ResortNews, September 2019 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 277 | September 2019 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

The Docks on Goodwin A formula for success

McWhirters Apartments Times they are a’changin...

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MDIA

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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 September issue FRONT DESK Editor's Note: When I get big…............................................ 05

Advertising Conditions 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.

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.

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

INDUSTRY Person of Interest: Sylvia Johnston..................................10 Industry Q&A: Building Defects..........................................12 ARAMA Report..........................................................................14 SCA Report.................................................................................15 State Report...............................................................................16 BCCM Report............................................................................. 17 MANAGEMENT Legal Ease....................................................................................18 By All Accounts.........................................................................19 Thinking MR............................................................................... 20

Motel Market..............................................................................21 Strata Trends............................................................................. 22 Intonet......................................................................................... 23 Five ways to inspire instagrammable moments..........24 Pest Control: What lies beneath........................................ 26 TOURISM Tourism Report......................................................................... 30

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

The Last Resort........................................................................ 33 EVENTS & APPOINTMENTS Event News................................................................................ 34 Events........................................................................................... 35

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

DEVELOPMENTS:

ADVERTISING Stewart Shimmin, advertising@accomnews.com.au

Development News................................................................ 36

SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au

PROPERTY

CONTRIBUTORS Andrew Morgan, Arvo Elias, Chris Irons, Col Myers, Grant Mifsud, Jonathan Hanaghan, John Mahoney, Lynda Kypriadakis, Mike Phipps, Shane Dutka, Simon Barnard, Terry Eaton and Trevor Rawnsley.

AccomProperties Sales Report......................................... 40 New Manager Profiles........................................................... 40 Agent Profile: Rhonda Perkins, Property Bridge..........41 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!

48 FRONT DESK

The Docks on Goodwin: A formula for success.......... 45 McWhirters Apartments: Times they are a’changin...48 THE PREFERRED SUPPLIERS DIRECTORY

ResortNews | September, 2019

As one of the world’s fastest-growing industries, the hospitality sector continues to expand; estimated to create over 80 million new jobs over the next ten years and accounting for one in nine jobs by the year 2026. So, what is it about this sector that attracts people of all ages, and from all walks of life to sign up for a life of service? Personally, I think it’s because it gives you room to grow… The hospitality industry allows you to develop yourself – professionally and as a person. Not only do you improve on the professional skills you already possess, but with time and commitment you learn others due to the variety of colleagues, clients and situations that will put you to the test.

And just as people differ greatly, so does the care and commitment each manager exhibits to his/her clients. Some may settle for meeting the basics, such as checking-in a family or providing directions to the closest supermarket, but others will go that extra step and not just meet their guest’s demands, but also exceed them. Trish Riley, Editor

editor@accomnews.com.au

put another person’s needs and desires ahead of your own – while keeping a smile on your face. Customers travel to hotels and resorts for various reasons, but in short, they want an experience. They want employees and representatives to accord their time, care and attention.

With today’s fast-growing businesses, more and more focus is placed on making a profit, which is the main purpose of business in the first place; however, in accoms the products are not limited to bookings, rooms, housekeeping or towel hire – they extend to attention to detail and service, and there is always a way to improve services and our service-industry skills.

September, 2019 | ResortNews

Hospitality also requires you to work in a multi-cultural environment. As Sylvia Johnston – our featured Person of Interest on page 10 attests; while working in hospitality you have the opportunity to meet and socialise with people representing a wide range of nationalities, in an even wider range of places all around the world. And every person you meet, whether in the reception, the garden or the offices bring with them their own language, cultural background and ideas on how to bring more to the industry. Ultimately, the reason why people love hospitality so much is simple: it’s varied and it’s generally fun – as in enjoyable. All the dynamics, all the shifting with different responsibilities and the feeling you have when you’re able to provide a solution and make someone’s stay better; it’s more than satisfactory at the end of the day.

Added to the obvious, various characteristics are required for working in hospitality. These range from soft-skills such as organisation, communicating or working in a team; to more technical competences such as marketing, revenue management, accounting and facilities management. And, probably the most important matter is that you – literally – take care of people. This is debatable, but my experience tells me it takes empathy and commitment to

To be successful, you have to create emotions,”. “Whatever you do has to be extraordinary, and you have to go the extra mile.”

The industry is a pretty interesting and pleasant domain to get involved in. As any other job, it has its ups and downs, and that’s the great part of it: there is always place for growth and there will always be those who are looking to do more...

Image: © Luis Louro, adobestock.com

FRONT DESK

As always, I hope that you will enjoy reading this issue.

EDITOR'S NOTE

When I get big…

NEWS IN BRIEF

Qantas, Flight Centre and Webjet all feel effect of Australians' travel holiday Qantas and Australia's biggest travel agencies are feeling the brunt of a downturn in the number of Australians wanting to travel.

$154 million hit from the lower

The nation's biggest airline, Flight Centre and Webjet all released annual results recently that were negatively affected by the decline in domestic demand for leisure travel, as well as some weakness in business travel.

"Even with the headwinds

Qantas has reported a moderate fall in profits, with the airline blaming a rise in fuel costs for much of the 6.5 percent slide in net earnings. The airline posted a statutory

Australian dollar on nonfuel foreign expenditures. The airline's chief executive Alan Joyce acknowledged that demand was also weaker. like fuel costs and foreign exchange, we remain one of the best performing airline groups in the world," he said. Image: © Gudellaphoto, stock.adobe.com

net profit of $891 million, down from $953 million last year.

billion. Qantas said it had

Its preferred measure of underlying profit before tax was down even more sharply, dropping 17 percent to $1.3

the last financial year, but also

earned record revenue over experienced a $614 million

"Looking ahead, the overall market remains mixed. Domestically, we're seeing weakness in the price sensitive leisure market but premium

increase in fuel costs from

leisure demand is steady.

rising oil prices and a further

Source: ABC News

Major stoush at Gold Coast super towers Residents at one of the Gold Coast’s largest residential towers have been left in limbo as an internal war rages over who should control their $7 million-a-year body corporate fees.

to go ahead, they just seem have the authority of the day to day,” she said. “Simple things need to be done. Not every unit has an electricity meter, so who bears the cost of that while we wait? “We also have Schoolies coming up quickly, so major decisions do need to be made. It has become a toxic situation.”

As tate government commissioner is investigating if the election of a new management group at Chevron Renaissance last month was valid. One of the 726 unit owners at the Surfers Paradise tower complained to the Queensland Body Corporate and Community Management Commissioner (QBCCMC) that the annual general meeting was null and void because the old body corporate committee voted to cancel it, five days before it was set to take place.

In an application to the commissioner, resident Karen Blackhurst, who was elected chair of the new committee, sought an interim decision for the AGM vote to be honoured. Residents said it was a majority decision. Image: © Rafael Ben-Ari , stock.adobe.com

the commissioner could take until the end of the year.

to ask questions or seek repairs,” one resident said.

The commissioner has stopped the new body corporate from taking up their management roles until a decision is made.

Residents paying $10,000 a year in body corporate fees said they were frustrated with the stalemate as they had not heard from the governing committee.

“Owners are sick of it, because we voted to change the committee.”

The old body corporate committee has instead been reinstated and it’s believed that a ruling from

“No meetings have been made since the old body corporate was put back in place, so owners have had no opportunity

Debbie Trussel, a resident and elected member of the “new seven-member committee”, said the situation was “unprecedented”. “Nobody has the authority

INDUSTRY

Ms Blackhurst argued a new AGM would come at “considerable cost” to residents. However, the QBCCMC rejected that argument and said it had “serious concerns regarding the validity of the AGM and any motions carried at that meeting”. A spokesman for the QBCCMC said an adjudicator will make a final order in due course. Source: GC Bulletin

ResortNews | September, 2019

Sell now to escape “plague”, expert warns A leading property expert is urging the owners of modern apartments to sell them and avoid “Australian real estate’s equivalent of the bubonic plague”. Simon Pressley, head of research at market research firm Propertyology, says a looming crisis caused by the mass production of sub-standard apartment blocks over the past two decades represents the “single biggest threat” in Australian real estate history. Pressley says the national construction industry is “critically ill”, arguing: “If you’re the owner of an apartment within a medium to high-density building that was constructed within the past 20 years, you’ve contracted Australian real estate’s equivalent of the bubonic plague. “There’s no vaccine for this horrible disease and the best treatment is most likely to sell sooner rather than later. “Same-same, mass-produced Lego

buildings, appalling governance within the Australian construction industry, embarrassingly poorquality workmanship, and approximately 40 per cent of the purchase price of a new property representing assorted taxes is a toxic combination.” A 2012 UNSW study found 85 percent of strata unit owners reported at least one significant defect in their modern builds, three in four of them remaining unfixed at the time. Issues identified included water leaks, cracks and water seeping in from outside the building. However, Chief Economist at REA Group, Nerida Conisbee, told news.com.au there was no need for homeowners and investors to panic. "You have to understand that the property (structural integrity) issue as a proportion of the total number of buildings undertaken over the past decade is tiny,” she said. “If you are worried, get in touch with the developer and ask for answers. The best developers are very responsive.

“The big, reputable developers are devoted to the process and dealing with the issues, they don’t want to destroy their industry. Why sell if there are no structural issues and, there’s no the great desire to sell?”

Darwin have all constructed more apartments than houses over the past 16 years, with Wollongong, the Gold Coast, Melbourne and Brisbane close behind in the rush to build new units.

Pressley argues a lack of quality control within the construction sector over the past two decades has resulted in a “deplorable quality of workmanship” which could cost billions to rectify.

Pressley is urging the government to initiate a federal department responsible for designing a comprehensive building star-rating system.

“The governance within Australia’s construction industry is as poor as what the Banking Royal Commission exposed for the financial services sector with an entire generation of housing supply corrupted by greed, vested interests, and little regard for quality control, safety and consumer best interests,” he said. “The sector has totally lost the trust of the buying public with state and local governments as much to blame as any stakeholder within the construction industry.” The Propertyology research shows Sydney, Canberra and

“Regardless of when it was built, every Australian apartment complex should be issued with its own rating and these made available to the public via an online register. This is critical in restoring confidence among future real estate buyers,” he said. “As for any Australian contemplating buying a property now or in future years, be absolutely crystal clear that your structural integrity risk and financial performance risk are exponentially higher should you chose to purchase any medium to high-density apartment that was built during the past 20 years.” Source: Daily Telegraph

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September, 2019 | ResortNews

hotelinteriors.com.au • 1300 876 055 INDUSTRY

Airbnb outselling Expedia in 2019 Airbnb has eclipsed the performance of Expedia in the first quarter of 2019, selling ten million more room nights than the world’s secondbiggest OTA according to industry sources. The Wall Street Journal reports figures from several industry insiders showing the home share giant sold 91 million nights to Expedia’s 80.8 million in the first three months of the year. Both were dwarfed by Booking Holdings, which sold 217 million room nights over the period. It is hard to quantify if this is the first time Airbnb has outstripped room night sales on Expedia, with both organisations unwilling to comment on the financials. While Airbnb’s gross bookings figure of US$9.4 billion is well behind Expedia Group’s US$29.4 billion and Booking Holdings’ US$25.4 billion, those figures include the two big OTAs’ airline and cruise sales – products Airbnb doesn’t sell. Skift reports that while Airbnb seems to have achieved strong revenue growth, it is unclear if that represents decelerated growth compared with the first quarter of 2018.

Q1 2019 Online Travel Agency Financials Gross Bookings

Revenue

Revenue Growth

Cash

Room Nights

Airbnb

$9.4B

N/A

30+ percent

$3.5B

91M

Booking

$25.4B

$2.8B

(-3 percent)

$2.3B

217M

N/A

$1.2B

21 percent

$3.3B

N/A

$1.2B

$133.1M

(-10 percent)

$311.6M

N/A

$29.4B

$2.6B

4 percent

$3.7B

80.8M

$1.4B

$120.2M

(-23.8 percent)

$187.6M

12.13M

N/A

$376 million

(-1 percent)

$771M

N/A

Ctrip Despegar Expedia MakeMyTrip* TripAdvisor

* MakeMyTrip’s March 31 quarter was its fiscal fourth quarter 2019. Source: Skift – The Wall Street Journal and public company financial filings

Image: © wbtky, stock.adobe.com

There have been some reports that Airbnb’s growth is slowing either because of the law of large numbers, or regulatory hassles around the globe,” said the media outlet. “It is difficult to determine Airbnb’s revenue based on its

$9.4 billion in gross bookings because Airbnb recognises revenue when guests check in for their stays, and not when the property is booked.

to earn more per room night than Airbnb, for example, as the average daily rate of their listings is generally higher and the customer service cost low.

“So, for example, Airbnb may have generated revenue in the first quarter for bookings made in the third or fourth quarters of 2018 and may not recognize revenue on some of that $9.4 billion in first quarter gross bookings until July or September.

But Airbnb is believed to spend considerably less on marketing than Booking, Expedia or third-biggest OTA Ctrip, and has a stronger brand reputation with which to lure new and repeat customers.

“That means the $9.4 billion in gross bookings isn’t a reliable base number from which to compute Airbnb’s revenue”. Differences in how revenue is created also make profitability comparisons difficult. Booking and Expedia are likely

Skift says: “What’s clear is that Airbnb has solidified its position as a fourth major player in online travel globally. “And, if you include Google, which doesn’t disclose much about its travel advertising businesses, then that would make for a handful of leading global competitors.”

Tourists to be tracked Visitors to the Gold Coast will have mobile phones and credit card spending tracked if a plan by the local council goes ahead. Tourists’ mobile phones and credit card spending may soon be tracked by Gold Coast Council in a 'Big Brother'-like program designed to give the city the edge over other tourist destinations. The Gold Coast’s digital city platform will collect data from visitors to help the council decide how to boost tourism and where to invest. “Big Brother” tools will be used in the first phase of the project,

pending the approval of up to $3 million of funding over the next two years. They include location insights from telcos, wifi usage, credit card spending on accommodation, retail, food and beverages, use of flights, public transport and Uber, and data from the Internet of Things devices around the city. Council chief innovation and economy officer Ian Hatton said in a briefing that the city would predominantly use telco data and fully anonymised spend patterns from the major banks. From that, authorities will be able to pinpoint weaknesses in the tourism market and find out where to invest to potentially boost the

sector by as much as $3 billion. “At the moment nobody knows anything about people once they arrive. So, for example, if every visitor to the Gold Coast bought an extra cup of coffee while they were here, that’s worth about $50 million into the economy,” said Hatton. “The tourism market is extremely competitive. Cheap hotels are extremely competitive.

INDUSTRY

People can go somewhere else,” Mr Hatton told councillors. “What we are proposing is to bring those data sets together, in a completely secure environment and run those analytics during the Christmas period.” The project is expected to be trialled during the peak summer tourism season. Source: News.com.au

ResortNews | September, 2019

Building management made easy Conceptualised and developed in Australia for the Australian market, the MYBOS Application Suite is a comprehensive management tool to help onsite managers run a building effortlessly.

customer service to building owners, tenants and body corporate members.

Built upon a network of powerful modules, Mybos can be utilised for keeping track of budgets and streamlining invoices, the scheduling of move-ins and move-outs, the management of building amenity bookings, key management for owners, tenants and contractors, the recording of apartment inspections and most importantly, providing a rich communications portal – offering 15-plus language options - for the community to interact among themselves and with the management.

on top of your maintenance work easy. An advanced defect management module, integrated and automated work orders, and a comprehensive preventative maintenance calendar enables managers to keep up to date and manage daily maintenance and bookings, even if you’re not on site. This module also allows managers to easily maintain a contractor’s database of contact information, relevant documents and insurances.

Mybos also makes keeping

Other essential features include a comprehensive asset register, a residents and contractors’ database, parcel tracking, visitor logs, customised informational lobby displays and SMS and email broadcasting tools for notices and urgent notifications. The Mybos intuitive design assists managers by keeping the community integrated and the management in control of the property while delivering better

Mybos subscriptions are offered at a building level, so the owners corporation can invest in the system, effectively guaranteeing improved property management, timely maintenance and quick repairs yielding better rental and sale value. More importantly, should the building be sold, it can be onsold to the new manager together with comprehensive reporting of an efficient management history and entire building management record. The Mybos system is cloudbased, which not only adds to product reliability but also eliminates the need to purchase new hardware, effectively reducing overall costs to the users. MYBOS is smart. MYBOS is simple. MYBOS is powerful.

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September, 2019 | ResortNews

INDUSTRY

SYLVIA

JOHNSTON By Trish Riley, Editor

Born in the UK in the populous town of Luton, Sylvia Johnston - co-owner of HiRUM Software Solutions, is a self-confessed agent for change. Speaking of her formative years, Sylvia says she grew up and attended local schools in Luton, and always intended to be a child psychologist; an area of study that she threw herself into passionately after school as well as working part time in a family friend’s hotel. Her dream ended however, when towards the end of her studies she had to complete a short-term ‘prac’ within the children’s court system and she realised that she would never be able to ‘turn a blind eye’ to the injustices she was witness to. “I’m not a person who can see others struggling or in an unsafe environment, and feel unable to do anything about it,” says Sylvia, “and being a little adverse to rules and regulations I thought it best for me to get out of the industry altogether.” Sylvia returned to the friend’s hotel taking on a myriad of roles in the kitchen, the bar and restaurant, in housekeeping and at reception and found that she loved the combination of meeting people and the diversity of problemsolving that comes with the accommodation industry. “Managing a hotel comes with a range of responsibilities,” she says. “You must be able to adapt to new situations, help different departments and ensure the

property maintains a standard of excellence. I personally enjoyed the challenge of finding ways to make things more efficient.” After a few years of honing her hospitality and management skills, Sylvia then had the opportunity to work for an international hospitality group in the Middle East as the only English speaker on staff for the increasing number of European tours to Aqaba, a hidden gem in Jordan. Not one to stay in any place for too long, Sylvia then had a short stint in Paris before returning to England and the hotel industry where she met and married Phil, a highly skilled chef and hotel manager at the time and now her cohort in HiRUM Software Solutions. Despite being happy in the hospitality industry, Sylvia recalls the pair hankering after more space and warmer weather. “I remember Phil and I watching footage of World Expo 88 on television each morning; and while everything around us was freezing and grey, Australia, and Queensland in particular, looked incredible – it was very aspirational and fuelled our vision to get here.” As it happened, Phil’s father was already resident in Australia, having been involved in the Albury-Wodonga twin city initiative and in 1989, Sylvia and Phil arrived in Australia on a migrant visa and settled in Melbourne for two years before moving to the Gold Coast. While Phil worked in the management team overseeing post-opening of the Royal Pines Resort, Sylvia – by now a young mother - ran a marketing

business from home and once again, ended up helping a friend with their hotel. It was at this juncture, in 1997, that providence intervened. While working in the hotel Sylvia came across a basic piece of technology – HiRUM in its infancy - that she recognised as having the potential, with additional development work, to revolutionise the accommodation industry. “One of the biggest challengers for hoteliers back then was the extraordinary amount of time being spent managing tedious paper-based systems and the ensuing problems with storage, accessibility, errors and limited collaboration. It also felt as though the industry wasn’t progressing. “Knowing firsthand the daily concerns and requirements of hotel operators and property managers we saw the opportunity to take something rudimentary and turn it into something that would ultimately help operators run their businesses better,” says Sylvia. “We believed that with focus and determination we could evolve it into a powerful technology stack that would streamline hotel operations.” As luck would have it, the original developers weren’t interested in changing or developing the platform to the level required by the ever-evolving industry and over a period of time Sylvia and Phil were able to acquire the business and software. “We hired our own programmers and spent the next three years stripping the technology back and developing the tools we always wished that we’d

INDUSTRY

had access to when we were running our own businesses. “Our primary goal was to help the hospitality industry, and property managers in particular, improve their business and increase their profitability, while also providing them with the means to enjoy the lifestyle they purportedly ‘signed up’ for. “The vision of a semi-retirement and a more relaxed way of life is usually one of the main reasons people go into management rights. However, upon buying them, many newcomers find they are restricted to their desk. HiRUM technology provides them with the mobility to run their business on their own terms, across all departments, from anywhere, and because we free up our client’s time, they can focus on important tasks such as guest service, product delivery and other valuable activities. “Back then, there was also no Google,” adds Sylvia. “Hotels didn’t have their own websites and properties were dependent on pro-active travel agents or roving salesmen to promote their properties. “We realised that in addition to creating efficiencies, we needed to develop a system that would allow the traveller to find hotels on line and be able to make a booking directly with a property via the internet. This inspired us to develop the road map for launch in 2000. “Everyone thought we were mad,” laughs Sylvia, “how was anyone going to “find” a designated property on this nebulous, etherbased entity called the internet?” And the rest, as they say, is history. ResortNews | September, 2019

AN AGENT

FOR CHANGE HiRUM Software Solutions went on to be the first company worldwide they believe, to offer an online booking platform that enabled guests to book directly with an independent hotel, as well as for managers to sell their inventory for the best price across the world’s most effective channels. These advancements were not only extremely time and labour efficient to the customer but also extremely cost and time efficient to the accommodation providers.

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.” And the drive for technological innovation is not over. Sylvia and Phil still spend countless hours behind the scenes evaluating research, software

and operational environments, as well as travelling and meeting with major distributors to identify current and potential pain points in order to develop more solutions for existing clients. “We know that seamless, integrated technology is the key to taking the pain out of everyday operations, and we

Suited to all accommodation types including holiday letting, permanent rentals, strata management properties, real estate rent roll management, hotels and motels, HiRUM software products are now installed in more than 1,200 hotels and properties around the world, managing more than 120,000 accommodation rooms.

The hospitality industry has the most to gain from the integration of automation. The new technology is already a part of many processes and its potential to enhance the hostguest relationship is immense. “We’ve always invested our profits back into the solutions we deliver, ensuring our clients have the state-of-the-art tools they require,” says Sylvia. “Innovation is at the heart of everything we do, and in addition to eliminating the need for a myriad of different solutions, we want to save our clients both time and money, not just in the products they use, but in labour efficiencies throughout their businesses.

“Back then, a lot of our ideas seemed like science fiction – even to us, but fast forward twenty years and we’ve far surpassed our own goals and expectations,” adds Sylvia.

“Our motto is that there is no success and there is no failure. There are only outcomes, which are the product of the things we imagine, the risks we take and the path we choose. If the outcome isn’t what we desired, we simply re-evaluate our path and try again. But we must never lose our imagination or become averse to the risks it forces upon us.”

“HiRUM provides essential reservation management, efficient front and back office tools, comprehensive communications and marketing platforms, full guest accounting

September, 2019 | ResortNews

believe it’s our duty to give back to the industry that has given us so much. Today’s travellers still want the human aspect, but they also want efficiency and hassle-free processes and we need to combine these two elements in a way that benefits both the guest and the business.

INDUSTRY

INDUSTRY Q&A

Q&A With the spotlight fixed firmly on the issue of building defects, and the furore spreading to encompass the property market and current sales, I thought it timely to speak with Lynda Kypriadakis, one of the undisputed leaders in facility management services. The Diverse Group of Companies have been assisting bodies corporate in Queensland, New South Wales, Victoria and the Northern Territory in managing defective building work claims against the original builder for over a decade and have inspected construction and regulatory compliance in over 3,500 properties.

paint job on the exterior of the building being rushed with inadequate film build thickness and coating, especially in rendered masonry construction. Coupled with the normal settlement associated with concrete structures, fine cracks appear in the coating, allowing water ingress and early deterioration of the substrate. Lynda Kypriadakis, The Diverse Group of Companies

Data from these inspections has assisted university research studies into the nature and severity of defects in Australia and have identified alarming trends. Here are some of the most common questions posed in their role as building defect consultants:

Q: A:

How many buildings have defects?

100 Percent of buildings inspected during the defect liability period following practical completion of construction have building defects claimable under the builder’s statutory warranty.

Q: A:

What are the top three worst defects?

The top three worst and most recurring defects in our experience include:

Building defects

Passive fire defects – these are defects in the fire separation systems within the building fabric, e.g. fire rated walls/ceilings, fire collars, fire rated blockwork, core filling, sealant, etc. Defects in the passive fire aspects of the fire protection system are particularly difficult to view and measure as they are often concealed from view and require an invasive survey to discover. Water leaks – this includes any water that leaks or ingresses into a habitable area causing not only a health and safety issue (e.g. mould growth) but potential for structural deterioration if left unrepaired. Water leaks include roof leaks, bathroom leaks, laundry leaks, window/door leaks, etc. and are particularly nasty because many leaks may not be obvious for some time – and usually only appear once the damage is done. Efflorescence (calcium buildup) is evidence of water leaking and is a defect. Paint failure – we see evidence of the first external

are in the pie” issues are bound to occur. It is our view that the nature and occurrence of defects in our current construction environment provides evidence of systemic failure across the entire design-supply-certification chain. Our top five causes of defects in our experience are: 1.

Lack of site supervision – Bring back the Clerk of Works model (we say!). The greatest number of defects in our experience stem from lack of supervision of construction workers on site. Coupled with the pressure to achieve tight construction works programs and the selfassessment model (i.e. the trade contractor is responsible for certifying his own work), we have created a breeding ground for cutting corners during construction.

Lack of certification rigor – Private Certification Guidelines limit the number of mandatory “hold point” inspections required to be undertaken throughout the construction process, so instead of checking the works on site the Private Certifier relies on selfcertification [records] to be provided by the contractor.

Lack of trade contractor competency – A number of workers on commercial construction sites are not QBCC license holders, and instead are “skilled labourers” undertaking works as an employee of the Licensee.

Design issues – In many cases the architect only prepares the conceptual design for the developer who, once the Development Approval is

What happens if these defects are unresolved?

Voided insurance claims (insurers don’t cover issues arising out of building defects)

•

Breach of Building Act (must maintain approved infrastructure in accordance with occupancy permit)

•

Infringement penalties from regulator for non-compliance (e.g. Queensland Fire and Emergency Services)

Why do we get building defects? What are the top five causes of defects?

The construction process is a systematic collaboration between developer, designer, engineer, builder, supplier, trade contractor and certifier. Naturally, when so many “fingers

INDUSTRY

ResortNews | September, 2019

issued, adopts a Design and Construct model (D&C) for the working drawings. This requires the sub-contractor to prepare the design for his aspect of works – e.g. post tension slab contractor would do his own design – and certify his own work. Often these D&C drawings are incomplete and rely heavily on the sub-contractor to “design” on site as they build. This also gives rise to weak design, poor workmanship and defects. 5.

Building owner failure to inspect in first 12 months of life – The one thing we can all control is the way we approach building defects. If every body corporate took steps to have a building industry professional inspect for defects in the first few months following practical completion of construction, we would have a much greater rate of success in holding the builder to account.

How can the building owner take steps to effectively manage building defects?

The first step is for the body corporate (building owner) to obtain the following documents from the developer at the first AGM: 1.

The Building Contract – we need this to lodge a defective building work claim

The Development Approval – we need this to manage any changes to common property proposed throughout its life

The “As Constructed” Plans – we need these to manage and maintain our building for its full life cycle

Warranties – we need these for managing warranty claims

The “Baseline Data” – this is mandatory under AS1851 for the maintenance of the fire protection system for the full life of the building

The bottom line is, that if the building owner does not make a successful claim against the original builder, the building owner will be responsible to rectify the defects at its own cost. The second most important step is to engage a building industry professional as soon as practical in the first year of the life of the building to undertake a full defect inspection for the benefit of the lot owners.

What is the defect liability period? How much time does a body corporate have to lodge a defect claim?

Structural defects (including water leaks, major cracks,

structural failure, etc.) have a 6 years + 6 months defect liability period in Queensland. Nonstructural defects (including frayed carpet, paint and tiling defects) have a 12-month defect liability period. Once you know about a defect you have 12 months to report it to the builder and lodge a defective building work complaint with the Queensland Building & Construction Commission, so it is important to act promptly on all defects. 1 Deakin University Building Defect Research Report by Dr. Nicole Johnston [2019]

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Above & Beyond September, 2019 | ResortNews

INDUSTRY

ARAMA REPORT

Proving your value through an ongoing maintenance program Now that spring has sprung, management rights operators with both short-term and long-term letting pools will face various seasonal maintenance tasks in servicing their building throughout the warmer months. However, as pool covers are rolled back and common BBQ areas are cleaned, it is a timely reminder of the importance of ongoing maintenance to overall building performance and strategic asset maintenance. The revenue potential of a commercial property is determined by multiple factors including the building type and location

resident managers need to balance these costs with the benefits and desired outcomes. They must also understand their responsibilities within the caretaking agreement, what constitutes a specialised task (and when they shouldn’t undertake them), and how to ensure the building remains compliant with various regulations. Trevor Rawnsley, CEO, ARAMA

as well as the overall condition and ‘street appeal’. While you can’t always control the first two factors, resident managers have a robust knowledge of the property and are best placed to ensure its condition and appearance are maintained at the highest level. While ongoing and preventative maintenance is vital to a building, it comes with a price tag and

In serving the needs of stakeholders including the body corporate committee, unit owners, tenants and guests, and in making strategic decisions for the long-term benefit of the property, it is the resident manager’s responsibility to develop a costeffective routine maintenance program. It will also demonstrate to the committee and owners why your role is so vital to the building. Fundamental to this program is identifying and managing small maintenance issues before they become large and costly. While it is normal for things to break or cease to function as intended, scheduling maintenance work proactively can often limit repairs of an emergency nature. The cost of engaging a contractor or service professional to fix a problem that already exists will always far exceed the price of resolving it before it becomes an emergency situation. Something as simple as an air conditioning unit malfunctioning might be prevented through scheduled maintenance.

Even water leaks, when detected early, are usually relatively inexpensive to fix, but once damage occurs to structural components, the cost of repair can become exorbitant. A resident manager should understand every component of the property’s assets and which course of maintenance is best. In addition to function and asset protection, routine maintenance is also significant in limiting possible liability. Damaged buildings, walkways, car parks and even poorly kept grounds can all increase liability if someone is injured as a result of the defect, damage or negligence. Buildings that are well maintained are also less likely to be vandalised, especially if the gardens and grounds are well kept, security lighting is installed, and the overall impression of the building is that people are actively maintaining the property. Aside from this, you only have one opportunity to make a first impression. Operators in shortstay accommodation in particular must consider the property’s presentation as they welcome a fresh wave of guests over the holiday seasons. A well-kept, perfectly functioning building will help guests establish a positive opinion of the property and give you the best chance of seeing them return to your property in the future.

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)

INDUSTRY

ResortNews | September, 2019

One of the key tenets of SCA (Qld) is advocacy. Advocating on behalf of the entire strata community, through the media, government meetings, and public awareness campaigns, allows us to represent sector interests and fight to better the greater industry.

The last twelve months of strata news have been dominated by defects and combustible cladding. Countless media articles have described building failures, the financial losses faced by concerned residents, and expert opinions urging consumers to avoid buying off-the-plan apartments. Combined with Queensland’s combustible cladding regulatory requirements it has been a tough year for many of the state’s strata community. However, amid the ongoing concerns, there are several positives for the broader community, many due to the advocacy efforts of SCA (Qld) and other industry stakeholders. The draft cladding regulation presented to SCA (Qld) was initially more complicated than the final version, so it was agreeable that, after consultation, meaningful changes were made. Our efforts were focused on removing unnecessary consumer expenses and easing the burden on strata managers. Throughout the combustible cladding process, SCA (Qld) has continually met with the Department of Housing and Public Works and the QBCC, with these meetings resulting in several further changes to aspects of the regulation, as well as the process itself. We have also successfully September, 2019 | ResortNews

failed to solve the associated problems without creating many more areas for concern and room for dispute.

In this instance, it was pleasing to see that the government had listened closely to stakeholders and heeded their advice. The speech also saw Ms D’Ath mention her passion for greater transparency in the selling process while acknowledging that the BCCMA review has been “going on a long time”.

Simon Barnard, President, SCA, Qld

lobbied for an extension to the stage two process and an alteration to the official guidelines creating a fairer process that may have kept hundreds of schemes out of stage three. Unfortunately, the QBCC have decided that they will not be releasing official figures from the end of the stage two audit but, based on the numbers our members have reported, we can form a reasonable estimate.

SCA (Qld) has been heavily involved in the property law review and, after viewing the draft changes to regulatory modules, it was satisfying that our advocacy efforts had again resulted in nearly all our suggestions being incorporated.

Thankfully, it appears that there may be as few as 300 of the 21,000 audited buildings entering stage three. This may be no comfort to the 300 affected schemes but knowing that the other 20,700 buildings are not covered in combustible materials will certainly be a relief to the greater community. The advocacy power that unfolded over the year demonstrates the level of respect the organisation is now afforded, and that the strata industry has a voice even outside of the Department of Justice, our natural home with the BCCMA. Earlier in the year, the AttorneyGeneral announced at our annual conference that her office will no longer be pursuing changes to the issue of lot entitlements and will instead be focusing on seller disclosure and industry stability. While SCA (Qld) originally entertained the idea of change, each suggested reform INDUSTRY

We know that it’s not possible to please everyone and that it must be incredibly challenging to prepare legislation, but the successes we have been able to achieve over the last twelve months reinforce the need for an effective advocacy program. We understand the importance of representing the strata industry. Whether that be pushing for the mitigation of physical dangers like flammable cladding, opposing unnecessary financial costs like public pool licences, or easing the administrative burden by advocating for the modernisation of the BCCMA, we consider it a privilege to continue to work with all stakeholders and strive for the best possible outcomes for the strata community.

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

RENEWAL STRATEGY

DISPUTE RESOLUTION

www.mahoneys.com.au 15

SCA REPORT

The winner is… advocacy

STATE REPORT

NSW short-term rental accommodation update The NSW Government has now issued its new regulatory framework discussion paper and called for final feedback. According to government sources, the Short-term Rental Accommodation (STRA) industry in Australia was estimated to be worth $31.3 billion nationally in 2016 and NSW’s share equalled approximately 50 percent of that figure. In June 2018, the NSW Government announced its proposed policy for STRA in NSW including: a state-wide planning instrument permitting the use of dwellings for STRA under certain conditions, including limits on the days the activity can take place; a mandatory code of conduct that will apply to online booking platforms, letting agents, hosts and guests; and clarification that strata schemes can adopt a by-law that prohibits STRA where a lot is not a host’s principal place of residence. Any such by-law will need to be adopted by special resolution, with 75 percent of votes supporting the proposal at a general meeting. The NSW Government’s stated policy for STRA seeks to enable local economies to continue to benefit from STRA, while protecting communities from anti-social behaviour, such as increased noise for neighbours.

Planning instruments At present, STRA is regulated differently in different local government areas across NSW. The NSW Government policy for STRA seeks to provide State-wide consistency in the definition and permissibility of STRA. The proposed planning framework includes new ‘exempt’ and ‘complying’ approval pathways that enable STRA within day limits: where the host is present, STRA is ‘exempt development’ for 365 days per calendar year; where the host is not present, and the site is not on bushfire prone land or a flood control lot, STRA

Proposed safety requirements applying to dwellings used for STRA

Col Myers,

Dwelling Type

Recommended standard

All dwellings

Installation of a lighting system in hallways that is activated by the smoke alarm system.

Dwellings in multi-unit buildings only

Entry doors should be openable from inside the dwelling without a key.

Small Myers Hughes

Installation of a self-closing device and smoke seals to all edges of the door, if the door opens onto a shared corridor and entrance doorway.

is ‘exempt development’ for: 180 days in Greater Sydney; 365 days in regional areas; except where a council varies this to no lower than 180 days;

Installation of a fire extinguisher and fire blanket in the kitchen.

Where the host is not present, and the booking is for 21 or more consecutive days, the booking will not count towards the above day thresholds. Already, some regional councils have nominated different day limits for un-hosted STRA. For example: Ballina Shire – 180 days; Lake Macquarie – 180 days. Regional councils can continue to nominate reductions in un-hosted STRA permissibility to no lower than 180 days.

Code of Conduct The principal objectives of the proposed code are to: set out the rights and obligations of STRA industry participants; provide for resolution of disputes and complaints concerning the conduct of STRA industry participants; outline the compliance and enforcement approach that applies for contraventions of the code by STRA industry participants; and facilitate the oversight of the STRA industry.

Hosts’ specific obligations relate to: representing their STRA property accurately to guests; holding an appropriate level of public liability insurance;

Making an evacuation plan, displaying ‘evacuation signage’ and familiarising guests with exit system. Standalone dwellings only

providing guests with appropriate contact information for the host or other emergency service providers; providing neighbours, including an owners corporation where relevant, with information such as the host’s contact details; and complying with any restrictions on participating in the STRA industry imposed on them due to listings on the exclusion register.

Guests’ specific obligations relate to: their behaviour and the behaviour of any visitors, including ensuring they do not act in a way that unreasonably impacts on STRA properties’ neighbours; taking reasonable care of the STRA premises or host’s property at the premises; complying with any restrictions on participating in the STRA industry imposed on them where they are listed on the exclusion register.

Proposed industry-led STRA property register The government’s view is that the register has the potential to greatly strengthen responses to complaints about STRA. INDUSTRY

Installation of heat alarms in single dwellings which are located above a garage. This is because a register could provide information about which properties are used for STRA and the number of days that properties are let. Information on the register could facilitate compliance with the STRA regulatory framework. For example: Local councils could use the information to enforce compliance with day thresholds; Industry participants, such as booking platforms, could access the information to ensure they are only advertising registered STRA properties that are not listed on the exclusion register, and which are within the permitted maximum number of days.

Timing After the current final round of consultation closes, the departments will analyse all feedback and make any necessary refinement to the policy. Thereafter, the policy will go to the Governor for approval. 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.

ResortNews | September, 2019

Annual general meetings:

be prepared You may be aware that I have been doing a series of articles about annual general meetings (AGM), with the first part clarifying the basics of process and timeframes and the second part providing some meeting tips. This third part continues on from my part two article, providing more tips around the AGM. As was the case with the previous articles in this series, this is general information only and particularly when it comes to the “tips”, it is not legal advice. Remember also that each situation and scheme is different, which is why neither I nor my office can provide an immediate or definitive “ruling”. Hopefully, the tips will provide guidance to address several common occurrences.

Be financial If a lot owner is not “financial” – that is, if they owe a body corporate debt – then they may not be entitled to vote at the AGM. Remember that even an apparent debt of literally just a few dollars may be sufficient to render an owner not financial and may include not only arrears on body corporate levies, but things such as interest and penalties. Sometimes an owner may assume that they are financial when in fact there is an amount they have overlooked. It is therefore important for an owner to not assume their financial status and to make necessary enquiries if they are in any doubt.

maintenance or repairs be done, then the onus is on the owner to have done their research and obtained a quote (or multiple quotes depending upon the issue). Providing quotes with a motion is part and parcel of providing sufficient details so that all owners can make an informed decision. It is in an owner’s best interest to do so if they are submitting a motion – if you want people to vote for your proposal, then give them a sound basis on which to do so.

Chris Irons,

Commissioner, Body Corporate & Community Management

debt. In this case, an owner may wish to consider if they are better served paying the apparent debt to ensure they get to cast a vote, then considering disputing the debt after the meeting. Issues around apparent body corporate debts are, naturally, sensitive matters for an owner and each owner would have to carefully weigh up their ability to participate in an AGM versus any dispute about a debt.

Do your research, get your own quotes As I noted earlier in this series, the AGM agenda will contain motions seeking a body corporate decision on expenditure, for example, on an insurance premium or related to appointing a body corporate manager. To enable the body corporate to cast an informed vote, these agenda items would be accompanied by quotes.

Remembering the literal definition above, an owner nominating for a committee role should be ready to “commit”.

If you think you can do a better job – put your hand up

Both from a legislative and a common sense perspective, it is expected that someone who nominates for such a role is ready, willing and able to carry it out.

Following on from the previous tip, it is essential to remember also that being on a committee and nominating at an AGM for a committee role is voluntary. There may be many good reasons why an owner cannot or does not nominate for a committee role and there may be some owners who, due to their personal circumstances, might never be able to take on any committee responsibility.

That means being able to attend meetings, vote outside of committee meetings and engage with other entities (such as other owners) as necessary on body corporate business.

This is quite different to a situation where an owner does have capacity to nominate at the AGM for a committee role but prefers to observe and be critical from the sidelines.

A literal definition of “committee” is “one who commits”. It is important to bear this in mind when an owner nominates themselves at an AGM for a body corporate committee role.

Remember, these tips are guidance only. Legal or other professional advice may be required depending on the circumstances. For general body corporate information, contact my office on 1800 060 119 or visit www.qld.gov.au/bodycorporate.

While these agenda items might be put forward by the committee, there is nothing stopping an owner from doing their own research and putting forward their own quotes.

QUEENSLAND WIDE



An owner who becomes aware of their non-financial status with the AGM approaching should consider what they can do to address the situation. It may be as simple as the owner realising they are behind on payments and making these up.

For example, if an owner prefers the proposal of a body corporate manager different to the one that has been in place and which is subject to motion at the AGM, the owner can submit a motion that their preference (and their quote) be considered.

It may also be the case that an owner disputes the apparent

Additionally, if an owner is putting forward a motion seeking

September, 2019 | ResortNews

Remember the “commit” part of “committee”

Committees have a legislated role and responsibility to act reasonably so a decision to nominate for a committee role should not be taken lightly as a result.

(07) 5443 5266 www.simpsonquinn.com.au Level 1, 13 Carnaby Street, Maroochydore

INDUSTRY

Management Rights Transactions Conveyancing and Property Law Estate Planning

BCCM REPORT

Part three of a three part series

LEGAL EASE

Training: the way of the future Image: © cacaroot, stock.adobe.com

In recent articles I have written for Resort News and other publications I have reported on a growing consensus within the industry around training, emanating from the regular industry breakfasts Mahoneys host jointly with Australian Valuers. I am pleased to report that all of the recognised management rights lawyers have joined the consensus and are working with Mahoneys and ARAMA to develop a strategy to ensure that an appropriate level of training is undertaken by new entrants to the industry. Just as importantly we are all working together on a strategy to avoid the gouging of fees from our clients by some law firms acting for bodies corporate in assignments. While there is still some work to be done to bring it all together, there is overwhelming support for dealing with the problems that have arisen largely as a consequence of poorly advised new entrants acquiring management rights

It is interesting to recall the response I received to a similar proposal I put forward a decade or so ago. There was genuine fear that if such training was offered to first time managers it could decimate the industry because if they knew what was involved they might never purchase a management rights business. Unfortunately, my proposal failed to gain momentum.

John Mahoney, Mahoneys

without a proper understanding of the role a good manager plays, or the risks associated with such businesses and without the skills to deal with the complexity of the role and conflict when it arises. It is expected that within a matter of a few months the industry at large will be aware of and supporting the need for new industry entrants to complete the ARAMA management rights induction training program, some regulatory compliance training and some practical hands on training for a reasonable period of time. Once brokers, financiers and lawyers are fully on board with the concept it will become a well-accepted and critical part of our industry.

I’m pleased to note that the industry has matured significantly since then and there is general recognition that with massive increases in regulatory compliance, greater accountability being demanded from unit owners (who after all are the ones the industry is meant to serve) and some well publicised legal disputes, the role of the resident manager involves much more than it used to. If we as an industry want to be taken seriously then we need to face these challenges head on – and that is what the training regime aims to do. Like any change there will be opposition and there will be pain. There may well be a sale or two that does not eventuate because of a buyer not wanting

MANAGEMENT

to expend funds on training, or even undertaking training and deciding after the fact that the industry is not right for them. There may well be a glitch in the market as it comes to grips with the tighter entry requirements. Whilst these things are unfortunate they are minor when compared to where the industry will finish up if it does not recognise and accept the need for the type of changes this new consensus is proposing. It has been interesting to see the reaction to my recent articles about such changes. I received some very positive feedback from a number of clients – interestingly they are clients who I and others regard as being in the top echelon of managers. If the very best in the industry see the merit in the changes it must be good enough for the rest. I look forward to bringing updates on the steps being taken to fully implement the proposals. Watch this space.

ResortNews | September, 2019

BY ALL ACCOUNTS

Tax return

preparation process Are you ready for the tax man? Every year from 1 July all Australian resident tax payers need to provide the deputy commissioner of taxation with a compliant tax return declaring all amounts of assessable income and the associated expenses they have incurred in earning this income. For some this is quite a simple affair but for most trading within the accommodation industry it can be more complicated. More often than not an entity tax return i.e. trust, company or partnership must to be completed as well as at least one individual tax return. I will now go through a stepped approach that should be useful in collating the required information and ensuring you meet your taxation reporting obligations.

Step 1 – Due date for lodgment Find out from your accountant or tax agent what your due date for lodgment is. This due date will range from 31 October to 15 May the following year. For most businesses lodging with an accountant their due date will be 15 May.

Step 2 – Obtain a checklist or information request Contact your accountant for this. This may be a standard checklist or a more customised and detailed list of the information required.

Step 3 – Agree on timing and logistics Discuss how, when and where your work will be processed. Your accountant should have a standard processing timeframe. You may also want to confirm that your work will be completed in your accountant’s office and not via an offshore processing office. There is a growing industry trend for Australian accounting firms to outsource September, 2019 | ResortNews

purchase and sale contracts for assets bought and sold (including property, shares, motor vehicles etc). You may need to contact your bank, solicitor, stock broker or real estate agent. This can take time so it is best to get onto this as soon as possible.

Jonathan Hanaghan,

Jonathan Grant Accountants

accounting and tax work to cheaper overseas countries. This is fine as long as you (the client) are aware that your accountant is doing this and are comfortable with it. I personally do not agree with this new trend as I believe in protecting and creating local jobs for Australian accountants and I have grave concerns regarding the security of taxpayer’s highly confidential financial data being transmitted back and forth overseas. Agreeing on the time frame for completion is even more important if you require your tax returns for a finance application, an annual bank review or are part of a corporate agent partnership.

Step 4 – Ensure your bookkeeping software program is accurately reconciled to 30 June Whether you use MYOB, QuickBooks, Xero or another program you need to ensure that your data is accurately reconciled to 30 June of the relevant financial year. This is important as it provides the starting point for your accountant to begin processing your work. Those that have their books kept internally by their accountant’s in-house bookkeeping services don’t need to worry about this step.

Step 6 – Make sure all ATO payments have been made and are up to date Ensure that any outstanding amounts of income tax, GST or PAYG have been paid. If this is not the case you will need to advise your accountant.

Step 7 – Forward all information to your accountant This involves sending all requested information to your accountant together with any other written instructions including details to who is best to deal with any queries that may arise. At this point you may also be required to sign an engagement letter or similar document outlining both party’s roles and responsibilities. If you are unsure on any matter contact your accountant before sending. It is better to not start an engagement until all relevant information is with your accountant.

Step 8 – Dealing with queries Make yourself available via phone or email to deal with any queries from your accountant. Most taxation compliance jobs have transactions that require clarification. It is best to deal with them as quickly as possible.

Step 9 – Debrief This can involve a meeting or a phone call to discuss the resultant financial statements and tax returns. It is important that each client understands the contents of the tax returns as each taxpayer is ultimately responsible for the contents of their own tax return. This is also a good opportunity to discuss any other issues or questions you may have i.e. changing software programs or even selling the business. In summary the taxation system in Australia is based on self-assessment so each tax payer needs to take care when preparing their tax returns. This all starts with the quality of the information supplied to your accountant and the planning that goes into the process. A smooth engagement with minimal or no queries will always result in a much better outcome for client and accountant.

Step 5 – Collate supporting information as per your checklist or information request This may require getting copies of bank and loan statements, MANAGEMENT

THINKING MR

Financial literacy

and the assumption of ignorance There are lots of quotes on the internet regarding financial literacy. Here’s the one that jumps out at me: “Financial illiteracy is not an issue unique to any one population. It aﬀects everyone: men and women, young and old, across all racial and socioeconomic lines. No longer can we stand by and ignore this problem. The economic future of the United States depends on it.” President’s Advisory Council on Financial Literacy Here in ‘Aus’ we have an interesting way of dealing with the problem of the financially illiterate. It’s a lot like the way we deal with dangerous roads. The problem is identified, usually by numerous accidents, and then we erect a sign warning of dangerous conditions ahead. We don’t invest in fixing the two obvious problems, being the dangerous road and the poor driver. Then we compel everyone to walk as slow as our slowest person by introducing draconian enforcement measures, fines and speed limits. It’s just brilliant! In the financial services sector, we do the same thing. A number of accidents and close calls results in a review of the system. This is followed by a raft of new rules and regulations, monumental amounts of paperwork and increased regulation. The whole farce culminates in a thing called The Banking Code of Practice. This inspired piece of nonsense not only compels lenders to treat clients like inexperienced drivers on dangerous roads but to also assume that the driver is impaired and incapable of making any kind of sensible decision. Best of all it places responsibility on the lender while giving the borrower any number of avenues to escape responsibility. There is no ‘Opt Out’ provision for long suffering bank clients who simple don’t want mountains of paper every time they want to do something. We all walk as slow as our slowest, and that’s a snail’s pace to be sure. Needless to say, we are already seeing the outcome of all this new

As such the calculation is: •

$800,000 x 80% = $640,000 less current debt $300,000 leaves $340,000

A lot of potential buyers of management rights and motels make this fundamental mistake and assume a higher level of equity than what is actually available. The only way to access all the equity in a property is to sell it.

Mike Phipps, Director, Mike Phipps Finance

compliance and to date none of it is good for the economy. Slower loan approval turnaround times, lower credit approval volumes and very fragile consumer confidence. Sure, a few aggrieved bank clients are probably feeling pretty good about the whole mess but for the average quiet Australian in the ‘burbs it’s hard to see any positives coming out of the current situation. Even if we get real about financial education right now, we are at least one generation away from a population that doesn’t need government rules and regulations in order to make informed financial decisions. In the meantime, the job will be left to people like us who spend an incredible amount of unpaid time explaining to clients how things work. Which leads me (at last you say) to a very brief summary of the most misunderstood finance related ratios and concepts that we see. Remember, we deal mostly in business finance so these will be somewhat tilted that way. Having said that, understanding the rational involved in each concept will help anyone who wants to better understand finance.

Equity Simply the proportionate value of an asset that you own. If your house is worth $800,000 and you owe the bank $300,000 then your equity is $500,000. That’s fine in theory but it’s important to understand that if you go to the bank, you can’t borrow an extra $500,000. For business and many investment purposes the maximum lending (or gearing) will be 80 percent of the house value.

Loan to Valuation Ratio (LVR) Simply an outcome of asset value and lending. Sometimes referred to as gearing. •

Loan $300,000 divided by asset value $750,000 x 100 = 40 percent LVR

It’s important not to add purchase costs to the asset value when calculating LVR. It’s also important to understand that banks lend on purchase price or valuation, whichever is the lesser. If you pay more than valuation for an asset while needing to maintain an acceptable LVR you will need to contribute additional equity. That gets important later on, as you will see.

Interest Lenders charge interest when you borrow money. The longer you take to pay down the debt the more interest you pay. If the net value of the financed asset or venture (after tax planning and deductions) does not appreciate faster than the cost of the debt you are behind the eight ball. It’s that simple. So, how to shorten the odds in your favour? Pay the debt off fast. Incurring an interest cost with a tax deduction being the primary motivation is, of itself, a flawed strategy. Who in their right mind spends $1 to save 30 cents? There are good reasons to carry business and investment debt, and tax deductibility of interest costs just happens to be a happy side benefit. I strongly recommend using an amortisation table to review the loan you are contemplating. Plenty are available via Google and they are great way see graphically what a difference

MANAGEMENT

accelerated debt reduction can make to your total interest costs. One caveat… there are some geared investment products for which cash flow generation is more appealing than debt amortisation. That’s fine as long as the leveraged investor understands the nature of the risk and the future possibility of a need to introduce more capital should the asset value fall and/or bank lending tolerances change.

Return on Investment (ROI) An outcome of comparing the price of an income-producing asset with the raw profit it makes. Not a bad way of comparing like assets and other investment opportunities. •

Net profit $320,000 divided by management rights plus unit price $2,350,000 x 100 = 13.6 percent ROI

This simple ratio can be used for any investment opportunity or asset class and in my view is a better method of comparing opportunities than using multiples of net profit. I am sure the smarties out there will point out that there are far more sophisticated ways of comparing competing investment opportunities. I am happy to write about ‘net present value of future cash flows’ once I am confident the average borrower understands the fundamentals.

Return on Equity (ROE) and leverage You’ve got a certain amount of money to invest and the rest will come from the bank. Let’s say the asset has a ROI of 14 percent, interest costs at 5 percent and gearing at 70 percent. The simple outcome is that the more 5 percent interest-only money you can get your hands on, the higher your return on equity. Of course, blind Freddie can see that if/when interest rates rise the ROE will erode unless the ROI has been driven up by improved business performance. With rates where they are right now and asset classes like management rights showing ROI numbers at nearly three times cost of debt, the miracle of leverage can be clearly demonstrated. ResortNews | September, 2019

Here are the basics: •

Asset value $3,500,000

•

Add costs to acquire $250,000

•

Total required $3,750,000

•

Less bank finance at 70% LVR $2,450,000

•

Equity contribution required $1,300,000

•

Net profit $475,000 less interest costs $122,500 = $352,500 divided by $1,300,000 x 100 = Return on equity 27 percent.

Seems simple and wow, what a return! Problem is this calculation is flawed and reflects the way numbers can be presented to distort outcomes. The calculation reflects a profit net of a two-person team and net of any allowances for contingencies such as relief management. To get a real-world ROE these allowances must be made. As such the revised calculation looks like this: •

Net profit $475,000 less interest costs $122,500 = $352,500 less wages and contingencies allowance $130,000 = $222,500 divided by $1,300,000 x 100 = Return on equity 17 percent.

Still pretty good but certainly not the 27 percent the raw numbers would suggest. The trick is to understand that ROE needs to be seen as a passive return. That is, a return after the personal labour and contingencies allowances of the business owner are deducted from the profit. My personal preference would be to take a lower return (still way better than my super fund for example) and pay off the debt. We tend to use the ROE calculation when assessing a passive investment, but you can also use this when you are looking at the returns a husband and wife business is generating. To calculate your ROE, first you need to ask yourself what you would reasonably pay yourself to complete the work you are doing and deduct that from the net profit, then you can truly see what the return to you for your original investment would be. In closing I must stress that all this is very simplified, and every borrower will have a different set of circumstances. Clever tax planning and individual asset classes will also impact my observations. Borrowers should always consult their accountant before making any financial decision. Let’s hope that at some point we can all start walking at our own pace. September, 2019 | ResortNews

Motels:

A great value stay In my continual travels around Queensland, and in my stays and visits to motels (which without exaggeration would have to be approaching a thousand stays over the last 24 years in the industry), I continue to see just how good the product and service of the motel is. I can say without any reservation (pardon the pun), that more often than not, I come away from my stay extremely happy and thinking, what great value that was. The difference between a well operated motel and a poorly operated one is very evident. The are some motels in need of a little TLC and their time comes around at some point (unless the “highest and best use” becomes an issue of course). However, most motel operators understand the industry and what the guests, in their particular market segment, demand for their dollar. The room that is on offer for $85 a night against the one at $185 a night will differ considerably in size, standard, services available, and so on. It has to, there is a $100 a night difference. What I have found however, is that each has its own personal characteristics and niceties that make that stay one of a kind, enjoyable and good value for money in some way. Perhaps it was the surprisingly large room for the dollar being charged, which was unexpected as I walked through the door for the first time. Maybe it was the renovated bathroom that had been completed by the new and enthusiastic owner/ operator since I stayed at the motel the last time. Perhaps the high-quality bed that helped get a good night’s sleep after a long drive or busy day. It may just be human nature,

•

An on-site manager who is available to the guest if and when required, providing security and attending to any personal concerns, maintenance problems or requests on the spot that may arise during the stay;

•

20 hours of accommodation – 2pm check in to 10am departure and often longer than that if required;

•

Freshly laundered linen and towels;

“I had a fantastic time riding a jetski at Hamilton Island, but it was a bit bumpy.” Sound familiar? There is no difference with accommodation.

•

Basic hot beverages and biscuits;

•

Basic appliances, crockery and cutlery

“I prefer a bar of soap, not a pump system.” The smallest of concerns that are not really an issue in the bigger scheme of things seem to become stories that get rolled out and repeated whenever the opportunity arises, as opposed to focusing on the positives of the experience.

•

A functional kitchenette for meals (in some cases)

•

A refrigerator

•

Mini bar or convenience item facilities

•

A table, bench, chair and couch to work from or relax

•

Television with freeto-air or a Foxtel or Netflix subscription

•

Ensuite with personal amenities

•

Cupboard hanging space and ironing facilities

•

Under cover or noncovered off-street carpark

•

Pool and outdoor area

•

Wifi access (often free)

•

Laundry facilities

•

Air-conditioner

•

Alarm clock

•

Rubbish disposal

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

but people tend to focus on the negative with an experience they have, good or bad.

Looking at it from a different perspective I believe the value for money available to travellers requiring short- or medium-term accommodation throughout Queensland motels is excellent. Forget turning up to accommodation booked online where there is no manager onsite, the key is not where it is supposed to be, the place is dirty or does not present anything like it did online. The value for money a guest receives in general terms at a motel facility in Queensland is exceptional in my opinion. The room rates throughout the state vary greatly depending on location, standard, etc but the amount of value for the guest packed into a $80 - $120/night studio motel unit for example, is a lot when you break it down. Let’s look at just some of the absolute basics of what one gets for their hard earned $80 $120 (and less in many cases).

MANAGEMENT

So, when you break it down there seems to be significant value for money. The value to the guest of having a manager on site for peaceof-mind for security, and/or having something addressed immediately if required, is worth the room rate alone.

MOTEL MARKET

Just remember, it’s only a miracle while rates are low, and ROI is high. Beware the miracle that turns out to be a mirage.

STRATA TRENDS

By-laws circle families in strata The growing number of families with children living in apartment complexes face challenges not only with the lack of familyfriendly communal spaces in some buildings but also with adapting to the strata community by-laws governing resident activity. According to 2016 Census data, the number of adults with children living in apartments between 2011 and 2016 increased by 56 percent nationally. It has become more commonplace for children to live in apartments as more families choose an inner-city lifestyle over a house in the outer suburbs. Like all residents in strata communities, families with children need to familiarise themselves with the building’s body corporate by-laws and be helped to adapt their behaviour accordingly.

communal swimming pool in an apartment complex may only be used during stipulated times with adult supervision required for children under a certain age, but by-laws cannot be discriminatory.

Grant Mifsud, Archers Everyone living within a strata title property is bound by the by-laws and it’s important to read the by-laws when purchasing or leasing a property in a strata scheme so that you know your rights and responsibilities. Every scheme has by-laws unique to the property that apply to all residents whether you’re renting or an owner occupier. By-laws in a strata scheme could affect children by preventing play in communal areas such as driveways or corridors, while a

The body corporate of a large apartment complex in Sydney’s inner west recently outraged some residents by implementing by-laws barring anyone under 16 from swimming in the indoor lap pool or using the neighbouring gymnasium. This could not happen in Queensland as there have been many rulings made by the Office of the Commissioner for Body Corporate and Community Management declaring that by-laws cannot be prohibitive. By-laws can be made for the regulation of common property use, but owners or occupants of a lot always have rights to access common property provided they abide by the rules in place.

If children were caught misbehaving in the pool area for instance, the body corporate could take action to enforce appropriate use in line with the by-laws, but a blanket ban could be disputed as a violation of the resident’s private property rights. By-laws are intended to maintain harmony within the strata community by enabling the body corporate committee to deal with complaints about excessive noise, pets, parking issues, passive smoking and other issues which can arise from people living close to their neighbours. Often a resident’s first contact with a by-law is when they inadvertently break one and are issued with a contravention notice by the body corporate. It’s usually a reactive situation where the resident says: ‘Thanks for letting us know about the rules, sorry we didn’t know’, and the dispute is then hopefully resolved fairly quickly.

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ResortNews | September, 2019

INTONET

‘Build’ your own browser I don’t know how au fait you are with your web browser, but today – understandably - the everyday users of browsers are more concerned about privacy, as indeed am I. Two major browsers have been competing for a long time now: Chrome by Google and Firefox by Mozilla. Chrome had the upper hand at one stage mostly because of its speed and overall ease of fine tuning, however, technical forums and gurus started to expose a swag of security breaches created in its coding and I, like many, swapped to Firefox. What we need to remember is that your web browser knows a lot about you, and it passes on that information to sites that you visit a lot - unless you deliberately tweak it so it cannot. We have talked about which browsers are best at ad-blocking, but in this guide, we are going to focus on what one can do to better conceal everything you are up to from all the advertisers that want to track your digital life. As I personally use Android mobile devices I have been spoilt by being able to change most backgrounds from a glaring white to black; this saves battery life, and more importantly, my eyes from the glare that is magnified on a large monitor screen when using my desktop computer. Dark Reader is an eye-care extension that enables night mode creating dark themes for websites on the fly. It effectively inverts bright colours making them high contrast and easy to read at night and you can adjust brightness, contrast, sepia filter, dark mode, font settings and ignore-list. Dark Reader does not show ads and does not send user data anywhere. It is fully open-source, and according to its author Dark Reader has never collected, and will never collect any personal data, browsing history or the like. As we all know by now Facebook is arguably the most untrustworthy digital system. I September, 2019 | ResortNews

Arvo Elias, Cybercons

was therefore delighted to find an extension that plays havoc with this perpetrator's ill intent. Facebook Container works by isolating your Facebook identity into a separate container that makes it harder for Facebook to track your visits to other websites with third-party cookies. Installing this extension closes your Facebook tabs, deletes your Facebook cookies, and logs you out of Facebook. The next time you navigate to Facebook it will load in a new blue coloured browser tab called the “Container”. You can log in and use Facebook normally when in the Facebook Container. If you click on a non-Facebook link or navigate to a non-Facebook website in the URL bar, these pages will load outside of the container. Clicking Facebook share buttons on other browser tabs will load them within the Facebook Container. You should also know that using these buttons passes information to Facebook about the website that you shared from. Because you will be logged into Facebook only in the Container, embedded Facebook comments and Like buttons in tabs outside the Facebook Container will not work. This prevents Facebook from associating information about your activity on websites outside of Facebook to your Facebook identity. In addition, websites that allow you to create an account or log in using your Facebook credentials will generally not work properly. Because this extension is designed to separate Facebook use from use of

other websites, this behaviour is expected. It is important to understand that this extension obviously does not prevent Facebook from mishandling the data that it already has, or permitted others to obtain, about you. Facebook will still have access to everything that you do while you are on facebook. com, including your Facebook comments, photo uploads, likes, any data you share with Facebook connected apps and so forth. The next addition to my armoury of extensions is uBlock. An efficient blocker which is easy on memory and CPU footprint and yet can load and enforce thousands more filters than other popular blockers out there. If you are really interested head to an illustrated overview of its efficiency: https://github.com/ gorhill/uBlock/wiki/uBlock-vs.ABP:-efficiency-compared. To use it you simply tap the big power button in the popup which will permanently disable/enable uBlock for the current web site. It applies to the current web site only, and does not operate globally. It is more than an "ad blocker" as it can also read and create filters from hosts files. These files list dozens of known malware and ad sites and a whole string of these filters can be loaded at will. As I have written about before, do not trust web sites that do not have the https prefix. To allow connection to the encrypted version of the website, if it exists, use a little gem called HTTPS Everywhere. HTTPS Everywhere is a Firefox extension to protect your communications by enabling HTTPS encryption automatically on sites that are known to support it, even when you type URLs or follow links that omit the https: prefix.

MANAGEMENT

DuckDuckGo Privacy Essentials is my next choice. This add-on provides the privacy essentials you need to seamlessly take control of your personal information, no matter where the Internet takes you. The list of features is too long to list here but please check it out. Another useful feature is Snap Links Plus, which allows you to select a number of links with a rectangle and open them in new tabs. You can also lasso checkboxes to quickly check or uncheck them. This works with radio buttons as well. A clever password keeper with a pile of features is Bitwarden. A secure and free password manager for all of your devices. And then there is Wikiwand: Wikipedia Modernized. Wikiwand is a new awardwinning interface that optimises Wikipedia's amazing content for a quicker and significantly improved reading experience. Finally, have a look at Image Search Options. This Firefox extension adds a set of customisable context menu options to the right click menu of images. These options allow for fast and efficient use of many reverse image search engines. Users are free to add their own sites, customise existing ones, and search multiple sites at a time. There you have my home-baked web browser with an impressive set of features, that I will continue to use until Chrome sorts itself out. Google says that a brand-new version is in the making so I will wait to see what magic they have planned. By the way, these extensions are free with quite a few operating as standalone applications. Enjoy!

Five ways to inspire

instagrammable moments

Image: © monticellllo, stock.adobe.com

By Terry Eaton

Instagram can be a blessing or a curse for accom properties. On one hand, the social media platform visually conveys beautiful design features and ‘wow’ moments that engage, inspire, and attract guests in a way that would be hard to put into words. On the other hand, the wrong visual or absence of visual marketing altogether can contribute to a lack of interest or excitement. In fact, some travellers are booking their stays not based on what is convenient or what is in their price range, but instead based on what will look best on their Instagram feed. Increasingly, accoms have to continue innovating in every space of a property—from guestrooms, to restaurants and lounges, and especially public spaces, to ensure they can secure bookings in the Instagram era. These moments can be achieved through strategically placed elements, especially notable pieces of art, that stand out visually both in person and online. When done right, hospitality spaces can create organic visibility for their brand, positioning themselves online as a trending place to stay in their respective cities—and even go viral. What does it take to create the ultimate Instagrammable moment

in your property? There’s no one-size-fits-all answer. Instead, here are five factors to take into consideration to bring travellers flocking in to snap a selfie.

Infuse local art and culture. A resort can act as a window into its the culture and history of its destination. By commissioning local artists, the accom puts itself in a unique position to display standout works that nod to regional influences. Strategically curating these one-of-a-kind details into a commanding visual presence instantly transforms the property into a go-to destination for influencers and other trend-minded individuals in that particular locale. Resorts and local artists can collaborate to create an artistic experience that cannot be found anywhere else in the world and one that has significant meaning and a connection to the area.

Keep the eye guessing with an eclectic mix. Some of the hospitality spaces that are most successful on Instagram are the ones boasting unexpected elements that keep the eye guessing. What appears at first to be a static mural might actually be an avant-garde multimedia piece, and what seems to be a beautiful but simple art installation might actually be an enjoyable, interactive experience

inviting audience engagement. The kind of word-of-mouth buzz these sorts of experiences create cannot be underestimated, and this is only compounded by the additional excitement generated by a viral post on Instagram. Additionally, resorts should aim to balance striking ‘wow’ moments with smaller, more intimate— but still unexpected—details sprinkled in, automatically giving the space its own cohesive visual identity that the guest knows will stand out on their feed.

Provide a different mood for various spaces. The beauty of a resort is the myriad of spaces a guest is able to experience under one roof. In the Instagram age, it is imperative for each area to have a different visual identity, giving a guest the feel of a cohesive experience that cannot be emulated. A food and beverage space, whether it be a restaurant or cocktail lounge, should provide a completely immersive visual and sensorial experience—one that should be utterly different from what is delivered in the guestrooms or gardens. As a guest moves through various spaces, exploring the property will become an adventure as opposed to a necessity.

Foster experiential moments. The importance of experiential moments cannot be overstated.

MANAGEMENT

Today’s guest is no longer looking just for a standard accom stay, but for a one-of-a-kind experience, leading to the so-called ‘amenities arms race’ that so many hospitality brands find themselves engaged in today. Art can be an excellent way to create these experiential moments that cannot be found elsewhere, and that, in turn, can attract guests to a hotel in droves. This can be done through curating elements such as outdoor sculpture or interactive pieces.

Draw inspiration from the natural world. So many properties are installing beautiful visual elements— including light fixtures, furniture, and classic artworks—that are inspired by the unique geographical features of their home cities. Whether it be the beach, rain forest or the hinterland, nature endures as a great source of inspiration. Patrons cannot help but pull out their phones and post pictures of these unique features to their feed. Use surroundings to create an inventive moment in a lobby or guestroom ensures that it will be unique to the property—people will have to travel there to see it. Ultimately, thoughtfully curated spaces you can inspire Instagrammable moments. Don’t underestimate the ‘free marketing’ that social media can bring to a property. ResortNews | September, 2019

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PEST CONTROL: Since they feed on decaying matter and live on filth, cockroaches and flies carry viruses and microorganisms that can cause serious diseases.

By Shane Dutka

Running a business in the hospitality industry is a tough task, and when pests are added to the equation, it can get even more challenging and costly. Like it or not, pests are a common problem among many accoms and the problem is only getting worse with the proliferation of bed bugs (and dare we say it Airbnb) in many parts of the country. In a recent survey of pest control companies conducted by the Australian Pest Control Association, hotels/accoms ranked third as the most common location for a bed bug infestation. Apart from causing both minor and major deterioration to a property, the mere presence of pests can deliver a devastating blow to a property’s reputation. It is imperative that accoms take the necessary steps to prevent these pests before they become a problem. Below are the most common hotel pests and actionable tips to prevent infestations for each.

Cockroaches are carriers of bacteria like E. Coli, Listeria, Salmonella, and Staphylococcus.

in the shadows and corners of the establishment, particularly in places with easy access to food stores. Rodents are capable of significant property damage as they gnaw through electrical equipment and fixtures or damage walls. Aside from property concerns, rodent infestations pose a serious threat to human health in the form of various diseases such as Toxoplasmosis, Lyme, Leptospirosis, and Salmonellosis. Furthermore, rats can carry a number of other known pests such as mites, lice, fleas, and ticks into a building.

Detecting rodents

Common accom pests Mice, rats, cockroaches, flies, and bed bugs are among the most common pests. Accessibility to food, frequent turnover of travellers, and inadequate preventative measures create an environment where accoms are at an increased risk of attracting infestations. Below are ways to detect each of these pests early on and a few tips to control an infestation should one occur on the premises.

Rodents Rats and mice are not just household pests. They also like to check into hotels and lurk

The most important tip for rodents (or any other pest, for that matter) is to train cleaning staff on how to spot the early signs of an infestation. Cleaners spend the most time in each room and if they spot something suspicious, there should be a predefined system in place where management can be quickly informed in order to take the appropriate action. Thankfully, rats and mice leave obvious evidence of their presence. They’ll leave behind droppings, urine stains, and

smudge marks around rooms and hallways. When everyone else is fast asleep, rats and mice tend to be more active in the walls, producing gnawing and squeaking sounds.

Flies on the other hand, can be carriers of fungi, parasitic worms, and cholera.

Detecting cockroaches and flies

Rodent control tips If these signs appear, management should secure food stores in the kitchen, restaurant or cafe, and the food storage area. Seal off all possible points that could lead into the building such as cracks, vents, screens, and windows. Make sure that all food stocks are kept in airtight containers and that these are checked from time to time. Check the hotel surroundings for garbage or other foodstuff that could be attracting the rodents. While a few snap traps might work for smaller infestations, larger infestations will require a more robust approach. Before contacting an exterminator, take note of all verified sightings and actions taken against the rodents prior to calling. Rely on professionals to use rodenticides, as these can be dangerous, especially if they’re placed in areas with guest access.

Cockroaches and flies The mere sight of a single fly hovering in a dining area or a cockroach crawling on a wall can severely damage a guest’s impression of the property. Flies are attracted to food odours while cockroaches are drawn to decaying matter and food. These insects can easily get into an establishment by hitching a ride on infested luggage or through small cracks or openings.

MANAGEMENT

Both flies and cockroaches are capable of multiplying rapidly over a short period of time. A single insect is all it takes to start a pest infestation. Therefore, it is important to appropriately train the hotel’s cleaning crew to spot possible red flags of cockroach or fly infestation. Flies are much easier to detect compared to cockroaches. Flies will congregate where there is food or garbage such as kitchen and dining areas, while cockroaches are better at hiding and coming out during the night time to find scraps of food. During the day cockroaches usually hide inside cracks, crevices, and underneath furniture. The key to spotting cockroaches is to pay special attention to the dark and damp areas of a accom’s kitchens and bathrooms (e.g., underneath sinks and refrigerators). Black secretion stains and droppings that resemble coffee grounds are signs of roaches. ResortNews | September, 2019

Preventing cockroach and fly infestations Cockroaches and flies need to be eliminated as soon as possible to maintain a pleasant living environment for guests. Once again, management should continuously train the cleaning staff to identify key signs of an infestation. Other best practices include: discarding food leftovers, cleaning up spills and peelings in the kitchen or dining areas, and properly covering trash bins. Using airtight containers is also a good way to deny cockroaches access to food. UV light traps are the most commonly employed solutions for eliminating flies inside commercial establishments. Place traps in areas where flies are visible most of the time and along windows. Cockroaches can be eliminated in various ways. The most common methods include aerosol sprays and bait stations. Consult an exterminator prior to taking any action as untrained pest control can make an infestation worse. As a preventative measure, lay down cockroach traps underneath refrigerators as a method to monitor any active infestations. Most are inexpensive and can help catch an infestation before it has the chance to expand. If necessary, lay a few traps around the kitchens and check them weekly. September, 2019 | ResortNews

only solution is to consult an exterminator. Bed bug removal is a very delicate procedure only made worse by the fact that accoms make it very easy for bed bugs to spread quickly onto new hosts in adjacent rooms. If a guest brings bed bugs into a property and doesn’t leave with them, the bed bugs will begin looking for a new host somewhere else. This is how bed bugs spread.

Bed bugs Due to increased traveling and less effective pesticides, bed bugs infestations have soared in recent years. In the States, various tools such as the Bed Bug Registry have been created for the sole purpose of reporting bed bugs found in apartments and hotels, which makes preventative measures even more critical in maintaining a property’s reputation. While the Australian National Centre for Disease Control (CDC) maintains that bed bugs do not pose a serious threat to human health, as they do not transmit disease, the severity of their bites can vary from person to person as well as cause secondary infections if the bites are not cleaned and taken care of. Bed bugs count on humans for their daily dose of blood meals, which means that they can only survive in the presence of a human host.

Early detection of bed bugs Bed bugs can lay up to 12 eggs a day which makes it imperative to detect their presence in the earliest possible stage of infestation. Adult bed bugs are quite small but are visible to the naked eye. They grow to just about 5 to 7 mm in size and are usually found in beds, blankets, pillows, luggage, and furniture. Traces of blood spots on sheets, black (fecal) marks, and shed bug skin are common signs. Apart from the mattresses, bed bugs usually lurk in cracks in walls, outlet wall plates, and tables or chairs near the bed.

To resolve a bed bug infestation, pest control companies utilise chemical and non-chemical strategies, commonly deploying sophisticated equipment, which allows them to superheat a room to at least 55° Celsius—hot enough to kill adult bugs and their eggs. As a preventative measure, hotel owners should use mattress and box spring encasements to protect beds from infestations. These can save hotels thousands of dollars in disposing of infested mattresses and make the bed bug removal process slightly easier. Note: Article modified for Australian market.

Training cleaners to spot signs of a bed bug infestation is critical to early detection and removal.

Bed bug control tips When it comes to bed bug removal, the MANAGEMENT

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Palaszczuk government creates 30,000 Qld tourism jobs New data released recently shows the Palaszczuk Government has created more than 30,000 tourism jobs since forming government in 2015 – an increase of 15.5 percent – to 236,000 jobs state-wide. Tourism Industry Development Minister Kate Jones said Tourism Research Australia’s 2017-2018 State Tourism Satellite Accounts data reinforced the importance of tourism to Queensland’s economy. “By investing in

our tourism industry, we can support jobs growth throughout Queensland,” she said. “Today’s data shows our strategy to grow our tourism industry and create jobs is working. “These figures highlight tourism as a major pillar of Queensland’s economy, which is now worth more than $27 billion – an increase of almost twenty per cent since we formed government in 2015.” Queensland data for 2017-18 also exceeds the annual growth rate of the state’s major competitors - New South Wales and Victoria for jobs and Gross State Product,

Image: © Phovoir, adobestock.com

an increase of 6.2 percent and 7.2 percent respectively. “We’ve also doubled the value of our events calendar since forming government – now worth $800 million to our economy.”

aimed at catching the world’s attention. “We’re investing more in tourism than any government in Queensland’s history. That investment is paying off in jobs for Queenslanders,” she said.

On top of the government’s Australian-first tourism infrastructure fund, Ms Jones said through Tourism and Events Queensland, the State Government had boosted funding for marketing campaigns

“Tourism in Queensland now employs a larger share of people than any other state - one in ten Queenslanders. That’s more people than the mining and agriculture, forestry and fishing industries combined.

Pay attention and save The average Australian traveller is losing $500 through silly mistakes when they travel internationally, new research has found.

potential pitfalls of spending and converting payments while travelling,” Mr Wormald said. “Monitor currency rates in the destinations you are visiting and opt for a travel card that allows for locked-in exchange rates.”

The research by Mastercard showed one in ten travellers blew out their budget on holiday and 26 percent returned with “travel money regret”. Asia was the top destination for Australian travellers returning with travel woes (43 percent), followed by the United Kingdom (11 percent) and the United States (10 percent). Richard Wormald from Mastercard Australasia said travellers were unnecessarily losing money due to two common pitfalls — poor planning and lack of understanding when it came to travel money and currency conversations. “As our research shows, the average traveller is left out of pocket by around $500 as a result of, for example, poor planning and

The research from Mastercard found 16 percent of Australians got their travel money in order as soon as they booked their overseas trip, but one in one in five left it until about a week before travel. Image: © pressmaster, adobestock.com

surprise transaction fees.” “So, while conversion rates and loading money on to cards may feel like a mundane task compared with the more exciting aspects of planning a holiday, it pays to take the time to do your research and be prepared.” Mr Wormald said travellers should research the different travel cards available. “This often includes cross-checking exchange rate fees, ATM withdrawal fees, reload fees and how to best protect your money,” he said. Many travel

money cards allow different currencies to be loaded on the card in advance with locked-in exchange rates. This means the exchange rate is fixed even if the Australian dollar plunges while you’re away — as it did earlier this month, just as many Australians were holidaying in Europe and the US for the northern summer.

About 3 percent of travellers arranged their travel money at the airport, despite airports typically offering the worst exchange rates and charging higher in fees. The Currency Shop’s director Justin Rampono said travellers should try to visit currency exchanges in CBDs, if possible, before heading off.

Some cards also come with no, or low, ATM withdrawal fees, and don’t have the massive transaction fees personal debit or credit cards attract overseas.

“There’s more competition in the CBDs,” Mr Rampono said. “Cash is always handy; you may not use it for all your expenses but it’s good to have it on hand.”

“(This) helps minimise the

Source: News.com.au

TOURISM

ResortNews | September, 2019

Where there is smoke, there is fire Hundreds of new fires have been reported across the Brazilian Amazon, with most of the blazes concentrated in the north western state of Rondonia, and international uproar over the fires’ climatechange impact has intensified even as two C-130 Hercules aircraft dumped thousands of gallons of water onto the fires. The blazes generated smoky skies in Port Velho, leading to the closure of the international airport for nearly two hours and smoke from the fires blanketed Sao Paulo, Brazil’s largest city sparking fears that tourism bookings may be affected. Yet the conflagration’s location in a remote region far from most Brazil attractions, including Rio de Janeiro and the country’s Amazon River lodges and excursion sites, has limited the fires’ impact on travel to the nation. “We do not have any official travel cancellation figures for Brazil,” said Embratur (Brazil’s Tourism Board) officials in a recent statement. The fires gained increased notoriety at the G7 Summit, whose focus ironically was dedicated to climate change. The G7 nations pledged at the gathering to help combat the fires, but Bolsonaro has wavered between acceptance and outrage as he contemplated their $22 million aid offer. It remains unclear whether or not Brazil’s president will accept the funds. Environmentalists have blamed Bolsonaro’s administration for worsening the fires. The Brazilian president has railed against environmental enforcement, vowed to limit the

expansion of indigenous lands and announced plans to develop the Amazon region since taking office in January. Deforestation of the rainforest by loggers, ranchers and speculators has surged this year, with 73,000 forest fires recorded in Brazil in the first eight months of 2019, the highest number for any year since 2013, with most in the Amazon. There were 39,759 forest fires reported in all of 2018, according to Brazil’s National Institute for Space Research (INPE). World Wide Fund for Nature (WWF) Amazon program head Ricardo Mello called the fires “a consequence of the increase in deforestation.”

Tourism Australia is making changes to the eligibility criteria for its Business Events Bid Fund that broaden the scope of the program in order to help attract more international business events down under that inject millions of dollars into the economy.

“As lovers of the earth we are all shocked and saddened by the environmental catastrophe happening in Brazil,” added Jose Koechlin, chairman of Peruvian eco-tourism company Inkaterra Association.

Managed by Tourism Australia’s specialist unit, Business Events Australia, the threeyear $12 million fund opened in May last year to increase the conversion of bids for new international business events for Australia through the offer of financial support at the critical bidding stage.

The Amazon River region is the earth’s largest rainforest, estimated to generate 20 percent of the planet’s oxygen. Its carbon production is widely considered crucial to ameliorating climate change’s impact. The region is also home to scores of indigenous communities.

“It’s been just over a year and already we’ve received 88 event applications which has resulted in 23 wins for Australia with an economic value of $270 million,” said Penny Lion, executive general manager events, Tourism Australia.

“Tourism is just one of many positive forces that could be hurt if the fires are allowed to rage on,” said Bruce Poon Tip, G Adventures’ owner. “These forests are absolutely vital to local and indigenous peoples’ well-being, and irreplaceable to our planet’s climate health.” “Crises and the negative headlines they generate can spread as fast the fires, sending travellers elsewhere for months, or even years,” he added.

“While it’s been exciting and rewarding to celebrate these wins with our industry partners, we’ve actively sought feedback on how to improve and are making some changes to the mandatory eligibility criteria and terms.” Those changes, announced by Australia’s Minister for Trade, Tourism and Investment, Senator the Hon Simon Birmingham, will allow the following event bids to be eligible: •

Association events of a minimum of 400 international delegates (currently 500 delegates)

•

Incentive events of a minimum value of around $3 million, with a minimum 700 international delegates (currently 1,000 delegates)

•

Matched funding levels from applicants will be reduced from $100,000 to $50,000; and

•

Applications for event travel up to 30 December 2024.

Source: TravelPulse

Image: © Otmar Winterleitner, adobestock.com

September, 2019 | ResortNews

Tourism Australia to broaden scope of Bid Fund

TOURISM

The changes have been made following consultation with Australian industry stakeholders across all states and territories.

Is Japan the world’s next wellness destination? With the tourism industry receiving substantial investments in preparation for the 2020 Tokyo Olympics, officials are promoting Japanese wellness — from an extraordinary hot springs culture to forest bathing — to broaden the country’s international appeal. To become tourism-oriented by 2020 however, calls for a shift in Japan’s growth path and as wellness tourists are big spenders, an inbound wellness tourism surge would help disperse tourists from the over-visited KyotoOsaka-Tokyo routes.

of 30 percent less than they do in those three major cities.

Image: ©Banksy405, adobestock.com

According to the Global Wellness Institute’s 2019 Global Wellness Trends Report, Japan is currently the third-largest wellness tourism destination in Asia, in terms of total visitors. 48 Percent of tourist stays are concentrated in the major cities of Tokyo, Kyoto, and Osaka, according to

The Future of Japan’s Tourism: Path for Sustainable Growth, which suggests a significant opportunity for Japan to attract more visitors to locations outside of the top urban areas as even when tourists do travel to other administrative districts in Japan, they spend an average

The Japan National Tourism Organization (JNTO) is developing wellness-focused tourism in lesser-known destinations, such as Misugi, which promotes natural assets like stargazing and forest bathing; and Beppu – a scenic area, where rocky baths overlook the ocean at high-class mountain retreats, has close to 3,000 hot spring vents. Other strategic wellness tourism zones include the Dragon Route in central Japan, which includes historic and cultural sites, natural landscapes (including Mount Fuji), and plenty of hot springs. Source: Travel Market Report

With 1.4 billion people travelling, it’s time to rethink tourism By Juliet Kinsman

A server in an Australian lodge is pouring French wine and Italian mineral water that have crossed a hemisphere to land on this table. The airconditioning blasting in an Arizona spa in midsummer is so forceful that you're grateful for the roaring fire in the relaxation room. A huge tub carved from a piece of Carrara marble is impressive - except when it's in the UAE and you imagine what it took to get it to the desert. Witnessing enough scenes like these over 25 years of reviewing luxury hotels has finally caused my poker face to crack - compelling me to seek out places and spaces that consider the bigger picture and are less reckless in their natural rapacity. Plastic straws

have been banned in many places, but they're just the tip of the ocean-plastic iceberg - 46 percent of which comes from discarded fishing nets. Makes you wish you'd checked that the tuna was line-caught, no? Actually, the Slow Food Movement offers a tangible model in its embrace of local, seasonal sourcing and the pleasures of simple, quality cooking. Just as we are waking up to the harms of industrial agriculture and international freighting, it's time to get our heads around those same values in travel. To cultivate an appreciation for the provenance of a building's materials; for passionate brands that conserve the mountains or coasts they occupy rather than destroying them; for companies whose purpose-driven policies create jobs for those already living there. The places and hotels we choose reflect our values and hopes for the future. In truth, it's an exciting time to rethink how we travel. Not just

Image: © jamesteohart, adobestock.com

because of the climate crisis, but with 1.4 billion people now traveling at any given moment, we have the staggering potential to pay it forward. There are plenty of thoughtfully designed hotels that consider their footprint at every step - we just need to spend a few moments studying their creds. It's like online dating: would you take that match at face value, or Google them a bit more if you could? Admittedly there is the complex matter of flying, and the fact that so many planes disgorge crowds onto overpopulated places like the beaches of Bali. Personally, I offset all my flights through TreeSisters, which supports projects in which women plant trees in deforested areas, providing

TOURISM

much-needed income. For anyone reading this magazine, of course, staying home isn't an option; importantly, travel can literally save lives, providing economic prospects for people who often have limited options. So, until the powers that be ban single-use plastics, restrict energy use and emissions, or invest in more lean-burn jet engines, let's reward the bold change-makers, those who are operating with clear vision - of more than the bottom line. Eighty percent of any purchase is emotional, so why not follow our hearts and do better? Paulo Coelho said there is always a gap between intention and action. Let's close the gap. Source: CNTourism

ResortNews | September, 2019

THE LAST RESORT

Kings Canyon Resort

Glamping

in the Red Centre

By Trish Riley, Editor

Wake up with peaceful singing from the crested bellbird to a day of adventure with a hike through Kings Canyon Rim Walk, a heli-tour over the vast outback land, an educational indigenous cultural experience or an exciting quad biking ride. Kings Canyon Resort in the heart of Australia’s Red Centre is offering visitors a different way to experience the region in style with the launch of its new glamping tents. Designed to offer guests a combination of luxurious hotel comforts with a first-hand encounter with the magnificent outback, three of the six new Australian homestead-style glamping tents are designed for couples, while three family tents feature a king bed plus two king single beds.

“With all the comforts of a hotel stay, we think this style of accommodation will be a reason for guests to linger longer at Kings Canyon and explore more of this fascinating region.”

Generously spacious, the new glamping tents offer more than 85 square metres of interior space and feature canvas sides and large windows to welcome in the views. And taking inspiration from the Australian outback, contemporary, stylish interiors reference the striking natural palette and using rustic finishes and strong timber influences in the fitout.

A new open-air cinema and sunset viewing platform overlooking Carmichael’s Crag add to the immersive guest experience at Kings Canyon, offering classic Australian movies for all ages, while a pop-up caravan bar provides refreshments for travellers watching the sun set on another actionpacked day in the desert.

Each luxurious tent features premium linens, a modern lounge and dining suite overlooking the red desert, an outdoor deck with seating, split air-conditioning system, and private en-suites stocked with Australian spa products. Outdoors, generous verandas offer cool lounging space with double hammocks or swing chairs.

The magnificent Kings Canyon is part of the Watarrka National Park, approximately mid-way between Alice Springs and the World Heritage-listed Uluru-Kata Tjuta National Park. The popular Rim Walk traces the towering Kings Canyon cliffs while the Karrke Aboriginal Cultural Tour offers a uniquely hands-on, interactive experience of the region’s indigenous heritage. Kings Canyon Resort offers a range of accommodation for travellers including resort rooms, value lodge rooms and a camping and caravanning site with views of the canyon.

Kings Canyon Resort general manager Michelle Ikin said the glamping tents are designed to appeal to the modern traveller, keen to experience the landscape, food and culture of the region. September, 2019 | ResortNews

“The new glamping tents offer our guests a sensory experience of the Australian outback. From the early morning sunrise to the call of the dingo, the sights and sounds of the desert are front and centre of the glamping experience at Kings Canyon Resort,” Ms Ikin said.

TOURISM

Brisbane secures lucrative global tourism conference Brisbane will host one of the world’s largest travel industry conferences next year, with Tourism Industry Development Minister Kate Jones announcing that Flight Centre will bring its global conference to the River City in July 2020. About 4500 travel consultants, executives and senior travel industry figures are expected to travel to Brisbane for the ‘Global Gathering’ which will showcase the city and surrounding regions to the company’s global top achievers. Ms Jones said securing the conference was a clear demonstration of the respect Brisbane had globally throughout the travel and business events industry. “The fact that we’ve been able to secure one of

on our annual calendar and is a keenly anticipated event for our 20,000 people throughout the world,” Mr Turner said. “The overwhelming majority of the delegates will be travel consultants and they will gain first-hand experience of these features and attractions and will then share that knowledge with their customers, opening the door to further tourism benefits long into the future. Image: © Raphael Castello, adobestock.com

the industry’s largest global conferences for Brisbane proves that our reputation as a world-class destination for events continues to improve.” “With six major hotel openings in the last 12 months and a raft of new dining, cultural and lifestyle experiences on offer, Brisbane’s tourism industry is

growing rapidly,” she said. Flight Centre Travel Group managing director Graham Turner said the company’s annual conference would run from July 10-12 next year and would showcase the region to the company’s top achievers globally. “The Global Gathering is the most important conference

Thousands buy tickets to epic Brisbane opera more than a year out A world-first operatic masterpiece being staged in Brisbane in late 2020 is already demonstrating its value to the state’s tourism economy. Ticket sales data for Richard Wagner’s epic Der Ring des Nibelungen, or ‘The Ring’, have shown that within two months of the event being announced for Brisbane, almost three-quarters of ticket packages have sold - worth more than $4.5 million. Proving its international pull, about 75 percent of package sales – more than 10,000 tickets have come from outside of Queensland – to both interstate and international opera fans. Known as the Everest of Opera, Brisbane’s ‘Ring Cycle’ will be directed by Mr Shi-Zheng Chen, the first Chinese Director to take on The Ring, bringing his renowned use of theatre technology to produce the first-ever Ring featuring suspended, moveable LED screens and ground-breaking digital technology.

“To have a Chinese director present this Opera for the first time is a major coup for Brisbane – and a massive selling point for thousands of Asian fans," said Kate Jones. “Our research shows that Ring Cycle fans – known as ‘Ring Nuts’ – are High Value Travellers who spend on average 11 nights in the host destination to experience this opera, providing plenty of opportunity for them to also explore the region’s unique tourism experiences, dine out and generate significant returns for the economy.” The opera, staged over four days, will play out over a total of four weeks in November/December 2020. EVENTS & APPOINTMENTS

Brisbane Lord Mayor Adrian Schrinner said Flight Centre’s Global Gathering would deliver a $7 million economic boost and he looked forward to welcoming its top achievers to the company’s global headquarters. Key-note speakers at previous gatherings have included former United States president Bill Clinton, Andre Agassi, Michael J Fox and Gwyneth Paltrow.

Luxury travel network honours Tourism Australia Virtuoso has recognised Tourism Australia as the Most Engaged Tourist Board in the US and Canada. The honour was awarded at Virtuoso Travel Week in Las Vegas with an attendance of more than 6,000 people. While in the US for the event, Tourism Australia representatives conducted 224 meetings and 96 training sessions, resulting in over 1,000 advisors educated in Australian tourism experiences, including culinary, adventure, and Signature Experiences of Australia. Together with Qantas Airways and states and territory Partners, Tourism Australia hosted 100 partners and advisors at the Travel Week Partner Alliances lunch, further strengthening Australia's relations with US and Canadian travel advisors. ResortNews | September, 2019

LIM Luncheons encompass managers in Brisbane Marisa Millane has been running the Ladies in Management Lunches (LIM) for the last three years.

Ladies in Management is an informal networking group made up of women involved in the property management rights industry, and her goal is to provide an inclusive environment that enables members to develop professionally and to share experiences and ideas in a relaxed and fun environment. The Gold Coast LIM lunches are held every third Wednesday of the month at a local restaurant and they typically involve a guest speaker

who addresses a topic of interest to the group.

The next GC lunch is being held on Wednesday September 18 at 12pm at The Island Rooftop in Surfers Paradise, 3128 Surfers Paradise Boulevard. The October luncheon will be held on Wednesday October 16 at Vecchia Roma Italian Restaurant, 1748 Gold Coast Highway, Burleigh. And as there has been a lot of interest from managers in Brisbane she has decided to hold the first Brisbane LIM Luncheon on Wednesday October 2 at Eleven Rooftop Bar & Restaurant, 757 Ann Street in Fortitude Valley. The lunches start at 12:00pm.

If you are interested in attending any of these events please contact Marisa via email on marisa.millane@freedominternet.org

September, 2019 | ResortNews

EVENTS & APPOINTMENTS

Ralan collapse: Not much more than a Ponzi scheme Promises of astronomical interest rate returns saw thousands of buyers swarm to buy $1.68 billion worth of Ralan Group’s future Gold Coast developments.

have been a Ralan signature for a number of years. The Queensland and NSW Governments are each looking into the legality of the side agreements for property deposits, while at least one group of buyers has engaged a lawyer for a possible class action.

The spending spree, which the administrator has described as a “Ponzi-style” program, saw more than 82 percent of unbuilt units in Ruby and Sapphire pre-sold and is thought to have ultimately contributed to the group’s spectacular $500 million-plus collapse. Administrators are analysing bank statements and accounts to trace more than $277 million in deposits after buyers were tempted by interest returns of 15 percent to sign them over to Ralan Group as unsecured loans. They have been told to “expect a poor outcome” from the administration. UK-born Ralan Group head William O’Dwyer, once thought to be the Gold Coast’s largest private landholder, declined a request to surrender his passport to administrators of his 58 failed companies, but assured them he wouldn’t skip the country. He is co-operating with the administrators. Preliminary figures released by administrators from Grant Thornton revealed Ralan had contracts for 1885 of the 2288 apartments slated for the entire six-tower

Mr Jahani said it was too soon to tell how many buyers were employed or contracted as agents for Ralan, but that it was “a good chunk” of them.

The Ruby Collective, Gold Coast

Surfers Paradise site, currently home to Paradise Resort. For the only completed Ruby tower, there were 219 settlements from the 243 apartments. Buyers in the projects paid an average 14 percent deposit on the apartments, with some paying as high as 40 percent. Administrator Said Jahani said much of the $277 million in now-missing deposit funds had gone into covering losses on previous projects and for funding interest payments for previous buyers as new buyers tipped in. “Before his expansion to the Gold Coast, (Mr O’Dwyer) has run multiple residential developments in Sydney, but nowhere near as big as what he planned on the Gold Coast,” he said.

“Some might have been quite profitable, but a number of them ran into difficulties and that meant the company lost a lot of money — so I believe some of the funds have gone into plugging those losses. “We believe it has also gone to fund the 15 percent interest that he’d offered to investors, sort of like a Ponzi scheme. Thirdly, funds have been spent on personal expenses — things like houses, cars and investment properties. Early indications are that Ralan’s marketing of the Gold Coast projects targeted many customers of his previous, much smaller, Sydney developments. The side agreements and their attractive 15 percent interest returns are understood to

The administrators have granted Mr O’Dwyer extra time to prepare statements of financial position, known as the report as to affairs or RATA, for the 58 failed companies in his group. As well as the lost deposits, more than $200 million is understood to be owed to secured lenders, including Melbourne financier Wingate, Balmain and Westpac. Wingate and Balmain have appointed receivers to the companies which hold assets secured against their loans, including the Paradise Resort and the land on which Ruby and Sapphire were to be built. Getting to the bottom of what happened is a mammoth task, expected to involve between 1800 and 2000 creditors across the 58 Ralan Group companies. Source: GC Bulletin

Landmark hotel strata sale makes NSW history A landmark court decision in Sydney could pave the way for a wave of highprofile strata collective sales in NSW, after a hotel in Darling Harbour was sold with the agreement from three-quarters of the strata building’s owners. The strata owners agreed to sell the 119-room hotel at 252 Sussex Street in one line for a rumoured price of about $80 million. The deal marks the first ever courtordered collective sale, made possible after changes to the Strata Schemes Development

Act and was achieved by Colliers International with legal support. The Seasons Harbour Plaza hotel was picked up by the Yeh family, led by Sydney hotel developer Johnson Yeh, after new legislation, which forces strata unit owners to sell if 75 percent agree, came into force in November 2016. The 446sq m 19-floor hotel features rooms ranging from a 30sq m studio to a 157sq m loft penthouse. It also has a rooftop indoor heated pool, sauna, gym, restaurant and 34 car parking bays over four basement levels. Colliers International head of hotels Gus Moors said the

owners corporation capitalised on the change to the Act and the strength of Sydney hotel market, choosing to divest an extremely well-located property in Sydney’s burgeoning Western Corridor. Dentons, the law firm that advised 252 Sussex Street’s Owners Corporation over a twoyear period, said the group were now part of a piece of NSW legal history in being the first group of owners to receive a court approval to a collective sale. “This is a particularly significant achievement because it’s the first time the court has had to consider this legislation in detail

DEVELOPMENTS

and it is the first successful use of the legislation to enable the collective sale of a strata building,” Dentons partner Christina Renner said. “With this historic judgment, we expect that market perceptions around strata collective sales will shift, and more owners corporations will see the opportunities that are now open to them.” New owners, the Taiwanese hotel developer Yeh family, already holds several boutique hotels in Sydney's CBD. Source: The Urban Developer

ResortNews | September, 2019

Image: © Martin Valigursky, adobestock.com

Investors make a splash for Aussie islands Investors and tourists are returning to islands on the Great Barrier Reef after wild weather and economic woes wash away; effectively helping reclaim some of Australia’s most stunning islands from the clutches of ruin and laying the foundations for a tourism boom and a new wave of capital to the country’s far north coast. Islands along the Great Barrier Reef – one of the seven wonders of the natural world – were hit by the combined force of cyclones and the global financial crisis between 2011 and 2017, resulting in a steep drop in visitors. But a number of large development projects are poised to turn fortunes around. “The market is in the midst of a complete overhaul with unprecedented interest from experienced resort investors,” says Tom Gibson, Senior Vice President

of JLL’s Hotels & Hospitality Group. Hayman Island just reopened with an InterContinental resort after a A$140 million revamp from Malaysian conglomerate Mulpha Australia and at Lindeman Island, Chinese tycoon William Han, through his development company White Horse Australia, is investing A$600 million to develop two new resorts and a residential complex which will be managed by luxury resorts operator Banyan Tree. Daydream Island is open for business after a A$104 million makeover by China Capital Investment Group, while Hamilton Island – the largest in the region – and Bedarra Island have had multi-million dollar redevelopments in recent years. The weak Australian dollar and an underserved luxury accommodation market have drawn investors. A growing demand for luxury hotels from international tourists – and increasingly domestic ones, too – is behind

the standout performance of hotels at the Great Barrier Reef compared to other Australian markets. In 2018 they achieved 15 percent growth in terms of revenue per available room, and the highest average daily rate in the first half of 2019 at A$384. While extreme tropical weather patterns present a risk to island investments, advanced building technology is allowing owners to develop more sustainable and financially viable structures. As investor interest builds, new infrastructure developments in gateway cities aim to funnel tourists to the islands. Projects include a A$1.3 billion second runway way at Brisbane Airport, a new A$158 million Brisbane International Cruise Terminal and a A$127 million extension to the port of Cairns. The Queensland state government is providing further momentum with a A$25 million Great Barrier Reef Rejuvenation Fund to incentivise new owners through dollar-fordollar funding on island upgrades.

Another A$25 million has been provided to the owners of Great Keppel Island for the installation of mains power and water. When the fund was launched last year, Queensland tourism industry development minister Kate Jones described the islands as an important part of the Queensland tourism plan. Investor optimism is already spreading across the state, as evidenced by a string of hotel purchases over the past six months, including Silky Oaks Lodge in far north Queensland acquired by US-based KSL Capital Partners for A$20 million, and NEXT Hotel Brisbane, bought by Melbourne-based fund manager Salter Brothers for A$150 million. “This investment activity along the coastline will provide a backbone to the Great Barrier Reef region and completely re-position the tourism product offering,” Gibson said. Source: The Investor

Gold Coast enters luxury market hit list The Gold Coast is the newest entry on a list of international highend property markets, with a strengthening pipeline of new projects attracting affluent local and interstate buyers. Demand for prestige real estate in the Gold Coast has pushed it on to the Prime Global Cities Index, entering the list at 27. The quarterly prime residential index, published by Knight Frank, measures the top 5 percent September, 2019 | ResortNews

Despite suffering significant house price declines over the last year, Sydney’s prime market remained resilient and grew a healthy 2.5 percent.

Image: © aure50, adobestock.com

of a city’s housing market. The Gold Coast joins Queensland’s capital on the list, with Brisbane tracking ahead of Melbourne in terms of luxury home price growth over the year.

Brisbane’s 2.2 percent annual price growth had it place at number 20 on the list, just in front of Melbourne — at 21 — which grew 2.1 percent over the year.

DEVELOPMENTS

Sydney, Melbourne and Brisbane’s high-end real estate markets all registered annual growth above the annual 1.4 percent global average. The only other Australian cities on the list, Perth and the Gold Coast, grew a more moderate 0.6 percent and 1.1 percent respectively. Source: Urban Developer

Abandoned resort’s incredible decline What used to be one of Australia’s most luxurious holiday resorts now sits derelict, three years after being abandoned and left to fall into disrepair. Despite repeated promises of a redevelopment and attempted government interventions, the fate of the Capricorn International Resort in Yeppoon remains uncertain. Shocking drone vision of the eerie sprawling property has emerged, showing empty accommodation buildings surrounded by overgrown grounds littered with rubbish. The lagoon, which was the largest outdoor swimming pool in the southern hemisphere, sits empty and crumbling into itself. It’s all a far cry from the scene that once greeted a generation of visitors who sipped cocktails by the glittering blue water, sang karaoke in the pumping bar and dined on Japanese cuisine while overlooking a traditional garden. For decades after it opened in the late 1980s, Capricorn International — then known as Iwasaki Resort — was a glittering jewel in Australia’s tourism crown.

operator Mercure packed up and walked away. The Iwasaki family still owns the site and vowed to seek joint venture partners to bring it back to life. Several months after the resort’s closure, Queensland Premier Annastacia Palaszczuk met with Mr Iwasaki’s grandson, Yoshitaro, who now runs the family business. It was their third meeting and a sign of the Government’s keenness to ensure the empty resort had some kind of future. The Iwasaki Group proposed a $600 million redevelopment, which it said could include a new 300-room five-star hotel, the refurbishment of the existing 331 suites, a residential community of 8000 dwellings with a village centre, private airstrip and conservation zone. “He is determined to see his resort reopened and refurbished,” Ms Palaszczuk told a local Chamber of Commerce meeting in mid-2017 following her latest meeting. But two years on, the resort remains in limbo. There has been no progress on the ambitious plan to save the existing facilities and build new ones.

It put the town of Yeppoon, on the central Queensland coast, on the map and brought hordes of domestic and international visitors to the region.

“A major redevelopment of the existing site is proposed by Iwasaki … the owners of the site,” the Capricorn Resort website said.

The resort was a crucial piece of tourism infrastructure for the region, and its closure was a blow, coming just a few years after Great Keppel Island, just off the coast, was shut down.

“This development will include tourism, residential and retail land uses and is expected to occur over the next 10 years.

Originally developed by wealthy Japanese businessman Yohachiro Iwasaki, the resort boasted hundreds of accommodation suites, numerous bars and eateries, a Japanese garden and restaurant, a world-class golf course and a huge pool, surrounded by 9000 hectares of bush. But in 2016, with most of its facilities in desperate need of repair and refurbishment,

“The first stage of securing development approval is the submission of a draft environmental impact statement (EIS) to the Queensland Government in late 2018.”

Habitat's $83m Sunshine Coast Development approved Queensland developer Habitat has received approval for a $83 million multiuse development targeted at entrepreneurs, which will be part of the Maroochydore’s new tech-centric city centre. The proposal is for two residential towers comprising 152 units and six Small Office-Home Office (SOHO) townhouses to be built on a 4,158sqm parcel of land in the new $2.1 billion CBD. Part of a massive 53-hectare swathe of land currently being transformed, the multiuse development will be part of a wider CBD vision with its extensive use of smart technology to create a cleaner, greener, more liveable and dynamic city centre. Maryoochydore's 20-year plan not only involves construction plans to become a 21st century smart city but will also feature Australia’s fastest

data connection to Asia from the East Coast. The prospect of highspeed internet could be a major drawcard for start-up and established technology entities, one that Habitat has identified with its project planning. “Even before we received approval for the project, we had numerous inquiries from potential buyers about the town homes.” Each SOHO will have non-residential space downstairs, with street frontage, which can be used for an office, shop, food and drink outlet or other kinds of business use. The 53-hectare site of the new Sunshine Coast's central business district, formerly Horton Park Golf Club, was purchased by the Sunshine Coast Council for $42 million in 2015. Construction is expected to start on the project in February 2020, after it was signed off by the Economic Development Queensland.

A spokesman for the Department of State Development told news. com.au it was yet to receive a draft EIS from the Iwasaki Group. In May, the department extended the deadline to submit to June 1, 2020. Source: News.com.au

DEVELOPMENTS

ResortNews | September, 2019

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Clifton Beach, QLD

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Mermaid Beach

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Melinda Bettridge

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Allegra Apartments

Shirley & Peter Rowney

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Vue Terrace Homes

John Burke

Robina

The Jefferson

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MOTELS & OTHER Queensland Asters on James Motor Inn

Patterson

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Sleepy Lagoon Motel

Mike Gray

Tin Can Bay

Cardwell @ The Beach

David Brucesmith

Cardwell

BW+ Lake Kawana Hotel

Centro Group of Companies

Birtinya

Albury Burvale Motor Inn

Shi & Li

Albury

Muswellbrook Motor Inn

Steve & Leesa Collins

Muswellbrook

Queanbeyan Motel

Rong Zhou & Xinchi Lian

Queanbeyan

Chen

Ballarat

Seymour

L-R Alex Barker-Re, Sheree Paris and John Assen

Alex Barker-Ré of Calvin Bailey Management Rights congratulates Sheree and John on the successful purchase of Agincourt Beachfront Apartments, Clifton Beach. New to this industry, but well equipped with life experience and essential business skills, Sheree and John are looking forward to running this excellent Clifton Beach property.

Catalina Resort

Maroochydore, QLD

WCH*

New South Wales TB

Victoria Bell Tower Inn

Comfort Inn Coach & Bushmans Bhushan Joshi

Note: Agent/Broker involved in the sale is listed last. Agent - KEY: RMS - Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RB - Resort Brokers Australia; RS - Resort Sales; TO - Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction

The trusted source for buying Management Rights, Motels and Caravan Parks from all the leading brokers.

L-R Wayne Stoll, Graham & Melanie Young, Linda Stoll and Narelle Filmer

Congratulations to Melanie and Graham Young, on the purchase of the management rights of Catalina Resort Maroochydore. Graham and Melanie are experienced managers having previously managed two holiday buildings in the past seven years. They both enjoy the management rights Industry, and are looking forward to the challenge ahead. Graham and Melanie said ‘they were so appreciative of the Think Management Rights Team Wayne, Linda Stoll and Narelle Filmer for their professional approach, and the hard work they put into a successful settlement.

www.accomproperties.com.au 40

PROPERTY

ResortNews | September, 2019

Muswellbrook Motor Inn

Muswellbrook, NSW

Flinders Motel on Main

Port Pirie, SA

New owners Leesa and Steve Collins

Steve & Leesa Collins, a team of multi awardwinning business owners, have extensive business development and sales backgrounds and are excited as well as looking forward to their first ever venture into the accommodation industry, by recently purchasing the leasehold for the Muswellbrook Motor Inn. Their decision was made easier by one overriding factor: opportunity. They are now planning on transforming the motel, whilst always being mindful of their 3 core goals which are now the foundation of their tagline, that being comfort, service and value. Steve and Leesa are keen to learn, along with putting their own stamp on this tremendous growth opportunity and thank David Head from Tourism Brokers for his efforts in assisting them with securing this little gem.

L-R Greg Collins, Sunil Singh and Catrina Collins

Greg and Catrina Collins hand over Flinders Motel on Main in Port Pirie, South Australia, to incoming owner Sunil Singh. The freehold going concern was sold by Kelli Crouch of ResortBrokers.

Rhonda Perkins – Property Bridge

Introducing... Rhonda Perkins – Property Bridge Rhonda is an accomplished and experienced management rights consultant who brings a strategic, yet personable approach to the buying and selling process. She said: “I was introduced to the industry at an early age and I have been selling management rights since 2005. I have built a reputation for my proven ability to listen to clients’ needs, guiding buyers to their dream business and assisting sellers to a smooth, stress free settlement. “I always put integrity first, and I have enjoyed the trust and loyalty of repeat buyers and sellers and maintained long standing associations with many respected industry professionals. My knowledge of locations,

September, 2019 | ResortNews

value, property types, pricing, building styles and exceptional understanding of the market stems from long term involvement, sincere interest and perspective gained from the personal experience of having owned and operated five management rights businesses and assisting property developers establish new management rights since the early 1980s. “I have a Bachelor of Arts degree, a Certificate IV in real estate, a Certificate IV in body corporate management and I have been a licensed real estate agent since 1986. “I also co-ordinated the first management rights training course for GCIT, Queensland and was a course presenter at the TAFE and REIQ courses and industry seminars for several years.”

PROPERTY

Name: Rhonda Perkins Mobile: 0418 767 115 Agency: Property Bridge Area of Service: Gold Coast Web: www.propertybridge.com.au Email: rhonda@propertybridge.com.au

MANAGEMENT RIGHTS RESORTS VE

I LUS EXC

MELBOURNE

MERMAID BEACH

A RARE OFFERING

IT’S JUST PERFECT

Within quiet Melbourne suburbia this is one of the very few management rights for sale. A short walk to all amenities, including train station, shopping centre, schools and entertainment. Great tenants, Owners Corporation and Committee. Quality tenants easily found. No need to spend big advertising dollars to entice tenants into this well situated and popular gated townhouse complex. Low maintenance grounds with a healthy caretaking salary of $102,000 is the icing on the cake.

Walk to the beach and all Broadbeach attractions. Mix of holiday and permanent rentals. Body Corporate salary near $100,000. Great ratio of investor owners. Beautiful office and plenty of storage. Offering the security of Accommodation module and long Agreements. Immaculate 2 bedroom, 2 bath onsite manager’s apartment.

NETT $159,000 PRICE $1,085,000

NETT $179,000 PRICE $1,330,000

Bobo Qi 0438 027 771 bobo@propertybridge.com.au

Rhonda Perkins 0418 767 115 rhonda@propertybridge.com.au

VE USI L C EX

BRISBANE

HIGHLAND PARK

NO REAL ESTATE TO BUY. CARETAKING ONLY.

ATTRACTIVE PERMANENT

In the heart of South Brisbane this management rights business is a straight forward operation. The building manager is very well compensated for duties undertaken within the caretaking agreement. A salary of $161,000, no contract hours and a wonderful working environment within this beautiful high-rise building. An excellent return on investment of over 22 percent!

Located within one of the Gold Coast’s most sought after suburbs. Close to shops and schools. Easy access to Pacific Highway and only 20 minutes to the beach. Comfortable 3 bedroom Manager’s townhouse with office on tile. Good Body Corporate and low maintenance grounds. 21 years remaining on Management Agreements. A healthy net income represents a very good return on investment, given low cost of Manager’s residence.

NETT $161,000 PRICE $725,000

NETT $151,000 PRICE $945,000

Jim Lowe 0403 418 115 jim@propertybridge.com.au

Jenny Zheng 0413 922 580 jenny@propertybridge.com.au

propertybridge.com.au | 1800 888 518

SOLD, SOLD ,SOLD! More Listings Wanted – Buyers Waiting

SO LD

RECORD

SALE

Eco Beach Resort, Byron Bay

Evolution Apartment Hotel, Brisbane

Listed & Sold – Warren Oliver

Listed & Sold – Greg Jorgensen

Blue Waters, Labrador

Cilento, Mooloolaba

Listed Gerard Dixon – Sold Greg Jorgensen

Listed & Sold – Lyn Pearsall

Beaches on Wave, Mermaid Beach

Mediterranean Resorts, Airlie Beach

Listed Phil Trimble – Sold Deborah Tilley

Listed & Sold – Geoff Ellis

SO LD

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

MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND CONSIDER THE ADVANTAGES - BETTER MULTIPLIERS, BETTER YIELDS & BETTER CHOICES

PALM COVE

IDEAL FAMILY LIFESTYLE

TRINITY BEACH

EXCLUSIVE LISTING

MODERN & BEACHFRONT EXCLUSIVE LISTING

Total Units/Pool: 37/18

Total Units/Pool: 19/14

Agreement: 25/21years

Agreement: 25/16 years

Salary: $55,286

Salary: $38,500

Net Income: $222,042

Net Income: $149,000

Real Estate: $450,000 (3/4 brm)

Real Estate: $340,000 (2 brm)

• Special family lifestyle

• Luxury holiday beachfront

opportunity.

property.

• Spacious holiday Villas,

• Impressive and built

most with private pools.

with quality.

• Excellent repeat business

• Very well priced business.

with direct clientele. • Great mgr Villa (190m2)

Motivated vendors.

Rumpus room, private

• Perfect starter or add

pool.

on business.

TOTAL PRICE:

$1,390,000 - Contact Calvin

TOWNSVILLE

LUXURY HIGHRISE

TOTAL PRICE:

$795,000 - Contact Alex

CAIRNS

THE JEWEL IN THE CROWN

EXCLUSIVE LISTING

Total Units/Pool: 73/40

Total Units/Pool: 84/66

Agreement: 25/21 years

Agreement: 25/22 years Salary: $137,384

Salary: $135,889

Net Income: $280,373

Net Income: $239,968

Real Estate: $375,000 (3 brm)

Real Estate: $530,000 (2 brm)

• Permanent Letting. Modern

• Permanent Letting

Cairns Gated Community. • Easily managed & Onsite

Residential Highrise.

Mgr not required to

• All luxury apartments have

reside onsite.

stunning views.

• High demand rental area,

• Good mix of quality 2 &

4km from Cairns CBD.

3brm apartments.

• Excellent Mgr Apt, 3 brm,

• Great growth potential.

2 bath 148m2. Large lawn area.

Expansion of outside pool.

TOTAL PRICE:

$1,492,000 - Contact Calvin

Contact: Mobile: Email:

Calvin Bailey LREA 0414 889 593 calvin@cbmr.com.au

TOTAL PRICE:

Postal Address: PO Box 266 Palm Cove, QLD, 4879

Contact: Mobile: Email:

$1,540,000 - Contact Alex

Alex Barker-Re LREA 0414 835 128 alex@cbmr.com.au

Australian Resident Accommodation Managers’ Association Member

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

A formula for success

“The Docks is our fourth management rights operation,” says Cathy, “but it’s the first property in a large city environment where the commercial element is so much more prevalent. It’s quite different from the predominantly short-stay properties we have managed before.”

By Trish Riley, Editor

Sprawled across an unusually large site and boasting park-like gardens, The Docks on Goodwin is a Brisbanebased accommodation destination that leaves a lasting impression. Conveniently located in the heart of Kangaroo Point alongside expansive parklands, river walkways and the beautiful Kangaroo Point cliffs and the famous Story Bridge, ‘The Docks’ is also only a short ferry ride to the vibrant CBD, which offers superb shopping, entertainment and dining experiences along with business offices and services. Comprised of two towers, The Docks features 148 spacious, studio, one- and two-bedroom furnished and fully self-contained apartments offering all the creature comforts of a home away from home. All apartments are fully air-conditioned and September, 2019 | ResortNews

So how did this couple get into management rights?

offer secure building access and undercover parking. Additional features include full laundry facilities and large live-on balconies with skyline or river views on upper floors or a courtyard on the ground level. Ideal for couples, families or the astute business traveler, The Docks also features a host of resort-like onsite amenities including a full size and floodlit tennis court, a 25-metre heated lap pool, private barbecue

areas, a spa, sauna and fully equipped gymnasium and a conference or media room. There is also a well-appointed reception, tour office and spacious lounge area, a private back office with direct access into the managers unit and an onsite restaurant. And presiding over this ‘wellrun ship’ are experienced resident managers Cathy and Colin Finlayson, originally from New Zealand.

PROFILES

“We attended a seminar about management rights presented by Bob Love and Ross Venn while we were living in New Zealand and were quickly sold on the combination of working for ourselves and the prospect of a warmer climate,” says Cathy. Cathy’s previous position as operations manager of a large courier company and logistical mindset together with Colin’s experience as sales manager of an international paint company stood them in good stead for the complexities of the industry and they took to it like ducks to water.

In 2002 the genial couple moved to the Gold Coast, successfully purchasing and selling Santana Apartments within 11 months before moving on to Burleigh on the Beach Apartments and Aruba Surf Resort for four years each. Financially savvy and with a keen interest in accounting and auditing, Cathy also found time to work and consult part-time for Crosbie Warren Sinclair/ BAMR wealth management and other accounting companies conducting, and assisting other managers, with trust account auditing. So why the move to Brisbane and into a property that was originally all permanent lettings? “We wanted to broaden our experience by taking on

something new and a little more challenging,” says Cathy, “and The Docks on Goodwin met all the criteria of what we were looking for.” At The Docks, Colin and Cathy are supported by Julie, Marie and Ashley who work part-time in the front office, and Mike, a handyman who, together with Colin and a contract gardener keep the property in pristine condition. The team has already chalked up a number of Trip Advisor Excellence Awards and have achieved a 4.5-star rating from Booking.com. With everything so perfectly managed one wonders if ‘The Docks’ has any problem areas.

“Just the possums,” says Cathy. “We have a few around and they appear to like building their homes in the basement and car park area – usually in some poor unsuspecting resident’s storage cage. “There are challenges in every building,” shares Cathy, “but we have a sound and supportive relationship with the committee and body corporate manager and open and honest communication with our owners; in fact, with all of our residents. We treat everyone equally and believe it to be a harmonious building. “Our focus for the next year is the gradual upgrade and refurbishment of some of the apartments and the introduction of a mattress replacement

PROFILES

program. It’s always better to upgrade and update before one gets complaints and our owners appreciate that we are consistently looking to add value and increase their returns.” It’s obvious this couple has got the formula right so I’m eager to hear what advice they would give to others thinking about getting into the industry, and Cathy responds: “Decide upfront what you want to achieve from your management rights business and then buy an appropriate building that is going to offer growth potential. Know where and for how long you plan to be in a property. Despite the sales jargon, understand that you are buying and running a business and that the ultimate goal is to sell to achieve a significant

ResortNews | September, 2019

return and capital growth. Don’t let the size of the manager’s residence sway you – it’s a head not a heart decision. “I would also caution new managers against making too many changes too quickly – specifically structural changes. Rather get your head around how all works first and who the key stakeholders are. “Don’t be afraid to ask for advice or help,” adds Cathy, “but there’s a caveat… be selective in who you ask. Seek out the professionals with experience in the management rights

industry or you may end up getting the wrong advice. And then echoing some advice my own father gave me when I was starting out, Cath says managers also need to remember the three F’s. “Be firm, be fair and never familiar.” “Be careful about becoming too friendly with the residents; it’s easy when you are feeling isolated and you don’t get out much, but those relationships can easily go wrong. Keep your dealings professional at all times.”

Guests choosing The Docks on Goodwin for their Brisbane accommodation will enjoy stylishly furnished self contained apartments with all the creature comforts of a home away from home. With Brisbane CBD just minutes away The Docks is the ideal accommodation provider for corporate clients or guests who appreciate being close to everything Brisbane has to offer.

15% DISCOUNT FOR RESORT NEWS READERS WHEN BOOKING DIRECT*

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Proud to be associated with Cath and Col at The Docks on Goodwin.

September, 2019 | ResortNews

PROFILES

McWhirters Apartments:

Times they are a’changin... By Trish Riley, Editor

“New ideas must use old buildings” – Jane Jacobs Not dissimilar to the colourful and imposing history of the McWhirters family and their legacy of the magnificent building on the Valley corner, today’s management rights undertaking of the McWhirters Apartments is a story of endeavour, initiative and achievement – only this time by new Australians, Jill and Luke Chung and their grown children. The magnificent flagship fivestorey building which has graced Brunswick and Wickham Streets since its opening in 1931 is the vestige of Scotsman James McWhirter, one of Brisbane’s leading retailers of the late 19th and early 20th century and a permanent monument to the industry of men who nurtured the business from its early stages. Aeons of history include early shoppers tethering their horses to hitching rails out front, the addition of a garage in 1918 and Myers buying the building in 1955 and operating from there until 1988 when the Valley was in a state of decline. Added to the Queensland Heritage Register in 1992, the McWhirter building still stands, its red brick facade presiding over Brunswick Street Mall in the Valley. Today however, the upper floors have been converted to apartments and the ground floor is a rabbit warren of eateries, groceries and retail outlets.

As the owners of an existing long-term management rights operation in Sunnybank, Jill and Luke admit to being beguiled by the historic building and its idyllic location; and in true retail fashion, what started out as ‘window shopping’ turned into a purchase and relocation into the city. McWhirters offers 114 spacious apartments positioned securely above the retail precinct, 50 percent of which are in the letting pool, and all feature high ceilings, large picture windows and contemporary kitchens. And being centrally located, the property offers easy access to virtually everything… surrounded by restaurants, theatres, live music and entertainment, it is

also within walking distance to the Brisbane River and all forms of public transport. So, other than the lure of the grand building I ask Jill and Luke why they opted for a property so different from the first. “A long-term or permanent property is relatively simple to manage,” says Jill. “There is minimal marketing required and the working hours are generally consistent. We wanted to learn about and experience a mixed-use property.” As a strong proponent of management rights as a business, particularly for Chinese operators, Jill says that the industry provides a steep

PROFILES

learning curve for migrants, exposing them to situations and life experiences that they one wouldn’t normally experience. “In addition to the business and caretaking aspects of running a building, one is exposed to people from all cultures, religions, educations, backgrounds and even moral standing and one has to learn to adapt and accept everyone for who they are. “It’s been an invaluable experience for my children,” adds Jill. “They have got to see how different people interact and that life is about change, values and ethics, about evolving as a person and moving forward despite the challenges.

ResortNews | September, 2019

McWhirters ‘Neon Light’ ceremony to celebrate the new McWhirters signage

“Luke and I are very community orientated, and have introduced a number of social gatherings at the Sunnybank property. McWhirters has understandably taken a little longer to assimilate. Residents tend to move on more quickly in the city, and they take longer to form relationships."

and need to focus on building good relationships. If these things can be done within reason, then they should – owners respond in kind when they see that you are doing what is best for the building. “Last but not least, new managers need to remember that if they need assistance, there are specialists in the industry for a reason,’ says Jill. “The shared information within the tight knit Chinese community may not always be accurate; what happens to one may not necessarily be applicable or relevant to others – every property comes with its own unique set of circumstances.

"I am however, encouraged that we had a number of residents and committee members attend the ‘neon lighting ceremony’ that we held recently and that we have growing support from key stakeholders.” Jill’s advice to those contemplating management rights as a business, particularly the Chinese, is to understand how much of the role involves dealing with, and managing people. In an industry where relationship building is critical, the ability to communicate effectively is very important. She also encourages incoming managers to attend the specialised training that is made available by different organisations and to upskill about compliance regulations. “Empowerment comes from

September, 2019 | ResortNews

knowing and understanding the role from the outset,” says Jill, “and one can’t fall prey to bullying if you know your rights. “In saying that however, managers need to appreciate the complexities of the job and

the fact that they may be called on to do things that aren’t on the schedule of duties; they may need to work longer hours and go the extra mile. A successful manager needs to know that they are not just looking after a building – they have a duty of care for all residents

PROFILES

“Even though McWhirters is our second management rights operation, taking it on with a brief handover makes the initial transition and management of the property far more difficult than it has to be,” adds Jill. “I really believe that new managers need greater industry support for a couple of months at least; someone they can reach out to when necessary and I would like to see the relevant industry bodies looking into this.”

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ResortNews | September, 2019

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Shute Cleaning Services Pty Ltd

Chute Cleaning / Upgrading - All Repairs - Associated Work TWEED HEADS / GOLD COAST TO SUNSHINE COAST / NOOSA Mb:0437 542 968 E: shuteman@ymail.com

STARTS WITH

A GOOD N I G H T 'S R E S T 1300 654 000 ahbeardcommercial.com

September, 2019 | ResortNews

Whatever, Wherever, Whenever! www.accomnews.com.au/ business-directory PREFERRED SUPPLIER DIRECTORY

Look for the sign of an Industry Specialist Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

FINANCE

COMPUTER SOFTWARE

Management Rights Specialists

Management Rights Finance Specialists

Brisbane: 07 3252 2219 • Gold Coast: 07 5576 7059 enquiries@pcsfinance.com.au

www.pcsfinance.com.au

 Trust Accounting Module  Built-in CRM  Channel Manager  Automatic Communications  Cloud & Desktop Solutions  99% of our support requests

Gold Coast Paul Geary

0401 992 632

Brisbane Lina Jin Blake McLucas

0422 646 388 0434 367 812

Sunshine Coast / Noosa Mark Hancock

0411 023 531

FURNITURE

Sunshine Coast / Lake Kawana Bruce Baird 0411 772 182 Suzanne Copelin 0428 385 923

Look for the sign of an Industry Specialist

Townsville Brett Sievers

Whatever, Wherever, Whenever!

Port Douglas Patrick Brown

are attended to within 20 mins

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www.accomnews.com.au/business-directory

1800 671 179

www.reimaster.com.au * Contact us for the T&C’s

0422 009 731

Cairns / Northern Beaches Patrick Brown 0401 141 276

Specialising in furniture for hotels, motels, serviced apartments, resorts and refurbishments

0401 141 276

ELECTRICAL APPLIANCES

Quality Electrical Appliances

d an d o io ad m er lo de ial p wn tr do a vi

New name... Bigger range...

1300 876 055 dennis@hotelinteriors.com.au www.hotelinteriors.com.au

Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527. ANZ’s colour blue is a trade mark of ANZ. Item No. 75143 06.2013 W349544

FURNITURE - OUTDOOR

ACL (364 314)

with the same great

service

Reservations and Trust Accounting Daily Reconciliation – Systematic Distribution Year 2+ $599

Resident

Year 1 $990

Year 2+ $440

Puma Light No trust accounting

Personal Service. Trusted Advice.

Motels, caravan parks etc. from $220 to $330 p.a.

www.pumasoftware.com.au

SEE THE SPECIALISTS IN L.E.D. REPLACEMENT LIGHTING

fresh finance... Repairs - Maintenance - Installations Testing & Repairs of Emergency Lighting Appliance Repairs

(07) 5591 9191 Expert Advice • Great Range Friendly Service • Quick Turn Around

QLD LIC. 9107 NSW LIC. EC29426

office@emerlite.com.au www.emerlite.com.au

ENERGY MANAGEMENT CONSULTANTS & SERVICES

M 0476 327 736 darrensbsc@bigpond.com darrensblindsshutterscurtains.com

Whatever, Wherever, Whenever!

www.accomnews.com.au/ business-directory

• New Chairs • Tables • Sun Lounges • Umbrellas • Cushions & Accessories • Prompt Service Guaranteed REPAIRS - RESLINGS AND SUPPLY OF REPLACEMENT SLINGS TO P.V.C AND ALUMINIUM OUTDOOR FURNITURE

ELECTRICAL CONTRACTORS

Phone (07) 5446 2135

CURTAINS & CURTAIN FABRIC

Suppliers of Quality Commercial Outdoor Furniture & Accessories

Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u

QUALITY, COST EFFECTIVE UTILITY INFRASTRUCTURE & BILLING ADMINISTRATION

• • • • •

Bill Presentment Debt Collection Tariff Review Meter Provider Payments

• • • • •

Asset Management Energy Tendering Meter Reading Bulk Conversion Receipting

Ph: 07 3350 5999 enquiries@m2cs.com.au www.meter2cashsolutions.com.au

Mike Phipps

0448 813 090

mike@mikephippsfinance.com.au

0418 765 257

www.casualfurniture.com.au

coastalcasualoutdoors@gmail.com VISIT OUR SHOWROOM AT: Unit 4, No. 2 Cnr Captain Cook Drive and Kendor St, Arundel, QLD

Paul Grant 0448 417 754 paul@mikephippsfinance.com.au Cameron Wicking

0477 776 859

cameron@mikephippsfinance.com.au 4/31 Mary Street, Noosaville, Qld - 07 5470 2194

www.mikephippsfinance.com.au

Red

F I N A N C E

Professional & friendly service Over 30 years finance experience Accommodation funding specialists

W I D E

Year 1 $1,100

A U S T R A L I A

Holiday

Commercial Specialist Direct Importers Sales, Service & Repairs ¾LARGEST RANGE¾FURNITURE ¾UMBRELLAS¾SUN LOUNGES Cnr Main Drive & Nicklin Way, Warana, Qld 4575 | Ph 07 5493 4277 Acres Centre, 1/37 Gibson Rd Noosaville 4566 | Ph 07 5449 9336

www.daydreamleisure.com.au sales@daydreamleisure.com.au

Nick Smith - 0450 179 677 www.redtenfinance.com.au nick@redtenfinance.com.au

PREFERRED SUPPLIER DIRECTORY

Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

ResortNews | September, 2019

info@kudosfurniture.com.au

Whatever, Wherever, Whenever! www.accomnews.com.au/business-directory

GLASS INSTALLATION/REPAIRS

INSURANCE

Management Rights Insurance Specialists stry e indu Leading h t o t r e k o insurance br

In All Areas . . .

Whether buying or selling we have you covered U Gold Coast U Brisbane U Sunshine Coast U Townsville U Cairns . . . & Beyond

Professional Indemnity Public Liability Loss of fee income Home & Office contents Landlords ...and more

www.managementrightscover.com.au

MANAGEMENT RIGHTS RN006

Australia wide service supplying all types of furniture

Look for the sign of an Industry Specialist

Call 1800 688 820

AFSLN 246986 ABN 31 009 179 640

RUGECU009-190402

Discount for ARAMA members

Phone 07 55 930 007 www.raas.com.au

LINEN &/OR LINEN GOODS

Australia’s Leading Hotel Bedding Suppliers

GYMNASIUM EQUIPMENT

07 5437 8544 info@mainlinen.com

We get results. Pure & simple. Management Rights, Motel, Hotel and Caravan Park sales.

MAIL BOXES

1300 665 966

Quality Aust Products to meet All Building & Government Standards

DELIVERIES QLD WIDE – INSTALLATION & SERVICE IN SE QLD

P: (07) 5596 1440 E: info@sunni.com.au

Look for the sign of an Industry Specialist YOUR PARTNERS IN SUCCESS

MANAGEMENT RIGHTS AGENTS

Property Bridge

Need assurance when looking for insurance?

MANAGEMENT RIGHTS …When you need us most! 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

Make the search simple... www.accomnews.com.au/business-directory

September, 2019 | ResortNews

The sign of an Industry Specialist.

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

PREFERRED SUPPLIER DIRECTORY

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

The Management Rights Specialists

• Painting • Grounds Maintenance & Landscaping

ASBESTOS REMOVAL QUEENSLAND WIDE

FREE CALL

1800 766 366

HIRISE

• 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

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

• Electrical Services • Audio Visual • Data Communications • Sustainability

Call 1800 620 911 or 07 3718 1600 programmed.com.au

Find them online Wherever, Whenever! www.accomnews.com.au/business-directory

FREE QUOTES &ADVICE

MAINTENANCE PTY LTD HIGH RISE/COMMERCIAL RE-PAINT, ABSEIL ACCESS INSTALLATION & CERTIFICATION, WINDOW CLEANING, ALL ROPE ACCESS MAINTENANCE

07 5539 0828

www.hirisemaintenance.com.au info@hirisemaintenance.com.au

PEST CONTROL Servicing Brisbane & Gold Coast

PEST-NETT

PEST SERVICES

CALL TODAY TO GET YOUR PEST PROBLEMS SOLVED

Residential &Commercial

Call Now 07 3206 6721 www.terminett.com

Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

SOLICITORS

MANAGEMENT

RIGHTS AND MOTEL

EXPERTS EXPERIENCE COUNTS We have the largest team of specialists across Queensland and New South Wales, covering management rights and motels businesses.

GET THE RIGHT ADVICE Don’t put your accommodation industry investment at risk. Our industry knowledge is second to none.

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

Specialising in:  Hi-Rise Repaints  Large Complexes  Interior and Exterior  Hi-Pressure Cleaning  Concrete Spalling Repair (Concrete Cancer)  Waterproofing & Roof Membranes

SHEET METAL

Visit hyneslegal.com.au/subscribe or call +61 7 3193 0500 info@hyneslegal.com.au www.hyneslegal.com.au

LOCALLY-OWNED FOR OVER 25 YEARS

Ph 5520 1256

www.anppainting.com.au QBCC Lic No 1050861 NSW Lic No 179886C

Stainless Steel Handrails Restaurant Fit-Outs Exhaust Duct Work Ph 07 5593 4183

SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

Fx 07 5593 4194 | M 0413 432 294

1800 111 622

adrian@sheetmetalimprovements.com.au

WWW.STRATACORP.COM

PAINTERS & DECORATORS

Experienced Management Rights Lawyers

COOLANGATTA TO BEENLEIGH

• Purchase or Sale

SIGNS

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

The sign of an Industry Specialist.

PREFERRED SUPPLIER DIRECTORY

ResortNews | September, 2019

The sign of an Industry Specialist TV & VIDEO HIRE/REPAIRS

Heat Pumps

Proudly installed and serviced

Appliance Rentals New name... Bigger range...

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 john.punch@spglawyers.com.au

MANAGEMENT RIGHTS VALUATION SPECIALISTS

Call John Punch on 5570 9322

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

September, 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

The fastest growing accommodation listings website Listings from all the leading brokers on the one website

Motel

Sales Specialist

“A website for buyers/sellers such as Accom Properties has been well overdue for years. Buyers don’t want to view multiple websites to see whats for sale in a particular region or town, they want all properties on the market with relevant criteria at their fingertips now and you’ve been able to provide a platform which is fantastic. Well done.” – Brett Salter, National Accommodation Manager, ALH Group Limited