal cause of disputes is the gap between the expectations of the body corporate and the manager. A well drafted schedule ensures that the body corporate and

16

specified intervals, and actively ensures that the checklist is followed, it is virtually impossible to get into a situation where a breach notice could be issued.

MANAGEMENT

ResortNews | July, 2019

From 1 July 2019, single touch payroll – the direct reporting of salary and wages, PAYG withholding and superannuation contribution information to the ATO – applies to all employers. What employers need to report will also be extended to include certain salary sacrificed amounts.

Employers with 20 or more employees have been required to use single touch payroll since 1 July 2018. The new rules push all businesses with employees into the single touch payroll system. This includes the situation where payments are made to the owners of the business in the form of salary, wages or directors fees.

The ATO has asked soft ware providers to provide new low-cost payroll options for micro employers (1-4 employees). MYOB and Xero have announced new $10 per month offerings (limited to 4 employees) with other soft ware houses following suit.

contributions (at the time the payment is made to the fund)

employees or superannuation funds.

When it comes to PAYG withholding, employers will report details of salary and wages paid to employees as well as the PAYG withholding amount at the time the payment is made to the employee.

Employers have the option of paying the PAYG withholding liability at the same time, although this is not compulsory.

Jonathan Hanaghan JGA Accountants

What needs to be reported:

connection, such as some rural and remote regions, then exemptions may apply.

•

Salary and wages

•

Director remuneration

•

Return to work payments to individuals

With the 1st July having come and gone, one needs to note that if your business does not already use STP compliant soft ware, you may need to upgrade your systems or implement new ones.

•

Employment termination payments (ETPs) – not compulsory if the employee has died

•

Unused leave payments

•

Parental leave pay

STP requires PAYG withholding and superannuation contribution details to be reported to the ATO as payments are made to

•

Payments to office holders

•

Payments to religious practitioners

•

Superannuation

Under 20 employees?

What you need to do.

•

Salary sacrificed amounts (from 1 July 2019).

Employers with poor super guarantee payment history outed Underpayment or nonpayment of superannuation guarantee (SG) is a big issue.

New laws will enable the ATO to advise employees (or former employees) of their employer’s poor SG payment and reporting history.

If an employee makes a complaint to the ATO, then a taxation officer is able to make a record or advise the employee about a failure or suspected failure by their employer or former employer to comply with their SG obligations.

They can also share the Tax Commissioner’s response to the complaint. So, if the Commissioner finds there is a problem with SG payments, they can disclose this information to the complainant.

The ATO also states that to assist micro employers there will be, “a number of alternate options that are not available to employers with 20 or more employees – such as initially allowing your registered tax or BAS agent to report quarterly, rather than each time you run your payroll.”

While the start date for small employers will technically start on 1 July 2019, the Commissioner of Taxation released a statement indicating that small employers can actually start reporting through single touch payroll any time from 1 July 2019 until 30 September 2019.

No penalties will be applied to mistakes, missed or late reports for the first year.

Plus, if your business is in an area with no viable internet July, 2019 | ResortNews

MANAGEMENT

17

BY ALL ACCOUNTS

Single touch payroll extended to all employers

THINKING MR

The tired stock challenge As some of you will no doubt have figured out by now, I have a weakness for cars. Old cars, new cars, fast cars, slow cars, even electric cars and the occasional motorcycle.

I am fascinated by cars and the auto industry.

This basic flaw in my good judgement has led to me investing wisely in a few vehicles, much to the dismay of the managing director.

By wise investment, I mean spending more than said vehicles will ever be worth and then justifying the “investment” by grossly overinflating the values when debating the matter with my accountant, bank manager and afore mentioned MD. My love of cars is primarily centred around new, fast and flashy, and old, restored and beautiful. I am less enamoured with rusty old dungers that, with a bit of love and thousands of dollars, might some day run and be worth a few dollars. The market for such “collectibles”

18

Mike Phipps, Director, Mike Phipps Finance

is flaky at best albeit that there are plenty of vendors out there trying to make a fast buck selling a substandard vehicle that hasn’t been maintained at a top dollar price.

One of the biggest gatherings of classic car and lifestyle enthusiasts takes place in Coolangatta on the Gold Coast in June each year. Cooly Rocks On is one of the biggest festivals of its sort anywhere and well worth a look. We have been going for the past five years and we always stay in the same high rise and always in the same unit. Being a highdemand event tariff s are prett y steep and the investors in the area no doubt enjoy a great return. This is as it should be.

There is a point here. Sadly, and like the car vendor who tries to sell a sad old classic at a restored price, we have watched the condition and presentation of our favourite unit deteriorate over the past five years. The trend was evident early on, but the position and view are so sensational that we chose to overlook the falling standards and rebook each year. There is however, a tipping point where all the beauty and ambiance of a location cannot compensate for a tired and unloved apartment, and I will be so bold as to say that we have a real challenge looming with some of the most magnificent tourism destinations in the world underpinned by some seriously tired and decrepit accommodation stock.

The challenge is amplified by the fact that much of this stock is management rights-based, with resident managers having little control over the capacity or desire of individual owners to keep their apartments up to a suitable standard.

In the case of the property I have mentioned above all that is required is some fresh paint, some new furniture, more

MANAGEMENT

regimented cleaning standards and an eye for detail. Presenting an apartment at $500 per night with cigarette burns in the dining chairs is not a good look!

Of course, there are many apartments that need a whole lot more than paint and a carpet. These days travellers, particularly in the leisure sector, expect standards similar to what they have at home. Back in the day that was easy. No one I knew as a kid had a swimming pool so any motel or holiday flats with a pool was immediately top shelf. Now everyone’s got a pool, a big TV in every room, a gourmet kitchen and a Kim Kardashian signature bathroom – okay, I made that bit up.

So, what to do?

Well, if you’re lucky or a very gifted people manager you will have investors in your property who see the value in keeping their apartments in tip top shape. You will keep them constantly informed of guest feedback and encourage tweaks and fine tuning to ensure return patronage and a reduced reliance on OTAs. For the rest of us here are a few ideas: ResortNews | July, 2019

Room grades Not a new idea and well managed by many of our clients. Simply create room standard levels and sell your inventory accordingly. You know the game, Deluxe, Superior, Standard, Awful, etc. I think the bit some operators miss is keeping owners informed of where they sit in the room standard ranking and how little it might take to jump to the next level. A bit of data on improved returns won’t hurt.

Refurbishment examples Again, not a new idea but always worth a mention. Find an owner who is prepared to do a renovation and work with them and their trades to monitor the project and costs.

With the owner’s permission share the design, costs and outcome with other owners of unrenovated apartments. I’ve seen this strategy managed to great effect where the manager engaged an interior design and project management company to do up refurbishment plans and costings for individual owners as part of encouraging investment. Why wait for an owner to think about a reno when you can encourage the process from the outset?

July, 2019 | ResortNews

Resident managers having little control over the capacity or desire of individual owners to keep their apartments up to a suitable standard Lease backs

Renovation funding

Yet another ‘not so new’ idea.

Lease the apartment, do your own reno and hope that the return over the lease period makes more than a standard Form 6 while paying back the renovation investment.

Not for the feint-hearted, particularly when hard costs such as bathrooms and kitchens are taken into account.

A hot topic at the moment, and we have had some pretty interesting discussions with niche lenders trying to come up with a workable model.

Unlike a hotel or motel operator who owns or leases the entirety of their property, the management rights owner has no direct control over the interior presentation of units.

More importantly they have no mechanism for borrowing money against those units and using the funds to do upgrades and renovations. On the flip side many unit owners either can’t be bothered or don’t have the financial capacity to undertake upgrades, particularly for bigger ticket items like kitchens and wet areas.

Sack the owner Again, not for the feint-hearted but, if an owner simply refuses to upgrade a unit there may come a time where the guest experience will have an unacceptable negative impact on the entire property. I have been surprised by the number of times resident managers employ this tactic and find that it was just what was required to get an owner to spend some money.

Discussions have taken place around a model in which

MANAGEMENT

the manager would fund refurbishments via a niche lender debt funding facility with repayments coming from letting commission retained.

The obvious challenge here is that the owner could terminate the letting appointment leaving the manager to pursue debt collection options that would almost certainly prove a nightmare. I am also concerned that such a debt facility may cause concern to the resident manager’s primary bankers.

A more appealing option, albeit one that is still to be fleshed out, would be a niche debt facility provided to the owners as a group and repaid via the resident manager from a portion of letting commissions. The liability would be carried by the owners with the facility working in a not dissimilar fashion to current, well-accepted strata lending for common area works. The challenge is to take common area debt funding standards and make them work for groups of owners. Watch this space and please feel free to offer any suggestions.

In closing I know you’re wondering. Yep, we rebooked the same unit at Coolangatta for next year but have suggested to the manager that the owner give it a freshen up… time will tell.

19

MOTEL MARKET

Booking direct: making it happen Finding a ‘satisfactory’ balance between OTAdriven (Online Travel Agent) bookings and direct bookings is a dilemma. With excessive commission rates, it can feel like a double-edged sword to be listing units with an OTA, receiving the booking, but having to pay a high commission rate that would otherwise be avoided by a direct booking.

This scenario underpins the ongoing argument about fairness in the market in relation to OTA’s and best practices.

Dick Smith recently brought the accommodation sector’s issues to the attention of many who were unaware of what the industry faces and it had an immediate affect with many of those previously unaware, booking directly.

So, what steps can moteliers take to be more proactive in driving direct bookings as well as getting more ‘bang for their buck’ from OTA’s?

We live in the digital age; where people research, socialise, commentate, book and rate – all online. The first step to driving direct bookings therefore, is to have a user-friendly and easyto-navigate website. Build it for the market you want to attract.

Your website needs to be fresh with professional, good quality photographs that sell the property. It takes only a few seconds to form an opinion and these are most often based on the photographs and presentation of the website.

Make it easy to browse through the pages, easy to book and easy to enquire. Generally, we’re told the longer someone spends on a website, the better, however if a prospective visitor can’t easily find what they want to know, they’ll quickly go somewhere else. If they come to a page from

20

platforms.

Andrew Morgan, Motel Broker, Qld Tourism & Hospitality Brokers

elsewhere and they can’t quickly and easily book or enquire, then they’ll either go back to an OTA site and do it there, or to a different motel altogether.

Use a webpage to upsell and put a very clear call to action that makes it obvious to potential guests that if they make contact directly, they will receive the best possible rates. It’s still not common knowledge that consumers can get better rates directly through a property than if they book using an OTA, so the website has to compel them to make contact.

An excellent website however, is only one tactic in the marketing toolbox; people need to be able to find the motel. Maximise your spending with the OTA’s by utilising listings on their sites to the most advantage. Consistency of photographs and details on any OTA or a third-party website should all be of a professional standard and should ideally all convey the same attractive presentation. This helps to cement the brand and image, and makes the motel easily recognisable across the various

Best price offers. Whether nonsense rate parity agreements prohibit motels from offering cheaper prices or not, either way, consumers need to be prompted to contact the motel directly for the best price. Human nature dictates that we are always out to get the best ‘deal’ we can, and people will always be more inclined to contact directly for this. Education on the web, or at reception is the key.

Remember that the OTA’s simply provide a ‘billboard’ effect, meaning that simply by offering availability through OTA’s it will ultimately drive traffic back through your own website. The large OTA’s have mammoth marketing budgets and their sheer size and structure mean that they almost always rank at the top of internet searches. Take advantage of their marketing budget and brand awareness by ensuring a professionallooking listing that gives an excellent first impression of the property amongst their other search results. Make sure content is fresh and up to date and consistent with everything else on the web.

Trends such as using a meta search drives direct traffic, and as technology moves with the desire for instant gratification, we have seen the rise of comparison sites. Where a consumer will make a booking through an OTA, a comparison site crawls the web for all available information

It’s still not common knowledge that consumers can get better rates directly through a property than if they book using an OTA MANAGEMENT

relating to a search and provides real-time information on rates and availability, so that consumers can easily see in one place everything they want to know. They can then quickly rule out or act upon motels of interest, either going directly to their website or if they see a more appealing option on an OTA, then heading there.

Here is where their attention can be captured so that they head direct, rather than to an OTA. The first step is to ensure that the site is enabled on the Google platform and that all details are up to date and correct. This should not be a ‘set and forget’ exercise. To regularly display in the results one needs to make sure the real-time data is correct and reflects what is out there and available on other sites. Again, consistency is a key factor here.

Finally, use direct marketing to your advantage. We are limited by what we can offer on a website and other third-party sites when there are agreements with OTA’s, however the ability to market directly to social media followers, previous guests and a database is very relevant. Take advantage of direct marketing with special offers that keep the motel in the front of mind, so that if they are looking to travel or have friends or family who are, the motel’s name is there, ready for them to enquire or recommend. Building loyalty is a big one. No matter how a guest came to the motel, treat them as a priority and take ownership of their booking – leave them with no doubt as to where they may want to stay the next time and ensure they have your direct contact details.

ResortNews | July, 2019

Fire safety: Active v passive There are however, normally a substantial number of fire penetration between floors in riser cupboards that can, and should be, inspected on a regular basis.

By Bob Hook, FiRiAS

In this article we review ‘Active’ and ‘Passive’ fire systems, or to simplify, understanding how when the active systems fail, the passive systems are going to allow you to escape from the building.

When living in a complex there are many features that you have to consider when you think about fire safety, and the first is what kind of building it is.

Unit living is typically divided into the townhouse style or the apartment style, and while there are key elements in this article that relate to townhouses, it is particularly relevant for apartment or large resort-style living.

Active fire systems are those that you consider automatically when you think about fire safety - the ones you can see such as fire detection and alarm systems, sprinkler systems, fire hydrants, fire hose reels and fire extinguishers. We don’t however, spend a lot of time considering the hidden or passive fire systems that are installed in buildings.

Passive fire systems are items such as fire doors, smoke doors, fire collars and other fire penetration management products. The important thing about passive fire installation is that while they may not be obvious, they are just as important in providing fire safety.

Everyone is aware (or should be) of the need to service fire safety installations and most buildings service the active systems regularly. The maintenance requirements for fire safety installations are identified in the Queensland Development Code Mandatory Part 6.1 (which also references the Australian Standard 1851.1 – 2012 and Australian Standard 2293.2 - 1995).

In many situations where fire doors are installed in buildings, inspections are conducted.

These inspections however, do not address the entire risk. The fire doors installed in the fire exit stairs may be inspected but often the fire doors installed in the unit entry are not. All fire doors are July, 2019 | ResortNews

The original approval documentation for every building should include a penetration schedule that details all of these penetrations and the process by which they have been managed.

If this register is not available, then the body corporate/ committee/manager should seek to engage of a professional to conduct a penetration audit on the building to identify the penetrations. As part of the audit a penetration register should be developed for the future management of the building.

The important thing about passive fire installation is that while they may not be obvious, they are just as important in providing fire safety required to be inspected on an annual basis as a minimum. The frequency varies according to the building type, but residential buildings are required annually.

It is important to remember in this situation that the front door of a unit is the property of the body corporate.

through a fire wall. The integrity of the fire wall is maintained by the installation of passive fire protection such as fire collars, fire mastic, fire pillow and many other products.

So, where will you find a fire wall?

In a number of inspections that I have completed it was noted that the unit owner had installed a dead bolt in the door in addition to the original door lock. This immediately makes the fire door non-compliant.

Additionally, if the hole drilled to fit the lock is greater than 35mm then the door will need to be replaced or the door hole will need to be filled and a metal plate secured over both sides of the hole.

All apartments are required to be fire isolated from the adjoining apartment so the wall between each apartment needs to provide a required level of fire resistance.

When you have pipework or cables passing through the wall this reduces the fire resistance of the wall. In many instances, inspectors are not able to inspect these installations without destructive investigation that is both costly and labour intensive.

Another point noted from several inspections is that when buildings are painted, the painter will often remove the tags from fire doors and fire door frames and fail to replace them when complete or even paint over them making them illegible. In both situations the fire doors have been rendered non-compliant, and will need to be replaced.

The issue of fire penetration is rarely inspected. Fire penetration is where you have pipework, electrical cable or any other building feature that penetrates MANAGEMENT

Passive fire penetration should be inspected to ensure that the installed system is maintaining the integrity of the fire rated construction to which it has been applied - be that wall, floor or ceiling – and while the recommendation would be for an annual inspection, if there has been work in the building in a specific area where pipework or cable has been installed in a fire compartment, certification should be obtained to ensure the fire resistance has been maintained.

For obvious reasons, all fire safety installations are required to be maintained. If you are uncertain about the status of your building or need additional information on what the system requirements may be, ask you service provider or an independent specialist.

QUEENSLAND WIDE

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Management Rights Transactions Conveyancing and Property Law Estate Planning

21

INTONET

Have a go with Google An old chestnut keeps popping up: how can I design a simple web page without coding knowledge? There are quite a few answers to this question, some relatively simple, some complex, some free and others that cost money.

But did you know that Google has a free to use page builder which is a drag and drop tool capable of producing very acceptable results?

In fact, you could build a whole website with it. And the name of this handy tool - Google Sites.

This innovative tool has been around for a long time but was, in my view, very clunky and in today's terms, somewhat old fashioned. But not anymore.

To me the greatest advantage is that when you finish building a page it is provided with a URL that can then be redirected.

That means whatever you create on Google can be made to look as if it is part of your normal site if that is what you want.

Because of the relative simplicity of functionality and ease of editing, Google Sites provides a great option for quickly adding extra short-term material such as events or specials to your site. It also enables you to easily develop great promotional emails generated without the drudgery of hard coding email pages.

Better still, Google Sites allows the page to be directly incorporated into the mail rather than including an attachment. Even text messaging provides a simple opportunity to broadcast your material by simply forwarding the URL with a brief leader. I could go on but I am sure you can think up a myriad of uses to suit your environment.

Pictures can be directly imported from cloud storage, your computer or from the web without leaving the editor. How good is that?

This is the type of technology I like to see in public domains!

There are some limitations to text and font formatting but the ‘Three dot’ more button provides options to edit it and fine-tune the style if you would like to tweak things up.

Arvo Elias, Cybercons

wherever you like. To create a Google Site from scratch, go to the new Google Sites page and sign-in with your Google account. Press the red ‘+’ button in the lower right corner which will bring up a blank web page with the default ‘Simple’ theme.

The editor is set up with three main sections: a ‘Right Control’ panel, a ‘Top Menu’ and a ‘Design Window’.

You can also add a site name and a logo to the top of the page.

Position it on the left side of where your navigation menu will go. The nice thing about Google Sites is that you can lay out objects wherever you like. For example, if you’re creating a profile page for an event and you want to add your profile photo on top of the banner image, you don’t have to know any CSS magic or PHP programming, computer languages which keep my hair short. Just add an image object with the insert menu, and drag the picture onto the page wherever you want it to go.

Under the header, you can add a new section just by clicking on the page. Give each section its own background colour, insert any object you want into it, or just start typing.

After you’ve laid out the page header and banner, and created your section title, you then just have to create your page content. Navigation is quite easy and to give you a feel for how simple this program is I will demonstrate a few of the inbuilt features of this online software.

If you click on the ‘Themes’ menu item in the right navigation bar, you will see a list of six themes you can choose from. These mostly change the colour scheme for elements like horizontal lines, font size and style, and header styles. I suggest you start off by creating one page for your new site and then play around with these themes to see which one you like best. Once you have chosen one, make sure to use it consistently on all pages of the site.

If you click on the ‘Pages’ menu item in the right navigation bar, you will be able to add new pages or sub-pages to your website.

Every time you add a new page, it will add a new item to the top navigation menu in the header of every page. You don’t have to keep track of the links for the menu.

Any time you change the name of one of these pages, the menu links are updated automatically.

Also, you’re not stuck with a static menu at the top of each page. If

that feels too old fashioned for you, just click the ‘Gear’ icon on the left side of the screen and select ‘Side’ navigation. This generates a dynamic sidebar menu that only pops up when your visitors click on the ‘Menu’ icon at the upper left corner of your page. It’s a very cool way to give your Google Site a very modern, professional look.

You can also add widgets to embed functional elements to the page and thereby add some interactivity to the site. These can be all flavours of documents, calendars, tables, maps and charts. Importantly you can embed sheets which become self updating as you work on the table.

Once you’re done creating your new site and all the pages that go into it, you’re ready to publish your now fully-responsive design.

Again, how good is that?

All you have to do is press the ‘Publish’ button at the top of the page, and you’ll have the opportunity to claim the name of the sub-page under Google Sites for your site.

Google Sites may just be the tool for you as it also allows collaboration between different people. It allows you to overview progress of the design and retain a controlling input.

If nothing else, have a play with it and see if it is for you. You never know, you could become your own webmaster and put me out of business. Get yourself a Google account, if you don't already have one, and have a go!

Let me however, give you a few pointers on how to use Google Sites.

The former ‘Sites’ editing tool was very limited in where and how you could place objects.

The new version however, uses a freeform design tool and you can literally drag, place, and resize page elements and widgets

22

MANAGEMENT

ResortNews | July, 2019

Housekeeping speed & efficiency

hinge on planning ahead

By Victoria Rosenthal

General managers might get all the glory, but much of a resort’s success can be traced back to the housekeeping department. Clean guestrooms and public spaces go a long way toward boosting guest satisfaction, but the process only works when the department operates with efficiency and safety.

Efficiency in the housekeeping department all boils down to planning. Mapping out a precise strategy for accomplishing daily tasks gets guestrooms and other areas cleaned as quickly as possible while minimising any hiccups. However, speed can only come from a welltrained housekeeping team.

“Housekeeping is really all about the basics and really knowing those basics well,” said Rick Takach, CEO and chairman of hotel management company Vesta Hospitality.

“As long as your team is very well-trained, that’s your best way to make sure things are running smoothly and you’re getting your rooms done as quick as possible.”

Takach emphasised that finding the right staff and taking care of those employees is one of the biggest challenges today.

Housekeeping is a tough job physically, and training staff to meet the facility’s housekeeping strategy provides a safe and organised work environment that helps resorts retain staff and reduce turnover.

To address the needs of their guests and increase savings, managers are constantly reevaluating their methods to achieving speedy and efficient housekeeping. Here are three methods professionals say will enhance this department.

July, 2019 | ResortNews

Prioritisation Set daily priorities before sending out the team. Aligning guests’ needs with the services and standards of cleanliness will allow staff to choose which areas are necessary to clean on a particular day. Much of this can be decided based on a resort’s target guest and market level.

Many big industry players have been using software to gain real-time knowledge of guests’ stays to speed up the process. “[Some] big brands have launched different things to talk to the guests about when they are arriving, what they want in the room and having as much knowledge as possible before they arrive that really helps housekeeping be able to strategise, prioritise and make sure they are in the right place at the right time,” said Adria Levtchenko, CEO and co-founder of Purple Cloud Technologies.

It’s also important not to forget the property-management system. Keeping tabs on whether guests have extended or shortened their stays can help housekeeping know when a guestroom is ready for cleaning.

Preparation While a hotel may prioritise cleaning needs, preparing for

these tasks is also necessary.

Keeping supply closets stocked, assigning guestrooms before staff clock in and gathering more staff members for big clean ups can drastically minimise slowdowns.

In addition, the bigger the operation, the more you are thinking ahead—all the way down to cleaning tools and room design. Many reduce wasted time by supplying staff with mini supply caddies to limit trips to the cart, robotic vacuums to clean floors and different coloured microfiber cloths for different surfaces. Design choices also affect housekeeping, according to Emily Wilson, vice president at CHMWarnick.

“For example, the brands are moving toward more hardwood floor options that may be easier to clean or take less time to clean than a carpet would,” she said.

Properties are also planning ahead for the unexpected, including rooms that are trashed.

Flexibility and communication are critical in situations like these to prevent hold-ups.

While this can be overwhelming, assembling housekeeping task forces designated for these situations can allow the department to tackle messy clean ups with speed.

MANAGEMENT

Sustainability In addition to preparation, reducing the list of tasks can further speed up cleaning.

Many managers have been pushing “go green” initiatives, which offer guests the option to limit the cleaning that takes place during their stay at the hotel while enhancing housekeeping efficiency and savings, especially in time, laundry and environmental costs.

Informing guests of this option is handled in part through cards or door hangers in guestrooms, often using a fun tag that stands out. Levtchenko said that in a study conducted by Purple Cloud, a hotel the company partners with saw great success in its own “go green” initiative—a lime green frog imploring guests, “Save me and my friends!” “So many more guests go green because they actually see the option to go green,” she said.

Other hotels run contests that award prizes for the neatest room or offer a free glass of wine to those who opt out of room cleaning. Getting creative while involving guests can be that little extra push many hotels need to boost savings in time and money.

23

Rochele Painting’s game-changing approach to operation and project management Over the last five years the strata industry has witnessed the repaint sector grow to become one of its most highly competitive aspects. The full repaint projects for high rise towers, gated communities, hotels and resorts sees large lump sums budgeted and forecast, to a point, where sinking funds can be drained to within an inch of their lives.

So what makes painting so expensive? It is down to several factors, such as the sporadic nature of painting itself (every 10 years or so) but mostly due to the high amount of labour required to carry out a painting project.

Obviously properties and complexes that tailor their services to the short-term letting and tourism industries will see shorter durations between repaints.

However, timeframes of 8 to 12 years for exterior repaints and 6 to 8 years for interiors is nothing out of the norm.

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months ensuring what they delivered to market was a complete game changer. The result, completely removes vast amounts of actual “estimating” along with minimizing the possibility of “human error.”

Soft ware with preloaded meterage rates, ensuring absolute accuracy, measurements and prices are then automatically calculated, stitched together and presented on an interactive digital link.

Rochele Painting have taken a number of measures to spread the financial burden of repainting, not only for the large projects, but also for the small ones, including the interiors, touch ups and make goods that other medium to large strata painting companies are not geared up for, or interested in.

without going to the banks.

This in turn makes Rochele incredibly competitive within this specialist field, which has now been enhanced over the last 12 to 18 months with a huge investment in the development of soft ware and technology that puts them way out in front of their competition.

Rochele Painting started as a small family business, painting houses and units, and has carefully grown into a strata painting company over the last 45 years. This allows Rochele to directly fund their repayment and maintenance plans

The beginning of 2019 saw the introduction of Rochele’s new estimation and quotation soft ware.

Working closely with Two Mates Media out of the Fortitude Valley, Rochele spent six

MANAGEMENT

This not only provides a cutting edge online presentation, the quote is adapted to both mobile phone and tablet, making the vast majority of the operation paperless and immediate for every client.

Where necessary, the online presentation can be printed to allow bodies corporate committees the opportunity to compare quotes for tender.

Each successful quote seamlessly evolves into a painting project if and when selected. From this point it allows each and every client to keep in touch via a virtual timeline, offering the ability for real time communication and feedback.

ResortNews | July, 2019

Rochele’s virtual project timeline is enabled with before and after photo uploads to allow remote clients visual feedback of the project as it takes place.

Rochele’s latest online quote tool, now allows strata clients to physically manipulate a repayment and maintenance plan calculator. This flexibility in Rochele’s custom built soft ware allows a bodies corporate committee to collectively and personally tailor their painting project’s finance to suit their complex’s needs, sinking capabilities and overall lifestyle. It is a tremendously powerful tool which Rochele is looking to roadshow to each and every strata firm in the new financial year.

July, 2019 | ResortNews

Family owned and operated business, born and bred in Queensland, Rochele Painting services all of South East Queensland, providing free quotes, within 24 hours. There is no job, too big or too small.

You can make contact by:-

Taking it a step further, Rochele’s custom soft ware also enhances the way they wish to conduct business, through becoming the long-term, preferred painting supplier and overall standard as the most prompt and professional painting company in Australia.

Rochele prides itself on building long-term relationships with all their professional clients, because painting is a longterm game. Not only do we wish to paint your project, but we want it to stand the test of time and paint it again when the time comes.

MANAGEMENT

•

heading to their website www. rochelepainting.com.au

•

by emailing service@ rochelepainting.com.au

•

or simply calling 1300 808 164

25

SPECIAL REPORT

High-rise rectification: Build quality in the spotlight

By Trish Riley, Editor

An estimated 2.2 million people or nine percent of the population live in strata-titled properties in Australia.

In NSW 15 percent of the population lives in apartments, followed by the ACT with ten percent, Victoria on eight percent and Queensland with seven percent.

Sydney alone has seen more than 114,000 apartments built across the past five years and as the city’s population is expected to rise to six million in the next decade, the 30 percent of Sydney's residents living in apartments is expected to increase.

This presents an interesting

26

From non-compliant cladding, to water leaks and concrete cancer in the external facade of a building; the frequency of building faults, and the problems that occur when trying to find a reliable solution, are issues that demand further attention.

situation, as an increasing number of residents find themselves legally bound to their neighbours and body corporate for the upkeep and maintenance of their property, and the surrounding community of apartments to which they belong.

Underscored by the 2017 Grenfell Tower tragedy, the Opal Tower situation at the end of 2018, and now the Mascot Towers situation, issues surrounding the construction of buildings are being scrutinised, but it is what to do next that has experts largely divided.

With varying tiers of responsibility and accountability laced between vested parties – strata schemes, body corporates, executive committees, resident managers and property agents – issues and concerns around building management and maintenance are becoming all too common.

Speaking on the sector, Engineers Australia’s Jonathan Russell said industry insiders have known for an “awfully long time” that there are an “awful lot of defects” and “an awful lot of problems” in the sector. Referencing the London tragedy, Russell said that it was the first time it became “popularly realised” that not all buildings are safe.

While some believe that the current situation has been caused by the after-effects of the previous property boom – where corners got cut, shortages of specialist expertise, and required checks and assurances (certification, etc.) may have been circumvented, the very nature of the number of incidents suggests that there is something larger at play and it needs to be addressed.

Over the last decade, building damages and defects have taken centre stage as all-too frequent issues for property owners and body corporates.

For Property commentator Anna Porter, principal of Suburbanite, the recent developments highlight the risks of buying into off-the-plan properties.

Just this week, residents and owners of Sydney’s Mascot Towers were told the 10-yearold building appears to be “moving in a downward motion” and residents of its 132 units were forced to evacuate.

MANAGEMENT

ResortNews | July, 2019

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“We specialise in concrete repair, waterproofing and building maintenance solutions on hi-rise and walk-up buildings from underground to rooftop”

are really bringing it to the forefront of the conversation that building defects are a costly and real thing,” she said.

“A number of years ago, the government didn’t have a lot of regulatory control over the warranty developers had to offer. We knew back then that there would be some fallout, as it meant developers could really relax the standards knowing they won’t be accountable for this, and we’re starting to see the fallout.

“You really don’t know the quality of the building if it hasn’t been built yet. We’re seeing now with the Mascot Towers and a number of other buildings which

“I’ve seen all too many unit blocks with water defect problems, and even a good developer with a good track record could end up with one bad tradie on site or one bad water proofer, one bad plumber that unravels the whole thing for them and they don’t realise the work has been done at a lower standard and then this is the development where everything goes wrong in the future,” Ms Porter warns.

Unfortunately, a retrospective purchase is no guarantee that a building is not going to develop water defect problems, concrete spalling or premature paint deterioration, and few – if any – property owners in buildings with noncompliant cladding would have considered this a factor at the time of purchase.

Mark Pope, owner and director of Australian Building Maintenance says, “Unfortunately, as buildings age, they deteriorate and need

more attention. Water ingress and concrete spalling (cancer) are the most common types of ‘older’ building defects and can be the most significant drain on a sinking fund. They face significant rectification works if left unattended.”

The term ‘concrete cancer’ refers to concrete degradation caused by the presence of contaminants that cause the steel reinforcing to expand – sometimes as much as up to five times the size - thus causing the surrounding concrete to crack and undermine the strength of the building.

“You’d be hard-pressed to find a building in modern Australia that does not incorporate concrete in some form. It is the most commonly used material in use today and can be found in both commercial and private properties,” says Pope.

“However, concrete isn’t the ‘lay and walk-away’ option it was originally thought to be.

It’s prone to deterioration, and in recent years concrete cancer or spalling has become an epidemic among high-rise

buildings – more so, within coastal regions, such as Brisbane and the Gold Coast.

“If left untreated, the cracked concrete further exposes the steel to the atmosphere, allowing the ‘cancer’ to spread, effectively jeopardising the structure and strength of the building and leaving it susceptible to more water entering the affected area,” Pope adds.

The most common causes of concrete cancer include: •

Poor or failing waterproofing: insufficient or deteriorated paint coatings allows water penetration causing the concrete reinforcement to rust and expand, which in turn creates stresses on the surrounding concrete.

•

Salt-water/chlorides for buildings near the sea: in areas such as the Gold Coast, which has the third highest salt air content in the world (after Hawaii and Japan), the salt content accelerates the corrosion of the steel reinforcement.

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ResortNews | July, 2019

•

Building defects: fractures (cracking) to the concrete allowing water and salt to penetrate the concrete and react with the steel.

•

Incompatible metals being used in close proximity to each other, thus causing a corrosive reaction.

•

Poor quality concrete and insufficient concrete cover: the original placement of reinforcing/ bar being too close to the surface (usually less than 50mm) leaves the reinforcing vulnerable to water seeping through the concrete and reacting with the steel.

•

Weather.

•

Settling and movement of the earth under the build leading to cracks.

Mark Antilla, manager of Gold Coast-based Minc Services says: “What makes the concrete cancer epidemic even more alarming is that, as an internal issue, it is not always visible to the untrained eye. By the time you notice cracks or surface crumbling it is likely that it

has been happening for some time and that there is a much bigger underlying problem.

“If you suspect your building has been affected by water ingress or concrete cancer, it is essential that you get it checked by a professional so that you know what type of repair work has to be done. The earlier you catch it and have it fixed, the more likely it is that you can avoid costly repairs, hazardous living conditions and in a worst-case scenario, complete demolition.

In 2013, the 20-storey Iluka Surfers Paradise highrise was demolished after concrete cancer destroyed the structure’s integrity.

“Of obvious concern with this covert hazard, is the potential loss of structural integrity of balconies and balustrades on high-rise buildings – and who is responsible for maintenance.

“While the boundaries within the plan of subdivision for some properties may means the lot owner is responsible for the inward facing part of their lot, the balustrade of the balcony

generally serves as a safety feature and if the internal wall of a concrete parapet has visual signs of concrete cancer, then there’s a very good chance that it may also be on the exterior of the wall, and that would be the responsibility of the body corporate.

“Put simply, the reo can be damaged by rust which affects the capacity of the balcony. A good example of this is a building we inspected were there was cracking of tiles along the support joint external cantilever balcony.

Concrete cancer at the base of the cantilever element is extremely serious and if it is not repaired, the element will fail.

“Every concrete cancer repair job starts with a detailed diagnosis of the problem.

Have a qualified engineer conduct a diagnostic analysis.

Working with a structural engineer is important since a repair contractor or repair materials supplier might not be adequately qualified to complete the job. The engineer can identify the cause of the problem and outline

what needs to be done.

“While a professional will be able to diagnose concrete cancer accurately, an astute manager may be able to work out if the building has concrete cancer by looking out for a few tell-tale signs.

Cracking or crumbling concrete, and rust stains emerging from the concrete/cement render are common signs. Others include bubbling concrete render, roof leaks or leaks in internal walls,” adds Antilla.

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MANAGEMENT

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Other things to look for are: •

Concrete exploding out, leaving exposed reinforcements.

•

Other cracks with signs of moisture coming through, they can sometimes look like white crystals or fluorescence.

•

The paint appears to be dropping down or bubbling from the soffits.

•

Plaster or tiles falling off.

•

Raised section of tiling or walkway coatings.

the steel, before applying both the steel primer, and a polymer modified material. They might also apply an anti-carbonation protective coating to the whole concrete surface. Sometimes the experts might recommend using additional reinforcing steel anodes before new concrete is applied, or the steel might be replaced in severe cases.

If it’s a case of chloride contamination in a building near the ocean, specialist repair work may be required to treat the concrete cancer. This can include electrochemical treatment, such as cathodic protection.

Depending on the root cause of damage, there are a number of solutions that may be recommended.

Fundamentally, once the underlying steel and concrete has been repaired, it will need to cure properly and specialist coatings might be used at this stage. Thereafter, final finishings, paints, and protective coatings may be reapplied to return the building to its original state.

If it’s a case with less severe damage, one might be able to remove the damaged concrete, clean and replace the rusted, exposed steel, and fill in the cracks.

For situations where, concrete carbonation and low concrete cover are the issue, the engineer might recommend using a polymer modified repair system. This option removes the concrete around the reinforcing bars and cleans

Brian Heighes, commercial director of CIW Remedial with a team of repair specialists, says the problem had escalated in recent years and he is frustrated by the lack of industry standards.

“On average we get two or three calls a week to repair concrete cancer at different buildings,” he said, “and all too often the body corporate or committee believe the problem can be solved with a coat of paint.

“When it comes to concrete cancer, rising damp or any form of water damage, there is no onesize-fits-all solution. The repair option depends on the building, the origin of the problem and the extent of damage – and while there may be no permanent cure, there is essential preventative maintenance to ensure that it doesn’t happen again.

“A prescribed body corporate or owners corporation with more than 100 lots or total annual fees exceeding $200,000 is legally required to allocate an appropriate sum into a 10-year sinking fund to cover any major maintenance expenditure. Astute property owners will ensure that they have a comprehensive preventative maintenance program in place and that a qualified and suitably experienced structural engineer conducts regular inspections of the building for signs of damage.

And while the costs associated with rectification works may be enormous, the associated costs

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MANAGEMENT

ResortNews | July, 2019

accountability in New South Wales’ building and construction sector.

linked to defective buildings go far beyond the potential loss of income for the investor, loss of residence for the owner, massive expenditure for the body corporate and in the worst case scenario the government having to establish accommodation assistance for those impacted by evacuations – an additional but often forgotten cost is the likelihood that insurers will increasingly decline to provide professional indemnity insurance, offering it with unacceptable exclusions or asking for unaffordable premium increases for building indemnity renewals.

“While undeniably necessary, the

risk with this form of industry overhaul is that it has the potential to add to the negative sentiment that is already causing challenges in the market and the perception that the problem is bigger than it is. We could see quality developers caught up in the same net as less reputable operators,” says Heighes.

As far as addressing risk mitigation, the NSW government has already set out its agenda of reform for the building industry.

Four key reforms will be drafted and introduced to parliament as early as next month to deliver greater transparency and

The registration of building practitioners — the first recommendation in the ShergoldWeir report handed down in 2018 — is one of the four changes flagged, as is the introduction of a new industry-wide principle of duty of care, enabling home owners to seek compensation in the case of negligence. The appointment of a building commissioner, which the government has said would be finalised in coming weeks, and the requirement that all buildings are fully-compliant with the national building code, round out the government’s immediate agenda for reform.

Minister for Better Regulation and Innovation Kevin Anderson said the reforms are the biggest overhaul of NSW building laws in the state’s history, but as with the convoluted and far-reaching program implemented to address non-compliant cladding issues, it will be interesting to see how the QBCC reacts.

Sources: Australian Building Maintenance, CIW Remedial, Minc Services, BRS; Building Rectification Services, Buildcheck Engineering & Building Consultants and Work Safe

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MANAGEMENT

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The new QLD cladding legislation could affect you Following the Grenfell Tower disaster in London and the Lacrosse building fire in Melbourne, Australian states have begun taking action against potentially dangerous cladding.

Major legislative changes are coming in to combat the fire risk of cladding and these changes may affect your building.

or renovated after 1994 will need to submit a statutory declaration to the QLD Government confirming whether their buildings have any Aluminium Composite Panel (ACP) or other combustible cladding attached.

What legislation changes have occurred in QLD?

Part 1

On the 1st October 2018 the Queensland Government amended the Building Regulation 2006 (Building and Other Legislation Cladding Amendment Regulation 2018), introducing new safety laws.

The change in legislation means some Bodies Corporate may be required to register their buildings and complete the combustible cladding checklist.

To help identify buildings in Queensland that may have potentially combustible cladding the QLD Government established Safer Buildings (www. saferbuildings.qld.gov.au).

To see what legislation changes have occurred in NSW and VIC head to the CHU website www.chu.com.au

What buildings are affected by the change?

All Bodies Corporate with buildings that are three or more levels (or categorised as Class 2-9 buildings under the Building Code of Australia) and are built

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If the Body Corporate is unsure about any combustible cladding being present, they will need to engage an industry professional to determine this.

Key dates you need to know If a building identifies with the criteria determined by the legislation, the Body Corporate must have registered their building and completed the combustible cladding checklist (part 1) before the 29th March 2019.

For buildings with no combustible cladding, the Body Corporate must lodge a statutory declaration to this effect and no further action is required.

If the Body Corporate identifies combustible cladding or is unsure then they move to the next stage.

Part 2 By the 31st July 2019, the Body Corporate must engage a Registered Builder to determine if there is nonconforming cladding. The builder will then need to complete the building industry professional statement (statutory declaration), with the Body Corporate responsible for submitting the declaration in conjunction with the combustible cladding checklist (part 2).

required to move to stage 3, otherwise no further action required. Also note that Bodies Corporate may choose to skip part 2 if they are engaging a fire engineer to complete the combustible cladding checklist (as per Part 3 below).

Part 3 (a.) By the 31st October 2019, the Body Corporate must engage a fire engineer and register the engineer’s details on the combustible cladding checklist (part 3). The fire engineer is engaged to complete a fire risk assessment about the safety of the building and, if it is determined that the building is unsafe, propose appropriate rectification work. (b.) By the 3rd May 2021, Body Corporate to complete the combustible cladding checklist and upload this together with building fire safety risks assessment and fire engineer statement on the Safer Buildings website.

Actions for the Body Corporate Manager For buildings that have established the existence of non-conforming cladding, the Body Corporate must:

If the Body Corporate fails to comply with any lodgement dates, by default they are automatically advanced into compliance with the next stage, which is more onerous and more expense. If the Body Corporate ultimately fails to lodge documents they will face substantial fines.

Insurance considerations The presence of Aluminium Composite Panel or other types of combustible cladding is material to the insurance contract and must be disclosed to your insurer.

The disclosure of ACP can have an effect on the insurance premium and excess structure for a policy, due the heightened associated risk exposure.

CHU is Australia’s leading Aluminium Composite Panels (ACP) underwriting specialist and has continued to support the strata industry by offering solutions to buildings with ACP. To date, CHU has not declined to offer insurance cover for a Body Corporate due to the presence of ACP. Are you ready for what these changes mean for you and your body corporate?

This article was supplied by CHU Underwriting Agencies

•

Display a notice to that effect in an easily visible part of the building for so long as the cladding remains in place; and

Important Note: The content in this article should not be treated as providing any definitive advice and should not be relied upon as such. It is recommended that readers should always seek advice separately before taking any action based on this publication.

•

Every lot owner and long term tenant must be given a copy of that notice – including new tenants and new owners.

CHU Underwriting Agencies Pty Ltd (ABN 18 001 580 070, AFS Licence No: 243261) acts under a binding authority as agent of the insurer QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFS Licence No: 239545).

If the building has nonconforming cladding they are MANAGEMENT

ResortNews | July, 2019

Harnessing the full potential of your PMS software

By Trish Riley, Editor

A Property Management System (PMS) or Hotel Operating System(HOS), under business terms may be used in limited government applications, real estate for long-term rental management or hospitality accommodation management. They are computerised systems that facilitate the management of properties, personal property, equipment including maintenance, legalities and personnel all through a single piece of software.

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The first property management systems in the hospitality industry appeared on the market in the 1980s. They replaced old-fashioned, paperbased methods that were used to assign rooms, print attendants’ sheets or, best case scenario, manage guest invoicing, and tended to be both cumbersome and inefficient.

While still on a development projectory, a PMS used in a hotel and accommodation environment is now used to cover objectives like coordinating the operational functions of front office, sales and planning, communications and reporting etc. The system automates hotel operations like guest bookings, guest details, online reservations, posting of charges, point of sale, telephone and accounts

receivable. They are also likely to have integration or interface capabilities with third-party solutions that offer additional functionality like central reservation systems and revenue or yield management systems, online booking engines, back office, door-locking, housekeeping optimisation, sales and marketing, materials management, HR and payroll, maintenance management, pay-TV, energy management, payment card authorisation, channel management systems and other amenities.

A good PMS should give accurate and timely information on the basic key performance indicators of an accom business such as average daily rate, RevPAR or occupancy rate.

MANAGEMENT

In short, a PMS is a program designed to help property managers manage hotels, holiday, residential and commercial properties.

While this truly wondrous technological platform has grown with the hotel industry, at times it has not been fast enough.

Today, a large number of ‘next-generation’ property management systems favour a soft ware-as-a-service (SaaS) model sustained by web and cloud technologies.

With the introduction of a SaaS PMS, hoteliers now have the chance to grow at the cadence that the industry and guests require but also be able to be flexible to handle new technologies as they arise.

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The SaaS systems have expanded functionality towards new guest-facing features such as online check-in, room service, in-room controls, guest-staff communication, virtual concierge and more. These functionalities are mainly used by guests on their own mobile devices or such provided by the hotel in lobbies and/or rooms.

Accom managers can now empower employees to increase productivity and service as they are no longer hindered by restrictive, static platforms. Any platform can now be used such as tablets, smartphones and even, the old PC if required. They can now move about the hotel meeting and greeting guests, facilitating guest requests right from the housekeeping trolley and most importantly, creating an authentic relationship with the guest. No longer is a huge screen a barrier to connecting with the guest.

“A PMS is truly the ‘beating heart’ of your accom facility,” says Sylvia Johnston, owner of HiRUM Software Solutions, “and as such it needs to be highly stable, have the functionality you need to run your operations smoothly and effectively, run quickly and be able to integrate and talk to all of the current systems in place as well the plethora of new platforms that will require connectivity in the future.”

A word of caution though when choosing a PMS that is completely dependent on cloudbased technology – Australia is known for intermittent internet connection and reliability in many areas and the last thing a facility needs is downtime that you have absolutely no control over.

By implementing a SaaS PMS, hotels see substantial soft and hard cost savings. Within the SaaS model, everything is combined into an all-inclusive fee per room per month. No more maintenance fee surprises or extra support charges.

The investment is also highly manageable from a budgetary standpoint due to the predictable nature of the cost structure.

It's undeniable that PMS systems have the ability to provide deeper levels of business intelligence to owners that help to maximise operational efficiency, deliver a greater personalised service and increase revenue, but choose your SaaS system wisely. The software system and consolidated pricing can act similarly to a ‘license’

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that, should you need or want to swop or end the contract for any reason, you would effectively lose access to all business information contained within the system.

With so many different hospitality management systems on offer in the market, how do you know which one is right for you? Here are three essential features that you should look for when out shopping for your new hospitality management system.

Mobility: Mobility is key.

Consumers spend more time on their mobile phones than ever before. It has become a major touch point for customers.

Travellers and guests have a growing preference to engage in business transactions using their mobile devices. As we have evolved into a mobile generation, business now also need to be mobile. New modern cloud-based hospitality management systems use tablets and smartphones as the primary hardware device. They have also evolved to the point where they have the capability to deliver any type of data to any type of device at any given moment.

Combining both elements gives hoteliers mobility to be closer to their guests and also empowers their employees “on the move” with the necessary instruments to go above and beyond when providing the personalised attention that keeps guests coming back.

True mobility is the key to enabling employees to deliver the ultimate in guest service at every touch point. Mobility empowers staff to build relationships with guests beyond the essential meet and greet upon arrival or wave goodbye when guests depart.

Not only does mobile make it possible to enhance the customer experience but it also has the potential to streamline hotel operations on the backend and allow instant communication for enhanced employee efficiency and accountability.

Do remember the point made about internet connectivity however.

Integration: One of the largest challenges accom managers face today is the lack of technology integration. Resorts rely on multiple core systems to help run their property. An all too common story however, is that these various disparate applications were installed at different points in time, in various functional areas resulting in software conditions that do not communicate well with one another and business process inefficiencies. These inefficiencies include increased workloads for hotel management, wasted resources and missed revenue opportunities in a fast-paced industry.

What managers need are smart systems that work together and take care of themselves, allowing them to focus on their guests.

“Systems should make your life easier, not harder. But if they don’t talk to each other, they won’t provide the benefits that should be a given. Integrating your systems will allow you to maximize your ROI by turning piecework systems into a seamless technology network,” says Sylvia.

One of the biggest strengths of a cloud-based hospitality management system is that it can be easily connected to other software applications, even if these

MANAGEMENT

applications don’t share the same provider. Integrating core systems makes for more streamlined operations and integrated with innovative and interactive guestfacing technologies provides a key opportunity for capturing and utilising rich guest data to provide a highly personalised service.

Usability: The PMS has essentially become the backbone for many managers and is one the most important factors that contribute significantly to the long-term success of a facility. They are however, only as effective and as efficient as the personnel using them.

When shopping for a new hospitality management system, while all the nitty gritty technical detail and functionality is important, including having mobility as a key feature and seamless integrations, seeking an intuitive design that provides all the functionality required you’re your business should also be a priority. Even though the new system might promise the world, if you don’t understand it and find it difficult to use, then what good is it to you?

“It’s very important for managers to understand that when staff change, they should invest in fully training replacement staff,” adds Sylvia. “It’s not enough to simply demonstrate key functions, staff need to be adequately trained to get the best out of a system that’s essentially watching over the business for you.”

Source: HiRUM, Wikipedia, StayNTouch

ResortNews | July, 2019

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PMS Case Study: Ivory Palms Resort “It’s simple,” says Geoff Hussin, manager of Ivory Palms Resort in Noosaville, “if I didn’t have access to the HiRUM property management system (PMS) that I have, we would not be able to run the resort like we do.

“We have been in management rights and accommodation for just over ten years, and as we have moved into different properties, we have obviously inherited other systems. For the sake of convenience, we’ve tried to adapt and use them but we have not found another PMS to be anywhere as good.

“HiRUM provides essential reservation management, efficient front and back office tools, comprehensive communications and marketing platforms, full guest accounting and a means for managing our housekeeping and maintenance programs.

“It’s like having an invisible (and invaluable) manager on site 24-hours a day.

Geoff isn’t joking. He goes on to explain that with Ivory Palms Resort being a large complex situated on 7.5 acres of tropical gardens, running at high occupancy levels, the HiRUM PMS and HiSite module literally saves him half a staff member.

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Geoff Hussin

“The upgraded system enables us to connect to HiSite and the OTAs seamlessly so bookings are processed in real time.

Before we had access to this tool, our reservations manager would come to work and there would be a backlog of 60 to 70 bookings that would require processing - now that happens as they get booked. We are able to view and manage arrivals and departures at any time and during busy periods the booking optimisation tool optimises our availability.

“Not only that, the communications feature is great for marketing to previous guests and staying in contact with our owners.

“A lot of management rights owners didn’t understand or appreciate the importance of maintaining regular communication with owners until the arrival of Airbnb when they started losing stock. The PMS allows us to stay on top of all that really

easily – it’s as simple as typing a letter in word and the PMS sends it out – and then provides accurate reporting of everything that’s been done.

“Customised communications in 30 seconds – what’s not to love?”

Perhaps the most tangible added-value of the HiRUM PMS system however, is its mobility.

“The system we use (and I’m not aware of any other system that has this feature), enables our housekeeping staff to pro-actively manage their work more efficiently. Being such a big property, they no longer have to constantly call or return to reception, they can monitor pre-arrivals and departures, check the status of apartment cleans, tick off completed tasks and feed back information at the touch of a button.”

MANAGEMENT

When asked about training and support, Geoff is enthused: “If I ever have an issue, there is a facility or drop tag where I can log the problem – there’s even a critical button. Six months ago, I logged a critical call and the HiRUM support team were on the phone within two to three minutes. When you’re running at 90 percent occupancy, you cannot afford for the system to be down at all.

“With regard to training, that was prett y simple too.

I’m a slow learner and I was doing it remotely, but it was straightforward and wellstructured and within two days I was proficient.

“HiRUM really is a comprehensive solution. It’s affordable, easy to use and the only solution you will need to manage your accommodation effectively,” says Geoff.

ResortNews | July, 2019

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TOURISM REPORT

Should hotels have security screening?

Tourism is one of the world’s fastest-growing industries. Globally, more than 1.3 billion people travelled internationally last year and that number keeps rising.

When it comes to choosing not only a destination but also transport and accommodation, safety ranks as one of the top considerations for most travellers.

Every tourist needs a place to stay, and while there are many accommodation options available, a large proportion of travellers will spend at least a part of their trip in a hotel.

In recent years, luxury international hotels and resorts have become prime targets for terrorist groups that seek to disrupt tourism, in part because of the huge economic damage it can inflict.

The April 21 terrorist attacks in Sri Lanka killed 257 people.

The attackers targeted three Christian churches, which accounted for over 200 of the fatalities.

However, in keeping with a growing trend of Islamist terrorist attacks around the world, three luxury Colombo hotels (The Shangri La, Cinnamon Grand and Kingsbury) were also targeted, killing 39 people and wounding many more.

Hotel and resort guests, as well as staff, have also been attacked in Pakistan, Indonesia, India, USA, Turkey, Tunisia, Burkina Faso, Jordan, Philippines, Egypt and Mali.

In most cases, the hotels and resorts targeted have been high-end, attracting tourists from multiple countries.

Following the 9/11 attack in September 2001, global airlines and airports upgraded security for all airlines and airports around the world.

The International Maritime

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Organisation has also established strict global safety and security protocols applying to all cruise operators. All these come under the jurisdiction of the United Nations. However, there are no globally enforceable standards of security that apply to the accommodation sector.

One reason for this is that there are many forms of accommodation ranging from Airbnb, private guesthouses, pubs, motels, caravan parks thorough to luxury hotels and resorts.

Hotel guests have traditionally resisted personal and baggage screening, which they tolerate at airports, cruises and even international rail stations, and for many hoteliers, invasive screening conflicts with a long tradition of extending welcoming hospitality for all. However, that same open and welcoming approach has made hotels a soft target for terrorists.

Increasingly, those hotels that are likely targets of terrorist and criminals have sought to introduce technological approaches to screen guests and their baggage that is not personally invasive.

Security with a smile.

Consequently, it is almost impossible to establish a set of safety protocols that can readily apply to all.

The International Hotels and Restaurants Association, which is the global body for the accommodation sector, lacks any global governance power to impose a set of safety standards.

Increasingly, the larger international hotel chains — led

by Intercontinental Hotels Group, Hilton International and Accor — have sought to introduce enhanced safety measures to their hotels and resorts.

Many hotels are now signing up for certification from private security agencies such as Sweden-based Safehotels.

They provide three levels of security grade for hotels based on 220 standards of safety and security and the ‘executive level’ is the highest level of security and this gives the hotel the right to market the benefit of being independently rated as a safe hotel.

Whether a traveller is staying at

TOURISM

a hotel for business or leisure, all hotels guests want to be assured of a safe hotel experience.

Those hotels that can demonstrate a commitment to, and implement, measures that ensure safety for their guests will attract the growing number of hotel guests who demand a secure hotel stay.

Increasingly travellers, especially those on business trips, seek the advice of travel security specialists such as International SOS when planning their trips.

Most leisure travellers will refer to government travel advisories, their travel agent and in some cases other private sector tourism security firms.

Contrary to popular opinion, many backpackers will choose to spend at least a night at a top-end hotel at the beginning or the end of their adventure.

The safety of hotels is a top-of-mind concern for travellers and increasingly, the question of whether it is safe applies as much to hotels as it does for destinations.

Source: David Bierman

ResortNews | July, 2019

Submarine hotel to provide ultimate reef encounter An underwater hotel will deliver the ultimate Great Barrier Reef experience – three metres below the ocean surface at Queensland’s Lady Musgrave Island.

Set in the lagoon surrounding the island, the sustainable hotel is set to be part of a 36 metre, three-level pontoon anchored to the sea bed and operated by Lady Musgrave Experience.

State tourism minister Kate Jones says the pontoon will house a reef observatory, water slides and a sun deck along with the floating hotel and is expected to draw an extra 16,000 visitors to the region each year, generating more than $1.8 million in visitor expenditure.

“This pontoon is a gamechanger for Lady Musgrave and the Great Barrier Reef and will create a whole new way for visitors to experience the island and the region,” she said.

“It will host an underwater observatory with UV lighting, so visitors can experience the reef at night and have upper decks for diving, snorkelling and environmental data collection.”

The pontoon will provide accommodation for up to 24 people and is part-funded through a $1 million government July, 2019 | ResortNews

grant from Queensland’s Growing Tourism Infrastructure Fund.

Bedrooms will have 360-degree underwater views of the reef, while upper decks will cater for diving, snorkelling and environmental data collection.

around $1500 a night for an underwater room and The Muraka Conrad Maldives Rangali Island will set visitors back up almost $12,000 for its luxury offering, but prices for the Queensland hotel are expected to sit at around $550 a night.

While underwater hotels around the world tend to command eye-watering nightly charges, the Lady Musgrave Experience is designed with a more modest footprint.

The pontoon will be made from recycled materials, including thousands of recycled milk bottles, and when completed is expected to support around 14 jobs.

Tanzania’s Manta Resort costs

Lady Musgrave Experience TOURISM

managing director Brett Lakey said it would increase the international tourism appeal of the island, driving benefits throughout the region.

“This development will ensure the southern area of the Great Barrier Reef is an attractive gateway for visitors, providing some of the best tourism experiences on the reef,” he said.

Construction is expected to commence in August with plans to open to the public in April 2020.

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TOURISM INTERNATIONAL

Hipster beards causing delays

at UK airports this summer If you are planning a summer holiday abroad, do yourself a favour.

Check your face.

one of the most important developments in airport security in recent years, but it’s important to remember that errors can still be made, particularly if a passenger’s passport photo is particularly old!”

According to new research your hipster beard is just one of the common reasons why you may fail the checks at the UK border when using ePassport gates at British airports. Your well-tended facial hair could contribute to the delays that amount to almost 380 days over the course of a year.

In essence if what you look like on the day is different to your passport mug shot it could be a problem.

Even facial piercings, weight loss or weight gain could be enough to fail this test, causing delays and a potentially embarrassing walk back to visit a Border Force officer.

According to figures obtained from the UK Border Force a staggering half a million arrivals into the UK are believed to have failed the egate check in the last year alone. These figures could increase now that seven more countries including the USA and Australia have now been able to use these gates since early June.

More surprising reasons for a failed egate check include mood, alertness and ‘physical condition’ according to findings

by Matt Lewis, research director at cybersecurity and risk mitigation expert, NCC Group.

Some passengers have even reported failing these checks after a few too many beers the night before a flight.

Nimesh Shah, Managing Director at Feel Good Contacts, said: “With the announcement that additional passengers from Australia, Canada, Japan, New Zealand, Singapore, South Korea and the USA are now able to use the

ePassport gates at UK airports, the waiting times for ePassport gates looks only set to rise in the coming months. It’s therefore crucial that passengers are as prepared as possible to avoid creating delays for their fellow fliers. Based on the figures from this research* and the assumption that a failed check could cause up to a minute delay – thought it could be more – this equates to an overall delay of 546,800 minutes.

This equates to 9,113 hours or just under 380 days per year. Who knew hipster beards would cause so much damage to our holidays?

“Facial recognition is no doubt

Kevin Smith, Head of Technology at facial recognition specialist Credas, adds: “Improvements in technology now mean that around just 1 percent of passengers fail these tests, however, this does mount up when you consider the sheer amount of passengers passing through the terminals of the UK’s airports on a daily basis.

“While beards and facial hair in general are typically the most common causes of failure, other factors such as significant weight loss or gain can also have an impact on the technology’s ability to find a match between a passenger’s passport photo and face.”

TIP: If you’re stuck in a long queue after a long flight at the ePassport gate check, be mindful when it comes to choosing a line – you may want to avoid the hipster beard if you want a swift passage through after a long flight.

All US leisure travel to Cuba is banned The Trump administration has placed sweeping restrictions on U.S. travel to Cuba, closing off the island to nearly all US travellers and potentially hurting industry players excited by renewed tourism to the island.

Cruise ships are no longer authorised to visit the island, cutting off one of the most popular methods of US travel to the region. Of the 257,000 U.S. citizens who visited Cuba in the first four months of 2019, 142,000 came on cruise ships, according to Cuba government figures. The new restrictions also end authorization for

42

effort to reverse the opening up of US-Cuba travel enacted by the Obama administration.

group educational trips to Cuba, which are known as “people-to-people” travel.

“The United States has taken strong action to prevent U.S. travel to Cuba from enriching the Cuban military, security, and intelligence services by announcing new restrictions on authorised travel and vessels to the island,” the announcement from the

Department of State read.

“The United States will no longer permit visits to Cuba via passenger and recreational vessels, including cruise ships and yachts, and private and corporate aircraft.”

The move is the latest and the heaviest blow under the Trump administration to tourism in the region. It comes as part of a larger TOURISM

In 2016, the Obama administration made it possible for most US citizens to visit Cuba, but in June 2017 the Trump administration ended that, only allowing visits to Cuba as part of educational group tours.

Months later, the administration also banned US travellers from staying at certain hotels on the island, which it said had ties to the Cuban government.

And in April, the administration announced upcoming restrictions on non-family travel to Cuba, and limited the amount of remittances Cuban-Americans can send to relatives.

ResortNews | July, 2019

THE LAST RESORT

Q Station:

Spend the night at one of Australia’s most haunted sites Q Station is a hidden gem located at North Head on the shores of Sydney Harbour in Manly, Australia, and while it provides a unique look into a slice of Sydney’s history, the heritage hotel housed across the 30-hectare Sydney Harbour National Park, is a far cry from the macabre facility of the past.

paddling along the shoreline to a secluded cove or exploring the property by bike, peddling past the gaggle of 65 heritage buildings; all kept in pristine original condition.

Some being the first, second and third-class precincts, now accommodation, while others are officers' buildings, mess halls and pump rooms, now museums, recreation rooms and restaurants.

The proprietor’s dedication to the site’s heritage preservation and National Parklands ownership means that there is restricted motor vehicle activity on site.

A complimentary shuttle bus runs 24/7 to carry both guests and visitors from place to place, however there are also beautiful paths for walking and an opportunity to hire bicycles.

Hidden amongst native Australian bush land with stunning views overlooking Sydney Harbour and the skyline of modern Sydney on the horizon, one feels like you are removed from the hustle and bustle of city but it is just a short ferry ride away.

Originally known as the North Head Quarantine Station the site was used from the 1830s to 1984 to isolate people migrating to Australia suspected of carrying contagious diseases.

Isolation was the whole point of the exercise. If ships entering the heads had a sick patient on board they were required to hoist a yellow flag before disembarking all passengers, not just the infected ones. Here they were scrubbed within an inch of their lives, had their luggage autoclaved and were kept away from the local Sydney residents for several weeks or months. For healthy passengers, it was an extended holiday, for others it was a frightening

experience of disease and death.

In total 500 people died here.

While other resorts offer swimming pools and day spas, Q Station is about history, heritage and paranormal things that go bump in the night. There are also little penguins, bandicoots and possums, a scalloped beach, a range of dining options, and recreational activities such as kayaking, stand up paddle boarding and bike hire.

Like the original passengers the accommodation is divided into deluxe rooms with ensuites

(first class), heritage rooms with grouped, though private, bathroom facilities (second class) and a number of historic cottages once occupied by former Quarantine staff. All have been renovated with contemporary decor and come with flat screen TVs, bathrobe and slippers, balconies and alfresco furniture. It's a comfortable fusion of fresh, modern furnishings with nana's fittings and fixtures.

In reality however, the rooms are just a base, all the good stuff is outside. Guests can partake in water sports straight off the beach,

Sydney’s former Quarantine Station is also reputed to be one of Australia’s most haunted sites, with stories of ghosts and paranormal occurrences entwined throughout its history and ghost tours have operated here since the early 1990s.

Visitors are regaled with stories about the strange things that have happened to former tour participants to the site as they explore the haunted spaces of the stations, including the hospital, morgue, shower block and more.

Stories won't be all you hear, however, with unusual sounds like music and the clattering of pots and pans often documented.

Not only this, but smells such as lemons or potatoes, and very cold spots throughout the site are sure to make your hairs stand up.

Being a national park Q Station welcomes day visitors to enjoy the historical site, dine at the restaurants, join a history or ghost tour or simply revel in the natural beauty of the beach and bush.

Q Station is listed on the National Heritage register and has won multiple International Sustainability Awards.

July, 2019 | ResortNews

TOURISM

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Talking revolution at Tourism Innovators event The Tourism Innovators Conference, held on the Gold Coast recently, delivered some genuinely ‘mind blowing’ moments.

Futurist Michael McQueen made everyone in the room acutely aware that the success of their businesses will depend on their ability to “anticipate, prepare for and pre-empt disruption”.

He introduced the thought that, while the world is moving faster than it’s ever done, it will never move this slowly again – daunting for someone who already feels like a salmon swimming upstream much of the time.

“Revolution not evolution” was the message – the relationship between a candle and a light bulb illuminating how radically tourism changes will manifest in the very near future.

A panel session featuring the CEOs of holiday park groups Ingenia, G’day Group, NRMA and Reflections, provided an absorbing insight not only into park evolution but the genuine passion of industry leaders for sustainability.

tentacles of the Kraken of Doom.

Value input from your newest employees however unqualified they might seem, says Fox, if you want to avoid oblivion.

Between the longer sessions were short bites of insight from leading industry players on payment solutions, direct booking drivers and the pitfalls to avoid when selling an accom business.

The Tourism Innovators Conference is the brainchild of Newbook founder and CEO Brad Illich, and is held biannually, In the event’s brochure, Illich sums up the motivation behind the event: “We understand how precious your time is – it’s the most valuable asset of any business and I hope you walk away with new knowledge, tools and the courage to try something new in your business that could lead to massive time savings and revenue opportunities.”

Major national bowls event secured for the Gold Coast The world’s largest open lawn bowls tournament will be held on the Gold Coast for the next five years after the Palaszczuk Government has announced a new deal with Bowls Australia.

Tourism Industry Development Minister Kate Jones said with the 2019 Australian Open starting in June, the government via Tourism and Events Queensland had secured the event to stay on the Gold Coast from 2020 – 2024.

“The Australian Open is the largest open lawn bowls event in the world, attracting thousands of competitors and visitors from across the globe.

“Securing this event for the next five years is a great achievement for Queensland.

It will pump millions into the Gold Coast economy and help

to grow the tourism industry.

Assistant Tourism Industry Development Minister and Member for Gaven Meaghan Scanlon said: “A record number of competitors will be on the Gold Coast for this year’s instalment with more than 2600 entrants from across the world competing – more than 300 from overseas.

“This year’s competition will take place across the city, at a total of 13 venues, once again shining the spotlight on the Gold Coast for two weeks of competition and spectacular winter weather.”

Bowls Australia CEO Neil Dalrymple said the transition of the Australian Open to the Gold Coast in 2015 has been seen as a significant pillar in the development of this marquee-calibre event and the positioning of South East Queensland as the natural hub of bowls in Australia.

Dr Jason Fox, a gifted performer used a combination of humour and intellect to challenge our default thinking and understand how its contribution to a “delusion of progress” is holding us back. His ‘lifecycle of a business’ illustration was a cautionary tale about how a lack of fresh ideas will propel us into the outstretched

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EVENTS & APPOINTMENTS

ResortNews | July, 2019

Conversations with Queensland industry Registration is open for Tourism & Events Queensland's Conversations with Industry events in Brisbane on Friday 2 August. Tourism Australia is taking part in the TEQ event series providing updates on its international marketing activities and consumer insights.

ATHOC Annual Conference 2019 - Gold Coast The ATHOC annual conference, scheduled for September9 - 10, 2019 on the Gold Coast, is set for a shake up and brand new look format.

The conference will open with drinks on Monday 9 September as normal, but will consist of a one-day conference event with a large number of breakout sessions taking place through the day. There will be a number of streams covered off to ensure that everyone will get some great information that is really targeted at them.

Watch this space and if you have any thoughts on conference topics or key note speakers, please don’t hesitate to let us know.

Driving change: Be a part of it There’s a global shift happening in tourism and we’re feeling it

right now in Australia. As the pace of daily life intensifies, travellers are seeking to balance this with wellness experiences when they travel. And wellness tourism business is booming.

The wellness tourism sector is now worth a staggering $639 billion a year in global visitor spend, with Australia receiving 10 million wellness trips a year from

local and international visitors.

Join Australia’s first Wellness Tourism Summit in Noosa, and be part of a global movement that is changing the way we look at travel and wellbeing.

Registration is open for Australia’s first ever Wellness Tourism Summit to be held on 19 and 20 March 2020 in Noosa.

2019 ARAMA INDUSTRY EVENTS CALENDAR For registration and/or event information please contact us on 1300 ARAMA Q (1300 27 26 27), email national@arama.com.au or visit: https://www.arama.com.au/ BRANCH

EVENT TITLE

DATE

TIME

Brisbane

Management Rights Industry Training Program

Monday, 12 August 2019

8:30am - 4:00pm Riverside Hotel

Open

Gold Coast

ARAMA Industry Expo

Tuesday, 20 August 2019

6:00pm - 9:00pm Southport Sharks

Opening Soon

Sunshine Coast ARAMA Industry Expo

Wednesday, 21 August 2019

6:00pm - 9:00pm Maroochy RSL

Opening Soon

Brisbane

ARAMA Industry Expo

Thursday, 22 August 2019

6:00pm - 9:00pm Kedron-Wavell

Opening Soon

Gold Coast

Management Rights Industry Training Program

Tuesday, 10 September 2019

8:30am - 4:00pm Property Training Australia

Open

Melbourne

Training and Education Roadshow

Thursday, 17 October 2019

6:00pm - 8:30pm Campari House

Opening Soon

Airlie Beach

Training and Education Roadshow

Tuesday, 29 October 2019

6:00pm - 8:00pm Coral Sea Resort

Opening Soon

Gold Coast

Training and Education Roadshow

Wednesday, 6 November 2019 6:00pm - 8:30pm Kurrawa Surf Life Saving Club

Opening Soon

Sunshine Coast Training and Education Roadshow

Thursday, 7 November 2019

Opening Soon

Port Douglas

Training and Education Roadshow

Wednesday, 13 November 2019 6:00pm - 8:00pm Oaks Port Douglas

Opening Soon

Cairns

Training and Education Roadshow

Thursday, 14 November 2019

6:00pm - 8:00pm Brothers Leagues Club

Opening Soon

Brisbane

Training and Education Roadshow

Tuesday, 19 November 2019

6:00pm - 8:30pm The Colmslie Hotel

Opening Soon

Brisbane

Management Rights Industry Training Program

Thursday, 28 November 2019

8:30am - 4:00pm Riverside Hotel

Open

July, 2019 | ResortNews

LOCATION

6:00pm - 8:30pm Maroochy RSL

EVENTS & APPOINTMENTS

REGISTRATION

45

Red10 Finance takes out top honours Nick Smith and Red10 Finance claimed top honours at the Mortgage and Finance Association of Australia State Excellence Awards held at the end of May, with Red10 Finance and Nick being awarded Queensland Award Winner, and Nick being recognised as Queensland’s Best Broker.

Nick said: “I am deeply humbled and excited about the award. Without my clients and my partners we don’t exist, so from the bottom of my heart I thank them for trusting Red10 Finance and for allowing us to assist them”.

Ms Kunkel is a results-driven hospitality and tourism expert with over 20 years’ experience in both operational and commercial functions of the business.

Ms Kunkel joining the AAoA National Board coincides with the 100th anniversary of the Hilton Worldwide Holiday Inc, that now operates over 5,700 properties worldwide.

“I was delighted to be invited to join the AAoA National Board as I see the Association taking the leading role in growing our industry, which provides employment and career opportunities for thousands of Australians nationwide.”

Nick Smith

Hotel expert adds clout to AAoA

Heidi Kunkel

Heidi Kunkel, vice president of operations, Australasia at Hilton has elected to join the National Board of the Accommodation Association of Australia (AAoA).

Accor Pacific’s Simon McGrath named in Queen’s Birthday Honours

Ms Kunkel is responsible for the overall performance of the growing portfolio of Hilton Hotels and Resorts in Australia, New Zealand and the South Pacific

Simon McGrath, Accor’s COO for the Pacific, has been named in this year’s Queen’s Birthday Honours List as a Member of the Order of Australia (AM).

46

and providing employment for tens of thousands of people. In addition, he is a true advocate for Indigenous communities and is passionate about providing meaningful opportunities for our indigenous staff. This honour is recognition of his hard work over more than 30 years in advancing tourism in Australia.”

that currently encompasses 27 Hotels and over 10 new exciting properties in the pipeline.

Simon McGrath

The prestigious honour is given to only 365 recipients each year, with McGrath chosen for his outstanding service to the tourism and hospitality industry.

As the head of Accor’s operations in the Pacific, McGrath oversees a network of over 390 hotels across Australia, New Zealand, Fiji and French Polynesia, and is deputy chairman of the Tourism Transport Forum (TTF), as well as being a director of the Accommodation Association of Australia, Accor Vacation Club and the Reef Casino Trust. He is particularly passionate about promoting Indigenous tourism, with Accor employing over 650 Aboriginal or Torres Strait Islander staff across the largest hotel group in the country.

“I am incredibly proud to see Simon McGrath recognised amongst such esteemed company in the Queen’s Birthday Honours List,” said Michael Issenberg, Chairman & CEO Accor Asia Pacific. “Simon not only drives the performance of our hotels in Australia, but more importantly, is personally invested in raising the profile of tourism as an important sector in the Australian economy

EVENTS & APPOINTMENTS

The Order of Australia is an order of chivalry established in 1975 by Queen Elizabeth II to recognise Australian citizens for achievement or meritorious service.

Penny Fowler joins Tourism Australia Board Penny Fowler has been appointed to the Tourism Australia Board of Directors. Mrs Fowler is Chairman of the Herald and Weekly Times in Melbourne, Deputy Chair of The Royal Botanic Gardens Victoria and is on the Advisory Board of Visy and brings extensive consumer marketing experience to the role. “Mrs Fowler brings a wealth of experience with her and I trust will make an invaluable contribution to ensuring Australia continues to be a highly desirable destination for international travellers,” Minister for Tourism Simon Birmingham said.

Penny Fowler

ResortNews | July, 2019

Star launches skyscraper at $2bn Broadbeach masterplan Gold Coast Airport Rydges hotel takes shape

ASX-listed Star Entertainment Group has fast-tracked residential sales in Broadbeach, bringing forward construction of the second mixed-use tower at its Broadbeach Island masterplan.

The $500 million skyscraper will deliver 457 apartments over 63-storeys to market, with construction expected to commence in mid-2020.

The fast-tracked release will add to growing confidence in the Gold Coast high-rise residential market, which experienced an uptick in sales over the March quarter. The Star Queensland managing director Geoff Hogg said the consortium has expedited sales due to demand for real estate on Broadbeach Island. The first residential tower, which kicked off construction last year, has clocked 92 percent in sales to date. “The sales success of the first tower and it being under construction gives a lot of people confidence about our masterplan and what we’re doing,” Hogg told ResortNews.

“Obviously the market has changed a lot, but until you start selling you’re never quite sure how the market has shifted and where it will come from. “[But] off the back of tower one we’re confident there’s market demand there and we will know a little more about those trends in the near future.”

July, 2019 | ResortNews

The $400 million, 53-storey first tower will deliver a 316-key Dorsett Hotel — the first of its kind in Australia — and 423 residential apartments.

Hogg’s confidence in the Gold Coast extends to the investor market, which he said was still strong.

“Because the pre-sales for one-bedroom apartments went so well, we feel like there may be 50 percent — or even slightly higher — of sales to investors,” Hogg said.

“Obviously it’s hard for us to gauge until we find out who wants to participate in the letting pool.”

The Star-led Gold Coast Consortium is a joint venture with Far East Consortium and the Hong Kong-based Chow Tai Fook Enterprises. Each partner has a third equity share in both mixed-use towers. An operator for the 210-key hotel in the second tower will be named in the coming weeks, which Hogg says will be a new hotel brand not available on the Gold Coast.

“It will be a very exciting addition and the fourth hotel available on the island.”

In addition to the construction of the Dorsett Hotel tower and The Star Residences Gold Coast apartment tower, the Star Gold Coast masterplan includes The Darling and has approval for four more towers making it the largest integrated resort in the country.

THE Gold Coast Airport’s first hotel, a $50 million Rydges with a rooftop bar, will start climbing out of the ground now its concrete slab has been laid.

More than 330 truckloads have poured 2050 cubic metres of cement during the past few weeks to create the 3000 square metre hotel slab.

Queensland Airports Limited executive general manager Carl Bruhn said the slab pour

involved a lot of co-ordination to not interrupt airport operations and required 100 workers.

“The most challenging part of this project was its location — in the middle of a busy airport precinct. Meticulous planning went into making sure the airport continued to run smoothly while a massive logistical exercise took place on its doorstep,” he said.

Construction company Condev, on behalf of developer Trepang, is building the seven-storey, 192-room hotel on the south side of the terminal.

Construction begins on Gold Coast’s Central Park Construction has begun on the Gold Coast’s own ‘central’ park. As the first trucks move in on the site, new designs and a laundry list of new features can be revealed, including a water park.

Earthworks to create the giant parklands at Robina near Cbus Stadium has begun, with the first trucks moving in on the site last week. Work on the 17ha project is expected to take more than 18 months. Area councillor Hermann Vorster said that the design of the precinct was ongoing but a range of new features would be added. These include: •

An interactive water play area.

•

An off-leash dog area.

•

A kiosk and cafe capable of supporting major events

DEVELOPMENTS

•

A village green, which can cater for 7000 spectators during major events

•

Yoga lawns, sports fields.

•

A giant adventure playgrounds

•

A series of interactive natureinspired activities for children

It will rival the State Government’s recently unveiled Spit masterplan vision for a coastal version of New York’s famed Central Park.

Cr Vorster said the Robina development would become a major community hub.

“We have now designed 65 percent of the project which will allow us to go to market to deliver the precinct,” he said.

“The vision for the area is bigger and bolder than what was originally planned and will deliver an epicentre of free family fun on the Gold Coast.

47

All-electric buildings, net zero emissions Australia’s $200 billion property industry is a major contributor to emissions, representing 25 percent of total carbon emissions.

committing to the Global Net Zero Carbon Buildings Commitment, a global initiative challenging organisations to achieve netzero operating carbon emissions across their portfolios by 2030.

Reserve Bank deputy governor Guy Debelle said climate change had become a “key policy concern” in a landmark speech made by the nation's central bank earlier this year.

The World Green Building Council’s Advancing Net Zero Status report released last month shows that globally 390 buildings have now been certified as net zero carbon by participating in green building council schemes since 2017.

“The transition to a low-carbon economy won’t be easy and won’t be cost free, but it has to be done,” Debelle said.

Listed property group Mirvac said it expects to achieve net zero emissions by 2030.

“There is no doubt the world’s climate is changing,” Mirvac chief executive Susan Lloyd-Hurwitz said.

“We are committed to taking responsibility for our impact on the

climate, and we are also committed to the success of Mirvac by minimising these risks […] even as new developments come online and our business grows.”

efficiency and developing allelectric buildings powered by 100 percent renewable energy,” Mirvac general manager Sarah Clarke said.

The listed group, which has an investment portfolio across office, retail and industrial assets, and a development business in both residential and commercial sectors, refreshed its sustainability strategy this week.

Clarke said this goal includes the investment portfolio’s recent addition of office developments at Melbourne’s 477 Collins Street and Brisbane’s 80 Ann Street, which is currently under 'clean up' after the site was found to contain 'hazardous contaminants'.

“The key steps Mirvac will take to reduce carbon emissions include continuing to maximise energy

Last year Dexus, Cbus Property and Nightingale Apartments joined other industry heavyweights in

The project aims to accelerate uptake of net zero carbon buildings to 100 per cent by 2050.

“Human-induced climate change is a significant threat to our planet, and as a key player in the built environment industry, which contributes a quarter of Australia’s carbon emissions, we have a responsibility to eliminate more carbon than we emit,” Clarke said.

Ocean Cleanup tackles Great Pacific Garbage Patch: Take two The Ocean Cleanup project has been redesigned and relaunched, as it makes its second attempt to clean up a giant pile of plastic concentrated in the Pacific Ocean.

Last September The Ocean Cleanup made the world’s first attempt to clean the ‘Great Pacific Garbage Patch’ (GPGP), a smog of the world's largest zone of ocean plastics located between Hawaii and California.

Technology to solve this issue had not been developed or deployed before the September attempt.

Ocean plastic activists and marine scientists who have criticised the project, describing it as a “hard to pull off technological innovation”, have warned it could also detract attention from the push to stop plastics from entering the ocean to begin with.

The infamous GPGP: Around 80

48

million kilograms of floating plastic have accumulated in an area which is reportedly three times the size of continental France.

This is an estimated 1.8 trillion pieces of plastic, principally made of polyethylene (think grocery bags, shampoo bottles) and polypropylene (a thermal plastic

also used for many consumer products), circulating the ocean.

will solve the issues we have

Boyan Slat, who founded the organisation (Ocean Cleanup) said the principle behind the design process is to test, learn and repeat, “until you have a proven concept”.

may still be further unknowns,

“We don’t know with certainty that these proposed options

operational the plastic pollution

DEVELOPMENTS

encountered. In fact, there as is the nature when doing something that has never been done before. What we do know, is that every day we are not yet problem is not getting better.”

ResortNews | July, 2019

MANAGEMENT RIGHTS RESORTS VE USI L C EX

VE USI L C EX

SURFERS PARADISE | GREAT OPPORTUNITY

HAMILTON | WATERFRONT HIGH-RISE

Leave the car behind and enjoy this perfectly located Gold Coast Management Rights. So close to the GLink tram and a few minutes to Broadbeach, Pacific Fair Shopping Centre and Cavill Avenue. Close proximity to the Gold Coast Convention Centre and Star Casino. Management Agreements have 24 years remaining with a rewarding Body Corporate salary of $63,000. Plenty of potential upside for an enthusiastic manager to improve income with eleven of the apartments under management with outside agents.

A stunning, absolute riverfront location featuring Brisbane city views, offering an excellent array of services at your door step. Located just north of Brisbane’s CBD in a vibrant up-market precinct offering excellent lifestyle options. Brand new 25 year management agreements, coupled with a handsome salary of $179,000 contribute to ensure a very attractive business offering. A near new two bedroom manager’s apartment is the icing on the cake with this terrific and extremely profitable business now on the market.

NETT $177,000 PRICE $1,297,000 VE USI L C EX

Bobo Qi

0438 027 771

bobo@propertybridge.com.au

NETT $355,000 PRICE $2,702,000

VE USI L C EX

SOUTHPORT | TONS OF UPSIDE!

RUNAWAY BAY | WATERFRONT WITH PIZAZZ

Brimming with promise this versatile holiday/permanent resort needs an experienced and motivated Manager to take the reins and fulfil its outstanding potential. Significant letting pool consisting of one and two bedroom, mostly furnished apartments. Accommodation module with $140,000 BC Salary. An impressive array of facilities to ensure happy guests. 3 Bedroom, 2 Bathroom, 2 car spaces, Office and Reception with a total of 229 sqm on title. 4.4 MULTIPLIER! Realistic vendor has priced this Gold Coast Management Rights to sell.

One of the largest Manager’s residences, spacious, private and well appointed in a magical waterfront setting. Marina berth available for the boatie. Fully secure and private garden for family and pet. Accommodation module, 20 years to run and salary near $100k. Sought after quality rentals comprising three bedroom townhouses and apartments. Two minutes to a plethora of retail, restaurant and recreational options. Something special? You bet!

NETT $318,000 PRICE $1,960,000

Rhonda Perkins 0418 767 115

rhonda@propertybridge.com.au

NETT $144,000 PRICE $1,250,000

VE USI L C EX

VE USI L C EX

TINGALPA | HEALTHY BODY CORPORATE SALARY

KENMORE | EXCELLENT VALUE

This Brisbane suburban management rights business for sale has an enviable manager’s renumeration of $133,000 and represents a sizeable proportion of total net income. A gated townhouse complex in the popular suburb of Tingalpa this business has no set office hours, with office on title, and is close to all that the family needs. The three bedroom townhouses on offer to tenants are very popular and the shared facilities include a BBQ and swimming pool only. This is a business worthy of your attention.

Offering an excellent position in this sought after suburb and with so much scope to improve the bottom line. Majority of current income derived from Body Corporate salary of $96,000. No need to live on-site. No office hours. So easy to rent these townhouses with such a terrific location. Enjoy Kenmore Village, offering shopping, restaurants, health club, public transport and only 15 minutes to Brisbane’s CBD. Priced to sell with a new 10 year agreement on offer to a qualified buyer.

NETT $184,000 PRICE $1,339,000

Jim Lowe 0403 418 115

jim@propertybridge.com.au

NETT $100,000 PRICE $874,000

propertybridge.com.au | 1800 888 518

New Managers

www.accomproperties.com.au

Sales Report

Bargara Blue, Bargara

MANAGEMENT RIGHTS Gold Coast Emerald Lakes - Hilltop, Hillside and Harbour

Alistair Cray

Carrara

RB

Evolution Hotel Apartments

Horizons Group

Brisbane

MRS

Rhodes

C & J Mitchelson

Capalaba

MRS

Brisbane

Parkside on Folkestone

Michael Chang

Bowen Hills

RB

Hopscotch

Ivan Chou

Newstead

RB

Vida North Lakes

Silvia Liu

North Lakes

RB

Calamvale Outlook

Hao Wang

Calamvale

RB

Focus + Evolve

Lily Sun

Chermside

RB ARMS

John and Vivie Tritton, with their daughter Hannah and one of the family pets ‘Arnold’ being congratulated by CRE Brokers’ Ronnie Slebos at Bargara Blue

Sunshine Coast / Wide Bay / Fraser Coast Urban Sanctuary Villas

Moreno Kramer

Currimundi

Bargara Blue

John & Vivie Tritton

Bargara

CRE

Cairns

CBRE

Northern Queensland Marquis on Grafton

Matt & Sam Currey

MOTELS & OTHER Queensland BW Airport 85 Motel

J&K Blacksell

Ascot

TB

Arcadia Village Hotel

John Shepley

Arcadia

RB

Rocky Resort Motor Inn

Paul Spiteri

Rockhampton City

RB

Billabong Lodge Motel

David Esler

Townsville City

RB

New South Wales Econo Lodge Heritage Motor Inn S. Patel

Wagga Wagga

TB

Matthew Flinders Motor Inn

A & M Hemsley

Coonabarabran

TB

Cotswold Gardens

D & P Love

Armidale

TB

Ulladulla Guest House

Ulladulla Guest House

Ulladulla

RB

Victoria Bank on Collins

Jonathan Sherren

Melbourne

CRE

Fish Creek Hotel

Greg & Gabriella Wilcox

Fish Creek

CRE

Violet Town Hotel

Leigh & Sharon Wright

Violet Town

CRE

Olde Horsham Motor Inn

M. O'Dowd

Horsham

John and Vivie Tritton used to manage a motel in North Queensland before deciding to move a little further south to settle in a new home and business.

They looked at many different management rights businesses between Port Douglas and the Sunshine Coast before Ronnie from CRE Brokers Central Queensland, introduced them to the beautiful Bargara Blue Resort, near the golf course and across from the beach at beautiful Bargara. John and Viv had many factors to consider,

not least of which included finding a good school for their daughter, and keeping their two dogs; Arnold and Scruffy.

Ronnie showed John and Vivie several opportunities including properties at Hervey Bay and 1770, but Bargara Blue ticked all the boxes; an excellent location near the golf club, beachfront apartments with ocean views and excellent schools in the vicinity. The three-bedroom managers unit with separate office offered ample space for their daughter, the family pets as well as an occasional guest.

Carrington Court

TB

Note: Agent/Broker involved in the sale is listed last.

Agent - KEY: ARMS - Australian Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RBA - Resort Brokers Australia; RS - Resort Sales; TO - Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp. * In conjunction

QLD - NSW - VIC - WA

Warren Oliver of Management Rights Sales with Gary Aitken

Warren Oliver of Management Rights Sales welcomes Gary Aitken as the new manager of Carrington Court, Main Beach.

50

PROPERTY

This is Gary’s third building and he is looking forward to a new challenge.

ResortNews | July, 2019

JUST LISTED! New Exclusive Agency Listings Chevron Island Permanent

Small Permanent • Suitable for first time purchaser or single operator • Centrally located • Close to schools and University • No requirement to live onsite • 3 bed, 2 bath manager’s residence • Central Varsity Lakes location

• Centrally located permanent complex • 30 apartments with 18 in the letting pool • Office attached and on title, no set office hours • Easily run by one person • 2 bed, 2 bath manager’s residence Exclusive Agents Amanda Rowe 0427 413 319 & Lyn Pearsall 0425 168 244

ID7978

Exclusive Agent Warren Oliver 0416 216 625

$75,000

$720,000

Desirable Robina Permanent

ID7973

$45,200

Collapsed Contract – Caretaking Only

• Generous Body Corporate remuneration • Solid income, no set office hours • Close to public transport, hospital, schools & shopping • Accom Module business with good Body Corporate committee • Open plan 3 bed, 2.5 bath manager’s residence

$142,000

• No licence requirements • Renovated single level villa • Great lifestyle on offer • Guaranteed income business • Be quick! This won’t last long Exclusive Agent Tony Johnson 0433 335 679

Exclusive Agents Ian Forbes 0432 988 625 & Deborah Tilley 0424 428 489

ID8943

$640,000

$1,160,000

$89,509

ID7925

$798,000

PRICED TO SELL!!

Growth Potential Currently run under management, would suit two person team, resort style facilities, cleaning team in place, one block from the heart of Surfers Paradise Listing Agent Gerard Dixon 0433 335 679

ID8641

$174,592

$1,050,000

Priced For Quick Sale Long Accommodation Module agreements, no requirement to live onsite, ideal location, and exceptional resort style facilities, Proactive Body Corporate and committee.

Listing Agent Phil Trimble 0418 478 966

ID8060

MR Sales have an extensive range of listings Australia wide Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au

www.mrsales.com.au

$420,000

$2,995,000

Five reasons this complex wins Spanning 105 hectares of gentle hillside on the northern Gold Coast in Pimpama, a master planned environment where wide parklands, contemporary design and the area’s own natural beauty come together to create a vibrant community.

create economies of scale and opportunities to create capital growth in a short period of time.

Within this masterplan is a beautiful collection of 60 premium terrace homes which were architecturally designed to present the ideal in suburban living - This is The Heights by Sunland.

The Heights sits within an ideal tenant catchment area and offers the signature quality that Sunland is known for which creates a pool of homes consistently sought after by discerning tenants. It has a business that offers all the advantages of a brand-new development with all the certainty of a complex that has been entirely settled and tenanted. And it offers a residence that delivers in both quality and convenience- a perfect home to run a thriving business.

The Heights is conveniently located in Pimpama, the centre of the bustling growth corridor between Brisbane and the Gold Coast, with direct access to the Pacific Motorway the white sand beaches of Surfers Paradise just 20 minutes away and the CBD of Brisbane only 40 minutes by car. Coomera Train Station and the new Westfield Coomera is an easy 10-minute drive.

The Manager’s Residence in this complex is a delightful three-

Kristine Lehmann of Lehmann Rights has been engaged to market and sell the management rights of The Heights of Sunland. Contact her directly for questions, inspections and to find out the 5th unique advantage this complex presents.

bedroom, two storey townhouse.

It was architecturally designed and expertly landscaped to offer convenience, quality and luxury.

It is an ideal home in which to enjoy a good lifestyle as well as run a thriving business.

The business offers five unique advantages. Number one, the Heights is a brand-new complex built in 2018. Despite its youth the residences are all settled and tenanted. That fact gives the bank confidence and makes this brand-new business sing.

The Heights offers a collection of new homes for your letting business. That’s the second advantage. Third is the homogeny throughout the complex, all the residences enjoy the quality new features we highlighted in the Manager’s Residence.

The fourth reason will appeal to the savvy investor with an eye to the future. Sitting within Sunland’s masterplan offers opportunity to take up the succeeding developments. These convenient additions would

That gives you more than enough reasons to get in touch and find out more.

For more information contact Kristine Lehmann on 0412 203 770

Charles Nurse – Stratacorp

Introducing... Charles Nurse – Stratacorp Charles Nurse is breathing new life into the Management Rights industry with a new approach that will maximise every investment opportunity. He has developed a super-efficient tech-smart system to help sellers, buyers and developers earn millions in additional cash returns.

“Through many years of selling existing and implementing new Management Rights, we have made the process simple,” said Charles.

“The key to our success is outstanding communication, creating opportunities, and following every deal through to the end.”

Over the last six years, Charles has acted successfully for a large number of Management Rights operators and developers. Building on this success, Charles’ new company Stratacorp (established in 2016) is developing

52

markets across Australia and New Zealand.

Stratacorp specialises in both established and new off-the-plan sales. They understand the challenges and obstacles involved in negotiating and establishing a Management Rights deal, and are committed to exceeding the expectations of everyone involved.

“Having the right team is vital to our success,” said Charles.

“When structuring Management Rights for sale, we always keep in mind the qualities that are attractive to prospective buyers.”

Stratacorp will help sell your Short or Long-Term Management Rights business.

Their specialised area of expertise is complexes greater than 80 units and a 50% letting pool.

“We are in regular touch with experienced operators looking for new opportunities,” said Charles.

PROPERTY

Name: Charles Nurse Mobile: 0477 826 666 Agency: Stratacorp Area of Service: Nationwide Web: www.stratacorp.com Email: charles@stratacorp.com

ResortNews | July, 2019

• • • •

$140,400 $460,000 $1,146,500 http://bit.ly/LRPimpama

Link for Management Rights video:

Kristine Lehmann m. 0412 203 770 e. k@lehmannrights.com.au

For more information contact your management rights sales specialist

Net income Unit Price Total Price

Brand new, contemporary townhouses in the letting pool Minimal maintenance requirements Accommodation module with 25 years on the agreement Attractive three-bedroom, 2.5-bathroom townhouse with large office attached to business

This management rights complex offers:

A BRAND NEW, PERMANENT TOWNHOUSE COMPLEX IN A THRIVING NEW COMMUNITY

PIMPAMA

The HEIGHTS

by SUNLAND

“Your Partner in Success” TOP MANAGEMENT RIGHTS OPPORTUNITY NORTH QUEENSLAND CONSIDER THIS TOP PROPERTY * TOP YIELD * REALISTIC MULTIPLIER RECORD TOURISM NUMBERS *LITTLE NEW COMPETITION

WONDERFUL PORT DOUGLAS

•

Exclusive 4 star Resort beautifully located in the quiet end of Macrossan Street.

•

Regal Port Douglas is one of the most desirable properties in Port Douglas.

•

Delightful mix of studio, one and two bedroom dual key apartments.

•

Cascading three story waterfall & fountain provides a great backdrop in the foyer area.

•

Rarely do properties of this calibre come along.

•

Large exclusive use office & two commercial areas, three bedroom Manager’s Residence.

* Net Profit $470,841 * Body Corporate Agreements 21 yrs * B/corp Salary $90,000 incl.

Manager’s Residence $550,000 MR Business $2,115,000 Price: $2,665,0000

Contact: Mobile: Phone:

Calvin Bailey LREA 0414 889 593 07 4059 1254

Email:

calvin@cbmr.com.au info@cairnsbeaches.com Postal Address: PO Box 266 Palm Cove, QLD, 4879

www.calvinbaileymanagementrights.com.au All information/figures are supplied by the seller and are subject to check by intending purchasers.

Australian Resident Accommodation Managers’ Association Member

EXCLUSIVE MANAGEMENT RIGHTS PURCHASE OPPORTUNITIES LABRADOR • • • • •

Substantial Income of $561,369 Central Attractive Location beside the Broadwater Large 3 Bedroom, 2 Bathroom managers unit (Pet Friendly) BC Salary of $157,261 Reasonable multiplier of 5.68 for this income

NETT PROFIT $561,369

TOTAL $3,770,000

SURFERS PARADISE • • • • •

Surfers Paradise Holiday Complex 100m to Beach 25 Year Caretaking and Letting Agreement Occupancy 65% (Room to grow profits ) Large 3 Bedroom, 2 bathroom and 2 car spaces

NETT PROFIT $412,098

TOTAL $3,890,000

BURLEIGH HEADS • • • • •

Burleigh Heads beach-front location Renovated 2 Bedroom, 2 bathroom managers apartment Excellent building amenities and services High rise tower with minimal grounds Potential to grow occupancy and letting pool

NETT PROFIT $366,000

TOTAL $2,595,000

VARSITY LAKES • • • • •

Large ‘rare’ central Gold Coast Permanent Complex 76 of 99 Townhouses in the letting pool 3 Bedroom, 2.5 bathroom townhouse Substantial BC remuneration of $208k Perfect for husband and wife team

NETT PROFIT $386,400

CHARLES NURSE

DUSTIN ALLEN

M: 0477 826 666 E: charles@stratacorp.com

M: 0424 104 310 E: dustin@stratacorp.com

WWW.STRATACORP.COM

If you are looking to buy or sell, contact us!

TOTAL $2,850,000

1800 111 622

L-R: Rebecca McCarthy and Diana Fernando

Focus Apartments: Reparation from within

By Trish Riley, Editor

“The way to gain a good reputation is to endeavour to be what you desire to appear” – Socrates As one of the forebears of management rights on the Gold Coast, renowned property Focus Apartments has undoubtedly stood the test of time, but not without weathering several significant storms that may have been the undoing of a lesser edifice.

cheaper, families were larger and bigger meant better, all of the apartments in Focus are oversized and feature spacious living and bedroom zones, a deluxe ensuite, fully selfcontained kitchens, laundries and expansive balconies from which to soak up the panoramic views of the beach and ocean.

Onsite amenities, conveniences

and activities are also unusually grandiose; spread across a hectare of landscaped tropical gardens, Focus offers a heated lap pool, a children’s wading pool, a separate spa and sauna, a full-size tennis court, a half-size basket ball court, a gymnasium, a sheltered entertainment and barbecue area and games room. It’s

“Focus is an interesting complex,” says Rebecca McCarthy, general manager of Focus Apartments. “The property has so many facets and idiosyncrasies, as well as a very cosmopolitan cultural mix - it’s like its own little village.”

Like its eclectic make-up, the residential occupancy at Focus Apartments is a true mix of holiday and permanent and lettings, as well as owner occupiers and lock ups. It even boasts tenants that for all intents and purposes could be classed as permanent as they have lived continuously in the building for over 15 years.

Completed in 1976, the monolith features 32 floors, 124 apartments of two and three bedrooms, one penthouse and two sub penthouses situated on beachfront property, just a few minutes’ walk from Surfers Paradise and the light rail.

Developed when land was

56

premium position also means that it’s just a hop, skip and a jump across the road to the pristine white sands or a short walk to the cafes, restaurants and nightspots on the worldfamous Gold Coast strip.

PROFILES

ResortNews | July, 2019

What is significantly different to most management rights operations however, is the definitive business divide between the letting agreement; owned by Focus Owners Limited, and the body corporate managed

on site by Hugh Scarlett – a veteran in the building and construction industry, and facility management agreement managed by Stratajem.

having 20 years of management rights experience, both in ownership, and having worked with HiRUM and The Raas Property Group previously.

mutually respectful of those

“Having the two separate areas of responsibility works well,” says Rebecca – herself

“Both parties have clearly defined roles and areas of responsibility, and we’re

us’ situation, and when there

boundaries,” adds Rebecca.

“We have worked hard to ensure that there is no ‘them and are cross-overs we focus on what is best for the building.

15% discount for Resort News readers when booked direct* *subject to availability

Phone: (07) 5538 5999 Email: info@focusapartments.com.au 114 The Esplanade, Surfers Paradise Qld 4217

www.focusapartments.com.au July, 2019 | ResortNews

PROFILES

57

“The two ‘corporates’ also share a strong belief in proactive communication.

In a community-living type of environment, it makes life easier when everyone knows what is happening. If residents and owners are informed about things like a lift taking a few days to repair due to a lack of parts, they understand and accept it more readily and we’re able to nip potential issues in the bud.”

RAAS Property Group looks forward to protecting and growing the business of our partners and are proud of our continued association with Focus Apartments

RAAS Property Group | Zupp Place, Level 2, 64 Marine Parade Southport 4215

Ph: 07 5593 0007 | support@raas.com.au | www.raas.com.au

No one sells more units, apartments or townhouses than us.

Despite Rebecca and Hugh being relatively new to the Focus management team, it’s obvious the collaborative approach between the owners’ corporation and the body corporate has been invaluable in moving Focus forward after it faced its biggest challenge – a comprehensive rectification project extending over four years to address and minimise the impact of water ingress and widespread concrete spalling (or cancer).

The mammoth $3.8m project encompassed the scaffolding of the entire building, the removal of damaged concrete and the application of an anticarbonation protective coating to the whole concrete surface.

The wide-ranging works were

58

PROFILES

necessary to address damage created by a number of factors, but primarily because previous maintenance was sporadic and superficial.

“The rectification works were a challenge for the whole community,” says Hugh. “There was significant disruption to our residents and to those living in the nearby vicinity.

People around here drew their own conclusions about what was happening and unfortunately the reputation of the building suffered.

“Our focus now is on being proactive; implementing regular inspections and preventative maintenance that keeps us on top of these types of issues.”

Rebecca concurs. “The letting business took a hit during the rectification works. Occupancies dropped dramatically, we had to reduce rents and the onsite restaurant was closed and remains so – but we pulled together, knowing the building would be in better shape on completion and we’re now going from strength to strength.

“It helps having industryspecialised staff who ResortNews | July, 2019

understand hospitality and the importance of being responsive and communicating well,” adds Rebecca. Ironically Rebecca worked on the reception at Focus some ten years ago.

Having taken on a role more complicated than normal, one would expect some hesitancy regarding management rights from the intrepid GM, but Rebecca is very positive: “The management rights industry is amazing – no two days are ever the same. There are always a thousand things on the go, and anyone that has been in the industry as long as I have, knows how rewarding it can be.

“The industry does however, appear to be changing,” adds Rebecca. “At the moment there seems to be more uncertainty regarding finance, agreements, the assignment process and top ups that are impacting on how people buy – it’s a shame, but

July, 2019 | ResortNews

perhaps necessary to ensure the longevity of the industry.”

My next question comes as no surprise: what advice would you give to those considering getting into management rights?

“Do your homework,” says Rebecca. “Speak to industry experts and read between the lines.

"Every building is different and has its own issues, you just need to weigh up the complexity and potential impact of those issues, and make sure you’re surrounded by a supportive team."

“In our case, the combined management team has been like pouring oil on rough seas – the building feels different and the atmosphere is good.

You can’t change history, but you can make it better.”

PROFILES

59

Secrets on the Lake: A magical woodland haven

Tucked away on the foreshore of Lake Baroon, between Maleny and Montville on the western side of the Blacksall Range in the Sunshine Coast hinterland is a luxury boutique resort so delightfully unique that it appears to have been conjured from a child’s bedtime storybook.

One would imagine that the beautifully carved furniture, wide decks and fairy-tale woodland creatures, intricate wrought iron work, overhead walkways and dreamy rock ponds fringed by tropical gardens, and the fact that Secrets on the Lake blends effortlessly into its surroundings of misty rainforest mountains would be enough, but there is also a remarkable story that underpins the development.

Known historically as an important gathering place for the aboriginal people in South East Queensland, the plain known as ‘Booroon’ (derived from the rat kangaroo, Barung) and Obi-Obi Creek (thought to be named after the warrior Ubie Ubie) was the rendezvous for mock

60

to add and extend the business and facilities to this day.

George and Aldy Johnston

the area could stay and enjoy.

fights and festivities between tribes who came from near and far to enjoy the bi-annual harvest of the Bunya Tree.

In 1984 George and Aldy Johnston were living in Baroon Pocket, on a farm that was bordered by the beautiful Obi Obi creek complete with waterfalls, swimming lagoons and rapids. They had chickens and cows, kiwifruit orchards and a large veggie patch - they also had big dreams of what they wanted to do with their land – George and Aldy wanted to build treehouse cabins down by the creek so visitors to

Their plans got sidelined however, when their land was resumed to build what is now Lake Baroon, a $40-million project that now provides water to the Caloundra and Maroochy Shires. They lost their land but when good friend and neighbour Steve Weiss offered to sell them what remained of his land after it was also partially resumed, their dream resurfaced.

‘Treetop Cabins on The Lake’ which was later renamed to ‘Secrets on The Lake’ was finally opened in 1997, and they continue

PROFILES

It took George and Aldy years of hard work and planning to build the haven they had been envisioning for years on their new land – first came the Lake House, a beautiful colonial style building built with recycled timbers and featuring a crystal chandelier, spacious deck and internal balcony. Then came the old Beerburrum Railway Station in search of a new name and home – this would become the Whistle Stop cabin, a heritage building that has its own unique personality and offers accommodation ideal for groups and small families.

The Johnston’s then turned their attention to the treehouses.

Gradually the magnificent treehouse cabins were designed and built, hidden high among the rainforest for privacy and linked by a 700-metre maze of wooden walkways lit with custom-made lanterns and carved woodland creatures… In addition to the flagship penthouse cabin ‘Secrets,’ that overlooks a waterfall on the rockface and is popular with honeymooners, there are five penthouse treehouses available, including options that sleep four or six people.

ResortNews | July, 2019

Each is filled with a rich patina of masterful woodwork, suspended fireplaces, and sumptuous spas. They also have a unique theme and personality that is reflected throughout the cabin, depicting dragon flies, possums and frogs in everything from the turned-wood signage and carved entrance to the stained-glass window and hand-delivered basket of afternoon scones or breakfast croissants.

“We’ve been delivering fresh home-made goods in customised baskets for over 20 years,” says Aldy. “We have a number of guests who return every single year, and they get the same personalised service and attention each time.”

They also get to see the latest developments and experience any new services offered. Aldy is justifiably proud of the fact that they have accommodated couples who married at Secrets who now return each year with their families.

“George is the ideas man,” says Aldy. “He can’t help creating beautiful things and is always coming up with plans and designs for something new. At the moment they are working on a decorative shed and large map of the property.”

This is obviously a skill and passion George has passed on to son Rob - a gifted and visionary craftsman and hands-on builder who has played a significant role in the artwork and construction of the buildings and walkways.

The addition of Secrets’ Dining on the Deck, a thriving restaurant overlooking Lake Baroon and arguably one of the July, 2019 | ResortNews

“More of the same,” says Aldy.

“We have exceptional staff here that enable us to take a break occasionally, but we value best views in the Hinterland, appears to have been the brainchild of Aldy however, and is the culmination of a lifetime’s devotion to culinary delights and creative healthy cooking, Winner of the AGFG People’s Choice Award 2019, Dining on the Deck is a truly special place. This intimate connection with nature is enhanced by the incredible food that is prepared in house by head chef Mat Law and his talented team. And it doesn’t end there - adjoined to the restaurant is a peaceful artistic haven filled with artworks by local artists reminiscent of the region and the property.

And if that’s not enough, in addition to the natural beauty of the rainforest, lake and mountains, Secrets offers superb landscaped gardens showcasing tropical flowers, rock pools and rolling lawns as well as decks, arbours, a carved bar and servery and a tranquil jetty for fishing, relaxing or wedding photo shoots.

And while panoramic views and lakeside walks are all a part of the experience, for guests that like to keep active Secrets also offers the use of fishing rods and canoes and is situated at the start of the Sunshine Coast Great Walks - 58km of walking trails though the beautiful national parks and waterways of the hinterland.

perfect environment to picnic, trek, stroll and swim.

For George and Aldy, Secrets on the Lake is obviously more than just a business, it is the culmination of a lifetime of hopes and dreams, so when I ask them what they have planned for the future…

attention to detail and are very particular about being able to provide personal service; we like to keep our fingers on the pulse.

“We’d rather be here than anywhere else in the world,” says Aldy, and it’s obvious to see why.

THE PERFECT PLACE FOR ROMANCE...

The Sunny Coast’s best kept Secret... Experience unique hand carved treehouses nestled high in the treetops, with stunning views over Lake Baroon, magical elevated walkways and waterfalls.

There are also a number of falls, and beautiful hinterland ranges that provide the

ph: (07) 5478 5888 email: info@secretsonthelake.com.au 207 Narrows Road, Montville Qld 4560

www.secretsonthelake.com.au

PROFILES

61

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ResortNews | July, 2019

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63

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For an informal chat on your insurances, contact the team: 07 3387 1900 beenleigh@ajg.com.au ref2076-0518-1.1

…When you need us most!

Look for the sign of an Industry Specialist Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

July, 2019 | ResortNews

MGA was founded in 1975 and has since opened up 38 offices around Australia, offering Insurance products for:  Business  Strata  Landlord Protection With quick quote turnaround and hassle-free claims service Call us today on (07) 3720 6000 or email: quotes.brisbane@mga.com

Property Bridge MANAGEMENT RIGHTS

RESORTS

 Discreet Silent Listings  Free Market Appraisals

“Always passionate, committed and professional, you can trust the team at Property Bridge.” info@propertybridge.com.au propertybridge.com.au 1800 888 518

Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

PREFERRED SUPPLIER DIRECTORY

YOUR PARTNERS IN SUCCESS

Calvin Bailey LREA

0414 889 593 calvin@cbmr.com.au

Alex Barker-Re LREA 0414 835 128 alex@cbmr.com.au

CALVINBAILEYMANAGEMENTRIGHTS.COM.AU

Specialists in management rights Off the plan sales qld & victoria Buying or selling best advice Rod Askew 0411 758 236 (QLD & VIC) Eric Brizuela 0413 060 683 (QLD) Philip Robison 0410 663 111 (VIC) Nationwide: 07 3554 0040 Email: sales@rcabb.com.au

www.rcabusinessbrokers.com.au

65

The Management Rights Specialists

Find them online Wherever, Whenever!

• Painting • Grounds Maintenance & Landscaping

ASBESTOS REMOVAL QUEENSLAND WIDE

FREE CALL

1800 766 366

SOLICITORS

• Signage & Branding SUNSHINE COAST

Matt Campbell 0410 343 219 Barry Davies 0438 554 995 Lindsay Petty 0407 029 138 contact@managementrights.com

www.managementrights.com

• Electrical Services • Audio Visual • Data Communications • Sustainability

PEST CONTROL Servicing Brisbane & Gold Coast

PEST

PEST-NETT SERVICES

CALL TODAY TO GET YOUR PEST PROBLEMS SOLVED

MOTELS, CARAVAN PARKS, HOTELS & MHE’S NATIONAL COVERAGE sales@tourismbrokers.com.au 1300 512 566 www.tourismbrokers.com.au

Specialising in Motel & Resort Sales Qld wide

Call 1800 620 911 or 07 3718 1600

Think – Buying or Selling Management Rights Narelle Filmer 0459 229 744

Wayne & Linda Stoll 0452 181 505

www.thinkmanagementrights.com.au

Supporting and servicing the needs of both buyers and sellers of management rights throughout Tropical North Queensland PO Box 1037 Gordonvale 4865 • P 07 4056 6366

info@resortsales.com • www.resortsales.com

Residential &Commercial

Call Now 07 3206 6721 www.terminett.com

MANAGEMENT

RIGHTS AND MOTEL

EXPERTS EXPERIENCE COUNTS

programmed.com.au

We have the largest team of specialists across Queensland and New South Wales, covering management rights and motels businesses.

Find them online Wherever, Whenever!

GET THE RIGHT ADVICE

www.accomnews.com.au/business-directory

SHEET METAL

Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

www.accomnews.com.au/business-directory

FREE QUOTES &ADVICE

Don’t put your accommodation industry investment at risk. Our industry knowledge is second to none.

CONTACT US Receive the best information. Subscribe today to receive continual practical, useful and relevant content.

Specialising in:  Hi-Rise Repaints  Large Complexes  Interior and Exterior  Hi-Pressure Cleaning  Concrete Spalling Repair (Concrete Cancer)  Waterproofing & Roof Membranes LOCALLY-OWNED FOR OVER 25 YEARS

Ph 5520 1256

Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work Ph 07 5593 4183 Fx 07 5593 4194 | M 0413 432 294 adrian@sheetmetalimprovements.com.au

COOLANGATTA TO BEENLEIGH

www.anppainting.com.au QBCC Lic No 1050861 NSW Lic No 179886C

Visit hyneslegal.com.au/subscribe or call +61 7 3193 0500 info@hyneslegal.com.au www.hyneslegal.com.au

SIGNS

SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

1800 111 622

Experienced Management Rights Lawyers

WWW.STRATACORP.COM

• Purchase or Sale

PAINTERS & DECORATORS

Fixed Price Available

(07) 5343 1000 Ask for Natalie

managementrights@ascendia.com.au

www.ascendialawyers.com.au

www.amalgamatedgroup.com.au info@amalgamatedgroup.com.au

66

The sign of an Industry Specialist.

PREFERRED SUPPLIER DIRECTORY

ResortNews | July, 2019

The sign of an Industry Specialist TV & VIDEO HIRE/REPAIRS

Heat Pumps

Proudly installed and serviced

Appliance Rentals New name...

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Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588

with the same great

service

The Management Rights Lawyers

20 Personal Service. Trusted Advice.

Servicing Resident Managers throughout Australia BRISBANE: 07 3007 3777 GOLD COAST: 07 5562 2959 info@mahoneys.com.au

www.mahoneys.com.au

• equipment • repairs • regular servicing • maintenance • chemical supplies • swimming aids & toys

153 Cooyar Street, Noosa Junction (07) 5447 3896 shop@noosapoolandspa.com

Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u

VALUERS - REAL ESTATE

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS Short Punch & Greatorix Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164, GCMC, Bundall QLD 9726 Fax: 5539 8745 Email: mnp@spglawers.com.au

MANAGEMENT RIGHTS VALUATION SPECIALISTS

Call Martin Punch on 5570 9304

CERVETTO COURTICE

TRAINING & DEVELOPMENT

Q U E E N S L A N D

Classes from Coolangatta to Cairns

L AW Y E R S

Management Rights Sales & Purchases We deliver

strategic solutions

Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervetto@gil.com.au

in management rights

TRAINED BY THE EXPERTS

Buying or selling

Australian Valuers have proven to be the No.1 choice for this highly specialised work. Our valuation team operate on a national level providing advice to the majority of Australia’s Banks

australianvaluers.com.au mlr@australianvaluers.com.au 1800 664 094

Renewing or reviewing Negotiation and dispute resolution

Michael Kleinschmidt Legal Practitioner Director

www.stratumlegal.com.au info@stratumlegal.com.au

PH: 07 5406 1280

Leading Sunshine Coast Law Firm Flood Legal offers all the experience & expertise of a big firm while delivering accessible, personal & affordable service that comes with dealing with a small firm

Need advice regarding: • Buying / Selling • Legal due diligence reports • Variations including top up of term • Renewals/Extensions • Management & Letting Agreements • Body Corporate Issues • Off Plan Developments

Call Sharon Flood, Director - 0459 070 871 or 02 6674 5118 sharon.flood@floodlegal.com.au - www.floodlegal.com.au

SWIMMING POOL SUPPLIES/REPAIRS

1800 080 349 www.propertytraining.edu.au

Get it right the first time…call

Griffiths Parry Lawyers T: 5390 1400 www.gplaw.com.au

RELAX… AND LET US TAKE CARE OF ALL YOUR POOL NEEDS.

◆ DEDICATED ACCOUNT MANAGER for Orders, Installs, Service and Sales ◆ COMPLIMENTARY equipment assessment – why not get a 2nd opinion ◆ YOU WON’T BE DISAPPOINTED ◆ PRICE IS IMPORTANT, but so is SERVICE AND SUPPORT 9/99 LOWER WEST BURLEIGH ROAD, BURLEIGH HEADS, QUEENSLAND 4220

PHONE: 07 5535 6161

EMAIL: POOLGEAR@BIGPOND.COM

WWW.POOLGEARAUSTRALIA.COM.AU

July, 2019 | ResortNews

Reward your best suppliers by nominating them for the Preferred Supplier Programme.

Simply send their details with a short testimonial to: psp@resortpublishing.com.au or call (07) 5440 5322

They’ll thank you for it!

PREFERRED SUPPLIER DIRECTORY

67

“Your Partner in Success” TOP MANAGEMENT RIGHTS OPPORTUNITY NORTH QUEENSLAND CONSIDER THIS TOP PROPERTY * TOP YIELD * REALISTIC MULTIPLIER RECORD TOURISM NUMBERS *LITTLE NEW COMPETITION

WONDERFUL PORT DOUGLAS

•

Exclusive 4 star Resort beautifully located in the quiet end of Macrossan Street.

•

Regal Port Douglas is one of the most desirable properties in Port Douglas.

•

Delightful mix of studio, one and two bedroom dual key apartments.

•

Cascading three story waterfall & fountain provides a great backdrop in the foyer area.

•

Rarely do properties of this calibre come along.

•

Large exclusive use office & two commercial areas, three bedroom Manager’s Residence.

* Net Profit $470,841 * Body Corporate Agreements 21 yrs * B/corp Salary $90,000 incl.

Manager’s Residence $550,000 MR Business $2,115,000 Price: $2,665,0000

Contact: Mobile: Phone:

Calvin Bailey LREA 0414 889 593 07 4059 1254

Email:

calvin@cbmr.com.au info@cairnsbeaches.com Postal Address: PO Box 266 Palm Cove, QLD, 4879

www.calvinbaileymanagementrights.com.au All information/figures are supplied by the seller and are subject to check by intending purchasers.

Australian Resident Accommodation Managers’ Association Member