Resort News, December 2019 by Multimedia AU/NZ

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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 December issue FRONT DESK Editor's Note: Taking stock……............................................. 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.

INDUSTRY

News In Brief............................................................................. 06 Person of Interest: Ian Crooks – There’s always more than one way to do a deal.....................................................10 ARAMA Report..........................................................................12 State Report...............................................................................13 SCA Report.................................................................................14 BCCM Report.............................................................................15 MANAGEMENT Thinking MR................................................................................16 Legal Ease....................................................................................16 Training Q&A..............................................................................18 By All Accounts........................................................................ 20 Motel Market............................................................................. 22 Strata Trends............................................................................. 23 Good Governance....................................................................24 Intonet......................................................................................... 26 Marketing................................................................................... 26 TOURISM

Tourism Report......................................................................... 28 Tourism International............................................................ 30 The Last Resort.........................................................................31 EVENTS & APPOINTMENTS Events........................................................................................... 32 Snippets...................................................................................... 33 DEVELOPMENTS: Development News................................................................ 34 PROPERTY

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

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

New Manager Profiles........................................................... 38 The Sunshine Coast: An economic revolution............ 42 PROFILES Outrigger Burleigh: An affordable option in paradise....................................................................................... 50 PREFERRED SUPPLIERS The Preferred Supplier Directory...................................... 54

ADVERTISING Stewart Shimmin, advertising@accomnews.com.au SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au CONTRIBUTORS Andrew Morgan, Arvo Elias, Cameron Wicking, Chris Irons, Col Myers, Dean Minett, Dennis Mackenzie, Grant Mifsud, James Nickless, John Punch, Lynda Kypriadakis, Mike Phipps and Trevor Rawnsley. 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!

42 FRONT DESK

50 ResortNews | December2019

The end of the year is a time to reflect, take stock of the year past, and plan for the year ahead. This year – a full 12 months of being editor of ResortNews – has passed in what feels like a nano-moment. Not surprising – our lives, work and society move at an unprecedented pace. On reflection, I realised that much of this pace is driven by innovation and change, and whether you identify with the innovation notion or not, the core message is that significant forces are creating seismic changes in how we live and work. No one individual, organisation, or even sector is immune from the disruptive changes at play. While a few years back taxi drivers, photo technicians, music/video stores, travel agents may have been the early face of this disruption narrative – today even those with seemingly steady careers within traditionally stable sectors like banking, financial services, and other areas – are confronting new realities. So, thinking of the year we’re leaving behind – what went well? While I’m not personally working on the coal face, these are what immediately came to mind; I have been encouraged by the growing consensus and industry support for greater preparation and training of new entrants to the industry; I endorse the shift towards raising the

December 2019 | ResortNews

EDITOR'S NOTE

Taking stock…

Trish Riley, Editor editor@accomnews.com.au standard of the industry through accreditation. The inaugural ARAMA Awards were inspiring and will go a long way to providing the level of recognition needed for all stakeholders and closer to home, our publications had a refresh and MultiMedia Publishing successfully launched the AccomProperties sales and rental portal and the uptake has been significant. It's easy to bypass the wins and the good that comes within any year. When working hard, fast, and often in challenging contexts, we tend to focus on the pressures at hand. But remembering the good fuels our wellbeing and gives us internal resources to step up to the challenges. What surprised you? Whether for better or otherwise, the skills of the day are adaptability and resourcefulness. What do you notice about your ability to adapt and pivot within the unexpected? Those who are nimble are better primed to seize opportunities and work with change. Resistors insisting on certainty or the same way of doing things can find themselves stressed out and side-lined.

What did this year teach you? What insights, knowledge and skills were gained or reinforced? How much time was dedicated to attending industry events, networking or reading about the multi-million dollar industry you are a part of. These skills are critical today and will better equip you for the year(s) ahead. What needs to be left behind? Old ideas, poor habits, and self-limiting behaviours – who doesn't have a few of these? When life and work pressures demand the best of us it is a good idea to take stock of what's no longer working. Ask yourself if it's time to shift your energy to new areas of opportunity? How will you evolve in the year ahead? Think about the changes showing up. Legislation and licensing reforms, the banking environment, the power of OTAs and social media, the growth of shared economies… What's next for you professionally and personally? Even if you don't have precise answers yet, staying in this question will keep you on your toes so

FRONT DESK

that you can plan and pivot to opportunities more easily. Who will you connect with? Don't wait for sudden change to test the strength of your network and relationships – invest now. Take stock and make a commitment to connect meaningfully and authentically with industry bodies and specialists, lot owners, body corporate managers and residents. Expand your professional and personal network and find ways to show reciprocity by giving back to others. The end of a year is a good time to look back, reflect on achievements, and to look forward to see what we still need to accomplish. In this holiday season, I wish you and your families joy, warm memories and peace. We should be thankful for what we have, and remember to embrace our loved ones. Have a very merry Christmas. Do enjoy the calendar insert - we will be back in January, enjoy reading this issue.

“The Star has said it wants to make a multi-billion-dollar investment into the Gold Coast and a second integrated resort is not needed to attract more international tourists,” Jones said.

Tourism industry declares Sydney is “closed for business” Sydney, Australia is “closed for business.” It doesn’t want any additional growth or investments, and doesn’t want to attract more tourists. Local government officials and regulators feel that they have enough on their plate and don’t need any new developments that might create more jobs and bring in more revenue to the area. At least, that’s what some are saying after the Star Entertainment Group saw its plans for a new hotel tower rejected.

speaking out, admonishing officials for the decision and asserting that investors will now be turned off to any possible development plans in the area.

The Independent Planning Commission (IPC) put the topic to rest recently when it said thanks, but no thanks to Star Entertainment and its massive project. News of the denial led to a number of people in the industry

Tourism minister Kate Jones announced the government had suspended its search for a second casino operator and would begin direct negotiations with The Star to fast track the new tourism infrastructure.

Margy Osmond, the Tourism and Transport Forum CEO, said in a statement, “After four long years and millions of dollars invested on extensive consultation with the government, the community and stakeholders, for an unelected planning body to arrive at a decision like this is simply shortsighted.” Making hay while the sun shines however, the Queensland government has moved to fast track a $2 billion upgrade of the group’s Gold Coast interests.

“We will suspend the current global tourism hub process to fast track negotiations with The Star so they can put their best food forward and we can assess what their true offer is for the Gold Coast.” The Accommodation Association welcomed the news, chief executive Dean Long saying: “The Queensland government continues to demonstrate a clear understanding of the $24.4 billion contribution that tourism makes to the Queensland economy. “The Star has undertaken to ‘inject more than $2 billion in additional tourism investment at The Star Gold Coast’ and create an integrated resort destination which will add to the fabric of the city.” An advisory panel was set up in March to gauge public opinion on the merits of a second casino for the Gold Coast. It found that while a majority of locals supported or had no concerns about a second casino, there was significant community opposition to one being built on public land. Some ten local and international players expressed an interest in creating a second casino on the Gold Coast, but none has

made a firm commitment and many have sought to use public space for their developments. The Star argues the market is too small for two casinos and has warned a new player would force it to concentrate on defending its market share rather than growing its tourism assets in partnership with Honk Kong giants Chow Tai Fook and Far East Consortium. The partnership’s plans include building five towers on Star’s Broadbeach site, one encompassing a luxury Dorsett hotel and second boasting another five-star hotel with a “Sky Park” playground, shops, pools, gyms, a day spa and an outdoor function centre. The state-owned conference centre and the famous Sheraton Grand Mirage beachfront resort would also be upgraded and a second resort built on a site adjoining the Sheraton. The Queensland government has requested Star to provide a “clear indication of their plans”, to be assessed on its ability to deliver the coast a global tourism hub. “If [Star] meets the threshold of delivering additional tourism numbers and attracting international visitation – which was the whole reason for setting the second casino licence up – we will have clarity,” said Ms Jones. Source: CalvinAyre

Booking.com prompts pricing fears Booking.com is looking to expand its ‘genius rates’ across affiliates from December, prompting fears of rate leakage as travellers are induced to book through “other companies within the Booking Holdings family”. Marketing the feature as is “an effective way to increase your visibility and bookings”, the OTA says it will allow operators to gain greater access to highvalue guests, those who have completed at least two stays booked through the platform within two years. To be included in the scheme, properties must generally have a review score of at least 7.5 and be among the

top 50 percent of performers in their area that meet the company’s pricing criteria. A mandatory ten percent ‘genius discount’ then applies to its cheapest or most popular room. In an email currently going out to operators globally (whether Australia is included is not yet clear), the OTA says the absence of an active response from the accoms will be considered as “silent consent.” “If you’re happy to extend your Genius rates to this new group of customers,” it says, “there is no further action required.” Industry consultant and Futurist CEO Simone Puerto says the move could be an “open highway for even more rate leakage”. And Budget Motels operations manager Chris Fozard has urged any operators

approached about genius rates to opt out of what he describes as “ this latest attempt to gouge yet more commission.” “I see that Booking Holdings is once again ‘auto-opting’ clients into their features, but this time calling it “silent consent”, which they tell properties they won’t do,” he said. “From my understanding this will mean properties that have asked/requested/told Booking Holding to not share their rates across the OTA’s affiliates is about to have them reactivated on all these other OTAs, again causing huge problems with rate leakage.” Fozard says among the issues he foresees are random discounts in property rates, email demands for commission payments

INDUSTRY

from unknown OTAs and sales including unauthorised extras such as ‘late check-out’ and ‘included breakfasts.’ He has urged operators to “not be dictated to or bullied by these American behemoths, who then blame and hide behind their affiliate OTAs for any problems caused by them”. Puerto advises operators concerned about opaque rates being sold via booking.basic or on thirdparties to install a virtual private network and search for their property on different countries and different channels, making sure they cover all of Booking Holdings primary brands, including Agoda. “Take screenshots and get in touch with your account manager”, he said.

ResortNews | December 2019

The door remains open for further rate cuts The latest minutes from the RBA, released in November, revealed the surprising revelation that members were ‘seriously considering’ a 25-basis point rate cut. At the time, the odds of a cut were sitting at 4 percent, so the probability was very low. Internally, however, it appears the decision was a lot closer than what the numbers were suggesting which changes the outlook for further interest rate cuts considerably. The RBA and Governor Phillip Lowe, have made it very clear that they are targeting an unemployment rate that’s under 5 percent and more preferably under 4.5 percent. Their thinking is that strong employment will put upward pressure on wages and in-turn drag inflation back into their target band of 2-3 percent.

Last month’s jobless rate saw a slight improvement, with a fall from 5.3 to 5.2 percent. While only a small change, the hope and belief was that the tide is turning for the economy. The news clearly pleased Governor Lowe, who started making it known that the RBA was perhaps at the end of their cycle of easing. This all abruptly changed as this month's jobs report showed no improvement in the unemployment rate and a large -19,000, contraction in the number of jobs created. In light of this, it’s clear that the RBA still has some unfinished business and the odds of a further rate cut, now appear far higher than what they were only days ago. February 2020 has long been looked at as a strong possibility of another cut which could potentially see the official cash rate fall to a new record low of 0.5 percent.

Canstar financial expert and chief spokesperson, Steve Mickenbecker believes the RBA will continue to wait on data before making any decisions on further interest rate cuts. “I think the RBA, as they usually do, are waiting. There’s been a number of rate cuts, there’s been infrastructure spending which is being accelerated, so they’re likely saying, let’s just wait a while and take a closer look at more jobs data, before we move again." “My view is that we’re not going to see any change in December, but February is looking like a real possibility.” At the same time, the low interest rate environment is starting to fuel the housing market recovery with property prices in Sydney and Melbourne both rising more by more than 5 percent in the

last three months according to CoreLogic. This would be a concern for the RBA according to Mr. Mickenbecker. “Low rates do appear to be getting people back into the housing market. We’ve had high clearance rates at auction and rising prices, so it certainly appears the cuts started to take hold there, but the RBA would not like to see them run away again as they did in 2017.” “Further cuts will likely encourage higher prices, which is a reason for them to hold if they can.” Andrew Woodward from The Investor’s Way said: “While it wasn’t necessarily front and centre of the decision, the fact is the Australian economy is still not growing at a rate that the RBA would prefer, creating some nervousness as to where we go from here.” Source: Australian Property Investor

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December 2019 | ResortNews

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Airbnb announced as new international Olympic committee corporate partner Airbnb has joined the Olympic and Paralympic corporate partnership line-up, after announcing a nine-year deal with the International Olympic Committee (IOC). The US$500 million sponsorship will see Airbnb support the Olympic Movement through to 2028 and across five Olympic Games, with the goal of creating a new standard for hosting that will be a win for host cities, spectators, fans and athletes. Advising that the partnership aligns with Olympic Agenda 2020 and the IOC’s strategic roadmap for the future to support the sustainability objectives of the Olympic Movement, IOC President, Thomas Bach stated “this innovative partnership underpins our strategy to ensure that the efficient staging of the Olympic Games is sustainable and leaves a legacy for the host community. “With Airbnb’s support, we will also develop new opportunities for athletes around the world to develop their own direct

revenue streams through the promotion of physical activity and the Olympic values. The partnership is reportedly set to generate hundreds of thousands of new hosts for Airbnb over nine years and give community residents the opportunity to earn extra income by providing accommodation and local experiences to visiting fans, athletes and other members of the Olympic Movement. Airbnb co-founder, Joe Gebbia, said this partnership aligns the values of community, inclusion and sustainability to leave a lasting legacy for athletes and Games hosts,

commenting “Airbnb and the IOC have a strong track record in creating and accommodating the world’s greatest events.

for athletes, underlining the IOC’s efforts to support athletes and put them at the heart of the Olympic Movement.

“Our Olympic partnership will ensure that the Games are the most inclusive, accessible and sustainable yet, and leave a lasting positive legacy for athletes and host communities.

This program will include everything from the chance to train with an Olympian, to exploring a city with an elite athlete in an effort to promote sport and physical activity further.

“Airbnb’s mission is to create a world where anyone can belong anywhere, and we are proud that the Olympic spirit will be carried by our community.” A major component of the partnership is the launch of Airbnb Olympian Experiences, which will work to provide direct earning opportunities

The IOC has stated it will make at least $41 million worth of Airbnb accommodation available over the course of the partnership to athletes competing at the Olympic and Paralympic Games for competition and training related travel. Source: Australian Property Investor

Renowned hotel school launches Brisbane campus Australia’s leading hotel management course specialist, The Hotel School has launched a state-of-the-art campus in the heart of Brisbane. Queensland's expected tourism growth is one of the drivers behind the new facility. Established through Southern Cross University, in conjunction with hotel giant Mulpha Australia, The Hotel School is the only education provider in Australia formed through a partnership between a public university and global hotel investment group. Southern Cross University Vice Chancellor Professor

people looking to make a career in Hotel and tourism management."

Adam Shoemaker said the launch of the Brisbane campus was a pivotal moment for both The Hotel School and the University. “Southern Cross University is a leader in the hotel and tourism management field with outstanding rankings and graduate employment outcomes," he said. “By aligning with a premium brand in Mulpha Australia, The Hotel School enables students to draw on their learning right from the start of their studies and potentially undertake internships and employment opportunities in some of the world’s most prestigious hotels. “That is invaluable for

The launch of The Hotel School’s Brisbane campus comes ahead of Queensland tourism developments such as Queen’s Wharf and the proposed Brisbane Live precinct, which are set to create thousands of additional jobs – 20,000 in 2020 alone. Mulpha Australia CEO Greg Shaw said such projections reinforced the importance for the hospitality industry to support the education and training of qualified recruits. “The Hotel School allows students to develop their leadership skills and learn about hotel operations at

INDUSTRY

Mulpha-owned properties during a rotational schedule, on-the-job training and mentoring,” he said. “We also have strategic alliances with major global hotel groups including Marriott, Accor and TFE that last year allowed us to provide more than 8000 industry experience opportunities specifically tailored for our graduates and interns." The Hotel School’s existing campuses in Melbourne and Sydney boast a 95 percent employment rate within six months of graduation, with almost 70 percent of students finding employment prior to graduation. ResortNews | December 2019

Accom businesses feeling brunt of share economy The proliferation of the sharing economy and changing consumer behaviour has taken a toll on hotels. More than 400 accommodation businesses have closed shop in the five years to the end of June 2018, with the growth in the unregulated sharing economy singled out as a key cause, new data released this week reveals. According to the ‘Tourism Businesses in Australia’ study from Tourism Research Australia (TRA), the accommodation sector appears it is becoming a victim of the overall success of the wider industry, with a reduction in the number of businesses despite increased tourism activity. In the five-year period from July 1, 2013 to June 30, 2018 inclusive, the number of businesses classified as accommodation decreased by 418. Broken down, this figure comprised of 12 large businesses with 200 employees or more, 50 medium-sized operations with headcounts of between 20 and 199 and a sobering 356 businesses with between zero and 19 employees. The study

Change in business numbers by industry, June 2018 on June 2013

shines a different spotlight on the sharing economy following the release early in November of the 2018-19 Australian Accommodation Monitor (AAM). The accommodation sector made up 4.2 percent of Australia’s overall tourism and tourism-related scope, which included businesses both directly affecting the sector such as air and water transport companies, tour operators and hotels/motels (see Table). Tellingly, the TRA report highlighted the growth of the sharing economy and specifically named Airbnb as having been a catalyst for the reduction in accommodation businesses over the five-year period. “With platforms such as Airbnb potentially affecting the viability of traditional accommodation businesses, it is possible that the sharing economy is responsible, in some part, for the decrease in business counts,” the report reads. However, the report clarifies that platforms such as Airbnb allow individuals “to provide accommodation services without registering as a business, which means these additional

Share of total businesses %

Small (0 to 19 persons)

Medium (20 to 199)

Large (200 or more persons)

Accommodation

4.2

-356

-50

-12

Takeaway food and restaurants*

26.9

12,179

827

Taxi transport

11.6

18,683

Air and water transport

1.6

-16

-7

-2

Motor vehicle hiring

0.6

332

-2

Travel agency and tour operator services

2.4

2,306

-3

Arts and recreation

9.4

2,211

Retail trade

43.2

-3,836

-733

Rail transport

0.1

-3

Total tourism businesses

100

31,495

services are not included in national business counts.” Businesses indirectly affecting the sector such as takeaway food outlets, general retailers and taxi transport licensees were included in the study. These indirect sectors experienced massive growth in the five-year period, with more than 18,600 new taxi licenses granted and more than 12,100 takeaway food outlets commencing trade, largely in response to the boom in food delivery services such as Uber Eats and Deliveroo. Conversely, retail trade took a huge hit, with nearly 4,000 shops pulling down the shutters for good as online shopping soared in popularity. According to the study, tourism

businesses make up one-eighth of Australia’s national economy and 13 percent of Australia’s total business count. Other stats showed population growth contributed to 10 percent growth in average turnover of medium and large tourism businesses in Australia, while small operations recorded a significantly smaller 0.9 percent growth in the same metric. The overwhelming majority of tourism businesses (95 percent) were small operations ranging from zero to 19 employees, with the growth in non-employing businesses skyrocketing by 20.9 percent over the fiveyear survey window. Source: TourismNews

Schwartz swoops on resort after Ralan collapse Jerry Schwartz has vowed to save a multiawarded Gold Coast family resort earmarked for demolition by the collapsed Ralan Group. The owner of Australia’s biggest private hotel collection has acquired the Paradise Resort for $43 million, well below the $75 million figure Ralan paid for the site in 2015 under plans to bulldoze the property and build another Ruby apartment tower. Schwartz will begin work to refurbish the 360-room Surfers Paradise property following final settlement in February 2020. Paradise Resort has been rated as Australia’s best family resort December 2019 | ResortNews

on numerous occasions over the past decade by family magazines, travel guides and industry bodies. A major refurbishment program will see rooms, food and drink outlets and other facilities all upgraded. The addition of the Paradise Resort will increase the Schwartz Family Company network to 15 hotels and more than 3500 rooms in four states and territories. It is the company’s second hotel on the Gold Coast following the acquisition of Hilton Surfers Paradise earlier in the year. Dr Schwartz said that he was attracted to the property because of its reputation as a premier family-friendly resort.

While continuing to offer a “a highly attractive and good-value product”, some rooms will be upgraded to 4/4.5-star standard to attract a wider market. “I know that previous owners planned to knock down the resort and redevelop it for apartments, but we believe there is tremendous demand for quality family-friendly resorts, especially in such prime locations as Surfers Paradise,” he said. “I have taken over two other resorts – the Fairmont Resort Blue Mountains and Crowne Plaza Hunter Valley – and revived them as a result of diversifying their markets and enhancing their family facilities and

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attractions. “Paradise Resort has potential to grow further, and this purchase will give all those involved with the resort certainty about the future. “I am very optimistic about the Gold Coast market, despite new supply coming on stream. Both Paradise Resort and my previous purchase – the Hilton Surfers Paradise – have established very strong reputations, and with investment in both hotels, allied to sustained growth in Gold Coast’s domestic and international markets, I see considerable upside for both properties.”

Ian Crooks

PERSON OF INTEREST

Thereâ&#x20AC;&#x2122;s always more than one way to do a deal

INDUSTRY

ResortNews | December 2019

By Trish Riley, Editor

Despite holding the relatively new title of chairman, Ian Crooks is better known as Mr ResortBrokers – leading industry pioneer and founder of the largest agency dedicated to tourism and accommodation property in Queensland and throughout Australia. And while it’s difficult to assimilate the litany of remakable achievements with the down-toearth and very personable man that I am seated across from, it’s harder still when he tells me that he believes his success, and the foundation of his entire business structure, is based on a lesson learnt from his role selling farming consumables in New Zealand – that of making no less than 20 face-to-face calls per week. It’s a discipline that still stands today. Born and raised in Waipukurau, Hawke's Bay, Ian was schooled at Napier Boys High, and testament once again to his endearing character, he is still in close contact with a number of friends from then – and is in fact, planning a reunion in 2020 to celebrate a group 75th birthday. Acknowledging that he was not much of a scholar, Ian worked in a men’s clothing outlet when he left school before joining a stock and station agency and transferring to Wairoa for five years, and then to Gisborne on the east coast of the north island where he met his wife Karin – and I’m not surprised to hear that they have been together for 46 years and are still very happy. In 1974 Ian heard about a competing salesman that had left the stock and station agency to go into real estate and was earning a fortune, so he left the pastoral vocation and moved to Tauranga. Once again, following his ‘sales formula’, his foray into property was very successful. Unfortunately, despite his path appearing ordained, Ian was struck down with Bell’s Palsy, and advised to give up real estate. He and Karin traded their house as a part payment on a motel on Lake Taupo – the worst on the lake he recalls – but they made the move and worked hard to make improvements. His condition then December 2019 | ResortNews

Many managers wrongly think that topping up their agreements has the effect of exercising an existing option and somehow automatically extending the term. This is not so

improved to such an extent that Karin suggested he go into the broking of motels in the area. “At that time there were 42 motels on the lake,” says Ian, “a further 50 in Rotorua, 33 in Napier and 30 in Hastings. There was a lot of stock and, where sales were difficult, we got creative – developing a system where the parties were able put some cash in, and keep the land as an investment – it was the birth of motel leasehold agreements." It was this same keen eye for opportunity that then brought the indomitable ‘glass-half-full’ sales dynamo to Australia, and despite Karin agreeing in 1985, that “it was just for a year”, Ian launched ResortBrokers from a table in his bedroom, and the rest as they say his history.

Ian still puts great store in the qualities that have driven his entire working life: hard work, willingness to take a calculated risk, the ability to learn from your mistakes and to think outside the box. “There’s always more than one way to do a deal,” he says. And while motels and caravan parks were his core business, it wasn’t long before he began developing an expansion strategy focused on management rights. Other emerging areas of demand have since followed, in particular, off-the-plan management rights associated with large-scale apartment developments and more recently, a dedicated hotels division. “In all the time that I have been involved in the industry not that much has changed,” says Ian. “The multipliers have gone up and down, as have the prices of apartments. Demand grew incredibly until the GFC. In 2009 only 17 management rights were sold across the Gold Coast, but we keep moving forward. One just has to adapt and think ‘how do we make these more saleable?’

“It was a lot more difficult to do business back then,” says Ian. “I used to drive an average of two thousand kilometres a week; operating out of phone booths and knocking on every accom door across Queensland and most of New South Wales. “I knew virtually every motel,” he adds. “Someone would mention a town and I could tell them all the motels there, how many rooms they had and how big the manager’s residence was. I gathered every bit of information I could and memorised it.”

“I’ve always believed that if you have a thorough understanding of the sector, conduct business with honesty and integrity and deliver an exceptional level of service, you can’t help but succeed.”

Ian’s exhaustive knowledge was one thing, but it was his relentless effort and discipline that ensured success. He applied the same meticulous approach from New Zealand and once again revolutionised motel investment. He vividly remembers the first motel lease he set up, the 17-unit Mary Ellen Motel, in Ipswich, just west of Brisbane. Today, thanks largely to his initiative, more than 70 percent of Australia’s motels are split into active leasehold and passive freehold investment components.

While Ian’s expertise and contribution to the sector are widely known and respected, he is more eager to talk about how a second generation is making its mark at ResortBrokers. During 2019, he brought his three children and son-in-law into the business as directors and owners and transitioned to chairman. “I never really planned for my children to enter the business,” says Ian. “It’s happened by default – the circumstances were all just right and I couldn’t be happier. The company appears to be better run; this younger, more dynamic team

INDUSTRY

is taking ResortBrokers to new levels of operation and success.” ResortBrokers are licensed in all States and Territories, with key offices located in Brisbane, Sydney and Melbourne, and strategic international affiliations. When asked about the future of the industry, Ian says he remains confident. “Accommodation properties continue to be strong investments,” he says. “The motel business is outstanding. If you were able to borrow 100 percent to buy one, you could pay it off in 10 years and still enjoy a flexible business lifestyle along the way. Management rights are no different. “The biggest challenge at the moment appears to be centred around the module terms. Prior to ‘97 they were five-year terms, now everyone is worried if it isn’t 25 – it makes no difference. If a strata or body corporate building is run well and the owners have peace of mind about how their property is being maintained, then the resident manager’s contract will always get renewed. Management rights is, without doubt, the best way to run apartment accommodation and the systems and agreements that we have developed here in Queensland are the best in the world. “My only advice to those considering getting into this industry is that they should think hard about whether they are suited for dealing with the public and the various stakeholder bodies – there are a lot that can’t. They also need to be clear about what type of property is best suited to their requirements. Chase the money, not the area,” adds Ian, “as most move on within four to five years.” So, is this industry icon planning some down time? It appears not. Ian is still working – he says he likes the cut and thrust of a deal too much to retire – but he’s leaving the empire building to a new generation. "My enthusiasm for the industry continues to grow,” says Ian. “It’s very satisfying to be a part of introducing people to the sector, knowing that they are likely to achieve their long-term goals and financial security.” Obviously, no profile of Ian would be complete without highlighting his passion for rugby. Even after all these years in Australia, he still proudly supports the All Blacks.

ARAMA REPORT

Landlord rights stripped under Queensland rental reforms Having spent years championing the role of management rights as the most effective method of serving the interests of unit owners, bodies corporate, tourists and tenants, it was disappointing to see that the Queensland Government’s proposed changes to rental laws across the state completely overlook landlords and resident managers. Stage 1 of the proposed reforms to the current Residential Tenancies and Rooming Accommodation Act include more freedom for tenants to remain in a tenancy indefinitely and also to keep pets in their rental properties at will and

Ending a tenancy fairly should require mutual agreement. This means the retention of fixed term leases and the equal opportunity for any party to end this tenancy. This would mean the grounds for ending one should also be broadened to include having a fixed term end date as the law currently states. Trevor Rawnsley, CEO, ARAMA

without seeking approval. This is something we strongly oppose. Our biggest concern is the abolishment of a landlord’s right to not renew a tenancy agreement at the end of its agreed fixed term. In practice, this reform would allow a tenant to remain in tenancy for as long as they wanted to unless the landlord could establish approved grounds prescribed by law. This is hardly a fair outcome for landlords.

We also believe the notice period to end a tenancy agreement should be fair and balanced and this means equal. Currently it is two months for landlords and two weeks for tenants. It would be more reasonable to offer a four-week notice period to both parties. A further slap in the face for landlords is the loss of the right to refuse pets. We understand the importance of pets, but landlords should be able to restrict the cohabitation of pets unless the tenant has obtained consent - and this isn’t something government should be mandating. In some cases, it might be commercially advantageous and socially responsible for landlords to offer rental properties with pets – and these might incorporate pet bonds and higher rents – however this should be by mutual agreement and market-driven to determine its effectiveness. As the peak body representing the management rights industry, ARAMA is calling on the Queensland Government to trial these proposed rental reforms in social housing before making changes to rental laws across the state. Queensland has one of the highest proportions of renters in Australia with more than 34 percent of households in the rental market, and a 12-month trial in social housing would demonstrate whether the changes proved fair and effective.

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)

Further erosion to property owners’ rights is the proposed introduction of a tenant’s right to make modifications to a rental property without the landlord’s consent. Again, this is something we strongly oppose and just like having a pet, there should

INDUSTRY

be written approval from the landlord or the resident manager. In strata title schemes this would allow a tenant to make alterations to their lot without requiring prior approval which could breach the body corporate’s by laws. This effectively gives tenants more rights than lot owners and will put the resident manager in the firing line with the body corporate committee and other lot owners – this is hardly fair and balanced. Under proposed legislation tenants experiencing domestic and family violence would also be able to leave their tenancy with just seven days’ notice. ARAMA is supportive of measures to protect victims of domestic violence, however shifting the financial burden of an early termination of the tenancy to the resident manager or landlord leaves both in greater financial risk and with insufficient time before having a vacant property re-let. One recommendation that we support is prescribed minimum housing standards for rental accommodation. We welcome the establishment of a set of minimum housing standards provided that they are in line with what the market requires. In fact, a key advantage of management rights is that resident managers or onsite letting agents operate in well-maintained community title schemes and repairs and maintenance are preventative and market-driven. These small business operators generally pay more attention to the selection of tenants because they live and work with them. As a result, they have better communicative relationships with their tenant neighbors and fewer disputes. The proposed reforms shift the balance too far in the favour of tenants and we call on the Queensland Government to restore fairness and balance. ResortNews | December 2019

We live in a world where we enter into contracts on a daily basis – whether we realise it or not. When we do so, there are many contract terms that we take for granted as we assume they are obvious terms that go without saying. For example, when you order a coffee you expect it in a cup; when you buy shoes, you expect a left and a right. Sometimes what goes without saying though can be less than obvious. If you contract with a pool cleaner to clean your pool every month for a year, but you end up emptying your pool for winter, do you pay for those months? If you lease a shop, but the roof starts leaking, do you keep paying the rent? If a body corporate pays a building manager to maintain its grounds, but the grounds are flooded for a month, does the body corporate pay for that month? Sometimes these questions are clearly addressed at the time the contract is entered into. For example, most commercial leases address what happens when the leased property is no longer useable. The rent abates pro rata depending on the degree of continued usage. However, what happens when there is no clear answer in the contract? A contract that can’t be performed due to an intervening event that has substantially affected what was agreed to is referred to as a “frustrated” contract. An intervening event is something beyond your control that interferes with completing the contract – an act of God, for example. However, a body corporate emptying the pool for winter is not an act of God and accordingly, there is no discount applied to the caretaker’s remuneration. A frustrated December 2019 | ResortNews

STATE REPORT

A frustrating situation or a frustrated contract? “What happens when there is no clear answer in the contract?

Col Myers, Small Myers Hughes

contract ends at the point in time that an intervening event occurs that prevents the contract from continuing. Where possible, the courts will resolve the contract in a just and fair manner – but this can be as simple as letting the chips fall where they lie. But what about this situation? You are the resident building manager of a holiday high-rise. Your body corporate has resolved to replace all external windows and balcony sliding doors due to corrosion. The body corporate also decides to externally paint the building at the same time. You (and your letting owners) accept that it would be dangerous not to make these renovations. Problem is, the building is going to be covered in scaffolding for 18 months. Units will be incapable of being let for periods of time, owners will be hit with substantially reduced income, cleaning of the common property will increase dramatically because of tradesmen coming and going, your caretaking workload doubles anad you estimate that your income from running the onsite letting business will be down $100k-$250k for the 18 months. This is a real case scenario I have come across on more than one occasion. Surely you are entitled to compensation for the loss of your letting income? Surely the body corporate is going to increase your caretaking fee because of the additional work you have to do? Simply put, there is no compensation payable for the loss of your letting income unless

you can somehow link the loss to negligence on the part of the body corporate. The same applies to the unit owners in your letting pool. At best, this will be very difficult to prove and at worse, impossible to prove. What about your caretaking remuneration? Are you entitled to an increase to cover the additional work? Unfortunately (and unfairly) in many cases, you will not be entitled to further remuneration. It all comes back to the wording in your caretaking agreement. Some agreements contemplate the building manager receiving an

additional hourly rate payment for supervising work associated with payments out of the Body Corporate sinking fund. However, many agreements are silent on this point, which means that you may be caught by your general duties under your agreement to clean and maintain and you receive no more than your base remuneration. Frustrating? 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.

 Structuring  Income Verification  Accounting/Taxation  Superannuation  Audit

Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business? We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry. Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.

PO Box 391 WEST BURLEIGH QLD 4219 Phone: (07) 5534 4333 | Fax: (07) 5534 2081 reception@jonathangrant.com.au | www.jonathangrant.com.au

INDUSTRY

SCA REPORT

Empowering the body corporate to self-govern For the first time in Queensland, a by-law banning short-term letting within a strata community has been successful, and we are cautiously optimistic in the message this sends to the Queensland Government to grant more powers to bodies corporate. The groundbreaking decision saw members of a Gold Coast body corporate successfully appeal a prior ruling on the validity of the by-law, empowering the body corporate to enact and enforce by-laws which are true to their community values. The case (Fairway Island GTP v Redman and Murray [2019] QMC 13) will not directly impact the majority of Queensland schemes, but it is a promising outcome considering the current legislative review. While most of Queensland’s 50,000 scheme strong strata community is covered by the more restrictive Body Corporate and Community Management Act (BCCMA), the Fairway Island Scheme, along with about 500 others, is governed by the Building Units and Group Titles Act (BUGTA). Given the ongoing property law review and the impending consultation draft of the BCCMA, I am hopeful that the Queensland Government is paying close attention to the decision and noting the media coverage and community excitement that it has generated.

So what is the big difference? Under the BCCMA, one of the limitations placed on by-laws is that, “If a lot may lawfully be used for residential purposes, the by-laws cannot restrict the type of residential use”, whereas the limitation on by-laws under

better course would surely be for the government to consider the specific issues relevant to the types of short term letting and seek public consultation on the appropriate legislative change that may be required.

James Nickless, President, SCA, Qld

BUGTA examined in this case provides, “No by-law or any amendment of or addition to a by-law shall be capable of operating to prohibit or restrict the devolution of a lot or a transfer, lease, mortgage or other dealing therewith or to destroy or modify any easement, service right or service obligation implied or created by this Act”. While the above sections from each act are clearly different, there was some comment made by the Magistrate in the Fairway Island decision that could affect by-laws under the BCCMA, including: “A great many of the cases decided under the BCCM place weight on promises by occupiers/ owners to conduct themselves in a manner that attempt to make the restrictions placed upon them by the BC look ‘unreasonable’ in operation. Just because a by-law could be more reasonable does not make it unreasonable.” “I have read a number of referees’ decisions over the years where they appear to have incorrectly applied the maximum that the power to regulate is not a power to prohibit. It is a power to prohibit. Just not everything to which the power applies.” It is impossible to accurately predict what the outcome of any potential future appeals under the BCCMA as to the correct interpretation of the terms “restrict the type of residential use” may be. However, given that services such as Airbnb were not contemplated by the drafters of BCCMA in 1997, the

This case not only stands out because of the outcome in favour of the body corporate, but also in part because of the Magistrate’s consideration as to why Parliament has given bodies corporate the power to make by-laws. Under conservative legislation (that is conservatively interpreted), we see many bodies corporate throughout Queensland unable to regulate their community with meaningful by-laws, due to the restrictions in place on what by-laws can and cannot do. The consensus of a significant majority of lot owners on any proposed by-law can be and has been regularly overruled by an outside decision maker who believes it to be unreasonable. The Magistrate’s decision helpfully explains why any outside decisionmaker should be reluctant to overrule the majority. Neither SCA (Qld) nor I oppose short-term letting, but we do support the empowerment of bodies corporate to develop by-laws that suit their own circumstance. Strata is often referred to as the fourth tier of government and by preventing lot owners from self-governing through the implementation of their community values, the legislation impedes the ability of schemes to function optimally and can adversely affect residential harmony. There is a balance that needs to be maintained between some of the secondary objectives of the BCCMA, including; “to balance the rights of individuals with the responsibility for selfmanagement as an inherent aspect of community titles schemes”, “to encourage the tourism potential of community titles schemes without diminishing the rights and responsibilities of owners, and intending buyers, of lots

INDUSTRY

in community titles schemes”, and “to provide an appropriate level of consumer protection for owners and intending buyers of lots included in community titles schemes”. There has been a thriving management rights industry in Queensland for decades, which for the most part, has balanced the above objectives. The emergence of disruptive peer-to-peer property letting platforms such as Airbnb highlights the need to revisit the current balance from a legislative point of view to ensure the rights of all stakeholders are properly represented. With regard to the ongoing property law review, SCA (Qld) completed submissions to all five draft modules as well as the BCCMA. In many instances, the proposed changes do not effectively increase clarity or better facilitate self-management of bodies corporate. Unfortunately, sections of the draft are overly convoluted, require specialised knowledge, and will decrease transparency, thereby resulting in further reliance on strata managers and lawyers, along with a greater burden on the Office of the Commissioner for Body Corporate and Community Management in the form of adjudication applications. Thankfully though, the modules include many sensible reforms that will do much to streamline and modernise body corporate procedures, reduce body corporate costs and enhance protections for unit owners. In many ways, however, the reforms are simply the regulations catching up with and rubber stamping the practical and flexible procedures which are already being utilised by most bodies corporate. The review is now entering its seventh year, so while we appreciate governmental efforts at consultation, we look forward to the day that many of these changes are enshrined in legislation and actually make a difference to those living in the strata community. ResortNews | December 2019

The subject of easements, particularly statutory easements, can be a significant issue for bodies corporate.

simply because we’d wish things to happen more quickly – an emergency is usually something which happens with little or no warning and with very little time to react. In relation to the notice, consider putting in as much detail as you would like if you were the person receiving it.

So what do we mean by a ‘statutory easement’, exactly? Well, an easement can be thought of as the right to enter or use a section of land for a particular purpose by someone who is not the land owner and so would not normally have that right of entry. As you’d expect from the above there are several types of easements and they might include things such as giving a right-ofway (people are allowed to pass through a property on a defined strip of land) or the provision of services (e.g. conveying gas, water or electricity). Then there are some situations where easements are in place according to the Land Title Act 1984 and these are what are known as statutory easements – i.e. the easement is provided for under a statute (piece of legislation). For bodies corporate, the nature, number and location of statutory easements might be significant and have a big impact on the community titles scheme and its occupiers. The easement may, for example, be part of an individual lot or on common property and may also give rights of entry to a lot or common property.

Chris Irons,

Commissioner, Body Corporate & Community Management

be recorded in the community management statement. In practical terms and from a body corporate’s perspective, a statutory easement may allow a body corporate to enter a lot to carry out work and this is different to the right of a body corporate under section 163 of the Act to enter a lot or exclusive use area to do an inspection or carry out work.

Sections 67-70 of the Body Corporate and Community Management Act 1997 provide for the exercise of rights under a statutory easement and, in particular, provide that the exercise of that right can only occur in a way that doesn’t unreasonably interfere with the use or enjoyment of a lot or common property. The Act also provides for what are known as ancillary rights, which are the additional and related rights that support statutory easement rights. Both the ancillary rights and easement itself may

I can appreciate that this lack of definition might be problematic. I’d suggest that this might be overcome by applying a practical approach. For example, something isn’t an “emergency”

December 2019 | ResortNews

As you might gather from the above, statutory easements may have significant implications on both an individual and a body corporate’s legal rights and responsibilities, so seeking qualified legal advice might be advisable if there is a query about what statutory easements exist and also prior to exercising a right in relation to those easements.

We also have a module, as part of our free online training course, about maintenance which includes reference to statutory easements. The link to that is https://publications.qld. gov.au/dataset/body-corporatemanagement-training-unit-4maintenance/resource/f1f3fbc29ebb-44d2-9c35-41391749ff45 – although I would, of course, recommend you undertake the entire online training, available at https://www.qld.gov.au/ law/housing-and-neighbours/ body-corporate/legislation-andbccm/services/training.

You can contact the Titles Office – part of the Department of Natural Resources, Mines and Energy – for information about titles issues generally. Visit https://www.dnrme.qld.gov.

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

Equally, a statutory easement may allow a lot owner to enter another lot to carry out work. A practical example of this might be where there is a duplex (two-lot scheme) and the switchboard is located in the backyard of one lot but the safety switch for the second lot needs to be reset. The statutory easement would exist against the first lot and allowing the owner of the second lot to enter the first lot to reset the switch. The Act provides that an owner or body corporate must give reasonable written notice before they can enter a lot or common property to carry out work under a statutory easement. That said, the Act does not define what is “reasonable” and therefore there isn’t a definition for how many days’ notice is appropriate or what a “written notice” should include. Additionally, the Act goes on to provide that in an emergency situation – and “emergency” is also not defined – notice is not required.

au/titles-valuations for more information or call 1300 255 750.

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

Over 40 years of service to the Management Rights industry, providing assistance in: Buying and Selling Ensuring Agreements Comply with the Law Agreement Negotiation with Bodies Corporate Representation to Licensing Authorities ‘Body Corporate & Community Management Act’ Advice Employee Dispute Resolution For expert advice please contact; Paul Jones John Punch Phone: 5570 9327 Fax: 5539 8745 Phone: 5570 9322 Fax: 5539 8745 paul.jones@spglawyers.com.au john.punch@spglawyers.com.au Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164 GCMC, Bundall, QLD 9726

INDUSTRY

BCCM REPORT

Who goes there: Statutory easements

THINKING MR

The perils of

remote property management Before you go any further please dial up YouTube and have a look at this clip from the 1975 classic movie network. The rest of this little story will be all the more entertaining for it.

views and had been selected because it allowed all of us to have a nice aspect from our beds. Sadly, the view from our daughters’ room was obstructed by a large defunct washing machine which appeared to have been retired to the terrace. Not a good look.

Search YouTube for I’m as mad as hell and I won’t take it anymore.

While I wondered what sort of genius expects a guest paying a very significant tariff to accept this the MD called my attention to the walk-in robe in the master bedroom. Quite a spacious area to be sure and just as well because the owner had stored a decommissioned outdoor setting in it. As such no clothes could be hung and we had Melbourne Cup the next day. The MD and second born both had a range of fashion options which required storage. I was directed into action and fast!

I always thought that grumpy old man was a cliché. Not so.

Mike Phipps, Director, Mike Phipps Finance

The managing director and I recently decided to take our daughter for a week’s holiday. The boomerang child has been studying and getting good results, so we thought a treat was in order. She chose a tropical island sojourn and so off we went to Hamilton Island in the Whitsundays. The MD arranged a villa via a holiday home property management business and off we went.

and villa style accommodation. The management company, as it turned out, are based on the Gold Coast. Our friends at Virgin flew us out of Brisbane with no glitches and no delays. Well worth a few extra dollars for reliability. The flight into the island did not disappoint and is surely one of the most magnificent a traveller can experience. Our transfer driver was waiting for us and the weather was perfect. I should have known this couldn’t last.

I should stress that the accommodation we chose was privately owned and not managed by the people who run the island and most of the hotel

We were delivered to our lodgings on the boat harbour waterfront and started settling in. The property boasted four bedrooms, two with water

A call to the property management company garnered a long list of reasons why dumped white goods and outdoor settings should be acceptable to guests and many excuses and apologies, but no

solution. It’s an island, there are no storage options, the owner has done his best etc. Anyway, after some unpleasantness it turned out there was plenty of room in the owner’s garage and two burly blokes turned up and took the offending items away. All sorted, let’s have a swim. The pool in the photos looked very inviting. Turned out the photo was very clever indeed. It made a corner shot of a spa look like a much larger aquatic playground. Checked the property managers web site and yep, it says swimming pool. Called the property manager.......mate, where’s the swimming pool? Oh , it’s actually a plunge pool. No worries, why don’t you come up here and plunge in? I’ll have an ambo standing by to treat you for the head injury. It’s a spa! While on the subject of web site photos we made another interesting discovery. All the photos were taken from one angle. We soon worked out why when we discovered that the boat yard servicing the marina is right next door.

LEGAL EASE

Gallery View variation explained No matter how well we consider and plan for eventualities, we can also expect that something will occur to be a “disrupter” – particularly when you least expect it to happen. This occurs in the law especially when the decision of a Court or Tribunal suddenly comes out of unusual circumstances, with an unexpected interpretation of the law, as it is written by the legislators. This happened five years ago when the QCA Tribunal decided the case involving Suncorp and

John Punch Short Punch & Greatorix

the Gallery Vie Body Corporate (commonly called the Gallery Vie Decision), which did not get tested by an appeal to an actual court of law. The result

of the Tribunal was that doubt was cast on the security held by a bank over the Management Rights Agreements, as made by a body corporate. It concerned a body corporate’s right to terminate the agreements if the manager is a company and a liquidator is appointed, at a point and time after a bank’s receiver has already stepped in to conduct the business and is performing of the agreements. This case had a major impact on the banks who finance management rights. Normally, when an unexpected interpretation or application through facts and law occurs,

MANAGEMENT

so as to upset the intent of the law (statute), the legislator will consider a small correction to the law and pass it through Parliament as soon as is possible. In this case, that did not happen with the Queensland Government, despite approaches from the management rights industry voice ARAMA. So, lawyers assisting management right industry operators, such as my firm, have been indicating to operators of their management rights, how they can have a slight variation to the wording of the agreements to make it safer for a bank to lend money. ResortNews | December 2019

While I love beautiful boats, I get no real pleasure out of listening to them being craned from the water and having the barnacles ground off them. Turns out there are lots of boats in need of barnacle removal at Hamilton Island! Not the end of the world. The weather’s pretty mild so a nice warm spa of an evening will do the trick. Sorry, it’s not heated. The owner cut off the heating because guests were using it and it was costing money. Ok, good to know. Melbourne Cup at the Yacht Club the next day was pretty special. Yeah, I know, tough gig but someone’s got to do it! The atmosphere and view were lovely and given the occasion we hit the champagne. The champagne, being an equal opportunity beverage, waited until the next morning and hit us right back. You can imagine how impressed we were, as we nursed post cup headaches, to be greeted by much hammering and grinding emanating from the apartment above us. Back on to the property manager. Great response…no, that renovation was finished weeks ago. By day three the nonexistent renovation had forced us to spend most of the day elsewhere and brought the MD to a state of emotion whereby she fluctuated between tears and homicidal thoughts.

This entails lot owners in the scheme, voting on a Motion which is, presented to owners, as an Ordinary Resolution, but by secret ballot, at an annual general meeting (or, if urgent, at an extraordinary general meeting). This should be easy enough to achieve as a reasonable path for all involved. However, more recently another “disrupter” has eventuated, in the form of some legal advisers to a body corporate. They indicate a need to have sometimes expensive legal representation, give advice to the body corporate and with a request to the manager to pay for it, of course. It is amazing how this interpretation, was never considered or anticipated to be an issue between 1997 and 2015, in so far as applying the December 2019 | ResortNews

In desperation we visited our building contractor friends on the floor above and took a short video which we emailed to the property manager. The response was breathtaking… how loud is it really, and maybe it won’t go on all day ? To give them some credit they did seem to take the situation seriously and got on to the builders. Made no difference to noise but at least they tried. We were also offered another unit on the ground level with no view and a very, very tired fit-out. Not exactly a compelling solution in a location where the view is everything.

Needless to say, we have suggested to the managers that units impacted by renovations should either not be made available for rental or the guests should be advised, and the tariff adjusted accordingly. We await a response to our request for a partial refund although we’re not holding our breath. I have avoided naming the property manager or the specific property in order to give the owner an opportunity to address our concerns. I suspect the MD has not been so kind on her Trip Advisor account. So, what have we learned? One thing for sure. Be wary of any

leisure accommodation that is managed off site by a faceless organisation that doesn’t know its product intimately. If this had been a management rights facility with an onsite manager, I am sure they would have known about the renovation and other problems and would have taken the unit out of the rental pool or at least made us aware of the issues. We would have had someone to talk to face to face and I am confident we would have had a much more pleasant experience. The unit we stayed in is on the market for $3.6M… if you buy it let me know.

Act was concerned, but now becomes a matter for caution and debate from legal advisers! At SP&G Lawyers, we have been saying to all managers, since the decision in 2015, don’t delay in seeking a Motion to vary at your next AGM, if the wording of your agreement needs it. Surprisingly, many still have not. This presents a difficulty to their financier or to any buyer contemplating buying with finance. It will disrupt the sale process at a time when a manager wants everything to go smoothly for a sale. Recently, I assisted a manager with an “easy to understand” explanation, which the Manager can send to all owners. It tackles the need for the manager to be able to seek assistance and cooperation from all owners for their vote, by a mail out to all owners. Provided there is

not a disruption caused by a negative committee, committee person or a legal advisor, there should really be no reason for

MANAGEMENT

an owner not to vote in favour of the Motion, so as to bring the standing of the agreement back to the pre-2015 decision days.

TRAINING Q&A

Q&A “Leadership and learning are indispensable to each other” – John F. Kennedy © Pixel-Shot, stock.adobe.com

the units of competency for licensing, it has been suggested that these changes will be introduced as early as mid-2021. Students enrolling in courses in 2021 will be advised of the changes to legislation and training units.

By Trish Riley Riley, Editor

There appears to be reform afoot throughout the real estate and management rights sectors, with more calls being made for greater governance, a review into accreditation and licensing requirements and even the introduction of compulsory CPD or CTD to ensure that all aspects of the industry are adequately covered and stakeholders protected. With all of this on the horizon, I thought it prudent to sit down with Dennis Mackenzie, CEO of Property Training Australia (PTA) to gain a better perspective on what’s available and how best to move forward. Here are some of the common questions that are asked for licensing.

Q: Are you aware of new training being introduced in the near future? A: Yes, we have been working very closely with the governing bodies, including QLD Office of Fair Trading, ARAMA and the national training regulator ARTIBUS that are all involved

Q: What is PTA doing in regards to proposed legislation changes regarding CTD (Continual Training Development)?

Dennis Mackenzie, Property Training Australia

in industry accreditation. This is to ensure that our training remains at the highest level. We anticipate that there will be a number of new training units introduced across all licenses in coming years and we are prepared for this. We are trying to make the transition as effortless as possible for past and present students. Feel free to contact us if you have some questions about the new legislation.

Q: What are the timelines expected regarding these changes? A: Subject to the Queensland Office of Fair Trading approving

A: PTA strongly support the proposed changes to CTD. For years we have been holding ‘Professional Development’ sessions to ensure that the industry keeps up to date with all changes within the industry. We have urged students to come back annually and hope that the proposed legislation changes will make it mandatory for all licensed agents to complete some form of CTD. This will ensure the whole industry upskills professionally, and that the industry as a whole can benefit from monitored standards and a higher code of conduct.

Q: How do I get my full real estate license? A: Once you have completed the 19 units of competency that is required to hold a full license in Queensland,

MANAGEMENT

you will need to lodge your Statement of Attainment with the Office of Fair Trading. (Note that no professional training organisation will ever issue a license, they can only issue a statement of qualifications). The Office of Fair Trading will process the application, which can take anywhere between four and six weeks, and will then issue a physical copy of your license. Should an employer need proof of certification, you can show them your qualification and proof that it has been lodged with the Government (OFT) to demonstrate that you are simply waiting on a copy of your license. Fees are dependent on the duration you wish your license to be valid – please check the oft website.

Q: How long is the full licensing course take? A: The full real estate licensing course can be completed online, in class or through private tuition, all of which will require you to physically attend an auction for one assessment. If you decide to do the course online and you have 24-hour access to your course and can work from home at your own pace, PTA suggests that a minimum of 90 hours will ResortNews | December 2019

be required to complete all 19 units of competency. If you decide to do the course in class, you can complete the majority of the course in 10 days, keeping in mind that you will need to attend an auction to complete the course. Private Tuition is the quickest option as it is personal one-onone training and enables the trainee to complete all 19 units in under a week; this option is very intensive and largely dependent on how quickly you work and more importantly, your understanding of the content.

Q: I have not renewed my license – what do I do now? A: A professional training organisation can review the situation and advise if credit transfers apply or if a new course will need to be completed. If the modules studied previously. Contact a suitable training company for an assessment and recommendation.

Q: I have worked in real estate for many years and need to do a refresher course.

Q: What course do I need to complete to work in property management?

agency or management rights business you will be required to complete a full real estate license, consisting of 19 units.

A: There are several training companies that offer refresher courses in the main centres throughout Queensland.

A: This depends on what form of property management you wish to pursue.

Q: Some companies offer a full license in a couple days, is this viable?

With licensing reform a very current topic now, PTA recommend that all licensed agents undertake a refresher course once a year. This training will also contribute to your professional development.

Q: If I complete a sales/property manager course, can I work in a real estate office? A: Yes, this license is an entry level license that is ideal for someone new to the industry. It qualifies you to work in a real estate office under the supervision of an agent with a full license. You will not however, be able to operate your own agency with this license.

If you are looking at doing onsite property management and working in management rights then you will be required, at a minimum, to complete the Resident Letting Agents (RLA) course. You can then choose to upgrade your skills later to further your career/ business opportunities. If you are wishing to work in property management from a real estate office, the best course would be the combined ‘Salesperson and Property Management Registration’ course – this training covers the first seven units of the real estate licensing course and allows you to work in an office, under a principal agent.

Q: What license do I need to own a real estate agency? A: To own and operate your own

A: As with almost everything in life, if it seems too good to be true it probably is! Compressed courses offer limited class time and the large majority of the work to be completed at home. Having been involved with training since 2003 we have ascertained that to complete 19 units of competency – and to actually be competent, it generally requires more than two or three days. Read the fine print and understand what the work load is to be done outside of class. It is impossible to complete the course to the required level in a few days and you are likely to have to spend weeks if not months at home completing the course.

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MANAGEMENT

BY ALL ACCOUNTS

Banks behaving badly? Maybe… © motortion, stock.adobe.com

In recent times our financial institutions appear to have become the whipping boys for everyone from our politicians and regulators to the terminally aggrieved rent seekers*, and everyone in between. Sometimes it’s difficult to tell the real story from the fake news but I intend to give it a crack. In this article I am going to focus on two specific, though intertwined concepts, known most commonly in financial circles as AML and KYC. That is, ‘anti money laundering’ and ‘know your customer’. AML compliance guidelines are legislated under the AntMoney Laundering and Counter Terrorism Financing Act 2006. Know your customer guidelines are set out under regulations administered via AUSTRAC, the Australian Transactions Reports and Analysis Centre. AUSTRAC is also responsible for the monitoring of compliance under AML legislation. Importantly, it’s not just banks that are caught up in these laws, albeit they are biggest fish in the pond. Various other regulations and legislation such as Financial Transactions Reports Act 1988 capture the conduct of lawyers, motor dealers and

illegally moving forward. Typically, this will be cash transactions or suspicious money transfers. Indeed, all cash transactions over a designated amount must be reported to AUSTRAC within 10 days. It’s not just banks that get caught in this reporting duty. For example, casinos and other gambling services also have a reporting obligation. Cameron Wicking, Finance Broker, Mike Phipps Finance

various other business activities involving trust accounts and the facilitation of payments. While these laws and regulations are quite complex the general intent is very simple. To discourage the use of our financial system to commit crimes and to identify unlawful behaviour when it occurs. To this end banks, and finance brokers, must ensure they know who they are dealing with and take appropriate steps to confirm identification documents. They must also take reasonable steps to satisfy themselves that customers intend to use banking services and products in a lawful manner. Any suspicion to the contrary must be reported promptly. Banks must also have in place appropriate safeguards to ensure that any suspicious activity is reported to AUSTRAC to ensure that these accounts are not used

In mid-2018 the Commonwealth Bank, our largest bank, agreed to pay a fine of $700M in relation to anti-money laundering and terror financing breaches. This was, at the time, the biggest fine in Australian corporate history. It’s important to make a critical distinction here. The CBA was not accused of money laundering or funding terrorists. The accusation was that based on certain transaction patterns it’s products and services may have been used for such purposes. Among the breaches admitted by the CBA was the potential use of its newly introduced intelligent deposit machines by parties who may have been seeking to sidestep cash transactions reporting. Importantly, it does not appear that any actual criminal activities were discovered with the bank being penalised for late reporting and various failures to property monitor customer activity. More recently we have seen Westpac under the spotlight in similar circumstances, albeit the possible quantum of breaches

MANAGEMENT

and financial penalties may well place Westpac ahead of the CBA in ways one would rather avoid. In late November 2019 AUSTRAC applied for civil penalty orders against Westpac relating to, among other things, failing to monitor money laundering and terrorism financing risks, failing to report 19.5 million international funds transfers and failing to share information regarding source of funds with other banks in the transfer chain. AUSTRAC further claims that Westpac failed to have appropriate systems in place to carry out due diligence relating to suspicious transactions which may have been linked to child exploitation. Total breaches, according to an ABC story published November 20, and quoting AUSTRAC, exceed 23 million occasions with possible civil penalties at an eye watering $17M to $21M per contravention. As was the case with the CBA settlement the actual penalty is likely to be much smaller, although likely to set a new record in the corporate fines department. And as with the CBA, there is no smoking gun that we are aware of, just a lack of reporting compliance and the possibility of the bank’s services being used by criminals, admittedly to possible commit truly heinous crimes. What to make of all of this? A few thoughts, some just to stir a bit of debate perhaps. ResortNews | December 2019

It strikes us that the civil penalties available to the regulator are over the top. Sure, if a crime is proved as an outcome of non-compliance, the skies the limit. But, having a $17M penalty available for missing a reporting date seems a tad harsh, particularly if you are shareholder of that bank.

greater good as those huge fines will surely find their way to funding for improved financial services across Australia. Unlikely – for the most part they will go to federal consolidated revenue and are just as likely to be funding a grant for the ground parrot preservation society by this time next year.

Is it also not a little too convenient that these accusations have come off the back of the same regulator being accused that they have not been strong enough in their regulation of the banks following the Royal Commission?

On a final note, a contrarian thought just to keep the mind ticking over. Banks are product and service providers. They develop, test and sell financial services that are entirely legal and highly regulated. Under our current legislation they are also responsible for how those products are used and they must report any suspicion that a product is going to be misused. We find it interesting that a similar legislative attitude is not more widespread. We live in a country where I can take the money of a venerable person via a large box with many shiny lights, buttons, sound effects and a promise of riches, maybe. A country where I can legally sell you a plant-

It seems to us that while the banks’ senior management have been paying themselves massive bonuses, they have failed to invest in technology that might have saved them from this mess. As iTNews reported, “when it comes to epic fails of transaction monitoring systems, they don’t get much bigger than Westpac’s alleged abrogation of automated anti-money laundering and counter terrorism financing checks and reporting”. Of course, all of this is for the

based product that does what is says on the box, just light up and it may well kill you. I can sell you a tank of premium 98 and once you are off the driveway you are no longer my concern.

or propellant. There is no doubt that AML and KYC compliance are vitally important, it’s just that we may have got a bit carried away.

Use that automated projectile in a careless or criminal way and there’s no recourse to the supplier of the vehicle

*Rent seeking is an economic concept that occurs when a person or entity seeks to gain added wealth without any reciprocal contribution to productivity.

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MANAGEMENT

MOTEL MARKET

Annual motel market wrap-up: 2019

At the end of each year we look back at how things unfolded and whether the crystal ball we have in the back office was accurate. Whether our predictions on how the market would perform were on point, or way off the mark. This time around the market performed pretty much as we expected. It started out similar to the previous year but gradually became a little more subdued. Looking back, 2018 was always going to be a tough act to follow – the market is a fluctuating dynamic and can only stay at the same level for so long. In saying that, 2019 has been busy, although it has become more of a buyer’s market as the year progressed. External influences have played a role in the market’s performance with financing acquisitions proving more difficult for some, insurance premiums rising and in some cases insurance companies being unwilling to insure certain properties or localities at all. The appetite of investors has been there, however for some, those are very challenging hurdles to overcome. 2019 has been solid without being flashy. Quality, wellpresented properties and businesses have been selling. Yields have been under pressure

The final quarter of 2019 has seen activity decline and the buyer market in full swing. There have been numerous contracts pending settlement however, the conditionality periods seemed to extend more than usual, again largely due to external influences.

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

in some regions, particularly when properties have been in need of refurbishment. The first quarter started out very strongly with much activity that had been building up for an extended period in mid to late 2018, and there were a large number of sales concluded with solid yields in both freehold and leasehold markets. Despite this, many owners that were considering selling early in the year decided to take a hold and view approach to see how the market would unfold as the year progressed. The second quarter saw a more subdued period however, and with fewer listings available on the market the choice was not as great. During the third quarter there was a lot of negotiations happening however concluded sales dropped off. Buyers were still very active but for various reasons buyers and sellers were not finding middle ground on pricing as they had previously.

Solid gains in economic prosperity have been welcomed; increasing occupancy rates have resulted and room rates are continuing to see pressure increase. The resources sector has been positive and there has been strong growth and demand for labour in regional towns within South West and Central Queensland. Demand for accommodation has grown considerably over the course of the year and Emerald is one example where occupancy rates on the back of demand have increased month on month all year. Despite positive reports, the tourism sector has been a little subdued in areas of the state with total visitor numbers being down on last year in some areas around five percent. International visitors are down but by less than one percent and the Australian Dollar has been sub-70 cents (around 67-69 cents) late in 2019. Leasehold motel transactions were the quietest sector of the market, which was similar to last year. There have been reasonable enquiry levels however access to finance has

MANAGEMENT

held many back from being able to complete transactions, and first-time entrants to the industry with no experience, have needed to pursue suitable financing arrangements more aggressively than in the past. Investors have continued to seek the comfort that freehold motels offer with sales being recorded at all stages throughout the year. Good quality freehold properties with up to date trading data, priced correctly, and presenting well are selling. Freehold passive investments have continued to be sought after by investors. The low bank interest rates available on both loans and deposits has seen demand soar for motels under lease. This high demand is expected to continue with the expectation of low interest rates to remain. There has however, been pressure on buyers to meet the time frames of special conditions within contracts of sale for fear of sellers terminating in favour of under bidders. In contrast to 2018, this year not all contracts of sale have reached settlement for a variety of reasons. It is however, almost time to close this year down and put the crystal ball away - all of us here at Queensland Tourism and Hospitality Brokers wish you a very positive and prosperous 2020 across the accommodation industry. ResortNews | December 2019

STRATA TRENDS

Pet and smoking bans could be part of strata shake up Bodies corporate in Queensland are set to have the power to enforce a ban on pets and smoking in strata title communities under proposed changes to strata industry laws being considered by the State Government. Pet and smoke free by-laws, the ability to issue fines for by-law breaches as well as towing of illegally parked vehicles are among issues being considered in a long-awaited major review of the Body Corporate and Community Management Act. There are also proposed changes to strata regulations currently out for consultations, which mostly relate to day-to-

Grant Mifsud, Archers day body corporate meeting and administrative procedures. These proposed changes consist of recognising the digital world including electronic voting and notices, clarify current practices such as the ability for committee to renew insurance policies and also allow owners to submit motions to their committees.

One of the recommendations still to be put forward for consultation within the Act is about allowing a building, from when it’s first registered, to have a pet-free by-law in place. Currently you can’t do that, it’s considered to be oppressive and unreasonable. But under the proposed recommendation, if the majority of owners don’t want pets in a building, they can create and enforce a by-law, and similarly they can create a by-law allowing pets. The same principle would apply to smoking in strata communities

with some owners wanting a smoke-free area, and some happy to allow smoking. The purpose of these changes is about making legislation fit the current circumstances of everyday bodies corporate. There have been new regulation modules released by the Government that bring the laws up to date by recognising the digital world, closing loopholes over power of attorney and allowing changes to quorum requirements at body corporate annual general meetings.

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MANAGEMENT

The landscaping team chose Grillex products, as their innovative and high quality designs, aligned with Latitude25’s needs. From the Akora BBQ Packages around the lake, that provide the perfect shade solution for entertaining in those Queensland summers to the drinking fountains with water bowls near the base for our furry friends; everything is designed with users in mind. To see the full range of Grillex products visit www.grillex.com.au

GOOD GOVERNANCE

The building defect assessment review

It appears that the Queensland body corporate law reform is going to make it even easier for bodies corporate to manage their defective building work claims going forward, with the introduction of requirements to include motions for engaging independent, qualified building inspectors to conduct building defect assessment review inspections. The following step-by-step process is an excerpt from the ABMA Building Management Code© and every new building owner’s guide to getting the most out of the statutory builder’s warranty. Each step in the process is equally as vital. Step 1 – Harvest the building contract(s) – remember that there may be more than one building contract. The inspectors will need all of them. Step 2 – Harvest the “As Constructed” documentation and sub-contractor warranties Step 3 – Determine the enduring warranties [statutory and/or voluntary], the

NOTE – Structural defect warranties start all over again once remedial works are complete, so it is important to harvest the new warranty documentation once the repairs are finished.

Lynda Kypriadakis, Diverse FMX

warranty conditions and associated body corporate maintenance responsibilities Step 3 – Understand the defect liability periods [you will need a specialist lawyer for this] Step 4 – Preserve your rights - get legal advice Step 5 – Formally identify the building defects and define the building codes and standards breached [you will need a specialist building defect inspector for this] Step 6 – Issue a formal notification of defects upon the builder and demand rectification Step 7 – Technical substantiation of the builder’s remedial efforts is important if the builder does return to rectify, including ensuring that all repair works come with new warranties.

Step 8 – Regulatory intervention is an option if the builder fails to return to rectify on the formal notice. The body corporate can lodge a defective building work claim with the Queensland Building & Construction Commission [“QBCC”] and follow the regulatory process. If defects are confirmed the QBCC will issue a direction to rectify upon the builder. Step 9 – Civil proceedings are the final step for bodies corporate in circumstances where the builder fails to follow a direction to rectify from the QBCC and defects are in dispute. The building owner will need specific legal advice on costs of repairs, how to finance them and prospects of success in launching any civil proceedings to claim from the builder. NOTE – If the cost of rectifying the defects does not exceed $300,000 it is unlikely to be financially viable to pursue the builder through civil litigation as legal costs may not render this exercise cost eﬀective. Legal advice

MANAGEMENT

is highly recommended from the very outset of the newly registered scheme.

Defect liability period It is fundamentally important that the body corporate get site specific legal advice on the statutory defect liability period(s) for the building contract. Along with this vital legal advice the body corporate needs to fully understand what their rights are when it comes to defects and what action must be taken at certain times so as to not miss claim opportunities. Non-structural defects (previously referred to as “Category 2 Defects”), such as delaminating tiles, missing grout, fraying carpet, fouling doors/drawers/windows, paint scratches, minor cracks, eﬄorescence, etc. have a 12-month defect liability period in Queensland. These defects typically present inside apartments and offices, or in recreational facilities within the common property. These defects need to be picked up and reported to the builder within 10-11 months past the Certificate of Classification in order for these to be rectified prior to the expiration of the non-structural defect liability period. ResortNews | December 2019

Structural defects (previously referred to as “Category 1 Defects”), such as water leaks, significant cracks, delaminating waterproof membranes, defects in the fire protection system, safety issues, etc. have a six years plus six months defect liability period in Queensland.

From this suite of documentation the body corporate will be able to make successful warranty claim against the original builder – or, in scenarios when the builder is bankrupt – against the individual signatories of Form 16’s and sub-contractor warranties.

These defects typically present on the common property of the scheme, in the riser cupboards and service areas, plant rooms and basement car park areas.

When it comes to successfully managing a defective building work claim, three things really go in the body corporate’s favour: -

These defects need to be picked up and reported to the builder as soon as possible – prior to six years past the Certificate of Classification, in order for these to be rectified prior to the expiration of the structural defect liability period.

Early identification of issues/defects

Full suite of “As Cons” and Building Contract

Tenacity

Duty to report The body corporate has a duty to report defects in a timely manner to the builder. If the builder can prove that the body corporate knew about a defect (e.g. a water leak) and left it for an extended period of time before reporting it, the QBCC may fail to issue a direction to rectify upon the builder and leave the defect up to the body corporate to rectify at their cost. This is because the water leak may have been much easier for the builder to repair when it was first noticed. The QBCC won’t hold the builder liable for these types of defects that have been let go for extended periods of time. NOTE – Legal advice will confirm these types of time and reporting limitations.

Value of “As Constructed” documentation and the Building Contract In order to lodge a defective building work claim the QBCC will ask for a copy of the Building Contract, which should have been handed over [by the developer] to the body corporate at the first AGM of the newly registered scheme. Along with the building contract, there should be the full suite of “As Constructed” plans, warranty certificates, Form 15’s and Form 16’s as well as all operations manuals for all plant and equipment installed on site. December 2019 | ResortNews

NOTE – Getting a specialist consultant to assist with harvesting and auditing the Building Contract and “As Cons” will ensure the background information is organised for managing a successful claim.

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Insured or not insured Buildings over three-storeys in height may not be covered by the QBCC Home Warranty Insurance, however this does not mean that the QBCC can’t help you with your building. The QBCC is there to support all consumers of construction products – including bodies corporate of high-rise and commercial schemes.

Builder bankrupt? We often hear that builders or developers are “bankrupt” and then discover that they have rebranded their trading entity and are building another project on the other side of town. It is really important that you get specialist legal advice on who is liable and whether a claim can still be made. There can be still be recourse for bodies corporate determined to make a successful warranty claim in circumstances where the builder is a deregistered entity, a legitimate bankrupt and/or has deactivated his/her QBCC license. Ultimately, for the best result, all stakeholders should know the Act and compliance regulations and where necessary, they should seek specialist legal advice. MANAGEMENT

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INTONET

Jingle bells and robots "The telephone is a good way to talk to people without having to offer them a drink."

high, and because of that those calls are also getting a lot of attention from the government and technology companies.

So said Fran Lebowitz, the American author who disapproves of virtually everything except sleep. I think it is safe to say we have all received a call that starts with: "Hello, can you hear me?" Or perhaps: "Congratulations! You've won a free trip to the Bahamas!" the moment you say hello. It is somewhat exciting, if not confusing the first time it happens but when you realise it’s a robocall and, ultimately, a scam, then the

Arvo Elias, Cybercons

frustration sets in. Particularly, as you have just sat down for dinner. The number of robocalls ringing our phones at all hours of the day has reached an all-time

Robocalls convey a pre-recorded message to your phone that generally urges you to do something. Sometimes it is a message from a candidate running for office or a call from your bank advertising a new service. Even more worrisome are the scam robocalls posing as the "ATO" or similar that intend to trick people out of their money. Obviously not all such calls are malevolent, and can indeed be life savers at such times as bushfires for example. But

if you are being bothered by unwarranted and disturbing calls, consider the following: The first steps to take to protect yourself are simple (and obvious); don't answer calls from blocked or unknown numbers; don't answer calls from numbers you don't recognise – just because an incoming call appears to be from a local number, doesn't mean it is. Don’t respond to any questions that can be answered with a "Yes” and if someone calls you and claims to be with XYZ company, hang up and call the company yourself. Use the company's website to find an official number.

MARKETING

The biggest mistake By Dean Minett, Minett Consulting

In order to be a successful hotelier, you have to be able to change directions quickly and solve problems on the fly. If you’re looking for a career where no two days are alike, managing an accom facility ought to be top of your list. The number of details involved in the profession is mind-boggling; virtually every decision made is an opportunity to strengthen the operation as a whole – or to weaken it.

In order to be a successful hotelier, you have to be able to change directions quickly and solve problems on the fly. Take resource management, for example. The price of electricity is going up, and there is more pressure on hotels to lighten their ecological footprint. Experienced managers know there are countless ways to save resources ¬– including voltage optimisation, water conservation measures, LED lighting, high-efficiency appliances, solar panels and so on. If none of these solutions are researched or exploited, the property’s profit margin will be

much narrower than it could otherwise be. Housekeeping is another oversight that costs dearly. Take a look at popular review platforms like TripAdvisor and Google. Notice how many negative reviews are centred on housekeeping issues. Even one guest who doesn’t feel the room has been properly cleaned can put a large dent in an accom’s online reputation. We could use clearer statistics on the reasons for negative reviews, but lack of cleanliness is clearly among the most common. Avoiding this pitfall involves clear direction, careful oversight, regular inspections, and more

MANAGEMENT

effective training for staff. What about truth in advertising? This is another mistake that gets managers in deep trouble. It sounds simple enough to be aware of your property’s promotional photos, where they appear online, and whether they match your current fittings. But these things can get lost in a busy year. OTA listings – whether due to confusing upload procedures or shortcuts taken by hotel managers – often feature inaccurate photography for different room types. Negative guest experiences are generated, and reputation is lost. ResortNews | December 2019

If you do answer a call and hear a recording such as "Hello, can you hear me?" just hang up. The same goes for a call where you are asked to press a number before being connected to a representative. When you answer a call and interact with the voice prompt or by pressing a number, it lets the spammer know your number is real. They can then sell your number to another company, or begin targeting your number more frequently. Remember also that voice prints are useful data samples. Many institutions use voice prints to validate your persona. Personally, I block numbers that are not in my contact list. If the caller is genuine he is invited to leave a message. If no message is left I conclude that the call could not have been important or was a spoof call. Just be wary of text messages that asks you to call your message bank and when you do the caller does not speak. Hang up quickly, that pause could cost you money. Apple's iOS 13 added plenty of new features, including Silence Unknown Callers, which adds the option to route calls from unknown numbers straight to voicemail. With the feature turned on, Siri will allow calls from numbers found in Contacts, Mail, and Messages to come through. Anything else will go to voicemail, and assuming the caller is genuine, they can leave a message. The latest caller ID spoof strategy being used by phone

Making your property a great place to work – this is another area where so many blunders are made. Personalities may clash; priorities may be forgotten. Managers may lose sight of the simple fact that when staff are happy and motivated, every aspect of the guest experience is elevated. The experience of being a manager is elevated too. But this is notoriously easier said than done. It takes skilful and empathetic leadership to build a rapport with employees; to reward them for great work and include them in critical problem solving. When done correctly, this gives the property a rock-solid foundation. When good leadership is lacking, it’s not just the team but also the December 2019 | ResortNews

scam artists in an attempt to get people to answer the phone is called "neighbour spoofing". For phone scams to be successful, scammers need people to pick up the phone so they can initiate the conversation. ‘Neighbour spoofing’ uses a false caller ID to trick a person into thinking somebody local, possibly even someone they know, is calling. According to experts, this may interest someone just enough to answer their phone. Con artists and robo-callers are using technology to modify the phone numbers that appear on caller ID, impersonating phone numbers from neighbours, friends and local businesses to try to get you to answer the call. In many instances, it’s a random number with the same area code and first three digits as your own phone number. In other cases, the number displays as coming from a local business or person with whom you have previously communicated. I, for example, get a lot of spoof interstate calls simply because I have dealings with interstate numbers as a matter of course. Be aware that phone numbers of local businesses, including doctor’s offices or insurance agents, may appear to be calling you. If you are uncertain whether the call is legitimate or a spoof, hang up and dial the known phone number for the contact to verify the communication, particularly if personal or financial information is being requested. So, what can you do to protect

guest who pays a price. We could go on and on about the various things that one can get wrong – and there are many - but what is the biggest? In 2018, one of the biggest mistakes is not being aware of how many options travellers now have – if we are aware, then not acting on that is equally as bad. The hospitality landscape has grown more competitive and transparent. We can no longer say, “this is my product and you will like it”. There are new properties popping up all over Australia and the world, from privately managed apartments to boutique hotels converted from warehouses. Technology continues to have a massive impact on hotel

yourself against these offenders besides the options already mentioned? There are third party applications available. The list is large, and as usual, there are free and paid versions for you to choose from. If you are an Apple fan and your system is updateable to Apple's iOS 13 you are already well taken care of, but I will quote a warning issued by TechCrunch. According to TechCrunch and Dan Hastings, a security researcher at NCC Group, many top robocall blocking apps share your phone number with analytics firms and upload your device information such as device type and software version to companies like Facebook without your explicit consent. If you are looking for one however, consider Hiya, an app that is incorporated automatically in many devices nowadays. Supported in every country around the globe, Hiya, formerly Whitepages Caller ID, is a free call blocking app that uses a massive database of profiles and expansive algorithms to analyse some 13 billion calls a month and give context to unknown numbers. Any number that contacts you is run through Hiya's database, and if there's a match, the app will automatically block the number; if there isn't a match, the call or text will go through.

business numbers. All on a simple interface without any annoying ads. For a service that is free, it is surprisingly powerful. Then there are Nomorobo and RoboKiller, as well as many others, but all have their own charging schemes. Do your own searches but before you make a choice please read all their privacy policies. I can attest to the fact that the better ones do a pretty good job considering the complexity and magnitude of the challenge. I hope this has helped you to combat these pesky critters and allow your phones to ring more freely. I wish you all a very enjoyable festive season and a fantastic New Year to look forward to.

Hiya's free basic plan features incoming spam call detection with daily updates, spam reporting, and blocking by area code, as well as unlimited free lookups for spam, scam, and verified

design. Management styles are becoming more inclusive. Service models are changing too, according to what managers and executives think people want. Travellers have choices and they are vocal in making them. Managers shouldn’t feel compelled to make drastic or hasty changes though just because one guest says something, but they should be aware of how things are changing. It’s true that certain aspects of accom management are fundamental. It will always be vital to be develop a strong team, keep standards high in the housekeeping department, get employees what they need, conserve resources, and practice truth in advertising.

MANAGEMENT

Making mistakes in these areas will always hurt performance. Beyond that, what matters most in our industry is understanding what guests value, taking action to acknowledge this, and then capture the most business over the long haul. These issues emphasise that professional hospitality, whilst based on a set of established values is just like everything else these days – a conversation. For an accom manager to thrive professionally and avoid costly mistakes, they have to join that conversation with a vested interest in understanding what their guests want and creating great guest experiences. So, how do you converse?

TOURISM REPORT

Australia named 2020 ‘Destination of the Year’ The leading consumer travel magazine in the United States, Travel + Leisure, has named Australia as its 2020 Destination of the Year.

The editorial kicks off a year-long partnership between Tourism Australia and Travel + Leisure that includes content and a social media activation featuring airline and trade partners and key distribution partners.

Following the announcement, Travel + Leisure launched more than 30 pieces of Australia-specific editorial content, most of which will be featured in the magazine’s December print issue.

It will also include a tradefocused familiarisation visit around the Australian Tourism Exchange in May 2020 to experience Australia first-hand. Source: QTIC

Australia wins Travel Weekly award in China Australia has been awarded the Best Leisure Destination by readers of Travel Weekly China. The theme of 2019 China Travel Industry Awards was “Celebrate for Excellence”, which

Hockey events to bring thousands of competitors to Qld The Australian Masters Hockey Championships have been secured across two Queensland cities for 2020, thanks to a deal announced by the Palaszczuk Government and Hockey Australia.

“It’s good to see the legacy of the Gold Coast 2018 Commonwealth Games continue through the Gold Coast Hockey Centre, which will host to the two men’s Championships.

The Australian Masters Women’s Championships will host about 40 teams in Cairns during July while the Australian Men’s Masters Championships will be held on the Gold Coast over two periods, bringing an estimated 80 teams across the 45+ to 75+ age categories in June/July and 35+ and 40+ competitions in October.

“Cairns is the gateway to the Great Barrier Reef and home to the ancient wet tropics rainforest,” he said. “Our natural assets and world-class tourism industry ensure a spectacular visit. We also have world class sporting facilities, not only for the citizens of our city but for important visiting groups like the Australian Masters Hockey athletes.

Tourism Minister Kate Jones said the package of events was expected to generate $7.4 million for the state’s tourism economy and generate 40,000 visitor nights across the state.

“While Cairns is well known as being the gateway to the reef and the rainforest, in recent years the city has also become a destination of choice for sports tourism and large participation sporting events.

“Events help to grow our tourism industry and create jobs in Queensland – “Masters competitions are lucrative events because competitors often stay longer for a holiday. These events will provide a great boost for local hotels, restaurants and the retail sector, ultimately supporting local jobs,” she said.

recognised Tourism Australia’s marketing activity in China. As Australia’s largest inbound market for visitor arrivals and expenditure, China is one of Australia’s most important tourism markets. Source: QTIC

TOURISM

Member for Cairns Michael Healy has welcomed the announcement.

“We know from hosting the Great Barrier Reef Masters Games earlier this year that these competitions are well received by competitors, and there are significant benefits to our local economy,” he said. Source: T&EQueensland

ResortNews | December 2019

New $22 million Mon Repos turtle centre opens The new $22 milliondollar Mon Repos interpretive turtle centre near Bundaberg opened recently with the Bundaberg community joining rangers for a funfilled community day at the new centre. Among the opening celebrations was the naming of a 50-year-old turtle, the first to be studied at the new Centre, and its release back into the sea. Queensland Minister for Environment and the Great Barrier Reef Leeanne Enoch advised the Department of Environment and Science held an online competition calling on the community to name the turtle announcing that “the loggerhead turtle has been named ‘Merlie’ – a suggestion by Charlie Lewis who requested the name in honour of her gravely ill mother.” The winning name was selected by renowned scientist Dr Col Limpus who has been tagging turtles at Mon Repos since the 1960s,

making them among the longest studied sea turtles in the world. Minister Enoch added that “his research contributed to the Queensland Government’s decision to declare the waters off Mon Repos a marine park in 1990 and to make turtle exclusion devices compulsory on fishing trawlers in 2001.” Dr Limpus said more than 100 nesting turtles from five species have been satellitetagged at Queensland nesting beaches since the late 1990s, providing invaluable knowledge

of their movements off shore from the nesting beaches and their migrations to distant feeding grounds. “The data is vital evidence of the vast distances the turtles can travel, as well as their migratory pattern, breeding habits and their faithfulness to home feeding grounds. Minister Enoch noted Merlie the turtle has also been fitted with a GPS satellite tag to allow scientists to monitor its location when it surfaces for a breath.

“The department’s threatened species team, including Dr Col Limpus, will be able to keep an eye on Merlie and track when she returns to Mon Repos to nest. “What’s special about this turtle, however, was that it was first tagged in in the late 1990s, making her around 50 years old. The new Mon Repos Turtle Centre features a laboratory where scientists will measure and weigh eggs and hatchlings from priority hutches, and an experimental incubation room for turtle eggs. Source: Hotel Conversation

Kia Ora to the tune of $11 million for the Sunshine Coast The Palaszczuk Government recently announced a deal with Air New Zealand that will increase flights to the Sunshine Coast, bringing around 9000 extra tourists over three years and injecting more than $11 million into the local economy. Tourism Minister Kate Jones said the Palaszczuk Government had locked in the additional flights set to commence in April 2020, supported through the Attracting Aviation Investment Fund in partnership with Visit Sunshine Coast and Sunshine Coast Airport. “More tourists means more jobs for the Sunshine Coast. December 2019 | ResortNews

perfect excuse to escape the cold winter months and enjoy the Sunshine Coast’s unique tourism experiences,” she said. New Zealand is Queensland’s second-largest international market, with visitors from New Zealand generating $563 million a year for the state’s economy.

June to a total of six months flying across April–October.

Sunshine Coast Airport Chief Executive Officer Andrew Brodie said the extended season built on the strong success of the existing Auckland service.

Ms Jones said New Zealand is the Sunshine Coast’s largest international market in terms of visitor numbers, with 70,000 travellers visiting in the year ending March 2019 - a growth of close to six percent.

“It also gives Sunshine Coast residents the opportunity to fly out of their local airport to Auckland and connect with other trans-Tasman destinations such as Queenstown and Dunedin,” Mr Brodie said.

“These flights will give kiwis the

Source: T&EQueensland

These flights alone will bring an extra 3000 tourists to the Sunshine Coast every year and support an additional 90 tourism jobs. The flow-on benefits for local businesses will be awesome,” she said. On the Sunshine Coast, Air New Zealand will extend seasonal services by two months from mid-April to

TOURISM

TOURISM INTERNATIONAL

What if all that flying is good for the planet? Without tourism, it’s easy to imagine the Serengeti turned into cattle ranches. A growing movement known as “flight shame” and popularised by well-meaning climate activists is gaining momentum around the world. Its premise: Flying is bad for the climate, so if you care about life on earth, don’t fly. The movement, which began in Scandinavia, has ballooned into protests to disrupt flights at London’s Heathrow Airport and social media campaigns outing celebrities and others for planning long-haul trips. With the holiday season fast approaching, many climateconscious people may be wondering: Is my planned vacation for the other side of the world ethically indefensible? But let’s try another question: If we really did all stop flying, would that save the planet? The counterintuitive answer is that it might actually do the opposite. The tourism industry depends on air travel, and increasingly, saving nature is directly linked to tourism’s economic clout. According to the World Travel and Tourism Council, one in 10 people are employed in the travel and tourism industry, representing more than 10 percent of the global economy. In many countries, nature-based tourism is a top foreign exchange earner.

understood what will happen if, in their understandable concern for climate change, travellers stop booking trips to go on a wildlife safari to Africa or decide to forgo that bucket list vacation to South America. Conservation and poverty alleviation will suffer twin blows. By 2030, tourism to Africa is projected to generate more than $260 billion annually. Subtract that from Africa’s economy and not only will it plunge an entire continent into more poverty (millions of Africans rely on tourism as their economic lifeline), but it will also undermine hardwon efforts to protect some of the world’s most endangered species. Save the elephants? Forget about it. Rhinos, ditto. Some tour operators are directly protecting millions of acres of endangered species habitat, among the last strongholds for rhinos and elephants. Others are helping to fund conservation work to save lions, leopards and cheetahs. There is also a strong argument to be made that a key reason the mountain gorilla is not yet extinct is because tourists are willing to fly to Africa and pay handsomely for the chance to see one in the wild, proving to governments and local communities the importance of protecting them.

If it were not for tourism, we could also say goodbye to the wildebeest migration — among the last great land migrations on Earth, with over a million animals moving across the Serengeti. Last year, some 1.5 million tourists visited Tanzania, the majority headed to the Serengeti, where they paid a minimum of $60 dollars per day in entrance fees. Take that income away, and the vast plains would most likely be transformed into cattle ranches — and it’s known that raising beef is already among the most significant contributors to carbon emissions. Colombia, is one of 36 global biodiversity hot spots, earth’s most biologically rich terrestrial regions. Tourism could be what saves this unique biodiversity from damaging industries like mining, which is already active there. President Iván Duque has set a goal for his country to become a world-class nature travel destination to help provide jobs and better protection for the country’s 59 national parks and reserves — home to the most bird species on Earth. Among the most important conservation lessons to emerge in the past 25 years is this: When local communities benefit from tourism, they become partners and allies in saving nature. Without that support, conservation will forever be an uphill battle. If the job

that feeds your family and sends your kids to school depends on international visitors paying to see a wild elephant or to experience a coral reef teeming with marine life, that builds a global constituency for saving biodiversity right now. Does this mean that all tourism is good tourism? Of course not. Businesses, governments and travellers need to work harder to advance sustainable tourism practices that are focused on reducing travel’s carbon footprint, saving nature, protecting cultural heritage and creating jobs. There is no question that the world faces a global climate crisis and we need to demand action, but shaming people to stop them from flying could very well have the immediate reverse effect of accelerating extinctions and ushering in the rapid loss of many of the world’s last remaining wild areas. And while carbon offsets can help reduce air travel’s negative impact, that is not enough to address the scale of the problem. If we are going to do some shaming, let’s focus on the government leaders and greedy corporations that put profit above protecting the environment. Just as we have the tools today for building a renewable energy future, we also have the tools to start flying green class — like developing synthetic jet fuels and designing electric planes. Pressuring the aviation industry and politicians to prioritize scientific research and funding needed to fast-track green technology innovation will help deliver a sustainable travel future for people and the planet. Source: New York Times

At the same time, aviation accounts for approximately 2.5 percent of human-induced C0₂ emissions. By contrast, deforestation, according to some estimates, contributes nearly 20 percent, about as much as all forms of transportation combined. If we want to truly take a clean sweep at reducing global greenhouse gases, then we must stop clearcutting the world’s forests. Don’t get me wrong. As conservationally-aware adults we need to take a more responsible approach to tourism. While we recognize that flying is harmful to the climate, it should also be

TOURISM

ResortNews | December 2019

Suspended 40 meters above Fairhaven Beach, the Pole House is one of Australia's most iconic homes. Built by Frank Dixon in the seventies, The Pole House is a landmark, a manmade attraction and concrete apostle - it is also one of the most photographed houses on the Great Ocean Road, and probably Australia! Whilst carefully planned and crafted, The Pole House is not about accommodation, nor is it about facilities or amenities, of which it has many, The Pole House is about the experience. Picture yourself waking to the sound of crashing waves, opening your eyes to find yourself suspended above the most spectacular coastline in the country. The first feeling one has at the Pole House is a vertiginous thrill based on altitude and distance, as if you are Leonardo DiCaprio leaning high out over the water off the front of a mighty ship as it cuts through rolling swell. Apprehension and awe mingle as the house sways gently (up to six inches in a strong wind). You are both airborne and

December 2019 | ResortNews

seaborne, having left land, and the very earth, behind. You’re also brought face-to-face with the paucity of you own language as you keep repeating the same hackneyed phrases over and over. Wow. I can’t believe this. Wow. The house is a blaze of architectural brio. The taps have lights hidden in their mouths shining down the falling water, and alongside each light a diode, so when the water is cold it is blue, as the temperature rises to warm it turns purple and by the time the water is hot it is bright red. The couches recline and stretch at button-press. Blinds covering two whole walls rise at the press of another button, uncovering half the world. The main room curves around a central bathroom pod clad in

burnt ash panels. In front of the floor-to-ceiling window a suspended fireplace hangs from its own chimney essentially a fire burning in a cold sea. For all this, architectural features really have no significant place in the wonder of this house. Its defining and beguiling feature is that the sea and sky are in the room. The rumbling surf and two hundred degrees of ocean with a vast superstructure of cloud overhead. The mood of the house is set by the constantly changing pageant of light, cloud, wave and colour. Dramatic reefs of fire to the west as the sun goes down, while in the east saturated purples fall to night. You soon understand this room might hold

TOURISM

a thousand different sunsets. Another thousand dawns. The land is a lesser, peripheral, presence. But you could study it all day from up there. Fifty kilometres of coast. From the Split Point Lighthouse at Aireys Inlet the Great Ocean Road rides a rollercoaster of hills through the forests of The Otways to and beyond Lorne. The hills ripple and fold with the passing sun. Like no other house on the shipwreck coast you have the feeling you are perched on the edge of a vast unknown. It’s a rare sensation. The Pole House is an adventure, so take yourself to the edge and indulge in one of the most unique, iconic and awe-inspiring destinations. Sea you there...

THE LAST RESORT

The Pole House: Architecture in motion

Battered region wins big at Awards Tourism operators in the Whitsunday Islands have taken home a slew of awards at this year’s Queensland Tourism Awards. The region, currently seeing an accommodation resurgence following several challenging years across the cyclone-ravaged mainland and islands, collected three gold, four silver, five bronze and a highly commended award for tourism ventures. The awards are based on a submission and inspection program and are designed to acknowledge and showcase Queensland’s finest tourism operators. The prestigious event attracted more than 900 guests to the newly constructed $10 million Sunshine Coast Convention Centre at Novotel Twin Waters Resort this week. A total of 83 Awards, including 26 Gold, 25 Silver, 24 Bronze, four highly commended and two individual awards were presented across 28 categories.

and these visitation results continue to support more than 237,000 jobs across all regions of Queensland. Tourism Industry Development Minister Kate Jones congratulated the Whitsundays on a stellar night, saying: “Congratulations to all Whitsundays winners and entrants, their contribution not only supports their local economy, but contributes to the backbone of Queensland’s $27.2 billion tourism industry. Queensland’s Gold Award winners will gain automatic entry into the Qantas Australian Tourism Awards, which will be held in Canberra in March 2020.

2019 Whitsundays award winners: Gold Awards Red Cat Adventures: Major Tour and Transport Operators Red Cat Adventures: Adventure Tourism Cumberland Charter Yachts: Unique Accommodation

Silver Awards

People’s Choice awards went to the Gold Coast’s RACV Royal Pines Resort and to the Irwin-run Australia Zoo on the Sunshine Coast. The state’s top tourism young achiever was named as eco-warrior Robert Irwin, while the outstanding contribution award went to Australian Age of Dinosaurs founder David Elliott.

Local Tickets Pty Ltd: Specialised Tourism Services

Speaking of the event Daniel Gschwind, CEO for QTIC said: “This year’s entrants, across the 28 business, event and individual categories, demonstrate the extraordinary dedication and innovation of tourism operators across the State – all of whom are helping the Queensland tourism industry to thrive.

Bronze Awards

“Thanks to these visitors, the Queensland tourism industry’s contribution to the State’s gross product has been boosted to $27.2 billion

Ocean Rafting: Major Tour and Transport Operators Whitsunday Jetski Tours: Adventure Tourism BIG4 Adventure Whitsunday Resort: Caravan and Holiday Parks

Whitsunday Coast Airport: Specialised Tourism Services Cruise Whitsundays: Major Tour and Transport Operators Ocean Rafting: Adventure Tourism Cruise Whitsundays Reefsleep: Unique Accommodation Airlie Beach Volunteer Cruise Ship Ambassador Program: Outstanding Contribution by a Volunteer or Volunteer Group.

Australian achieves global recognition for service Australian Greg O'Neill, Director of Leisure and Amusement Services Ltd, a board director and past president of the Australian Amusement, Leisure and Recreation Association (AALARA) and long-time supporter of the International Association of Amusement Parks and Attractions (IAAPA), has been acknowledged for his outstanding contribution to the global attractions industry with the presentation of the IAAPA Lifetime Service Award. One of three Lifetime Service Awards presented during the annual General Managers and Owners' Breakfast at the IAAPA Expo 2019 in Orlando, Florida, USA recently. The Award recognises an IAAPA member's consistent and

long-term achievements serving the association and the global attractions industry for more than 20 years. As a third-generation showman, O'Neill bought his first amusement ride at age 15 and has been a longstanding champion of the attractions industry, throughout Australia and around the world. Instrumental in AALARA's formation, he has served as a speaker, moderator, and presenter at global conferences and seminars, including AALARA, IAAPA, and WorkSafe Victoria events, and has attended global meetings to promote harmonisation of amusement safety standards worldwide. His service to IAAPA includes serving on the IAAPA Board of Directors, Asia Pacific Regional Advisory Committee, Asia Pacific Membership and Education Committees, and the global Membership and Governance Committees. Source: AusLeisure

Strata insurance head recognised in awards Bobby Lehane, CEO of strata insurance specialist CHU, has been recognised as Financial Services & Insurance Executive of the Year at the “CEO Magazine” 2019 Executive of the Year Awards. Mr Lehane describes his leadership style as collaborative but with a clear sense of purpose. “I delegate and I trust but I also hold people accountable, I am acutely aware of my own shortcomings and I become aware of new ones every day,” he said. Mr Lehane is passionate about the importance of diversity and inclusion and it is a major focus for CHU. “Diversity and inclusion are not just nice to do’s - it now must be a strategic imperative for any business with aspirations of growth and success into the future, in business. D&I is critical to everything we are and everything we do.” “And as insurers, who face serious

EVENTS & APPOINTMENTS

risks from climate change, we are introducing another plank to our 2020 strategy – that of sustainability and biodiversity. As a significant contributor to emissions the strata industry, from owners to managers, need to be on the front foot with regard to sustainability programs and initiatives. And chalking up more wins, CHU dominated the strata sector of the “Insurance Business” magazine’s annual brokers survey of underwriting agencies for the fourth consecutive year. Brokers across Australia were asked to nominate the best underwriters and products and CHU was awarded the underwriters Gold Medal for Strata Cover together with the best across a range of insurance products. Speaking at the event, Bobby Lehane said: “The broker channel has become increasingly important to CHU and, indeed, the strata industry over the past five years, so receiving this recognition from them gives me faith that we are on the right track. ResortNews | December 2019

LIM Lunches end on a ‘high-waiian’ note…

The last (and therefore very festive) ‘Ladies in Management’ luncheon of the year was held at The Islander and in true participative-style, the members dolled up colourful outfits and leis to suit the Hawaiian theme. As usual there were a lot of laughs, flowing bubbles and networking going on. Organiser of the events, Marisa Millane of Freedom Internet said: “The lunches are a great networking event for newbies

coming into the industry as it is always comforting to chat with others who have been through the same trials and tribulations,

or who has an in-depth understanding of the industry at hand, both the pros and cons. “We have such a variety of women attending these monthly luncheons from management right owners, in both permanent and holiday complexes, to service providers, and it really is a great way to broaden their knowledge of the industry in a relaxed environment.

“This group is so supportive of each other and it’s gratifying to see the group growing from strength to strength.” The Ladies in Management (LIM) lunches are held every third Wednesday of the month, if you would like to know more about these please email marisa. millane@freedominternet.org

RELIEF MANAGEMENT

& POSITIONS VACANT DIRECTORY The year 2020 has been designated the Year of Indigenous Tourism in Queensland. Aboriginal and Torres Strait Islander tourism experiences will be profiled and funding has been allocated to create tourism jobs for Indigenous tourism operators in Quee nsland.

The third World Indigenous Tourism Summit is being held in Perth in April 2020 and a call for abstracts is now open unt il 13 December 2019. Organis ed by the Western Australian Indigenous Tourism Operato rs Council (WAITOC), and hos ted by Tourism WA, the summit is expected to attract hundre ds of delegates from around Aus tralia and the world.

Tourism Noosa is providing ten of its members with an exciting opportunity to be part of the Tourism Noosa Leadership Program aimed at growing and inspiring industry leaders. The one-off initiative will provide tourism businesses with an exclusi ve opportunity to assess and implement new thinking into their business.

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RELIEF MANAGEMENT

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© 2019, Resort Publishing. The Relief Management Directory is provided by Resort News to provide CONTACT details only of individuals and organisations promoting services in temporary and permanent management positions. Parties should satisfy themselves as to the competency and suitability of advertisers prior to ordering any services. We accept no responsibility for the standards of service.

December 2019 | ResortNews

EVENTS & APPOINTMENTS

DEVELOPMENT NEWS

Government accelerates $3.8bn infrastructure spend to spur economy The federal government has announced it will put billions of dollars towards significant projects across the country, accelerating major infrastructure investments in a bid to stimulate the nation’s economy. Dismissing the move as “panic” or “crisis measures”, prime minister Scott Morrison announced he would bring forward infrastructure investment announcing $3.8 billion in funding over the next four years.

Prime minister Scott Morrison

More than half of which, $1.8 billion, is planned to be rolled out in the next 18 months.

projects to be “fast-tracked”, and delivered sooner.

The move follows calls for government to provide more stimulus in the nation’s economy given Australia’s record low interest rates and sluggish growth.

•

Accelerated funding for the Linkfield Road Overpass.

•

An upgrade for the Mt Crosby Road Interchange.

“It’s careful considered investment,” the PM said in Brisbane before announcing the Queensland spend.

•

$10 million brought forward for Rockhampton Ring Road, and

Queensland Premier Annastacia Palaszczuk described the state's “historic” deal as a “huge win for Queensland”, and an extra $1.9 billion towards roads, rail and funds for regional Queensland. The projects given critical funding include: •

$446.3 million in new road funding, including the M1 exit upgrades.

•

Construction of Gold Coast Light Rail Stage 3 will commence after the announcement of $157 million in additional funding for the project.

•

Up to $648 million of

•

Agreement on an inland rail linking freight from Melbourne to Brisbane, with $6 billion invested in Queensland.

The infrastructure plan will bring forward $1.8 billion to be spent on “shovel-ready projects” over the coming 18 months. “All of these projects are developments that are going to get people home, sooner and safer, and will strengthen our economy... not just now but well into the future,” Morrison said. “These are structural changes we’re making, not oneoff cash splashes.” Source: The Urban Developer

Canberra cash should spell the end of Queensland’s land tax grab Queensland’s property industry is calling on the State Government to scrap significant increases to land tax, following the Commonwealth Government decision to bring forward major project funding for Queensland, and deliver $680 million in new funding. Property Council Queensland Executive Director, Chris Mountford, said that the land tax increases announced in June’s State Budget were an attempt to plug a Budget hole that will now no longer exist.

double their land tax liability. In her Budget speech and subsequent media comments, the Treasurer outlined that the land tax measures were a reluctant result of “Canberra’s cuts” and committed to repeal them if Canberra restored “Queensland’s fair share.” “The Federal Government’s new commitment will be a big boost to the State’s balance sheet, and affords Queensland the opportunity to avoid imposing these harmful new taxes” Mr Mountford said.

“This is a very welcome announcement by the Federal Government and comes at a critical time for the local economy,” Mr Mountford said.

The Office of State Revenue has been devising an exemption framework from the overseas surcharge for economically significant investments since June’s Budget. While the Government has been working to finalise this framework, no land tax has been collected from overseas entities.

“The Queensland Government should use this opportunity to scrap its economically damaging land tax increases in order to further support local jobs growth.”

“If this tax is imposed, Queensland will face a substantial competitive disadvantage against southern jurisdictions for the retention and attraction of investment.”

June’s Queensland State Budget introduced a sizeable increase to the general business rate of land tax, and introduced a new surcharge for overseas companies and trusts that will effectively

“We will also see many Australian investors liable to pay the new foreign surcharge, and rents increasing for many Queensland businesses.”

DEVELOPMENTS

Source: Property Council Qld

ResortNews | December 2019

Strong interest in GC's off-the-plan units?

Forward for three-tower Dreamworld hotel

Off the plan buyers are turning to the Gold Coast for off the plan deals, according to a new report by Urbis.

Plans for a giant $500 million three-tower hotel development next to Gold Coast theme park Dreamworld are moving ahead following a revamped development application being submitted to the City of Gold Coast Council.

Over the September quarter, average sales price of off-theplan apartments fell to $743,782 after a hitting a record high in the previous quarter. While prices dropped, sales jumped 29 percent, translating to 198 deals. During the period, three projects were launched and added 195 new apartments to the city's supply. There are 2,190 apartments available on the market as of September. Most of these units are within the southern beaches precinct. On the other hand, supply is limited in the northern end of the city, with only 120 units up for sale. The number of developments appears to have dramatically increased in the past five years. In 2014, there were only

29 active developments in the city — this ballooned to 78 this year. The drop in the Gold Coast’s average sale price for apartments could be due to new apartment buyers searching for homes below $800,000, said Marketing Projects SEQ director Kyla Anderson. "It doesn't surprise me the sales price has dropped because most buyers are in that sub-$800,000 price point. Last quarter's record price was probably due to the fact there were a few premium beachfront project sales and we are now waiting for a few more premium projects to come to market," she said. Anderson said the demand for these apartments would likely grow in the next 10 years as downsizers preferring apartments in premium locations increase. However, the current supply of units currently in the market is not enough to meet the projected demand. Source: Source: Your Investment Property

First proposed nearly four years ago, the Coomera Masterplan project has cut the number of hotel rooms in the complex from 300 to 225 after a battle in the Queensland Planning and Environment Court to secure approval. If approved by the Council, developer Gordon Corp plans to begin construction of the 10-storey first tower in what it calls the 'integrated resort development' - a term widely used earlier in the decade, as of next year.

A 400 metre² ballroom, 130-seat allday dining area and 40-seat pool bar and lagoon-style swimming pool with two spas are among the features planned for the hotel. A report to the Council stated that the architect determined it was not possible to fit a minimum of 300 resort hotel suites within the 10-storey building height limit while also providing all the ancillary facilities. It advised "it is fully understood that council would not entertain additional building height for the site and it is understood this is required to be a resort hotel providing a high-level of tourist facilities. "This reduction (of room numbers) allows the future project team to move forward with (an application) for all three stages.” Source: AusLeisure

Council bans townhouses and units in Brisbane’s suburbs Townhouses and apartment blocks are no longer welcome in Brisbane’s character suburbs after the Brisbane City Council voted to protect single house blocks under a two-year protection order. The temporary local planning instrument, aiming to stop larger developments from moving into suburbs that are traditionally single houses with large backyards, was first raised in September last year. The approved ban, designed to protect the city’s character, will now limit the rapid development of unattractive “cookie-cutter” townhouse and apartment developments from being erected in low-density residential suburbs. Brisbane’s low-density suburbs are spread across the city, from Chapel Hill to Westlake, Holland Park and Salisbury, Wynnum West and Aspley.

December 2019 | ResortNews

which has been a vocal opponent of the proposed planning instrument and amendment package, warned that the changes, even though temporary, could cause flow on effects to housing affordability and diversity. © Anselm Baumgart, stock.adobe.com

Council engaged in community consultation before its decision, voting unanimously in favour of the temporary local planning instrument, provided for in the Planning Act 2016, in February. Under the changes, developers will be unable to consolidate numerous smaller lots into mega lots of about 3000sq m for medium and high-density builds. “We regularly see amendments to the plan come through and the plans are a living, breathing thing, so we will continue to see changes going forward,” lord mayor Adrian Schrinner said. “These changes are based on the changing needs of the community, based on feedback,

and also based on the need to provide more housing in Brisbane as our population grows,” Cr Schrinner told the chamber. “It is my belief that low density should be low density, and that is exactly what we are putting forward.” In May, nearly 6,000 properties around Brisbane's eastern suburb of Coorparoo were rezoned to character residential under Brisbane City Council’s latest neighbourhood plan.

The Property Council of Australia’s Queensland executive director Chris Mountford said the additional cost and space allocation required to meet the new standard would make it harder to get projects off the ground, with the additional cost ultimately to be passed on to buyers. The PCA also highlighted the package could dampen residential development at a time when housing diversity is needed to keep pace with demand.

The significant decision acted a precursor to council's impending changes, aiming to protect and retain the typical Queensland house from being demolished or altered significantly.

That amendment has identified and protected more pre1911 houses across the city, particularly within inner-city suburbs, and added 128 new sites to heritage mapping.

The Property Council of Australia,

Source: The Urban Developer

DEVELOPMENTS

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ID 8962

SEACHANGE IN MAROOCHYDORE

• Easily managed with no set hours • 7 units in the holiday letting pool • Popular Maroochydore location

• Office attached and on title • 3 bed, 1.5 bath manager’s residence

NETT PROFIT:

$102,000 ASKING PRICE: Pearsall – 0425 168 244 EXCLUSIVE AGENTS: Lyn Amanda Rowe – 0427 413 319 ID 8961

DESTINATION NO. 1 - MOOLOOLABA

• 21 units in the holiday letting pool • All one bedroom, ideal single stays • Prominent location attracts trade

• Beautifully presented 2 bed, 1 bath manager’s residence • Pet permitted with BC approval

NETT PROFIT:

$211,000

LISTING AGENT:

Lyn Pearsall – 0425 168 244

ID 8956

$950,000

ASKING PRICE:

$1,395,000

BRISBANE BARGAIN

• Beautifully presented easy to operate • 39 lot townhouse complex • Peaceful and quiet resort style

• 24 years remaining on agreement • Recently renovated manager’s residence

NETT PROFIT:

$78,500

LISTING AGENT:

Elissa Paynter – 0447 710 891

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

ASKING PRICE:

$750,000

MANAGEMENT RIGHTS RESORTS VE

I LUS EXC

CURRUMBIN

SURFERS PARADISE

HIDDEN BEACHSIDE GEM

MAKING A STATEMENT

Southern Gold Coast business is in a delightful location with the beach just across the road. Vibrant cafes, restaurants, surf club a short stroll away. 21 years remain on management rights agreements with a body corporate salary of $93,000. Rental pool is a mix of long and short term stays. Managerâ&#x20AC;&#x2122;s apartment offers a comfortable 3 bedroom, 2 bathroom, secure 2 car residence to enjoy the relaxed family holiday like atmosphere.

Grand in style with captivating ocean, river and city views this imposing Surfers Paradise tower has just two luxury apartments per floor. With the Pacific at your doorstep and outstanding facilities this building really makes a statement. No weekend office hours. Small letting pool of upmarket holiday and permanent let apartments with plenty of opportunities for growth. Salary $98,000. Private 3 bedroom Managerâ&#x20AC;&#x2122;s unit with sunny northern aspect ideal for entertaining in style or a much loved pet.

NETT $300,000 PRICE $2,188,000

NETT $144,000 PRICE $1,234,000

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

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

VE USI L C EX

WYNNUM WEST

MERMAID BEACH

PEACEFUL BAYSIDE

BOUTIQUE RESORT

A beautiful gated townhouse complex five minutes away from the convenience of Wynnum Plaza and the waterfront. Tranquil garden setting makes this well maintained community a pleasure to call home with the manager having a generously sized 3 bedroom townhouse combined with large fenced back yard. Generous body corporate salary of $67,000, annual 3% increases and 21 years remaining on management agreements.

A great Gold Coast Management Rights business now on offer. Would suit a first time operator. 18 years remaining on Management Agreements. Body Corporate Salary of $35,000. 100m stroll to beautiful Mermaid Beach. Prime holiday location. Walk to Pacific Fair Shopping Centre, Star Casino and the G link tram. Hop, skip and a jump to the popular dining and nightlife precinct of Broadbeach. Lovely two bedroom managers unit with large courtyard and adjacent parklands.

NETT $100,000 PRICE $930,000

NETT $95,000 PRICE $852,000

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

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

propertybridge.com.au | 1800 888 518

NEW MANAGERS

Culburra Beach Motel | New South Wales

Port Douglas Peninsula Boutique Hotel | Queensland

Tim and Maureen Moretti (left) have taken over the Culburra Beach Motel from Gail and Grant O’Regan in a deal that was completed by Russell Rogers of ResortBrokers.

(L-R) John Zeckendorf, Chenoa Daniel and Ryan Shaw after the sale of the management rights to the Port Douglas Peninsula Boutique Hotel.

Tim and Maureen previously held the leasehold at The Gardenia in Sydney’s Bass Hill for 16 years. The Morettis say they fell in love with Culburra and were happy to move mountains to make this lifestyle move.

John and Ryan, from Mandala Asset Solutions, bought the rights through Chenoa Daniel of ResortBrokers.

Sales Report MANAGEMENT RIGHTS

New South Wales

Gold Coast St Kilda Apartments VUE Terrace Homes Budds Beach Apartments Modena on Chevron Peninsular Residences Vue & Encore Apartments Montana Gardens Runaway Heights Four

Susan Lee Robina TBK Management Robina Lisa Garnett Surfers Paradise Kylie Hickling Chevron Island Rock Management P/L ATF Ziang Trust Surfers Paradise Sam and Alicia Wood Broadbeach John Woods Labrador Jun Wang & Hongmei Hu Runaway Bay

TMR RB RB RB RB RB MRS MRS

Aurora Assets Management Group Sean Huang Sean Huang M & W Krause Margaret & Michael Palmer Paul Bolton Andrew Morse Mandala Asset Solutions Tim McHenry

RB MRS

Victoria Collins House

Michael Song

Melbourne

MOTELS & OTHER Queensland Huong Thi Thuy Luong

Fernvale

Hamilton RB Murrumba Downs RB Murrumba Downs RB Ipswich MRS

O'Hanlon Property Trust

Dalby

Overlander Motor Lodge

Shavinder Buttar

Gunnedah

East Port Motor Inn

G. Hambly

Port Macquarie

Noosa Maroochydore Hervey Bay

TMR RB RMS

Ashton Townhouse

Taylor & Barba

Tumut

Bishops Lodge

Regional Accommodation

Hay

Port Douglas Port Douglas

RB MRS

Quest Moonee Valley

Vincent Arcuri

Moonee Ponds

Criterion Hotel

Cher & Phil

Rochester

Far North Queensland Peninsula Boutique Hotel Marina Terraces

Byron Bay

Fernvale Hotel Motel

Sunshine Coast / Wide Bay / Fraser Coast At The Sound Horton Resort Santalina Hervey Bay

Andrew Chang

Terese Janouskova & Viktor Tomecek Tweed Heads

Dalby Fairway Motel

Brisbane Gallery House One & Two Murrumba Manors Blyth Domain Unilink Village

Byron Quarter Fraser Cove Villas

New South Wales

Victoria

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.

PROPERTY

www.accomproperties.com.au ResortNews | December 2019

St Kilda Apartments | Robina

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

L-R Wayne Stoll, Jing Lei, Susan Lee, Linda Stoll, Narelle Filmer

Introducing Susan Lee and Jing Lei as the new managers of St Kilda Apartments in Robina. Having already established herself in the management rights industry and the real estate game, Susan looked to expand her portfolio in the acquisition of St Kilda Apartments from Think Management Rights.

For expert advice please contact; Paul Jones John Punch Phone: 5570 9327 Fax: 5539 8745 Phone: 5570 9322 Fax: 5539 8745 paul.jones@spglawyers.com.au john.punch@spglawyers.com.au Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164 GCMC, Bundall, QLD 9726

Jing joins Susan as a business partner and the TMR team wish them every success with their new venture managing St Kilda Apartments.

Resort News Agent Profile:

Introducing... Jim Lowe – Property Bridge Jim and his family moved from Auckland to Brisbane where he was introduced to the management rights business concept. Jim subsequently purchased the Rights to a large apartment complex in inner Brisbane with multiple buildings and bodies corporate in which he operated as On-Site Manager and Letting Agent. After managing close relationships with five committees and successfully building the business up, Jim eventually sold after nine fulfilling years. Since selling his Management Rights business, Jim has been involved in real estate and Management Rights sales and has

December 2019 | ResortNews

also been an active committee member in two complexes, gaining further valuable experience and insights into the relationship between Building Management and Body Corporate committees and the numerous issues that can arise for all stakeholders. Throughout his business career and as a licensed Real Estate Agent, Jim has always focused on providing honest, straight forward and effective communication to all parties. He is prepared to go the extra mile, building long term relationships to achieve positive results for his clients and customers.

Name:

Jim Lowe

Mobile:

0403 418 115

Agency:

Property Bridge

Servicing: Brisbane Web:

propertybridge.com.au

Jim is Brisbane based and is very well respected within the Management Rights industry.

PROPERTY

Benefits •

Direct access to the largest real estate websites in Australia

•

Direct access to Realworks Approved real estate forms

•

Direct access to 1Form Online rental applications

•

Direct access to Pricefinder Rental and sales database

•

Direct access to Tica

Tenancy applicant screening service ($20 inc GST per tenant search applies)

Unit Rentals Unlimited Listings

$440 p.a.

(Additional Fees: Realestate.com.au $20 inc GST per rental listing)

Unit Sales & Rental Listings

$1,100 p.a.

(Aditional Fees: Realestate.com.au $120 inc GST per unit sales listing, $20 inc GST per rental listing )

Unit 5, 53 Gateway Drive, Noosaville, Queensland

Phone: 07 5440 5322

mail@accomproperties.com.au

www.accomproperties.com.au

MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND PALM COVE – IDEAL FAMILY LIFESTYLE

TRINITY BEACH – WHAT AN OPPORTUNITY

EXCLUSIVE LISTING

Special family lifestyle opportunity. Spacious holiday Villas, most with private pools. Excellent repeat business with direct clientele. Great mgr Villa (190m2) Rumpus room, private pool.

Mixed letting property. Great business price. One bedroom & Studio Apartments. Exceptional 2.9 X multiplier. Motivated vendors. Perfect starter or add on business.

Total Units/Pool:

37/17

Net Income:

$222,042

Total Units/Pool:

40/24

Net Income:

$128,000

Agreements:

25/21 Years

Real Estate:

$450,000 (3/4 brm)

Agreements:

25/23 Years

Real Estate:

$295,000 (3 brm)

Salary:

$55,286

Total Price:

$1,390,000

Salary:

$49,977

Total Price:

$669,000

Contact: Calvin Bailey, 0414 889 593

Contact: Alex Barker-Re, 0414 835 128

TOWNSVILLE – LUXURY HIGHRISE

PORT DOUGLAS – MACROSSAN STREET ICON

EXCLUSIVE LISTING Perfect and prime Macrossan Street location. Luxury Boutique complex. Quality 2 & 3 bedroom apts. What a Beachside lifestyle. Current vendors resided for 12 years. Excellent & spacious 2 level Managers Residence, plus office.

Permanent Letting Residential Highrise. All luxury apartments have stunning views. Good mix of quality 2 & 3brm apartments. Great growth potential. Expansion of outside pool. Total Units/Pool:

73/40

Net Income:

$239,968

Total Units/Pool:

13/12

Net Income:

$192,000

Agreements:

25/21 Years

Real Estate:

$530,000 (2 brm)

Agreements:

25/24 Years

Real Estate:

$550,000 (2 brm)

$133,300

Total Price:

$1,492,000

Salary:

$32,000

Total Price:

$1,298,000

Salary:

Contact: Alex Barker-Re, 0414 835 128

Contact: Calvin Bailey, 0414 889 593

AND THE VERY BEST TO YOU ALL

Contact: Mobile: Email:

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

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

Contact: Mobile: Email:

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

The Sunshine Coast:

PROPERTY

ResortNews | December 2019

By Trish Riley, Editor

The Sunshine Coast is the strongest market in Queensland at the moment and indeed one of the strongest in Australia. According to report author Terry Ryder of Hotspotting, the Sunshine Coast has become Australia’s most compelling economic growth story - an evolution built on infrastructure and innovation. “Spurned on by the massive $20 billion infrastructure pipeline of projects, the Sunshine Coast is evolving rapidly from tourist destination to international city, out-performing larger and higher-profile markets such as Brisbane and the Gold Coast. “I see the events happening on the Sunshine Coast as an economic revolution,” said Ryder. “Nothing supports property price growth like major new infrastructure spending, which generates jobs, economic activity and improved amenity for residents.” And that appears to be true. The latest edition of The Price Predictor Index has found that the Sunshine Coast has more locations with rising sales activity than any other municipality in Australia. And that kind of outcome is likely to create sustainable long-term price growth. Akin to a sleeping giant, the scale and strength of the Sunshine Coast as a region is often underestimated. It is currently the 10th largest urban area in Australia – but experiencing a higher percentage population growth than Sydney,

and expected to overtake the NSW Central Coast to become Australia’s ninth largest urban area with a projected population of 580,000 within 20 years. The region boasts an economy worth $17.74 billion, having grown by around 29 percent in seven years and 12 percent in the previous two, effectively making it one of the largest regional economies in Australia – and on infrastructure it’s outspending several of the nation’s capital cities. Major infrastructure upgrades include the $1.6 billion Bruce Highway lane expansions and the launch of the first five-star hotel development, among others. Just one of the major infrastructure projects in the area is the $347 million Sunshine Coast Airport Expansion Project (SCAEP) that will connect the Sunshine Coast on an international scale and deliver

one of the Sunshine Coast’s most significant transport, tourism and economic infrastructure assets, adding $4.1 billion to Gross Regional Product between 2020–2040, and opening-up new direct destinations in Australia, the Pacific and Asia to benefit Sunshine Coast residents and visitors. Central to everything that’s happening in the region however, is the development of a Sunshine Coast CBD from the ground up – a $5 billion enterprise that is now under way on a 53ha greenfield site in central Maroochydore. The new city centre has attracted investment from local, national and international firms interested having an early presence in the growing region, and is expected to contribute more than $350 million to the region’s economy in the next five years and generate $5.9 billion in expenditure by 2040.

The new CBD will be host to the most technologically advanced infrastructure foundations in Australia, ranging from high speed digital connections to Australia’s first underground pneumatic waste systems, and from 2020 is expected to deliver Australia’s fastest telecommunications connection to Asia and the second fastest to the United States, attracting global digital giants like Facebook, Google and Amazon. The health, education and technology sectors – including the new $5 billion health precinct - are bringing new residents to the Sunshine Coast and this is providing strong impetus to the real estate market, notably at the top end. The median house price for the region has increased 30 percent in the past three years, while the median apartment price has jumped 20 percent in the past year.

Buying or Selling | Renewing or Reviewing | Negotiation and Dispute Resolution

We are recognised experts in our field, always outcomes focused and offer flexible fee options. Michael Kleinschmidt | Legal Practitioner Director PH: 07 5406 1280 | info@stratumlegal.com.au December 2019 | ResortNews

PROPERTY

“So when it comes to investing into the property market, it’s important to ensure you are maximising the ‘effortless advantage’ or value uplift from public investment into new or upgraded infrastructure and amenity.

Because of the large number of knowledge-based start-ups and small businesses such as information technology, clean-tech, creative industries, aviation and education, demographer Bernard Salt has described the Sunshine Coast as “the entrepreneurship capital of Australia”. It is credited with being one of the top 10 leading regions in the country for employment generation, experiencing a solid, progressive employment growth of 13 percent increase during the past five years and adding more than 20,000 jobs over the same period. The $1.8 billion Sunshine Coast University Hospital (SCUH) has created 5,000 jobs since opening in April 2017 and the new Maroochydore City Centre is forecast to provide 15,000 jobs over the lifespan of the 20-year project and inject $4.4 billion into the economy. The Sunshine Coast International Broadband Network will deliver 800 new jobs once it’s operational next year, and one of Australia’s fastest growing universities, The University of the Sunshine Coast will add an additional 8,000 students over the next six months.

“An incredible 22 percent median apartment price growth has been experienced over the past three years,” he said. Lyn Pearsall, Mr Sales

“Economies reliant on tourism traditionally fail to deliver sustainable real estate growth, but the Sunshine Coast has diversified and strengthened and is now, I think, the nation’s most compelling growth story,” said Terry Ryder. While the Sunshine Coast might be better known as a holiday destination, it does however, also have a significant local population – in some cases, hundreds of thousands of people who live there all year round – so what does this mean for them? “What this means is that these markets have solid fundamentals primed for growth, including the economic principals of demand and supply that apply upward price pressure,” said Peter Brewer, director of PBB Consult.

“This growth, combined with a consistently low vacancy rate averaging 1.4 percent over the past five years to 2019 – which is essentially full occupancy – bodes extremely well for the management rights sector,” said Lyn Pearsall of Management Rights Sales. “Apartment rental yields were at 5.1 percent as at January 2019,” said Pearsall, “significantly higher than those being achieved in Sydney and Melbourne, which have fallen to record lows of 3.8 percent and 3.9 percent respectively.

rights market has been reasonably stable over the past 18 months, with demand for larger, high-net management rights very buoyant. Those at the lower end of the scale are taking an extended period on the market to achieve a sale, due to a lower demand and unrealistic price expectations. Lyn Pearsall agreed: “We’re seeing a mixed bag; strong enquiry for high-net properties that can be syndicated or purchased in partnerships giving investors up to 20 percent return on investment. We are also seeing a resurgence in enquiries for smaller properties that can be operated as an ‘add-on’, or by a single person or retired couple supplementing their income.

So has the tide swell of investment and development impacted on the management rights sector at all? Glenn Millar of ResortBrokers said: “The management

Glenn Millar, Resort Brokers

An incredible 22 percent median apartment price growth has been experienced over the past three years...

Avalon by Mosaic

PROPERTY

ResortNews | December 2019

RESORTBROKERS.COM.AU

1300 665 966

Seasons Greetings from ResortBrokers! I F Y O U ’ R E A F T E R T H AT P E R F E C T C O M B I N AT I O N O F A G R E AT B U S I N E S S W I T H T H E U L T I M AT E L I F E S T Y L E , T H E N TA K E A L O O K AT T H E S E S U N S H I N E C O A S T C H R I S T M A S C R A C K E R S .

PARREARRA, QLD

NOOSAVILLE, QLD

AZURE ON DOUBLE BAY

NOOSA VILLAGE RIVER RESORT

SANDY BEACH RESORT

• Stunning upmarket permanent complex • 3 bedroom manager villa • No requirement to live onsite, no set hours

• Fully refurbished units with river views • Very healthy BC salary • No fixed office hours, high net profit

• One of Noosa’s finest waterfront complexes • Great net profit, long agreements • Spacious, modern managers residence

Net: $194K Price: $1.534m

Net: $223k Price: $1.809m

Net: $274k Price: $2.18m

MAROOCHYDORE, QLD

PEREGIAN BEACH, QLD

LANGLEY PARK

THE IVY

RETREAT BEACH HOUSES

• Compact Mid Rise with ocean views • Long agreements • No requirement to reside onsite

• Off the plan caretaking business with letting potential - completion Jan 2020 • No unit to buy or requirement to live onsite

• Rare absolute beach frontage • Healthy Body Corporate salary • 3 bed manager’s home with ocean views

Net: $130k Price: $799k

Net: $45k Price: $135K

Net: $316k Price: $2.348m

C O N TA C T G L E N N M I L L A R

0427 431 213 | glenn@resortbrokers.com.au December 2019 | ResortNews

PROPERTY

And what of new developments? Glenn Millar said that ResortBrokers are aware of only 15 new builds under construction across the region, with another eight that are in final approval/ pre-sale stages that will have management rights attached. Michael Kleinschmidt, legal practitioner director of Stratum Legal believes that developers are continuing to acquire sites for future development, and that both the more affordable properties, and those at the top end, are moving quickly. “There are currently a number of development projects in progress, and we expect the interest for the caretaking and letting rights to continue to be high provided the developers maintain reasonable expectations in terms of the price and quality of operator,” he said. “There is no doubt however, that smaller infill development is easier to achieve while larger scale development is quite difficult, for example the Sekisui Development at Yaroomba.” With the infrastructure projects and development shifting the region towards long-term

investment and growth, are the sales favouring short- or longstay complexes, and has there been any shift in the types of buyers presenting themselves? “We continue to see strong sales both short- and long-term complexes,” adds Kleinschmidt, “with the larger properties drawing premiums.” Glenn Millar agrees, adding that while the Sunshine Coast has not traditionally attracted Chinese buyers, they are starting to receive enquiries from this sector – albeit, almost entirely looking for permanent complexes. “Interstate and intrastate buyers still make up 90 percent of the buyer market, but we are also seeing strong growth in buyers out of South Africa and Zimbabwe. The Kiwi market has dropped off dramatically in the last few years. “We are also seeing a change in the demographic of buyers from the traditional “baby boomers to millennials, and couples with families, which in turn has a significant impact on the type of managers residences required,” added Millar.

Peace of mind for your property decisions Management rights and unit valuations for all major financiers, presale advice and due dilligence for buyers

Chartered Accountants & Business Advisors Peter Brewer

We are widely recognised in the accommodation sector as specialist advisors. We work closely with industry lawyers and financiers to ensure our clients interests are protected and outcomes optimised.

Sunshine Coast, Reg Qld & NT Chris.McKillop@htw.com.au

Peter Brewer t: 07 544 9992 e: peter@pbbconsult.com.au w: www.pbbconsult.com.au

Gold Coast, Brisbane, Ipswich & NSW North Coast Tod.Gillespie@htw.com.au

www.pbbconsult.com.au 46

PROPERTY

Australia’s largest independent property advisory group

ResortNews | December 2019

sales are cyclical with Brewer believing that there is little to stop the shifts in political policies unsettling the market to a degree, but he also notes that the number of interest rate cuts have tended to make management rights lending extremely competitive. Glenn Millar and Michael Kleinschmidt however, say that holiday complexes seem to sell more in the spring with interest increasing after people have visited the area during the traditional holiday periods. Peter Brewer, PBB Consult

Brewer expands: “The Sunshine Coast has enjoyed strong occupancy (both short and long term letting) over the last three to four years. Historically, there were greater fluctuations on a year to year basis across the three distinct markets of Noosa, Maroochydore and Caloundra – now that the southern end is ‘coming of age’, occupancy is perhaps a reflection of the Sunshine Coast maturing." There are varying views as to whether management rights

Considering that the last review of the Sunshine Coast was a full 12 months ago, and the market was still being heavily influenced and affected by the banking royal commission, I ask those on the ground what, if any, are the potential impediments to sales at the moment? Lyn Pearsall and Peter Brewer believe the spectre of the banking enquiry is still a factor, and that the scrutiny of every aspect of the ‘purchaser’s’ spending has made lending very difficult.

Chenoa Daniel – ResortBrokers Chenoa Daniel – ResortBrokers

Introducing...Chenoa Daniel Introducing...Chenoa Daniel ResortBrokers As probably the youngest woman Her track record speaks for itself. In ResortBrokers November 2019, Chenoa achieved the working in this industry nationally, I bring a valuable perspective to As probably the youngest woman what is such a dynamic sector. I will working in this industry nationally, to take our service Ialways bring astrive valuable perspective to and marketing to athe next level, not Ijust what is such dynamic sector. will in termsstrive of sales, but our howservice we always to take and educate and buyers marketing to empower the next level, notinjust theterms process. in of sales, but how we educate and empower buyersthe in That, in a nutshell, encapsulates the process. work ethic and professionalism that has

seen Chenoa earn encapsulates a deserved reputation That, in a nutshell, the as one of the astute management work ethic andmost professionalism that has rightsChenoa brokers earn in thea business. seen deserved reputation as one of the most astute management For the past three years, she has been rights brokers infar theNorth business. ResortBrokers’ Queensland specialist andthree she years, will eventually For the past she hashead been south in the New to Queensland bolster their ResortBrokers’ farYear North presence and on the Coast.head specialist sheSunshine will eventually (ShaneinCroghan transition into the south the Newwill Year to bolster their NQ role). on the Sunshine Coast. presence (Shane Croghan will transition into the NQ role).

December 2019 | ResortNews

highest multiplier (above 4.5X) in her Her track record speaks for itself. In region in recent withachieved the sale of November 2019,years Chenoa the the management rights to4.5X) the Peninsula highest multiplier (above in her Boutique Hotel Port region in recent yearsDouglas. with theThat sale of multi-million dollar sale national the management rightsattracted to the Peninsula media coverage andDouglas. the achievement Boutique Hotel Port That was all the more given the multi-million dollarmeritorious sale attracted national tough market. media coverage and the achievement was the more meritorious given the Otherallnotable sales include Saltwater, tough market. The White House and Bay Villas Resort in Portnotable Douglassales and include Jack and Newell Other Saltwater, Cairns Holiday Apartments. The White House and Bay Villas Resort in Port Douglas andminute Jack and Newell “I’ve enjoyed every of my time Cairns Holiday in the far north Apartments. but I think it is time for a new challenge,” Chenoa “This “I’ve enjoyed every minutesays. of my timewill bethe a step up in but my Iprofessional career in far north think it is time for a and with 11 years in the management new challenge,” Chenoa says. “This will rights industry, opportunitycareer be a step up in it’s myan professional for me to 11 putyears it all together in a new and with in the management environment and rights industry, it’smarket.” an opportunity for me to put it all together in a new environment and market.”

PROPERTY

Name: Chenoa Daniel Mobile: 0403 143 151 Agency:Chenoa ResortBrokers Name: Daniel Area of Service: Mobile: 0403 143North 151 Qld/Sunshine Coast Web: www.resortbrokers.com.au Agency: ResortBrokers Email:ofchenoa@resortbrokers.com.au Area Service: North Qld/Sunshine Coast Web: www.resortbrokers.com.au Email: chenoa@resortbrokers.com.au

t the Expec Coast e n i h Suns eing b e u n … as ti to con on the grow rnment n ve a regio ll tiers of go its sa se long a to recogni ue ce contin ic impor tan m econo

“Another aspect is the critically important function of disclosing accurate profit and loss reports,” says Lyn. “While there may be a lack of clarity with regard to wages for properly managing the building, this needs to be clarified.

short-stay arena, and despite the progress and development (and competition) evident all around them, the individual owners or bodies corporate don’t see the correlation between the value of their assets and their ongoing returns.”

For Glenn Millar, it’s the frustration of trying to market older accommodation facilities that have not been maintained in line with consumer expectations in terms of the quality of fittings and fixtures.

Michael Kleinschmidt is direct. “Despite the very positive outlook for the region generally, there is a growing trend for bodies corporate to seek to impose more control during a transfer process. This together with the Gallery Vie amendments still being required by financiers is definitely making them more

“The accom sector is evolving quickly – particularly in the

difficult to obtain. “There also appears to be a trend (and not just on the Sunshine Coast) of single-issue committees being elected with an agenda of reducing body corporate levies, which then leads to dispute with the caretaker. Unfortunately, certain law firms have been facilitating advancing combative strategies with a view to trying to terminate management rights and there is both increasing costs to management rights operators and increasing litigation as a result. As with any investment, I would urge significant attention

to all aspects of the process." Local agents say the region is crying out for more investment properties to cater to the needs of the increasing population. According to a Lyn Pearsall: “There is an increase in migration from outside the region and reinvestment from people within the region into the property sector, contributing to increased building approvals and economic activity”. Well known as a hub for tourists, retirees and summer holiday getaway seekers, the coastal city is thriving as population

QUEENSLAND WIDE

 (07) 5443 5266 www.simpsonquinn.com.au Level 1, 13 Carnaby Street, Maroochydore

Management Rights Transactions Conveyancing and Property Law Estate Planning

PROPERTY

ResortNews | December 2019

growth is bringing opportunities in construction, as well as business and services. The latest National Visitor Survey indicates that a record 3.5 million domestic visitors travelled to the Sunshine Coast in the year ending September 2018, generating record expenditure of $2.4 billion, a rise of more than 18.4 percent. With the new runway coming on line in 2020, combined with the already strong organic growth, demand for accommodation is going to continue to increase. Expect

the Sunshine Coast to continue being a region on the grow… as long as all tiers of government continue to recognise its economic importance – and treat its infrastructure requirement with the gravity it deserves – then there’s little doubt the Sunshine Coast will continue to forge ahead. So how do my venerable participants view the next few years? In a word – positively, but Peter Brewer sums it up. “Even without the stats, there

are plenty of positive signs of what’s to come for the Sunshine Coast,” said Brewer. “There will be adjustments – as with any form of growing pain – and aside from the development and economic growth, the Sunshine Coast will always be able to offer what it always has; a great place to live, a desirable place to holiday and now, an easy place to get to from any airport.” The local tourism industry means the Sunshine Coast continues to maintain a thriving economy – propping up small and big

businesses alike, and generating a healthy property market that welcomes new buyers in master-planned communities and established suburbs. Considering the current and planned infrastructure developments for the Sunshine Coast, population and economy growth are looking healthy for the foreseeable future, based on the Sunshine Coast’s 20-year economic plan. If their predictions come to fruition, now could be the ideal time to buy a property in the region.

ID 8193

Exclusive Agency - Kings Beach • Sensational 3 bedroom managers apartment with ocean views • Already improving lifestyle holiday building • Extra units have just come into the letting pool which are not included in the figures • There has also been an increase in tariffs • 9.4 rating with booking.com • Get in now and reap the rewards • Office attached and on title with no defined office hours • Great Body Corporate • 20 year agreement • Kings Beach is proving popular with the weekend drive market from Brisbane • Great cafes and restaurants • Ocean pool for swimming laps & the best beaches for swimming and fishing

Price $990,000 including real estate.

Enquire now for further information, Exclusive Management Rights Brokers: Lyn Pearsall – 0425 168 244, lynpearsall@mrsales.com.au Amanda Rowe – 0427 413 319, amanda@mrsales.com.au

www.mrsales.com.au December 2019 | ResortNews

PROPERTY

Outrigger Burleigh:

An affordable option in paradise By Trish Riley, Editor

We all know the importance associated with the real estate adage of location, location, location – but in the case of the sprawling Outrigger Burleigh at the southern end of the Gold Coast, it couldn’t be more true.

John and Colleen Trew

The sun-lit Mediterraneanstyle property, set back from the Gold Coast Highway and moments away from the expansive Burleigh beach and Headlands may not offer all the mod-cons of newly-built resorts, but it is renowned for offering remarkable value for money and proximity to everything a visitor to the Gold Coast may need.

balcony and view - over the pool, or west to the hinterland, and an onsite restaurant caters for guests that aren’t taking advantage of the nearby club, tavern or gastronomically diverse offerings of Burleigh itself. There are also a wide range of fast food services and late-closing supermarkets and a chemist close by.

Developed for short-stay guests and catering for a high number of trade and corporate visitors, the Outrigger Burleigh is an independently operated property and not part of the Outrigger Group. It features 70 studio-style motel rooms superior (which have been renovated) and standard, and most are situated on the ocean side of the building, away from the road. There are triple rooms featuring two beds while double rooms have one bed, and two family units which sleep five. All have been individually furnished to a high standard.

Recognising the inherent value of the property six years ago, John and Colleen Trew bought into Outrigger Burleigh as building managers after looking at a number of other properties. Having run a motel in New Zealand previously, they liked the simplicity of the facilities offered – free wifi, a vending machine, shady grassed grounds, a large heated swimming pool, spa and

children's pool, but most of all they appreciated its location. “The proximity to North Burleigh Surf Lifesaving Club is so beneficial” says John. “The surf club is a very popular venue for weddings, Christmas parties and family events and we invariably provide a lot of the accommodation when it’s needed.” Outrigger Burleigh is a twominute walk from patrolled beaches and a well-established fitness route that also includes children’s playgrounds and public barbecue settings. The picturesque and relaxed stroll along the esplanade takes one into Burleigh and to its range of boutiques, specialty shops and eateries on James Street.

There is lift access to all floors, and two units on the ground floor have wheelchair access. All units have a PROFILES

ResortNews | December 2019

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PROFILES

There are local markets on Saturday mornings and monthly beachfront markets at Burleigh Heads – and for those who enjoy the lure of nature one can sit and watch the whales swim by or partake in a beautiful walk through the national park on Burleigh Head. For guests watching or participating in sporting and recreation events, Outrigger Burleigh is situated within minutes of the Miami Aquatic Centre – which has two outdoor heated 50-metre (160 ft) swimming pools and one indoor 15-metre (49 ft) teaching pool; the Pizzey Park Sporting Complex which offers specialised grounds for a variety of sports including tennis, softball, soccer, rugby, AFL, netball and athletics, and the Cbus and Metricon stadiums are easily accessed by public or shared transport services. And talking about transport, once guests arrive and park in the secure underground parking there is little use for their vehicle again. In addition to being on the direct route for public transport there is a regular express bus shuttle to Coolangatta Airport, the theme parks and all of the major shopping centres.

name and know what unit they want to stay in. We’re even getting return guests who book an extra night to revisit a restaurant or bar they found on their previous stay.

Outrigger Burleigh also has rare onsite parking for coaches, boats and vans. In addition to holding a full real estate license, John’s former experience as a builder and shop-fitter has stood them in good stead. They have a very effective hard working and friendly body corporate committee who, together with John and Colleen, have systematically renovated the reception, installed new carpet throughout the building, implemented a new fire and CCTV system and upgraded the swimming pool area with grass and new seating. The committee are also forward thinking with regard to plans for a full building repaint and the installation of solar.

So what do John and Colleen do differently to the plethora of accom buildings in the neighbouring vicinity? “We pride ourselves on our friendly approach and attention to detail,” says John. “We also appreciate the value of our relationship with our lot owners and guests. “Irrespective of why our guests are here, or the rate they are paying for accommodation, we want them to enjoy a comfortable stay and have a thoroughly good time – we also want them to return - regularly. We have driven up direct bookings from 20 percent to over 55 percent since our tenure began, and are rewarded with repeat guests who call us by

PROFILES

“As mentioned already, our position or location is everything – we’re on the ‘right’ side of the highway to be able to take advantage of get a lot of business from surf club. We’re acutely aware of the changes taking place in the industry and the significant impact of social media and influencers. We’re using Airbnb, Groupon and a number of others, but the best marketing machine in the world is booking.com. We ensure that we’re providing the very best accommodation, value and service, and are usually kept very busy.” John’s advice for those looking at getting into management rights is something I hear often: “Look before you leap,” says John, “Select your property based on your strengths, and then get to know everything there is to know about the building and the area. Know what works and what doesn’t work from a leisure accom perspective and then surround yourself with industry specialists who can guide you through the first couple of months.”

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ResortNews | December 2019

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SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

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

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

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

Call John Punch on 5570 9322

CERVETTO COURTICE L AW Y E R S

Q U E E N S L A N D

Management Rights Sales & Purchases Phone: (07) 3202 2266 Fax: (07) 3812 1128 Email: cervetto@gil.com.au

December 2019 | ResortNews

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

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