Resort News, January 2020

Registered by Australia Post Print Post No. 100023799

Issue 281 | January 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

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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 January issue FRONT DESK Editor's Note……......................................................................... 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. © 2020 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.

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

INDUSTRY

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News in Brief……........................................................................ 06 Person of Interest: Bobo Qi..................................................10 ARAMA Report..........................................................................12 State Report...............................................................................13 BCCM Report.............................................................................14 SCA Report.................................................................................15 MANAGEMENT

By All Accounts……....................................................................16 Legal Ease....................................................................................16 Motel Market..............................................................................18 Strata Trends..............................................................................19 Thinking MR............................................................................... 20 New Manager's Q&A.............................................................. 22 Good Governance....................................................................24 Technology................................................................................. 25 Intonet......................................................................................... 26 Marketing....................................................................................27 TOURISM

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Tourism Report…….................................................................... 28 Tourism International............................................................ 30 The Last Resort.........................................................................31 DEVELOPMENTS: Development News……........................................................... 34 PROPERTY New Manager Profiles……...................................................... 38 Accomproperties Sales Report......................................... 38 Property Spotlight: Far North Queensland................... 40 PROFILES

27

Seaview Resort: The perfect holiday destination……. 48 Beaconlea: The Broadwater’s best kept secret............51 PREFERRED SUPPLIERS Preferred Supplier Profile: Archer Gowland ……........... 54 The Preferred Supplier Directory...................................... 58

ADVERTISING Stewart Shimmin, advertising@accomnews.com.au SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au CONTRIBUTORS Andrew Morgan, Arvo Elias, Chris Irons, Chris Spears, Col Myers, Grant Mifsud, James Nickless, Jonathan Hanaghan, John Mahoney, Lynda Kypriadakis, Mark Ryall, Mike Phipps and Trevor Rawnsley.

KEY

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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!

04

FRONT DESK

ResortNews | January 2020

Happy new year!

honestly acknowledge what it is you know and do not know.

Admitting you do not have an answer and saying you will look into it and get back to them establishes credibility.

Being caught making things up can be considered deceptive and inauthentic.

It’s the beginning of a new year, and a new decade, and a time that we’re surrounded by resolutions and good intentions. I personally, would like to see (and report on) fewer disputes and better industry interactions.

You might assume that its common sense that relationships in business are important and that everyone strives to create and maintain good working relationships. However, that is not always the case.

Business relationships can be tricky. Sometimes they are transactional; simply interacting as a means to an end (as with trades) and other times they are relational, and centered on having meaningful engagements that build and maintain the relationship (as with owners), and they can even be a combination of the two.

Whether transactional or relational, interactions can be collaborative or competitive (read combative). When collaborative, you and your counterpart walk away feeling good about the transaction, like you were treated fairly and more likely to engage with one another in the future. On the other hand, if competitive, you might feel like you’re being treated unfairly, cheated or manipulated. In such cases, you probably will not want to engage with that person

January 2020 | ResortNews

Building trust Trish Riley, Editor

editor@accomnews.com.au

again – but for the sake of your business, your building and in the long-run your health and other relationships, you need to make things right.

This means paying attention to the process and quality of how you are both communicating, not just interacting as a means to an end. Framing your engagements as a collaborative, relational process can help to build and maintain relationships.

Here are four components of collaborative relationships and how you can develop yours to be more mutually beneficial.

Fostering open communication Communicating in an open and honest manner, in any relationship, is critical.

You want to experience the authenticity of your counterpart and you want that person to see you for who you are.

You want to be prepared and

Building trust allows you both to feel safe sharing information.

Trust does not come overnight.

It is time-consuming to build, but can be easily compromised.

One way of building trust is to find out what is important to your counterpart and commit to delivering that. It can be a key data point, a book reference or an introduction to a colleague. Whatever you promise, make sure it is something you can actually deliver on and that will build your image of being reliable.

Managing the pace Relationships take time. There is a window within which you will feel comfortable about the pace to establish rapport, and build trust and confidence in each other.

It is useful to determine the "what" and "when" of milestones you can use to measure the pace of building your relationship.

Your short- and long-term goals will need to be taken into consideration to identify these milestones and when you would like to reach them.

FRONT DESK

Controlling your emotions Engaging in new business relationships can be stressful.

You will not know how to interpret some comments made or actions taken, nor how to communicate your own feelings because you do not know this other person well.

Identify practices you can use to feel more comfortable even in the uncomfortable moments. Try to slow down your breathing or prepare a detailed list that you can refer to. This will keep you calm and buy you time to think of a suitable response to dig deeper and clarify your understanding.

At the end of the day, mutuallybeneficial outcomes are the payoff for investing time and energy into business relationships. Maybe you learn from each other. Maybe performance increases when you are around each other. Or maybe there are other tangible benefits.

Think about the aspects of the relationship you find valuable and want to retain.

What are your contributions?

What are theirs?

It is the mutually-beneficial relationships that prove to be most valuable in the workplace, and in life.

I hope that this year will be a genial and successful one, do enjoy reading this issue.

05

EDITOR'S NOTE

Building relationships takes time and effort

Accom investment pipeline nudges $67 billion Standalone and mixeduse accommodation projects across the length and breadth of Australia have been valued at a collective $66.9 billion in terms of investment value for the 2018-19 financial year, according to new data from Tourism Research Australia.

across 46 projects and 5,900 rooms. New South Wales and Victoria were the two states leading the way in the number of projects, together making up 113 projects at a value of $25.3 billion. However, the two states were polar opposites when looking at what stage these projects were up to, with NSW having more than half of these under construction, while more than half in Victoria were still in the proposal phase.

According to the government agency’s annual Tourism Investment Monitor report, which collates and totals the level of investment being put into accommodation projects across both capital city and regional areas.

The report showed a significant focus was being put into regional Australia in response to “robust consumer demand” witnessed in 2018-19.

Three areas in particular – Sunshine Coast, Newcastle and Geelong – were singled out for double-digit growth in visitors. Investors were responding, with each seeing an influx of tourism-related projects underway including Sekisui House in Coolum, QT Newcastle and the Geelong Performing Arts Centre.

It must be noted that the total figure for all accommodation also includes residential projects as part of its mixeduse tally. Broken down separately, this figure equates to $55.8 billion for mixed-use projects and $11.1 billion for standalone hotel accommodation developments in the national pipeline.

Of the standalone accommodation tally, this figure comprises 152 projects amounting to 25,620 rooms.

Divided further, capital cities’ unsurprisingly hold the dominant share with $8.7 billion in investment across 106 projects and 19,720 rooms, while regional developments have been tallied at $2.3 billion

“Tourism expenditure and demand creates positive flowthrough effects for regional businesses and economies in helping them to grow and increase employment,” said Austrade Senior Investment Specialist, Emma McDonald.

Sydney CBD set for 330m-high skyscrapers

©pawopa3336, stock.adobe.com

The NSW government has given in-principle approval to new planning controls that will see a 40-year cap on building heights in Sydney's CBD removed.

The draft Central Sydney Planning Strategy, unveiled in 2016 by the City of Sydney, proposes the biggest changes to planning in Central Sydney since 1971, and the first major change to the statutory planning since 1996.

Under the strategy, developers will be able to build above current height limits, up to 300 metres, if the towers in the CBD were positioned exclusively for commercial use.

The new cap would be nearly 24-storeys taller than the city's current tallest commercial building, Chifley Tower.

Growing the tourism infrastructure investment pipeline is therefore crucial to the ongoing success of the long-term development of the tourism sector.”

NSW planning minister Rob Stokes and Sydney lord mayor Clover Moore have green lit the 20-year development strategy, which would also require all new towers over 55 metres to be at least half commercial.

“If we want Sydney to maintain its status as a global city and economic powerhouse, it’s vital that we balance the need for commercial floor space with residential development in the city centre,” lord mayor Clover Moore said.

©anyaberkut, stock.adobe.com

06

“Central Sydney’s residents, workers and visitors are best served by collaboration

INDUSTRY

between the city and the state government. This plan strikes a balance between fostering new businesses and growth while protecting and enhancing the great public spaces that make our city unique.”

The changes relate to four distinct precincts near Barangaroo, Circular Quay, Central and Town Hall and increase the proportion of office space at the expense of residential development.

The strategy includes the expansion of Central Sydney to reabsorb The Rocks, Darling Harbour, Ultimo and Central Railway to Cleveland Street.

“Sydney CBD is Australia's economic gateway to the world, generating nearly $110 billion each year,” Stokes said.

“This strategy means we will deliver nearly three million square metres of new office space to ensure Sydney remains the commercial hub of the nation.

“Having a single consent authority and framework will make planning more consistent and reduce red tape and hurdles.”

Another key change under the strategy would be the introduction of an affordable housing levy.

The levy would eventually cost commercial developers 1 percent of the value of the project and residential developers 3 percent of their value.

Source: Urban Developer

ResortNews | January 2020

Queensland in with a sporting chance for Olympic bid ©Chaay_tee, stock.adobe.com

The Queensland Government is to back a Brisbane-based bid to host the 2032 Olympic Games.

Advising that an official bid would be launched if the Federal Government gave the final blessing, Queensland Premier, Annastacia Palaszczuk stated “(this is about) pride in our state (and) tells the rest of the world we're firmly on the map.

"We do have the capability to do this if we get everything right."

The bid is all but secured, with the Prime Minister's

representative on the Olympics delegation, member for the Sunshine Coast seat of Fairfax Ted O'Brien, welcoming Queensland's decision.

In a statement, O'Brien advised “we are now officially off and running to secure the Games in 2032.

"The real value for Queensland, and for Australia, is not just those couple of weeks when the eyes of the world are on us, but the decades of positive legacy."

Instead of a traditional city hosting the games, Queensland's bid involves a state-wide approach which would likely

include regional cities like Cairns, Townsville and the Gold Coast.

Preliminary investigations by the Council of South-East Queensland mayors found ticket sales would be around six times greater than those for the 2018 Gold Coast Commonwealth Games while additional revenue would be expected to come from the sales of media rights and international sponsorships.

Premier Palaszczuk said Queensland authorities would spend the next six months assessing existing infrastructure that could be utilised, such as landmark Brisbane venue The Gabba.

"The Olympic Committee has said there is a new norm that means we can look at existing infrastructure; we don't have to build huge venues that will not be used into the future.”

South East Queensland Council of Mayors Chair Adrian Schinner said he was glad the Queensland Government was advancing with a plan first proposed by local mayors, adding “in the early days when it was first flagged a lot of people said this was a crazy idea - right now we have all three levels of government saying this is the right thing to do."

Source: The Australian

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January 2020 | ResortNews

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07

Whakaari/White Island eruption: Fine of up to $1.5 million if tour operators breached safety laws ©marabelo , stock.adobe.com

Tour operators could be fined up to $1.5 million, if a Worksafe investigation finds serious breaches of health and safety laws following the tragedy at White Island.

professional", and had passed its safety audits over the past three years. Other companies also took flights out to the island, and held guided tours.

not about eliminating all risk.

"It's about identifying the risks and managing them.

You are never going to be able to eliminate them."

Hemi Morete, lead auditor for AdventureMark, said: "They were a very professional outfit."

That's the maximum fine possible under the Health and Safety at Work Act, with Worksafe investigating the deaths and injuries caused by the eruption on December 9.

To be a registered adventure tourism operator, companies need to pass a safety audit, and the White Island Tours "Walking on a Live Volcano" activity registration ran until 19 November 2020.

Insurance lawyer Graeme Christie said fines for proven breaches of the act routinely began around $500,000-to$600,000 in single injury or death workplace accidents.

A Worksafe spokeswoman said a fine could only be imposed by the courts, after a prosecution for breaches of the Health and Safety at Work Act. That would lead to a prosecution being taken, and, if any breaches were proven, Worksafe lawyers would tell the judge what the agency believed the fines should be, the spokeswoman said.

The safety auditor for White Island Tours said the company was "very

All the audit reports done by AdventureMark had now been given to Worksafe, he said.

The safety audits were not public documents, but Morete said the audits involved scrutinising both White Island Tours' hazard identification and risk management, as well as checking the company was operating in the way they said they were.

But he said the audits were

Breaches of the act did not necessarily even have to have been the cause of the injury or death being investigated, he said.

"All that is required is for a reasonable practicable step not to have been taken," he said, regardless of whether it would have prevented the tragedy or not.

Tours of Whakaari/White Island have been running for over 30 years, with around 10,000 a year visiting the island. Questions have been asked about whether tourists should have been on the island at the time of the eruption

as the "alert" level for the island had been lifted to level 2.

The White Island Tours website has been taken down, but just before it was the company explained the risks on its booking page saying: "Whakaari/White Island is currently on Alert Level 2. This level indicates moderate to heightened volcanic unrest, there is the potential for eruption hazards to occur. White Island Tours operates through the varying alert levels but passengers should be aware that there is always a risk of eruptive activity regardless of the alert level. White Island Tours follows a comprehensive safety plan which determines our activities on the island at the various levels."

The company's "current" status on the publicly searchable register meant it had passed a safety audit and was registered and authorised to provide the stated activities for the stated period, Worksafe said.

Source: Stuff NZ

Industry responds to timeshare review ATHOC (Australian Timeshare and Holiday Ownership Council) has welcomed the release of ASIC’s Timeshare: Consumers’ experiences report (December 2019) as the industry continues to work closely with government agencies to improve outcomes for Australian consumers.

ATHOC has worked proactively with ASIC over recent years to ensure Australian consumers who buy and own timeshare are protected and fully informed about the details of the timesharing arrangements they choose to enter.

08

“The Australian timeshare industry is committed to consumer protection measures” said Ramy Filo, President of ATHOC. “For the past two years, we have been in discussions with ASIC regarding revisions for further protection for consumers including longer cooling-off periods, easier-tounderstand explanations around fees and costs and clearer product disclosure statements.

Some of these changes have already been implemented proactively by the industry” However, while acknowledging that the report is qualitative, ATHOC is concerned that the research commissioned by ASIC for their Timeshare: Consumers’ experiences report does not provide a fair representation

of the industry as a whole.

“Of the more than 180,000 timeshare owners in Australia, only 32 consumers were interviewed for this research who had used timeshare” said Mr Filo. “ATHOC’s own industry research shows that the vast majority of the 180,000 timeshare owners in Australia are happy with their timeshare product.”

Additionally, the report refers to pressure sales techniques being deployed across the Australian timeshare industry.

“Only 8.9 percent of people who attend timeshare sales presentations buy timeshare.

Moreover, contract cancellations during the current seven-day cooling off period are at 25 percent” said Mr Filo. “This

INDUSTRY

suggests that consumers are making their own minds up about the sales presentations, and that the cooling off system is working well”.

“Timeshare has always been a lifestyle product, but it is regulated as a financial product” said Mr Filo. “Although it is classed as a managed investment scheme regulated

by ASIC, timeshare should not be viewed as an investment that will yield high returns.”

Timeshare is already one of the most highly regulated sectors in the Australian tourism industry. Some of the world’s most respected hotel chains offer timeshare and enjoy high consumer satisfaction rates."

Source: ATHOC

ResortNews | January 2020

Gold Coast development: Mayor dismisses calls for population cap Gold Coast mayor Tom Tate has flatly rejected suggestions the state government should impose a population cap on the Gold Coast, saying it is merely political point-scoring on the eve of an election and is likely to have a detrimental reverse-effect.

Referencing US President Donald Trump’s desire to build a wall on the border with Mexico to ban migration, Councillor Tate said: “I am not going to do a Trump and build a wall.

“This (population cap idea) sort of comment is a distraction to the main game which is having to plan for our population growth”.

“People don’t want change, I understand that, but as an engineer I understand that if you want to minimise change, you have to plan for it.”

The Mayor said the only solution to the population growth was careful planning, and warned a cap would spark a rush

A paperless RTA is here The Residential Tenancies Authority (RTA) has announced its move towards paperless services, effectively making essential tenancy services faster, more convenient and more efficient for customers.

©Andrey Popov, stock.adobe.com

of high-rise development. “You’ll see buildings going up because people will bring forward their projects just in case they can’t in the future,” he said.

Councillors recently questioned whether it is time for the state government to put up the no vacancy sign on the Gold Coast, as done in Noosa, after they failed to agree on where the new wave of residents will live. Council backflipped on recommendations to make Labrador, Biggera Waters and Southport West development hotspots. Growth projections show 350,000 extra people will call the Gold Coast home by 2041.

Following the launch of RTA web services for bond lodgements, bond refunds, bond disputes and updating customer details, and to reduce the Queensland rental sector’s environmental footprint, the RTA have ceased bulk printing of all forms and publications as from January 1.

Stakeholders are encouraged to follow these five steps in assist with the transition: •

Exchange email addresses with tenants or property manager/owners

•

Agree to receive email notifications or communicate electronically

•

Streamline start of tenancy processes: encourage tenants to use RTA’s Bond Lodgement web service

•

Access all forms and publications online.

Source: RTA

Source: Gold Coast Bulletin

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Above & Beyond January 2020 | ResortNews

INDUSTRY

09

PERSON OF INTEREST

Bobo Qi: Driving change with heart

By Trish Riley, Editor

Hailing originally from the north-eastern city of Harbin, China - a thriving metropolis of 10 million people and wellknown for its beautiful winter ice and snow sculpture festival and Russian legacy, Bobo Qi, co-founder and sales director of Property Bridge begins her story by telling me that her family is quite different from traditional Chinese families – for one, she is the youngest of five children (the one-child policy was introduced after her birth), and secondly, that both her parents were actively involved in business as far back as she can remember.

Technology (AUT), and when she wasn’t studying officially, she was learning as much as she could about Western culture from her New Zealand ‘home-stay’ mom, who she remains close to. “I went back to Harbin every year,” recalls Bobo, “and could not believe how China was changing. The pace of development was

incredible, and technology was driving it all.

“I love both my countries,” Bobo adds passionately, “but Australia is home now, and provides a wonderful platform in which we have built a strong and thriving business. I also have my own family and friends here now.”

“There is no such thing as a "good" or "bad" business. The key to any successful sale is for me to be the "match maker" and marry up a suitable buyer to each unique business proposition.”

The intrepid pair returned to the coast to take up the management rights for Villas Tijuana in Robina, and the die was cast.

In time Bobo was offered a position as a sales executive with the established and well-respected management rights sales agency, ‘Property Pacific’. She took to the role with ease and quickly became one of the high-performing management rights sales brokers. Sadly, the agency’s principal passed away and the long-time agency later closed.

Boboʼs warmth, boundless energy, enthusiasm and dedication has endeared her to management rights operators, buyers and industry professionals alike. Her tireless efforts to establish and support a vast network of sellers and buyers has resulted in outstanding success as a high achieving, well respected and prominent management rights broker in the Brisbane, Gold Coast, Sydney and Melbourne markets.

“My parents were involved in a wholesale business and a gas supply business” says Bobo. “As I grew up, I worked in the business so I think sales and customer service are in my blood.”

Bobo goes on to say that she was always interested in different cultures and lifestyles, and that it was this that drew her away from China when she was old enough.

“As a former onsite manager herself, she understands the opportunities and challenges in dealing with committee members, owners and tenants and regularly passes on her dayto-day operational experience to her clients; especially new entrants to the industry. “It’s important for me that all parties understand what they are getting into,” she says.

Together with her nephew, who is a few years younger, she travelled to Kuala Lumpur to live and study.

In 2001, Bobo was accepted to study technology at the Auckland University of

10

Bobo met Darren Brent – cofounder and managing director of Property Bridge, while in New Zealand. He was working for ANZ at the time but wanted to move to the Gold Coast to pursue a management rights opportunity.

INDUSTRY

ResortNews | January 2020

“Everything I do is based on trust – There is no such thing as a "good" or "bad" business. The key to any successful sale is for me to be the "match maker" and marry up a suitable buyer to each unique business proposition.”

Bobo and Darren established 'Property Bridge', now widely recognised as one of the most enthusiastic and dedicated broking firms in the industry.

The tight-knit Property Bridge team pride themselves on developing sound relationships with their clients.

They also offer bespoke services including industry consultation, market conditions as well as offering unapparelled postsettlement guidance to ensure buyers receive any expert service they require.

Passionate about the industry and wanting to give a voice to the Chinese members, Bobo is also an active member of the Australian Resident Accommodation Managers Association (ARAMA) and her recent re-election for a second term as board member is reflective of the high regard in which she is held.

She has assisted ARAMA in facilitating the inaugural Chinese-Australian manager’s seminars on the Gold Coast and Brisbane and is always in demand to host management rights seminars with other industry professionals.

In a move that has earned her the nickname of Bobo Jie (big sister), she has also established a ‘Management Rights Managers Group’ – of over 700 Chinese-Australian managers and partners that offers an informal and free of charge platform by which to assist managers in sharing industry legislation, information, trade contacts and other aspects of the industry.

A highlight of each year is the well-attended Christmas picnic gathering of managers and their families that allows people to put faces to names and socialise outside the work environment.

January 2020 | ResortNews

“I believe that If you do good, people will come,” says Bobo.

“There is great power in the collective and if we work together, sharing information and building each other up we will all be successful.

“There are a number of factors behind being successful,” she adds, “hard work is a given, but one also has to be entrepreneurial, to keep learning and be willing to help others.”

When asked how she sees the management rights market going forward, Bobo is positive.

“From an industry standpoint, the general consensus was that 2019 was a slightly tougher market than we have seen for some time,” she says.

“There were however, a number of factors that we can attribute this to. External factors include the economy, the USA/ China trade war and a high unemployment rate. Internal factors include the election, the Royal Commission and impact on the funding and mortgage process and the idiosyncrasies of the assignment process.

These factors impact most businesses not just management rights, and we just need to adapt and keep moving forward.

“As far as the future goes, tourism remains a very important part of the economy,” says Bobo.

“Management rights is fairly cyclical and there is a high level of transition, but as the safest going-concern business model in Australia, it’s always going to do well.

“If we are all committed to implementing improvement – from the initial point of enquiry through to property handover and the provision of ongoing support – then we will be building an industry that is not just sustainable but flourishing.”

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11

ARAMA REPORT

©EtiAmmos , stock.adobe.com

Put professional development atop your 2020 plan As the owner of a management rights business, how many times did you engage in ARAMA’s industry events last year?

Something so simple can have long-lasting benefits, and I urge you to mark at least one event in your calendar this year.

With the day-to-day responsibilities of running a management rights business, often days turn into weeks and suddenly another year is behind you. Your business might be in a healthy position, but you may have neglected something critical to its ongoing success – and that is keeping abreast of industry trends and legislative changes that matter to you. It has never been more important for

Trevor Rawnsley, CEO, ARAMA

management rights operators to engage with their peers and other industry stakeholders. After all, the beauty of our industry is our willingness to support one another – and that is no more evident than attending any of ARAMA’s events throughout the year.

We have worked tirelessly to establish support channels that deliver increased opportunities for members to access fellow operators, specialists and other key stakeholders in the management rights industry. We offer events, tools and resources to keep members informed and educated including our recently launched webinar series covering topics of critical importance.

Wearing multiple hats and juggling a raft of jobs make it hard to take time away from the business, however ongoing professional development is equally, if not more, important.

The management rights industry has existed for almost 50 years and ARAMA has been around for more than half of that - so don’t ignore the opportunity to learn from this collective experience.

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

For membership enquiries:

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

12

The culture of collaboration and peer-to-peer learning is what allows the management rights industry to remain strong and continue to grow – and this is something we are proud to have fostered over many years. This is “member help member” in all its glory.

Maintaining professional relationships within the industry gives you access to inside information that matters to

INDUSTRY

your business. ARAMA has just finished touring the ‘Education and Training’ roadshow through New South Wales and Queensland, discussing the big issues facing the industry. These events are a great opportunity to meet faces old and new and we are encouraged by the growing rate of attendance at them.

As education and training become increasingly more important for management rights operators into the future, we will continue to do all that we can to lift the skills, abilities and qualifications of participants in the industry - and our programs will adapt with industry requirements.

Queensland licensees will soon join the rest of Australia in being required to undertake compulsory training and development in order to maintain their licence.

ARAMA has been at the forefront of designing these rules and will be perfectly positioned to deliver this training directly to members.

Our management rights industry training program (MRITP) already offers newcomers an insightful introduction to management rights with a wealth of information from insights into the legal landscape, managing stakeholder relationships and financial management and compliance.

This year we are hopeful to launch a second program aimed at established and experienced operators that will offer the opportunity for ongoing professional development – something that will soon become an ongoing requirement.

ARAMA offers more than 50 events annually which are designed to develop your skills and your relationships, and to help you build a better business.

Once again, I urge you to help make management rights even stronger this year by collaborating with your peers and by participating in any of the events being held near you. The more active our members are, the more powerful our industry is.

ResortNews | January 2020

STATE REPORT ©Piman Khrutmuang, stock.adobe.com

Drop dead dates There have been many articles written about how critical it is that you exercise any option in your Caretaking and Letting Agreements strictly in accordance with the terms of the agreements.

The courts have consistently held that option exercise dates are “drop dead dates”. In other words, if you miss the exercise period – even by a single day – you lose your right to extend the Agreements and they will come to an end. If you have more than one option and miss the exercise date under the first option, the agreements come to an end at the conclusion of the then current term and all subsequent options are lost.

There are three main types of options that we regularly see in Caretaking and Letting Agreements: Open options: Where it states that you must exercise the option by written notice to the Owners Corporation at least three months prior to January 2020 | ResortNews

Agreements. When deciding how to remind yourself of your “drop dead dates” window period, always have a backup plan. You may not be sitting in your office at your computer when the date comes up due to holidays, sickness or other commitments. Also ensure your reminders come up well beforehand so you have plenty of time to exercise your option.

Col Myers, Small Myers Hughes

expiry of the current term. If you have an open option, it is a good idea to exercise all of the option periods now, rather than risk forgetting later. Let’s face, you are never going to not exercise an option.

Window period options: Where it states that you must exercise the option by written notice to the Owners Corporation not more than six months and not less than three months prior to expiry of the current term. Window options are a bit trickier and you must have a fail-safe reminder system to ensure you exercise the option within the window period allowed under your

Automatic exercising options: Where the agreements state that they are automatically extended for the option period, unless you are in default or you advise the body corporate/ owners corporation in writing of your intention not to extend the agreements.

Whichever type of option you have in your agreements, it is important that you comply strictly with the wording contained in the agreements in relation to the form of notice and its delivery. Your solicitor can assist you to exercise the option validly if you are in any doubt of what is required.

It is also advisable to document the extension of the term of your agreements by way of a

INDUSTRY

Deed of Extension. By doing this, there cannot be any dispute down the track that the option was validly exercised.

This is particularly important when the time comes to sell your management rights business. Buyers’ lawyers want to see a “chain of title”.

Summary Do yourself a big favour and take a moment now to look at your agreements and check what kind of options you have, and when the last date is for exercising the option(s). Then put in place a system to ensure you do not miss this “drop dead date”.

Over the years, I have seen a number of very sad situations where managers have missed their option exercise dates (one by only 24 hours) and eventually had to walk away from their business with next to nothing.

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.

13

BCCM REPORT

Cause and effect ©ilkercelik, stock.adobe.com

While my office provides dispute resolution services to Queensland’s community titles sector, we are not a compliance agency, and what this also means, is that we don’t undertake enforcement activities.

In practical terms, this means that my office is not the “body corporate police”. We don’t have inspectors going out and conducting audits, checking for compliance with the legislation, or issuing fines or other penalties.

I know from speaking at seminars and other public forums that there are some stakeholders who are surprised at this and who would prefer it to be otherwise.

Whether this is a good or bad thing is perhaps a topic for others to debate and certainly, I can’t comment on whether this approach should change.

I can only speak for how enforcement currently occurs.

The Body Corporate and Community Management Act 1997 (the Act) is set up in such a way that it is left open to

order isn’t complied with, the Act provides that the party in whose favour the order was made can seek its enforcement through the Magistrates Court.

That process begins by obtaining a certified copy of the order from my office, which can be done by asking for it in writing.

To do so you need to provide: •

the file reference number;

Commissioner, Body Corporate & Community Management

•

your name;

an individual to both pursue penalties and enforce orders made by adjudicators in my office.

•

contact phone number; and

•

your postal address (to receive a copy of your order).

Chris Irons,

When an adjudicator makes an order, that is the end of the role of the adjudicator and my office in that matter, unless otherwise ordered by a court or tribunal of competent jurisdiction (e.g. there is an appeal of an adjudicator’s order to the Queensland Civil and Administrative Tribunal).

It is my anecdotal experience that the majority of adjudicators’ orders are complied with by the parties to the order, and ideally that is how it should always be – in effect, it is, to use a sporting analogy, a case of “abiding by the umpire’s decision”. If an

QLD - NSW - VIC - WA

More detailed information about the enforcement process is available on our website or from the Magistrates Court. Please note that my office can’t advise parties on what information to include in their court proceeding, comment on any of the processes of the Magistrates Court or provide information such as how long it might take and what costs may be involved. With this in mind, I’d recommend that anyone wanting to enforce an adjudicator’s order should consider seeking legal advice.

Separate to enforcing an adjudicator’s order, the Act provides for penalties for noncompliance with an adjudicator’s order and further provides for these penalties to be sought by: •

an applicant in the original application for the order;

•

a respondent in the original application for the order;

•

a person in whose favour the order was made;

•

the body corporate; or

•

an administrator appointed to act for the body corporate or the committee.

This process is again through the Magistrates Court.

14

INDUSTRY

A fine of up to 400 penalty units – which is currently more than $53,000 – can be imposed by the Magistrates Court. I’ve heard it said of my office that because we don’t impose these fines ourselves, we are a “toothless tiger” and that therefore, noncompliance is a significant issue.

I can’t comment on the latter point. On the former point, while it might seem difficult or convoluted for someone to have to apply to the Magistrates Court for a penalty, it can and does happen.

In 2018, the Southport Magistrates Court fined a body corporate manager and a committee member a total of $10,000 for noncompliance with an adjudicator’s order that they hand over records to the applicant. The court also ordered both parties to pay costs.

This outcome was the result of a proceeding brought about by the applicant in the original adjudication application, with the applicant being an owner in the scheme. The fact that the court imposed a penalty of $10,000 I think makes it clear that there are definitely significant consequences for a party not complying with an adjudicator’s order. I’d add that this outcome should also serve as a reminder that far from being just a piece of paper, an adjudicator’s order can have a tangible impact but, importantly, it remains up to the individual to make that happen.

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

ResortNews | January 2020

Last year, the National Construction Code reforms contained various provisions regarding fire-safety, including two new standards for sprinklers in most class 2 and 3 buildings of four or more storeys under 25 metres in height.

These standards prescribe (among other things) that sprinklers must be installed throughout the buildings.

Depending upon the standard applied, there may be a change to the required levels of available building water pressure to service the sprinklers.

These changes have forced some apartment buildings, mainly those between four and eight-stories to install expensive water pumps and water storage facilities to meet these new requirements. Unfortunately, buildings that fail this hydropressure baseline and do not rectify the problem will not receive their occupier certificate from the Queensland Fire and Emergency Services and, therefore, will not be insurable.

The new Code has been implemented to improve fire safety and ensure that there is an adequate and constant flow of water in the event of fire.

The pressure provided by fire hydrants may be insufficient in some buildings and, while the emergency services will use all resources available to them, the Code aims to safeguard against potential water supply shortfall by requiring the building to aid with its own risk mitigation.

These may necessitate an upgrade to the system (eg the pump), as well as the water storage facility on-site to ensure January 2020 | ResortNews

SCA REPORT

Raising water pressure and sinking funds

©Slavko Sereda, stock.adobe.com

fire systems have the potential to be catastrophic, and no lot owner wants to find themselves in a position where they have voted against such essential safety improvements. With the substantial costs involved, some schemes may have no other choice but to raise the necessary funds by striking a special levy or borrowing for the expenditure.

James Nickless, President, SCA, Qld

an adequate amount of water is available in the event of a fire.

Reported evidence from our members indicates that most of the affected buildings are located in Brisbane. Among the potential reasons for this is the 27 percent increase in strata title lots over the last ten years (2702 new schemes) that has placed significant pressure on water pipe infrastructure. This is particularly apparent in some inner Brisbane suburbs which have seen a large proportion of this increase, and some older suburbs that may have older infrastructure. Consequently, the requisite minimum water pressure to a strata scheme’s junction may be currently unreliable, and the challenge of pumping water vertically must now be resolved by having sufficient water supplied via the building’s facilities.

We believe that fire safety and compliance are of utmost importance and every resident has a right to be safe in their home. Unfortunately, in this instance, these safety improvements will come at significant cost to affected bodies corporate, with reports that a 40-lot building is facing a $125,000 rectification fee ($3,125 per unit). The consequences of postponing rectifications or neglecting to upgrade the

Urgent fire and safety expenditure like the above that require emergency financing highlight the importance of a healthy sinking fund and updated sinking fund forecasts.

Maintaining a strong sinking fund balance for bodies corporate to

use in emergencies mitigates the need for special levies or loans.

The idea of paying extra money each year probably doesn’t appeal to many lot owners, but it is one of the most important and valuable actions a body corporate may take. It spreads the cost of major expenditures and minimises the probability of painful financial surprises.

It is paramount that every apartment resident is safe in their own home, and emergency services have a right to undertake their vital tasks in as safe an environment as possible.

RELIEF MANAGEMENT

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TAKE THAT GET AWAY NOW!

RELIEF MANAGEMENT

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To advertise, call Gavin Bill on 07 5440 5322 or email service@resortpublishing.com.au

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

INDUSTRY

15

BY ALL ACCOUNTS

Employee Warning: or contractor?

Do you engage in the services of independent contractors? Have you given thought to the possibility that they could be employees?

Getting it wrong can land you big trouble.

•

Following the GFC, Australia has experienced an incredible surge in the amount of contract, temporary and freelance work – dubbed ‘the gig economy’. The underlying force behind an increase in contract related work vests on the grounds of higher flexibility, and the lower costs associated with outsourcing work to a third party.

An employee is mostly provided with tools and equipment by their employer. Contractors mostly provide their own tools and equipment.

The difference between an employee and an independent contractor is may appear to be defined by a fine line.

The relationship between yourself and your independent contractor is called a contract for service. On the other hand, a contract of service is

Basis of worker’s payment

An employee may be paid for the time worked, or per item, activity, or on a commission basis. Contractors are paid to achieve a specific result.

•

Jonathan Hanaghan, Jonathan Grant Accountants

the relationship set between yourself and your employee. A subtle difference, but one that should not be considered lightly.

To determine whether your worker is performing a contract for service (contractor) or a contract of service (employee), the court system will analyse several factors, which is known as the multi-factor test: •

The ability of the worker to subcontract/delegate

An employee can’t pay someone else to do their job, but a contractor can.

•

Equipment, tools and other assets provided by worker or provided to worker

Commercial risks of worker

Businesses are responsible for their employees work and so employees do not take on commercial risk.

Contractors will be personally liable to rectify any defects.

•

Control over the work

A business has full discretion over what work needs to be completed by their employee and how it is performed.

Contractors can decide how their work is done provided it is within the terms of the contract.

•

Independence of worker

Employees form part of the business and therefore are not independent. Contractors operate their own business independently – they can accept or refuse additional work.

Other important factors to consider is the exclusivity of the worker and if the worker advertises themselves ‘to the world at large’.

Exclusivity asks whether the worker is hired by numerous businesses or must remain exclusive to their employer.

Advertising ‘to the world at large’ would mean that the contractor has a business name and logo in place, they have a work uniform with their own logo, and they have a storage shed or office that they can operate from.

For example, in Rabba v OekeGuy Pty Ltd T/A PeleGuy [2013] FWC 70, the worker was a salesperson who was required to sell products to convenience stores and petrol stations.

LEGAL EASE

Victoria to limit term of agreements In a move that has caught the industry by surprise the Victorian Government has introduced legislation which seeks to limit the term of management rights put in place by the developer to a maximum term of three years.

The legislation appears to be a reaction to unduly onerous agreements put in place by developers, predominantly with strata managers who look after not only the body corporate management but also, for a substantial and often grossly inflated fee, arrange and supposedly supervise cleaners, gardeners and other contractors. Unlike the Queensland legislation with

16

John Mahoney, Mahoneys

strict disclosure requirements,

©ilkercelik, stock.adobe.com

which specifically contemplates the developer establishing the management rights and which establishes a procedure for the review of the remuneration and the duties in service contracts, the Victorian legislation contains no such protections.

As a consequence, there have been instances of developers putting in place long-term agreements with inflated remuneration and selling the management rights off the plan at an excessive price

MANAGEMENT

without any form of disclosure to buyers of units. Disputes with unit owners over such arrangements, conflicts of interest, lack of action and inflated levies have been well publicised in Melbourne.

ResortNews | January 2020

The features that supported the salesperson as an employee was that he worked exclusively under their employer, was unable to engage others to perform his work, was subject to the supervision of the employer, and selling goods was a vital part of the business of the employer.

These facts were weighed up against the fact that the worker submitted invoices, paid for the cost of their motor vehicle fuel, was not subject to PAYG tax, would determine his own hours, and was paid by commission on sales. Some people may be led to believe the worker is a contractor as employees do not invoice their employer and do not determine their own hours however, the inability of the worker to subcontract, and the fact that he was not conducting his own business when he performed the work, gave the court no option but to conclude that the worker was an employee.

Avoid the myths Myth: If a worker has an ABN they're a contractor.

Fact: The existence of an ABN does not confirm that a worker is a contractor. An employer may force an employee to obtain an ABN to make them look like a contractor and thereby mitigating super and tax obligations. This is known as sham contracting.

Breaching the sham contracting provisions under the Fair Work Act 2009 will result in severe penalties and contraventions. The current penalty that courts may impose is $12,600 for individuals and $63,000 for corporations per contravention.

If the working conditions point towards an employment relationship, an ABN will not make the worker a contractor.

Myth: If a worker is a contractor for one job, they will be a contractor for all jobs.

Fact: The working arrangement and specific terms and conditions will determine whether a worker is an employee or contractor for each job. A worker could be an employee for one job and a contractor for the next job.

It is paramount to make an ongoing effort to ensure there are no differences between your worker’s contract and their actual working conditions. If you hired a contractor last quarter, and suddenly their job role has turned in to an employee, you must immediately start withholding PAYG tax on their behalf, pay the super guarantee minimum, and obtain work cover.

Myth: If a worker submits an invoice for their work, they're a contractor.

Fact: The existence of an invoice for completed work does not confirm that a worker is a

The situation has been aggravated by the poor quality and multiple defects in many recent buildings.

enters into a contract (other

The new laws are set to commence early in 2020.

Although they are poorly worded and arguably do not achieve the outcome they seemed designed to achieve, it is likely that lawyers and others will assume that the new laws will be interpreted by VCAT to have their desired effect.

It is likely that they will all but put an end to developers selling management rights off the plan, at least until there is more certainty around the changes.

and benefits the developer,

When reading this article, you need to understand that “owners corporation” is the name given to the body corporate of strata schemes in Victoria.

In relation to management rights, the relevant section provides that if the developer January 2020 | ResortNews

contractor. You must examine the working conditions of the worker – many court cases are not decided over whether the worker has an ABN, if there was a contract in place, or if the worker submitted an invoice, it comes down to the factors mentioned before (multi-factor test) such as the exclusivity of the worker.

Do I have to pay my contractor’s super?

Even after you have confirmed that you have hired a contractor you may still be liable for super contributions on their behalf.

The Superannuation Guarantee (Administration) Act 1992 (Cth) states that a contractor is entitled to superannuation contributions if they work under a contract that is “wholly or principally for the labour of the person.” Employers will have to pay the 9.5 percent Super Guarantee minimum provided that the contractor has earned $450 (before tax) for any calendar month.

If you incorrectly classify an individual as an employee or contractor, you may be liable for: •

superannuation charges,

•

additional payroll tax

•

penalties and interest

•

unpaid annual and long service leave

•

compensation for unfair dismissal or other remedies

Since the induction of taxable payments annual reports (TPARs) to the building and construction industry in 2014, the ATO has continued to strengthen their resources in order to close the gap of non-compliance. Recently, the ATO has broadened this scope to several other industries and their businesses. Businesses providing cleaning services must now lodge a TPAR. Clearly this has implications for our businesses in management rights. If you have a management rights business and 10 percent or more of your income is for cleaning services, you must lodge a TPAR. Although, if you fall under this threshold it is still a wise decision to lodge a TPAR nil report to avoid questioning from the ATO later down the track.

If you have a business and are wanting to ascertain whether you have an employee or contractor relationship, I strongly recommend that you use the ATO decision tool.

Note that it is not designed to be used for individual workers: https:// www.ato.gov.au/calculators-andtools/employee-or-contractor/. If you are still unsure if your worker is a contractor or an employee, please seek professional guidance from your accountant.

than an owners corporation management contract) which relates to the owners corporation any term of that contract must not exceed three years.

Note that the section refers to the developer entering into a contract, not the owners corporation doing so. To achieve the objective of the legislation as published by parliament, it is likely that those words will be treated as covering contracts with an owners corporation entered into at the time when the developer controls the owners corporation. In other words, the section is likely to catch service contracts and letting agreements entered into at the inaugural

©Jim Vallee, stock.adobe.com

EGM where such contracts.

MANAGEMENT

17

MOTEL MARKET

Targeted marketing: Do it right Marketing is a critical activity for any business and irrespective of the sector, one needs to consider a number of things: who exactly are my target audience, where do I find potential customers and how do I reach them directly?

When it comes to real estate, and the motel market more specifically, these questions also include ‘Are we targeting the right market for this property? Which type of customer should we be aiming to attract? Where is the motel positioned in the market? Is the motel more suited to the high tariff traveller, the middle of the road traveller or the budget conscience, cheapest room available guest?

money from its marketing budget.

The operator is often the best person to determine which market the property is suited to and how it is going to get to that market.

Determining the target market

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

Unless the business owner has a bottomless pit of marketing funds available, these are questions that need clear answers, and with the number of marketing tactics and platforms available, the development of a clear strategy can help ensure that a motel business gets the best value for

What services does the business and property offer? If the motel room has a separate desk with executive chair, free wifi internet access, and the property includes a licenced restaurant and meeting/ conference facilities, it is more than likely suited to the business or corporate market. A large pool with playground facilities, larger or separate bedroom units with numerous beds and some form of cooking facilities or even additional sink with bench space will be most suited to the family, sporting group or tourist traveller.

Don’t forget the free wifi internet access for this market as well. A corporate traveller is more than likely not interested in the size of the pool, but more so the ability to put a laptop/iPad on a separate desk with a comfortable chair.

In many cases a motel will offer various room types and be able to attract different market segments for the different facilities available.

What standard is the property?

If the property is of a high standard with a quality fit out, the higher end and corporate traveller is the more likely target market. The budget conscience traveller will be dictated by the room rate as to where they stay, rather than the facilities available being their buying motive. In saying this, guest expectations for their dollar (no matter what the level) are increasing.

Šalphaspirit, stock.adobe.com

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MANAGEMENT

ResortNews | January 2020

Answering these questions can assist in determining the target market and an accurate marketing strategy to reach those ‘most likely’ guests can be developed and implemented.

Reaching the target market What are the best platforms and mediums to get to where you need to be? A few options, depending on the particular target audience, are: Internet/Web – A motel’s own website offers the opportunity to sell the property’s assets, services and benefits directly to the market with extensive information on what the motel offers to the prospective guest. This is also the opportunity to get the guest to book directly. Alternatively, online room inventory and rate management are terms that are often heard in regard to booking sites/programmes. Channel managers provide access and a conduit to numerous booking sites in order to maximise a motel’s online exposure.

Social media – Accessing an identified target audience via social media such as Facebook, Twitter, Instagram, LinkedIn and others is a cost-effective method of directly communicating with them. While many may already be familiar with the property’s products and services, these instantaneous platforms offers a good opportunity to promote the property’s features and benefits and any new services or specials available to attract future stays.

It helps keep the motel in the front of mind of future guests.

Print (hard copy) publications – There are various options available as far as print media goes. Industry publications offer direct access to those potential guests within the industry (who can help to sell your product to travellers via a mutually beneficial referral basis) and to potential guests who access the publication from other accommodation properties during a stay.

Signage – The use of highway and street signage has been January 2020 | ResortNews

around for a very long time and is still a popular medium for accommodation providers to access the travelling market. If the target market is the drive market, appropriately positioned signage will reach the passing market that are yet to book accommodation, or that may require it in the future.

If targeting air travellers, then airport billboards and various types of static and interactive signage options are available.

Chain affiliation – The assistance provided by chain affiliation in regard to marketing is often out of the individual operator’s control apart from being a member. Brand awareness is important, and this is an area where chain affiliation can be effective. Brand awareness can provide immediate acceptance by a target market of a certain level of accommodation and services without it needing to be further sold to a potential guest.

Local tourism bodies/industry memberships/referrals – Accommodation industry memberships can be very effective from a customer referral perspective and provides a cost-effective method of marketing directly to the traveller. Membership to these groups will suit some motels better than others, so again choosing the ones that will be of most benefit is important.

Local business/industries – Local organisations such as Rotary and other community groups that require venues for meetings or events are an obvious audience, and members may go on to refer the property to friends and family. The income derived directly from these meetings may not be the most profitable, but hopefully the constant referrals can result in a very profitable long-term outcome. Sponsorship is another method to gain direct access to a target market. If sporting groups are the target, then teams or events coming to the region are an option.

Again, awareness is key here.

It is very easy to spend a fortune on marketing with little result so targeted marketing is very important, especially from a small/medium business point of view. Many motels are still family-owned businesses and throwing money at every marketing opportunity presented (rather than the most effective) can be a very bad investment at the end of the financial year.

STRATA TRENDS

What are the room rates being charged? Higher room rates will attract the higher end market with the expectation of a higher standard of presentation and high level of ancillary services available that suit that traveller and satisfy their individual requirements.

Be proactive when dealing with defects

Apartment building owners and managers in Queensland strata schemes need to be proactive and fully aware of the time limitations to lodge complaints if they suspect there has been defective construction work on their property.

Defects are an ongoing issue in many strata schemes that also need to be approached in different ways depending on the type of building involved and defect classification.

As we have seen this year with the structural issues affecting apartment buildings in Sydney and Melbourne, defective construction work is a major issue for apartment owners and building managers, and the cause of considerable stress.

The Queensland Building and Construction Commission (QBCC) is the government organisation in place to assess complaints of defective work that can include structural problems or leaks causing health and safety issues.

A body corporate can submit a complaint to the QBCC within six years and six months from when the building work is completed, and within 12 months of noticing the defect.

The complaint process can sometimes be very restrictive however, particularly with accurate timing of complaint lodgement. If a complaint is not lodged in time, the QBCC may refuse to provide coverage under the Home Warranty Insurance scheme and a direction to rectify to the builder, even where it would otherwise have been available if lodged in time.

If a strata scheme notices a defect, especially a structural defect, it is critical that the

MANAGEMENT

Grant Mifsud, Archers complaint is lodged well in advance of the deadline, which starts again after any defect repairs have been completed.

Depending on the severity and complexity of the defect, a strata committee may consider obtaining an independent professional defect report to support the defect complaints that may otherwise be disputed or dismissed if not properly substantiated. The engagement of a professional, to not only prepare a report but to also lodge the complaint, can assist with taking the emotion out of the issue that can be frustrating for unit owners who just want their homes to be fixed and to not leak.

One needs to be aware however, that there are limitations on the building types that the QBCC can rule on under the Home Warranty Insurance scheme; for domestic building works carried out on buildings that must be no more than three storeys.

The Queensland government is currently reviewing proposed strata law reforms that include a recommendation to adopt a compulsory and proactive approach to defect management for new strata buildings. This will involve the option to consider engagement of a building professional to complete a defects inspection report at the second annual general meeting.

19

THINKING MR

The year ahead ©ngad, stock.adobe.com

In a long tradition of getting almost all my predictions wrong I will once again gaze into the oracle and see what gazes back.

But, before I do, I want to spend a few paragraphs reflecting on what I think is the least appealing trend in big business over the past 12 months. This trend has been going on for some years, but I feel like we hit peak corporate ambivalence in 2019.

The social commentator and demographer Bernard Salt has written a couple of articles recently which I would commend to you. Bernard reflects on the state of corporate Australia and, in particular, the attitude of large companies to their customers.

He concludes that while every business has a slogan or mantra that reflects a client first culture the sad truth is that corporate actions no longer watch the marketing and rhetoric. Bernard is absolutely right, as I suspect anyone who has dealt with a telecommunications company, insurer, bank, government department or airline will quickly identify with.

The central strategy of most

20

wait so long that you end up taking the self-help option.

I guess it could be worse.

Mike Phipps, Director, Mike Phipps Finance

medium to large businesses seems to be to push as much work as possible back to the customer. The customer’s time no longer has any value and if that means sitting in a call centre queue for half an hour so be it. Listening to the “your call is valuable” recording just adds insult to injury. If I am so valuable, why do you not have someone answering your phones?

In fact, rather than engaging with customers many companies seem to be doing all they can to avoid their clients. Many no longer have a way of calling a human to resolve an issue or purchase a product. It’s all online via self-registration, online help and FAQs. If, by some miracle, there is a phone number, you can be sure of a

A certain budget airline goes one better. They sell you a ticket and then send you a text saying your flight has been cancelled. That’s it. A certain car manufacturer sells cars that have fraudulent emissions software and an airbag manufacture sells safety equipment that can kill you.

Of course, it’s now considered essential that all large businesses (and indeed many small ones) invite feedback from customers. This is the corporate way of showing that they care.

It’s all just so much smoke and mirrors. Try using the process, always via digital channels, to tell a large faceless organisation that their product is useless or their service atrocious and I’ll bet you don’t get a response.

If you do it will be a ‘No Reply’ email thanking you for your feedback. Take the time to sit on the phone and I can almost guarantee you will end up talking to someone with no authority who will also thank you for your feedback and do absolutely nothing after the call ends.

The individuals who staff what would once have been referred

MANAGEMENT

to as complaints departments are trained in the art of pushing all problems back to the customer. No blame can ever be accepted, and no solution offered. The entire charade is simply designed to allow the customer to vent and move on.

I have a theory that the current state of affairs leaves many consumers feeling angry and helpless. I also can’t help thinking an opportunity exists. If the level of frustration within the community is as pronounced as I suspect, I wonder if a corporate that puts customers first might be a worthwhile experiment. I’m not talking about a corporate that says it puts clients first, they all say that. I’m talking about one that actually does.

Of course, great personal service costs, and I’m not sure the average punter is prepared to pay. I wonder if anyone in corporate Australia has the courage to find out.

Ok, I feel better now so let’s have a look forward. Here’s a few things that I expect to see in 2020. Of course, with The Donald in the White House, Brexit on the cards and our very own RBA bereft of ideas other than the cash rate lever, this could all change.

ResortNews | January 2020

Interest rates are going nowhere, and cheap debt won’t kick start our economy. To do that we’ll need reliable and cheap energy, water infrastructure planning on a grand scale, real full-time employment and one hell of lift in consumer confidence.

I suspect if the politicians stop listening to the radical minority views then the quiet Australians might yet have a win. If you see new clean coal fired power plants being built, water storage and piping projects being approved, government red tape for small business being removed and employers moving back to traditional full-time employment arrangements, then fix your interest rate.

Sadly, I suspect no rush.

In the management rights space, I expect to see heightened interest in partnerships as returns on other investments continue to underperform.

An interesting sub-trend will be the desire of vendors to stay in as investors within a new purchaser group. The participation of a vendor as a silent partner in their sale has been a slow burn trend for some years but really started to come

to the fore in recent months.

It makes sense and certainly gives the other buyers in the partnership a lot of confidence.

We expect regional motels and caravan parks to trade at consistent levels with the usual suspects in terms of location doing well. That is, medium to large regional centres with a mix of demand drivers and hopefully

growing resource sector activity.

On the banking front we expect service levels and credit approval turn around times to be pretty much as is for some time. That is, pretty slow. The ripple effects of the banking royal commission have had a profound impact on how banks see the world, and I expect it will be some time before the current internal focus

swings back to the customer.

We don’t expect to see much change in bank credit policies as lending is sluggish and no one wants to be off the shopping list.

In closing, rest assured, I have seen the future and it is very much like the present, only longer.

And finally… Caveat emptor.

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January 2020 | ResortNews

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MANAGEMENT

21

FINANCE Q&A

Q&A

A new manager’s prep-list

By Trish Riley, Editor

It’s pertinent at the beginning of a new year that the Q&A focus on the preliminary steps taken by potential entrants to the accom industry (and more specifically management rights), so I sat down with Mark Ryall, founder of MRM Finance about the steps typically taken with his clients.

Q: How should the management rights business be set up?

A: Before signing a management rights purchase contract, it is important to consider what business structure will be the most suitable to operate the business. ie. The unit is generally registered in personal names as the principal place of residence in order to save stamp duty vs a family trust for asset protection and taxation benefits.

Professional advice should be sought pertaining to all options, as well as discussing the implications of each and every aspect including asset protection, taxation affects, and the costs of administration to ensure that you are fully informed before signing the contract.

Q: What happens regarding financial due diligence?

A: A full financial due diligence will need to be performed for both you and the financier prior to purchase. This should be completed by a specialised accountant with extensive industry knowledge who will attend the complex and validate the prior 12 months of operating income and expenses to determine the net operating profit.

A thorough due diligence report

22

will detail all findings and will also provide valuable information to the purchaser regarding the commercial business operation.

you will need to set up merchant facilities, to provide a facility for guests to pay for accommodation or services via credit card.

Important: Using the services of a non-management rights accountant can result in the financier not accepting their reports, and for you, as the client, having to redo the investigation at your own cost.

Q: What will I need to provide to the banks?

Q: What do I need to do about the agreements?

Copy of trust deed (if applicable)

A. When purchasing a management rights business, you will need to engage a specialised lawyer to undertake the legal due diligence on the agreements.

The lawyer will review the agreements, by laws, history of the building and provide you with a comprehensive report outlining their findings.

In most cases, this report will be required by the financier.

Note: As with the financial due diligence, it is imperative that you engage a legal firm with specialised experience in the management rights industry so as to ensure that all legal aspects of your agreements are valid.

Q: What bank accounts will I need to open?

A: The bank providing the finance for the management rights purchase will typically require you to establish the required trust account and general account through them. They will also establish internet banking services for you to access all accounts, and allow you to pay owners each month from the trust account via their online platforms.

The financier will require a copy of the Office of Fair Trading application / certificate to open a trust account.

In addition to these services,

A: Evidence of your assets and liabilities Business plan and resumes Previous tax returns Statements covering existing loans Confirmation of clear tax portals Personal and bank statements to confirm repayment history and general living costs Q. How long do banks require to approve a loan A. The timeframe for financiers to assess a loan has increased over the last two years due to the compliance requirements on every application. The average time for finance approval is two weeks after the bank has received the financial verification, legal due diligence, valuations, supporting information and applications Q: Will I need to provide information to the bank after settlement?

A: Financial covenants will normally be required by the bank with their finance approval.

These covenants can include:

©Worawut, stock.adobe.com

Q: How much can I borrow?

A: Some financiers will still lend up to 70 percent against the combined purchase price of the unit and business. Some financiers will still provide interest only terms for three years. (subject to affordability) Using a specialised finance broker will give you to access to financial policies regarding all banks.

Q: Why do I need a trust account?

A: The trust account is used for payments received from guests and tenants paying for accommodation or services that are held on behalf of owners/ investors, and distributed to owners during the first week of each month.

The trust account must be audited three times a year by a certified auditor, and the certificate must be supplied to the Office of Fair Trading each year.

Q: How will I manage the trust account?

A: There are various software packages to assist with operating the trust account that will effectively manage: •

The receipts of payments from guests and tenants

•

Calculate the amount of payment to the owner

•

Calculate the amount of payment to the resident manager

•

Provision of letting pool numbers quarterly or yearly

•

Provision of financial / taxation returns (annually)

•

Ratio of profit vs income

•

Three-way balancing

•

Completion of audit certificates

•

Deposits held

•

Provision of taxation obligations

•

Owners ledger

•

Tenants ledger

•

Copy of insurance policies (public liability)

•

Owners summary reports

•

Overdue payments

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ResortNews | January 2020

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GOOD GOVERNANCE

The pitfalls and perils of (self) project management Are you a committee member or a body corporate manager charged with a capital works project on your scheme? Are you tempted to manage the project yourself – or in collaboration with the resident manager or caretaker to save money?

Stop right there.

First off, in Queensland it is unlawful to project manage building works over $3,300 without a QBCC License (or practicing certification as an Engineer or Architect), so unless you hold a QBCC license to undertake project management works that are considered conducting “building works services” you may be breaching the QBCC occupational licensing legislation. If convicted, hefty infringement penalties apply.

Conducting unlicensed building work is not however, the worst thing that can happen if you don’t engage a properly qualified project manager. There are actually much

Lynda Kypriadakis, Diverse FMX

bigger problems that can occur if you try to be a backyard project manager, such as regulatory noncompliances, additional project costs due to hidden clauses in quotes, delayed completion due to loose (or non-existent) forms of contracts, no warranties or certification to rely on at the end of the project, and so on.

Nightmare example #1 - Window replacement project In this instance, the body corporate has a fantastic high-rise apartment building in the CBD – constructed circa 1970 – with a very active, intelligent and

vigilant committee. The committee decided to initiate a capital works project to replace all the old windows because they were failing and allowing water ingress. After consulting a suburban window supplier for a quote, the committee were pleased to recommend that they be appointed and a motion was resolved at the AGM to engage the nice people at the window company for a significant six-figure sum.

Fortunately, the new resident manager (appointed at the same AGM the windows were resolved) mentioned that the body corporate would need a project manager and the committee duly engaged a properly qualified professional project management services provider, thinking all the hard work was done and all that remained was the actual work on site. It was just in the nick of time too, because the new project manager identified that the following statutory duties had not been done by the body corporate: •

Because more than 20 percent of the windows were being replaced, the project becomes “assessable

works” and requires building application and council approval before proceeding •

A Form 15 engineer’s design certificate is also required for the window assembly and general Code compliance

•

Q-Leave levies are due and payable to the government prior to commencement

•

Principal contractor notifications are due to the WHS department prior to commencement

•

Access permits for using council verge, carpark areas etc. are required to be obtained

•

Form 16 code compliance certification is required for the completed works

•

And so on…

This committee were understandably shocked and unsettled by the discovery that there was so much Code compliance and regulatory imposition around their window project. They couldn’t understand why nobody had told them about this “stuff ” – including the window supplier. The simple answer - because they didn’t have a project manager from the planning stage of the project.

The window supplier promptly withdrew its offer from the table as they confessed they were unable to stand up to the commercial scrutiny that was being applied and the body corporate were left to start again.

Nightmare example #2 – Termite damage rectification project

© Gina Sanders, stock.adobe.com

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MANAGEMENT

A luxurious tropical resort and high-rise apartment complex in idyllic far north Queensland (built circa 1995) recently experienced the collapse of the ceiling in their separate/detached restaurant facility. Termites had devoured a significant portion of the trusses and roof frame timbers until the structural integrity was dissolved to zero.

ResortNews | January 2020

Following the collapse, the caretaker vigilantly went about harvesting builder’s quotes for the committee that ranged in price by up to 50 percent. These price extremes lead the committee to consider engaging a project manager – not because they understood it to be mandatory, but because they were starting to see a headache emerging that they sought to delegate.

Lucky! Again, that fully qualified project manager identified that the following statutory duties had not been done by the body corporate: •

•

Because more than 20 percent of the roof structure was being replaced, the project becomes “assessable works” and requires council approval before proceeding A Form 15 engineer’s design certificate is also required for the roof frame tie-down details and general Code compliance

•

Roof cladding installation is required to new Codes since original construction

•

Q-Leave levies are due and payable to the government prior to commencement

•

Principal Contractor notifications are due to the WHS department prior to commencement

•

Access permits for using council verge, carpark areas etc. are required to be obtained

•

Form 16 code compliance certification is required for the completed works

•

And so on.

Again, the committee were stunned by the mandatory approvals and certification requirements, and had they not engaged a project manager their $100,000 plus repair works would have been unapproved, uncertified, unwarranted and a disaster.

Nightmare example #3 – Concrete tile roof restoration This committee went all the way to contract without consulting a project manager and relied on the contractor to “advise” them about compliance. Little did they know that the quote submitted by the contractor was riddled with opportunities for “variations” and January 2020 | ResortNews

extra costs to be applied once they started on site. At the last minute the body corporate decided to engage a properly qualified QBCC licensed project manager who identified the contract anomaly and determined the contractor was angling to claim $350,000 worth of “extras” on a $150,000 quote. The project manager recommended rescinding the Motion and re-tendering, which is what happened. The full project was contracted and fully completed – with all warranties – for a total of $330,000 – saving the body corporate $170,000.

So, when does a body corporate repair or upgrade project become too large or complex for amateur supervision? As a general rule of thumb, this list below would be the guiding criteria to consider engaging a project manager at the planning stage of the project so they can assist with feasibility, compliance and approval advice, pre-qualified contractors for tendering and clear scopes of works, etc.

•

•

•

Any structural upgrades (waterproof membranes, repaint, windows, roof, planter boxes, major tiling projects, pool projects, decks, balustrade, plumbing pipework, electrical upgrades, air condition or exhaust system works, etc.)

Any upgrades or modifications to the fire protection system Any project requiring the coordination of three or more consultants and/or contractors

•

Any works requiring elevated work platforms for height access

•

Any assessable works

•

It costs nothing to get some free initial advice from a qualified project manager before conducting your project feasibility. Relying on the tradie that wants to sell you the building works is not always the best resource for getting current or complete advice on relevant project compliance requirements, warranties and alternative solutions.

TripAdvisor study shows power of guest engagement Personalised responses from accommodation and restaurant owners or senior management can lead to better customer reviews and better repeat booking levels, a new survey has found.

The poll of 23,292 travellers and diners across 12 markets including Australia was conducted by Ipsos Mori in partnership with TripAdvisor and delivered a number of primary findings. Among these was a greater likelihood in 79 percent of respondents to book a hotel or restaurant if queries or complaints from others were responded to personally by an owner or manager. The study showed 84 percent of those polled believed personalised, polite and respectful engagement with aggrieved customers can lead to an otherwise negative review becoming more balanced and less damaging.

In addition, more than half of potential new customers said they were more likely to select a hotel or restaurant if online reviews showed a strong engagement rate by management with other customers.

The study was conducted by TripAdvisor to highlight its

suite of free management response tools available on its website, which gives accommodation and restaurant owners an opportunity to respond once to all reviews, both good and bad, once they have claimed their listing.

TripAdvisor senior manager industry relations, Fabrizio Orlando, said the survey results clearly showed the importance of managing online reviews.

“If an owner responds to a review, whether that review is positive or negative, it makes a real difference to a traveller’s perception of a property, and can have huge effects on increased room bookings and table reservations.”

Regarding negative reviews, two-thirds of respondents (67 percent) said they considered it helpful and balanced to see an owner or senior manager provide some context, an apology attempt and an explanation into the specific circumstances in the wake of a negative review post.

Nearly nine out of ten respondents said the politeness of an owner or manager in responding to reviews greatly improved their impression of a business.

Source: AusLeisure Management

QUEENSLAND WIDE

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

Management Rights Transactions Conveyancing and Property Law Estate Planning

25

INTONET

An apple

for the teacher ©BillionPhotos.com, stock.adobe.com

It is always at this time of year that I find myself reflecting on my entry into this industry, and of the lessons I have learnt along the way that have shaped my business and current status.

I am reminded of this because many years ago, when I lived and worked in the real world, the start of a new year was usually heralded by my chairman requesting my presence. The meetings were invariably brief and I usually left with set of instructions to do something about something – usually a brief and often cryptic amount of information.

This time it was no different.

There was just an address on the slip of paper with the instruction of "see what you can do with it". I duly arrived at the address to find a modern building full of busy people doing normal company tasks. The next door I opened however, pulled me up short. A few dozen people sitting in front of a bank of computer monitors, and from what I could see, typing absolute gibberish.

When I left school we were all anxiously awaiting the arrival of the very first transistor to this country; we knew nothing about computers. When these did start to arrive, I decided to ignore them and let the new graduates take those jobs. To be able to attend to the chairman’s instruction however, I obviously had to learn computer "stuff" in a hurry. How else would I understand what was told to me, let alone find solutions?

The one thing I learnt almost

26

for several years from lousy engineering management. There have been people going off in 18 different directions, doing arguably interesting things in each one of them. Good engineers - lousy management."

His ability to say no was arguably Jobs' greatest skill. When Apple brought Jobs back, his first order of business was to shrink the product line and make sure whatever Apple made, it made extremely well.

Arvo Elias, Cybercons

instantly was the existence of two kinds of machines. Over time I learnt that the non-PC version was a Macintosh. This device could do amazing things, run a graphical user interface akin to windows, which did not exist then, and could do superb graphics. And this is where the story really starts because that brought the name Steve Jobs into my life.

If you remember, in 1977 at age 22, Steve Jobs introduced the Apple II. Apple computers established success as the first to mass produce microcomputers. At 23, Steve Jobs was estimated to be worth one million dollars.

At age 24, he was worth $10 million, and at 25 was worth $100 million. He resigned briefly from Apple, but later came back and resumed its CEO position.

The mantra that he lived by – that produced this incredible success is still valid today, and very worth repeating to perhaps guide or inspire you in your business.

He taught me to say "no".

In his address to the Worldwide Developers’ Conference, having rejoined Apple that was then on a path to self-destruction, Jobs said: "Apple has suffered

Now I am not suggesting that you have to religiously copy Jobs's values in total, but if you think about what they did for his amazing leadership you may find a number of pointers to be of use. They may not turn you into a multi-millionaire overnight but I would be inclined to question your purpose in running a business if you found no aspect you could apply to your own endeavours.

Jobs’ essential rules for success in life were: Live with integrity.

Do what it is that ignites your soul. Find mentors and role models. Grow 1 percent every day. Surround yourself with greatness to unleash your greatness. Embrace failure.

Give more than you take.

Eliminate the bad apples.

I have fashioned by business dealings on two of these points: to grow your business by 1 percent every day. Jobs said: "We are all works-in-progress. No one is perfect. The most important thing is to keep learning, growing, and evolving every day. The power of compounding is one of the most powerful forces in life. If you grow something by 1 percent every day, it will double in value after only 70 days.”

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Of course, it is impossible to know if you are really growing yourself 1 percent a day or 0.1 percent a day or 5 percent a day or not at all. My point is simply that we should all strive to learn, grow, and evolve a little every day".

The second point is to embrace failure. Here Jobs said: "Failures are simply stepping stones on your path to greatness. Embrace them as wonderful opportunities to learn, grow, and evolve. I have failed many times in every area of my life. However, my failures in life have often laid the groundwork for my biggest successes in life. I have never met a successful person from any field who has never failed.

In fact, the most successful people in the world often have stories and stories of failure before they achieved success.

Failure is your key to success".

The man was impressive despite not being liked by many. His ability to bring Apple back from an almost certain abyss and turn it into one of the most incredible companies on the planet is awe-inspiring. His pointers are worthy of note.

If you are not familiar with the whole saga I suggest you stoke up Google, you will be overwhelmed with the material about Steve Jobs and the history of Apple.

The man certainly left an impression on me and has influenced some of the foundations to my efforts in my business life. I hope he can do the same for yours.

Happy New Year!

ResortNews | January 2020

By Chris Spears, CMTO, Arke

Digital marketing has been around for more than 20 years, yet it still feels very disruptive, and for most organisations, is underdelivering on its promise — which is to create a sustainable source of new customers, nudge past customers to rebook, and reduce the cost of delivering exceptional customer service.

Most accom brands are among the disappointed. While digital is a significant portion of revenue for these brands, it is generally not meeting the expectations of managers at all levels of digital marketing spend. Among the reasons for this, OTAs have created a major disruption and continue to draw direct bookings away from brands.

Then, too, instead of reducing the cost of customer service, online reputation management has generated an endless source of bad reviews, many of which are not substantiated.

But there are ways to achieve fast and sustainable results.

Here are some digital marketing best practices for growing an accom’s direct booking revenue.

Understand paid media results It is typical for a marketing gurus to present you with a handful of high-level reports explaining how the media is performing.

The real story, though, is found in a deeper analysis of the data.

For example: On the surface, the aggregate spend may be $50,000, generating quarter of a million in revenue. However, a closer look at that $50,000 reveals that only $15,000 of that $50,000 generated the quarter of a million, and the remaining $40,000 was spent on campaigns running for over a year that never produced a single booking. On average, 58 percent of media spend is being run for too long on campaigns, generating negative results.

January 2020 | ResortNews

ability to drive reliable revenue from previous guests depends on getting to know them and finding opportunities to create engagement. For example, it is possible to spike revenue at a property by focusing on previous guests who are in the area and might enjoy a staycation; or recognising that a previous guest is looking at the same hotel room and acknowledging it. ©Airdone, stock.adobe.com

Spend more on digital marketing While accoms make a point of ensuring that their lobby is in order so guests are well received upon arrival, they need to be equally concerned with the impression guests receive upon arrival at their website.

For long-term success, it is vital to commit to attending to guests’ impression of the hotel website. Managers must conduct a thorough end-toend website examination on a weekly basis to discover— and promptly resolve—the issues, the frustrations, and the gaps in content customers may have the opportunity to encounter.

In this digital age, it is important to focus less on overhauls and more on making incremental changes to improve website appearance and function. Rather than wasting time and delaying results by starting from scratch to make desired changes, it’s better to build a multimonth plan, addressing and launching one page at a time.

Don’t waste web traffic A/B Testing—also known as bucket tests or split-run testing—is a way to compare two versions of a single variable in, for example, a webpage or app against each other to determine which performs better. Testing one change at a time helps pinpoint changes that do or do not impact visitors’ behaviour. This method of introducing changes to a user

experience also allows the experience to be optimised for a desired outcome, and can make crucial steps in a marketing campaign more effective.

Every website visitor costs money, time, and effort; and each time that visitor leaves without converting (via sign-up, booking, newsletter, or RFP submission), it is a lost opportunity.

It is worthwhile to have someone whose focus every day is on improving the conversion rate.

This can be done by analysing the path to booking, the content along the path, and the types of assets being displayed; creating personalisation; and leveraging A/B tests. This begins with documenting the full path to booking online, understanding the conversion rate at each step, and executing small changes.

Think beyond booking Booking hotel rooms is not the only way to convert visitors to a brand. The website can offer opportunities for visitors to become known to the brand for remarketing. The site should, therefore, make it easy to not only sign up for offers, but also become a loyalty member, receive a text with a map of the area, click to call, and provide a number and receive a call back from the hotel. All of these initiatives are easyto-implement conversion opportunities that expand the value of the visitors that didn’t book a room this time, but may be returning to the area. The

MANAGEMENT

The biggest miss in accom email programs is in “guest onboarding” prior to the visit, which offers opportunities to educate—and possibly upsell— guests about the amenities, and also provide information about attractions, nearby restaurants, transportation, etc.

To effectively use email, it is important to develop guests’ personas based on a definition of the data needed to determine them, and develop a series of emails creating brand advocacy, encourage sharing, and more.

Exploring all variances The booking flow should be seen as a multistep process.

This starts with understanding all traffic sources, and having increases/decreases reported daily and compared to the previous date, month, or year.

It is important to understand which pages are the most common along the booking path, what percentage of visitors move from one page to the next in the path, and drop off rates for every page of the booking engine. This should provide metrics that can be measured every day, with a focus on what to improve; it’s a good idea to focus on one metric a week to look for improvement opportunities.

Accom managers should know the whole funnel and have insight into it daily. This is the greatest weapon in improving direct bookings.

This article was written by Chris Spears, chief marketing technology officer at Arke, and originally published in Lodging Magazine.

27

MARKETING

Best practices for growing direct bookings

TOURISM REPORT

A sweet deal for The Big Pineapple The Big Pineapple is set to once again become a major tourist attraction following Queensland's Sunshine Coast Council’s approval of a multi-million-dollar renewal project.

ATIC welcomes record tourism numbers The Australian Tourism Industry Council (ATIC) has welcomed the Australian Bureau of Statistics (ABS) release of yet another record set of international visitor numbers.

ABS Overseas Visitor Arrivals data for the year to October 2019 grew a further 3.1 percent achieving around 9.4 million annual arrivals based on industry’s calculation.

ATIC Executive Director Simon Westaway advised that during the Christmas/New Year period and subsequent Chinese New Year travel influx in early 2020, more international tourists and overseas visitors come to Australia’s shores than at any other time.

Westaway noted Australia’s tourism industry, the driver of the nation’s $150 billion visitor economy, never takes automatic, let alone consistently above national economic growth rates of international visitors to our shores as a future given.

Westaway added that industry views a strategically sound, but bold future Tourism2030 national strategy as now a critical element to guide and future inform industry, investors and all of government as we head into year 2020.

“The time is right for government to effectively engage with industry and collectively set and establish

28

the final strategic pillars and means to measure our next long-term national tourism plan.

“ATIC is pleased to bring what we believe is a critical voice representing many small as well as larger Australian tourism enterprises and a strong voice for regional communities highly reliant on the visitor dollar.

“Regional visitor dispersal we understand is and will be one of the core strategic drivers from the next national tourism plan. This is applauded, not simply because of the immense benefits tourism delivers to many of our regions, but because a regional and rural experience is at the core of the quintessential Australian offering.

“Our regional tourism industry is at the ready to work with all tiers of government as well as collaborate in future partnerships to bring more international visitors into our regions – and for longer periods.

“The statistics continue to show that while Australians are experiencing and exploring more of their own country than ever before only an estimated 10 percent of total regional tourism spending comes from international travellers. If we can raise the bar of 43 cents in every tourism dollar spent in our regions further towards 50 cents – or half of total overall visitor spending – the job, investment and economic impact will be immense.”

Source: AusLeisure Management

The approved master plan will ensure a sustainable future for the 169-hectare site by leveraging the Big Pineapple’s strong brand and history, focusing on a combination of eco-tourism, agribusiness, supporting local producers, as well as providing entertainment opportunities, outdoor educational facilities and accommodation.

Big Pineapple renewal project director Jim Costello noted that this approval will help facilitate new tourism attractions and food-based industry at one of the Sunshine Coast’s most famous tourism icons.

Divisional Councillor Jenny McKay said: “The $115 million project will be a welcome injection for the Sunshine Coast hinterland tourism industry.

“Once complete, the Big Pineapple will attract new visitors to our region, visitors who would most likely extend their length of stay, generating a substantial economic boost.

Portfolio Councillor Christian Dickson noted that preserving the amenity, especially the views to the famous pineapple structure and long-range views from Nambour Connection Road to surrounding rural land, had been a critical part of assessment.

“A combination of building heights, building exclusion and design measures, landscape buffering and screening will protect those views.

“The master plan provisions will also protect the site’s heritage values. Many of us have fond childhood memories of visiting the Big Pineapple and it’s great that our littlest residents and visitors can do the same.”

“The approval has been years in the making and we appreciate the support of many Sunshine Coast residents who have long wanted to see the iconic Big Pineapple return to the glory days as a must-visit tourist attraction.

“This approval allows us to open up the site to many other uses, such as food production, tourist accommodation and recreational uses, which will drive strong jobs growth in the hinterland, with over 800 jobs created through construction and an estimated 700 ongoing positions.

Councillor McKay added “In fact, this project has the potential to increase visitation to one million visitors per year with more than 500,000 additional overnight local stays - returning tourist levels to the Big Pineapple’s heyday when it was the most visited attraction in Australia.

“With the confidence of council and the Queensland Government we now look forward to many more announcements to build and realise a world class integrated tourism attraction at the Big Pineapple which the Sunshine Coast community can again be proud of."

Planning and Development

Source: Nambour Times

© Istimages, stock.adobe.com

TOURISM

ResortNews | January 2020

Port Douglas to benefit from superyacht legislation Port Douglas has been singled out as one of the regional tourism hotspots to benefit from changes being made to open up coastal Australian waters to superyachts.

and create around 4500 local jobs.

Federal Leichhardt MP Warren Entsch said the Special Recreational Vessels Bill will allow superyachts to offer charters on the Australian coast – something the current system does not allow.

“The 2020 Tokyo Olympics and the America’s Cup in Auckland will bring a number of these vessels to the Pacific over the next 18 months and this enables Australia to get on board and ride that wave,” he said.

He said according to modelling, the changes are expected to deliver a $580 million boost to the Far North Queensland economy

Deputy Prime Minister Michael McCormack said: “Port Douglas, Cairns and the Whitsundays are examples of some of the regional tourism hotspots that will enjoy the major boost thanks to expanded superyacht tourism.”

Mr Entsch said this was a nobrainer really. “We have always had a super yacht industry in

©goncharovaia, stock.adobe.com

our region, now we are going to have a superyacht industry on steroids. These changes will vastly expand our ability to share in tourism benefits that our pacific neighbours such as Fiji and New Zealand have been enjoying for some time.

Superyacht Australia CEO David Good also welcomed the news.

He said there are around 5,000 superyacht vessels around the world and now we can take advantage of this thriving industry, bringing passengers from all over the world to sail in our waters.

“The 11,800 jobs this will create mostly in regional areas is something the government should be proud of.

“Tourism Australia has been working with Superyacht Australia to ensure our country’s signature experiences are well marketed to these potential charter clients.

Source: Newsport

Cabarita Beach tops list of Australia’s best and compelling attributes” along with being a place that someone would recommend to a friend", noting "beaches are the number one attraction for international visitors to Australia and the pride of every Australian."

7.

The winner of the coveted title of Best Australian Beach for 2020 is the laid-back surf town of Cabarita on the NSW Tweed Coast. The runner up is Currumbin Beach and in third spot is the tiny secret spot of Minnamurra, 90 minutes south of Sydney.

10. Lake McKenzie, Queensland

Care Day and the Surfriders Foundation - stated “it’s time we extend the meaning of a beach given there are so many aquatic environments across Australia’s interior.

Tourism Australia’s Managing Director Phillipa Harrison said this year's list once again demonstrated the breadth and depth of Australia's aquatic and coastal assets.

14. Neds Beach, Lord

"These water spaces which often rely on rain and flow are significant as they socially connect rural and remote communities in often dusty and dry, drought conditions.”

Australia's 20 Best Beaches of 2019 were:

©Darren, stock.adobe.com

Cabarita Beach - located between Byron Bay and the Gold Coast - has been named Australia’s top beach of 2019, heading the list of the nation’s 20 Best Beaches compiled

by Tourism Australia ambassador Brad Farmer.

This list also includes a reinterpretation of what defines a beach, with Wagga Beach, miles from the coast, coming in at ninth on the list.

Speaking at the national launch of the list, Farmer also the founder of Ocean January 2020 | ResortNews

While his decision to recognise a river beach and a lake also, has been called controversial, Farmer stands by his call, commenting that to make the list a location needed “authentic

Bettys Beach, Western Australia

8.

South Port Beach, South Australia

9.

11.

Wagga Wagga Beach, NSW

The Basin, Rottnest Island, Western Australia

12. Fingal Bay, NSW 13. Smiths Beach, Western Australia

Howe Island, NSW 15. Quobba Station Red Bluff, South Australia 16. Cossies Beach, Cocos (Keeling) Islands 17. Lake Tyers Beach, Victoria

1.

Cabarita, NSW

2.

Currumbin, Queensland

18. Diamond Head, NSW

3.

Minnamurra, NSW

19. Pondalowie Bay,

4.

Maria Island, Tasmania

5.

Cape Tribulation, Queensland

20. Killiecrankie Beach, Flinders

Brighton Beach, Victoria

Source: Hotel Manager

6.

TOURISM

South Australia

Island, Tasmania

29

TOURISM INTERNATIONAL

IOC summons peak bodies to protect mountains The International Olympic Committee recently announced the launch of the Mountain Summit – a group of sports organisations concerned with the current state of the world’s mountains and committed to protecting them.

The group currently includes 11 members – organisations engaged in sports that are practised in or around mountains.

Their aim is to assess and minimise the negative impact of sports activities on mountain environments, and leverage the power of sport to raise awareness about the importance of these environments.

“Mountains are less often in the spotlight than oceans when we talk about the environment, and yet they face serious threats from

a wide range of human activities,” said Marie Sallois, director for sustainability at the IOC. “By launching the Mountain Summit, we hope to facilitate exchanges of best practices and support the sports community in accessing the knowledge and tools needed to minimise the negative impacts sport can have on mountains, and maximise opportunities to raise public awareness about the threats they face.”

The group’s initial focus will be to produce a guide on how to organise sustainable events in mountain environments, applicable to all mountain sports.

The group will also create a list of “top tips” on how to protect mountains for those who enjoy them for recreational purposes.

Mountains occupy around 22 percent of the planet’s land area and are home to 13 percent of the world’s population.

They play an essential role in

©ribtoks, stock.adobe.com

supplying water, energy, food and other services, benefitting more than half the world’s population. Mountain tourism, which includes activities such as skiing, climbing and hiking, accounts for 15 to 20 percent of the global tourism industry.

Mountains are extremely fragile.

They are home to unique species that are particularly vulnerable to climate variations and melting glaciers. They are also under threat from the increasing volumes of waste generated by tourists. According to UNEP’s Waste Management Outlook for Mountain Regions, up to 140,000kg

of waste is estimated to remain after 60 years of expeditions to the Mount Everest region in Nepal, which has seen an exponential increase in visitors, from 20 in 1964 to approximately 36,000 in 2012.

The IOC’s work on mountains is part of the organisation’s broader commitment to sustainability, which is one of the three pillars of Olympic Agenda. In an effort to drive sustainability across the Olympic Movement, the IOC has also taken the lead in initiatives such as the UN Clean Seas campaign to tackle plastic pollution and the UN Sports for Climate Action Framework.

NZ Productivity Commission rolls over on bed tax Tourism Industry Aotearoa says it is delighted the formerly proposed “bed tax” no longer has the support of the New Zealand Productivity Commission, according to the Local Government Funding and Financing report.

In a reversal of its position from earlier last year, the Productivity Commission changed its view to align with TIA’s view that international visitors were already paying their way and that local councils should better use the resources already available to them to fund tourism infrastructure in their communities.

The Commission’s report, said councils had a wide range of funding options available to them including user-pays systems,

30

pay business rates or a proportion thereof if said home was operating as an accommodation business most of the year.

“Better use of existing tools and central government funding should be enough to address tourism funding,” Roberts added.

©Shutter2U, stock.adobe.com

rates and debt funding, as well as central government support which could be capitalised upon through better planning in areas where tourism is likely to be higher or more popular. In all, the report contained eight findings and four recommendations.

Following engagement with the Commission, TIA chief executive Chris Roberts said he had managed to sway the Commission’s view through

better understanding of “how the visitor economy works”.

“Bed taxes would miss the majority of travellers and add costs to a small set of operators already struggling with increased business and compliance costs, at a time when tourism is slowing,” Roberts said.

The Commission also noted that standalone homes rented out through the sharing economy on platforms such as Airbnb should

TOURISM

“Given the small scale of the funding gap, introducing new tools would incur significant implementation, administration and enforcement costs and is unlikely to result in a net benefit to councils.”

The proposed new bed tax, had it gone ahead, would have been collected as part of hotel room rates and would have operated in tandem with New Zealand’s existing Visitor Levy which took effect in 2019 and sees all arrivals pay NZ$35 per person as part of their airfare or cruise fare.

Source: Hotel Management

ResortNews | January 2020

THE LAST RESORT

Arctic Fox Igloos: A window to the Northern Lights If you have dreamt of seeing the Aurora Borealis (Northern Lights) amid the winter wonderland of Finland, but aren’t quite sure of the logistics of spending the night in frozen conditions in the hope that they will appear... relax.

from the end of August to the beginning of April, there are two prerequisites: darkness and a cloudless sky.

Located on the peaceful shores of the Lake Ranuanjärvi, far from the disturbance of city light pollution are a batch (skulk) of Arctic Fox Igloos.

The location of the Arctic Fox Igloos is also right on the edge of the Ranua wilderness so if you’re not lucky enough to see the Northern Lights there are a number of adventure-filled activities to keep you busy including a snowmobile safari in the wilderness, horse sleigh rides with Finn horses, a threekilometre sled ride by reindeer or a one-hour husky safari.

Built on the lake shores in such a way that each offers an unobstructed view across the expansive waters to the farreaching northern horizons, the well-appointed igloos feature a top-quality double bed or two separate beds, a private sauna and kitchenette with a table for two. The entrance, toilet, sauna and the washing room are in the wood-walled area of the Igloo, facing the forest.

The heating of the glass-panels in the sleeping space and in the kitchenette prevent the frosting over of the glass surfaces, while at the same time preventing the snow from remaining on top of the Igloo.

While the best time to see the Northern Lights in Finland is

January 2020 | ResortNews

Statistically, the Northern Lights are the most visible at midnight, and the duration varies from a quick wash of a few minutes to an all-night nature show, which is why it is advisable to be tucked up safe and warm with a birds-eye view.

There is also a visit to a reindeer farm hosted by three generations of reindeer herders with more than 300 reindeers, snowmobile ice fishing or a wild night safari in Ranua Wildlife Park.

And if snow skiing and snowboarding isn’t your thing, you could take a private visit to Santa Claus in his secret hideout cabin (highly secret so limited to eight people per visit) – perhaps for Christmas next year…

TOURISM

31

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Plans revealed for Sunshine Coast stadium expansion Sunshine Coast Council has advised its approval of a concept design for an initial $68 million expansion to the Sunshine Coast Stadium, which would increase fixed seating capacity from 1,046 to 11,618 seats.

Planned to better cater for the growing number of events now being hosted at the venue, the initial expansion will look to increase the overall venue capacity from 12,000 to 16,618 in stage one, with a new eastern grandstand (8,085 seats) and an expanded western grandstand (increased to 3,533 seats).

improved operational efficiency, the ability to meet the requirements of key sporting codes from NRL, A-League, Rugby Union as well as those of other live entertainment events such as music concerts.

“Importantly however, is the focus on delivering a venue concept that responds to the needs that will be generated by our community

Mounds at the southern and northern ends of the stadium will remain to accommodate around 5,000 spectators.

as it continues to grow.”

Sunshine Coast Council has also agreed to commit $17 million towards the project, subject to matching funding being secured from each of the federal and Queensland governments and other sources.

as one of Australia’s leading

Advising that the Council will now seek support from those parties to make up the balance of the funding required, Sunshine Coast mayor Mark Jamieson stated "this design provides 10,572 extra seats initially, at a cost of approximately $6,400 per seat which compares favourably with other recent and upcoming stadium developments in Australia and overseas which exceed the $10,000 per seat cost “If all funding can be secured, works on the expansion will start in October 2021 with construction expected to take 15 months.

“Key drivers of the project design have been to create a fan-friendly experience,

34

Mayor Jamieson said the Sunshine Coast is evolving city regions and while the region is attracting and staging national sport and entertainment events, a stadium with the appropriate capacity and functionality to support these types of events is a ‘missing piece’ of the core economic and community infrastructure for a region of its size and projected growth.

Mayor Jamieson went on to say “Council wants to ensure our region realises its full potential as a major events destination and to meet our vision for the Sunshine Coast to be Australia’s most sustainable region – healthy, smart, creative.

“Having in place the appropriate facilities to enable this to occur is a critical element.”

Source: AusLeisure Management

Cracks showing in Gold Coast developments The Gold Coast City Council had to take urgent action recently after cracks formed in at least 10 Gold Coast buildings near tower construction sites, sparking fears blameless homeowners will be stung for tens of thousands of dollars.

The Council will need to spend more than $60,000 hiring an acoustic and vibration engineer to help regulate noise and vibration from building sites.

The engineer is to “provide specific objectives and criteria’’ and also investigate the movement of sand around coastal building sites and the impact of vibrations caused by machinery. Councillors have been inundated with reports of damage to older buildings during earthshaking construction work to build basements for new towers.

Most have come from Broadbeach and Palm Beach, and from as far south as Kirra.

Palm Beach councillor Daphne McDonald is behind the push and said it represented a “significant move in the right direction”.

“It is unfair that people’s

DEVELOPMENTS

properties should be affected to the point where they can be out of pocket by tens of thousands of dollars.

“This is an issue which has caused a lot of stress on marriages and families.”

Under new measures set to come into effect this year, developers will have to comply with new rules set out in building approvals which will limit the amount of vibration and noise allowed on construction sites.

Builders would be forced to monitor noise and vibration levels during construction.

Queensland Master Builders Association regional manager John Duncalfe said he wanted to see consultation with the industry before further conditions were put on construction.

“We are prepared to have a look at it, provided that council engages with the industry rather than put an impost on trying to build,” he said.

“This hasn’t yet been presented to us for consideration yet.”

Source: GC Bulletin

ResortNews | January 2020

Government bans high-rise development All future high-rise developments along The Spit will be restricted to a three-storey limit following community backlash against the masterplan.

More than 23,000 pieces of feedback were submitted during an 18-month masterplanning process, prompting the state government to change regulations for the area.

Originally The Spit’s masterplan for an ‘Ocean Park’ included turning 140-hectares into light rail stations, super-yacht berths, and a proposal for an ocean cruise ship terminal.

While The Spit masterplan was drafted, ASX-listed developer Sunland withdrew an application for a proposed $600 million residential project on the site which included two 44-storey towers.

Minister for planning Cameron Dick said the changes were made because The Spit had an

unsurpassed natural beauty that the Gold Coast community was rightly passionate about.

“The message was clear: the community broadly supported a three-storey height limit being imposed,” he said.

“The new regulation delivers on our commitment to support the community’s expectation for lowrise development on The Spit.”

Amendments were made to the Planning Regulation 2017 to prohibit development over three-storeys or 15 metres.

“The height limit will apply to buildings and structures within the building height control area, including Sea World, Sheraton Mirage and all land south towards Southport Yacht Club,” Dick said.

©beau, stock.adobe.com

integrates with the existing landscape and maintains the prominence of The Spit’s natural values.”

“Outdoor rides within Sea World will be exempt from the height limit, however, new buildings in the theme park will have to adhere to the three-storey limit.

Gold Coast Waterways Authority chief executive Hal Morris said they would be collaborating on the implementation of the masterplan.

“This regulation change will ensure future development

“The waters and foreshores around The Spit are a real asset,

so it’s important the connection between the land and water is maintained,” he said.

City of Gold Coast mayor Tom Tate welcomed the news and said council’s $35 million investment for transport and access upgrades along The Spit would also improve the visitor experience for locals and tourists alike.

Source: Urban Developer

New $4.2 million aquatic facility opens at USC A major new aquatic facility for the Sunshine Coast has opened at the USC Sports Precinct.

The $4.2 million USC aquatic exercise facility features a six-lane, 25metre recovery and rehabilitation pool, alongside USC’s existing 50metre pool, built with $1.4 million from the State’s Get Playing Plus funding program and $2.8 million from USC.

USC vice-chancellor professor Greg Hill advised “This is the latest addition to our highperformance sporting facilities that are attracting top teams, like Sunshine Coast Lighting, to train and study at our sports precinct.”

USC director of high performance sport professor Brendan Burkett said the centre would be used by elite athletes, for sports science work placements and research, and by the community for a range of

purposes including rehabilitation and pre-habilitation (exercise to prepare for surgery). “Along with the 25metre lap pool, there will be hot and cold plunge pools, a variable-flow pool with a waterproof treadmill, and video cameras to assess running and swimming techniques.

“We’ll also have a dry land recovery area that includes a strength and conditioning gym over 450 square metres of floor space.”

The combination of state-ofthe art training and recovery facilities, expert coaching and university-led research is considered to be of benefit to the wider community being used by schools, clubs, visiting sporting teams and the general public. The pools will cater for people requiring disability or specialised access, with entry ramps and a graduated depth warm water pool.

Source: AusLeisure Management

©pio3, stock.adobe.com

January 2020 | ResortNews

DEVELOPMENTS

35

MANAGEMENT RIGHTS RESORTS SOUTHPORT

WATERFORD

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3 Bedroom, 2 Bathroom, 2 car spaces, Off ice and Reception with a total of 229 sqm on title.

Generous Body Corporate salary of $173,000 represents over half of the significant profits generated by this business. Over 20 years remaining on Management Rights agreements. No requirement to live on site. No set office hours. Minimal investment in real estate provides for excellent ROI. Onsite facilities include a pool only. Popular rental location conveniently located near Griffith Uni, shopping centre and public transport. Businesses of this calibre are hard to find!

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No real estate to purchase. Located within a premier Brisbane city suburb. Modern, low maintenance building with attractive Body Corporate salary. Elect to also operate a letting business and there is opportunity to place over half the apartments within your letting pool, dramatically increasing your income without acquisition costs. Opportunities like this are rare.

NETT $153,000

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36

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PRICE $200,000

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propertybridge.com.au | 1800 888 518

ResortNews | January 2020

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Centenary Approach & Oxley Outlook Townhouses | Gold Coast

Sales Report MANAGEMENT RIGHTS Gold Coast Le Beach

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Burleigh Heads

TMR MRS

La Hacienda

C & L Lane

Robina

Bella Mare Beachside Apartments

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Coolangatta

RB

Riverlily

Chris Peers

Robina

RB

Bridgewater Property P/L

Kangaroo Point

Brisbane Bridgewater

Bulimba Management Rights Portfolio Lynley & Ben Xu & Yang

MRS

Bulimba

RB

Gem In Runcorn (Gumtree Woods)

MobileF1 Management P/L

Runcorn

RB

Riverview Gardens

Active Property Sales P/L

South Brisbane

RB

Allure

K&J Chen Investment P/L

West End

RB

Vida Apartments

Avalon Vida P/L

South Brisbane

RB

Barca, Bulimba

Donsky Holdings P/L

Bulimba

RB

Brookfield Estate

Shenyi Guo

Slacks Creek

CRE

Centenary Approach

Better Homes Management P/L

Darra

CRE

Oxley Outlook Townhouses

Better Homes Management P/L

Oxley

CRE

A & A Charlton

Mooloolaba

MRS

Seashapes

Damon Dungey

Maroochydore

The Lookout

Chris Loton & Matthew Fitzpatrick Noosa Heads

Sunshine Coast / Wide Bay / Fraser Coast The Aegean

Brisbane & Gold Coast specialist Jim Prentice from CRE Brokers with Tom Takahashi, the new owner of Centenary Approach and Oxley Outlook Townhouses.

Long-time complex manager at Slacks Creek, Tom approached Jim to find a large complex in the western suburbs. About the same time Jim was contacted by the manager of a complex that was about to sell. The location, residence and business was exactly what Tom was looking for and a 24 hour off-market deal was done. Tom and his wife Alfani settled early December and are now up and running with their new operation.

RMS RMS

Grand Palais

Janelle & Steve Dunn

Alexandra Headland RMS

Manta Bargara Resort

Warner & Chris Banks

Bargara

Tessa Group

Townsville City

RMS

North Queensland Springbank Urban Village

RB

New South Wales Reside@Ballina

Damian Clark

Ballina

RB

Smugglers on the Beach

Peter Hutchinson

Coffs Harbour

RB

Victoria Sky One

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Box Hill

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Geelong

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The Waves

Vipul Thumar

Cowes

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Gunnedah

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Moama

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Brighton

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

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PROPERTY

ResortNews | January 2020

NEW LISTINGS ID 7995 SOUTHPORT RESORT

• 30 unit complex with 23 in the pool • Easy to manage mid rise resort • Accommodation module with 20 yrs remaining

ID 8435 ATTRACTIVE PERMANENT COMPLEX

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NETT PROFIT:

$185,000

ASKING PRICE:

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$1,426,500

ID 8517 EASY TO MANAGE RESORT

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ID8966

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$141,127

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$100,435

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$854,000

• Long term managers of 15 yrs retiring • Peaceful and quiet bushland location • 54 unit complex with 19 in the letting pool

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• Additional income available from outside lets • 2 bed manager’s residence with new kitchen & bathroom

ASKING PRICE:

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ID 8967 PRESTIGIOUS WATERFRONT PERMANENT

• 17 units in the letting pool • No set hours in the agreements

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NETT PROFIT:

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WATERFRONT MANAGEMENT RIGHTS

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ID 8970 SOUTHERN GOLD COAST PERMANENT

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NETT PROFIT:

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ASKING PRICE:

$1,750,000

Northern Queensland:

Still poised for growth

In doing the research for this article and revisiting the predictions made a year ago, there was the fleeting temptation to just update the percentages and press ‘print’… The information and sentiments expressed 12 months ago about a region poised for ‘greatness’ haven’t changed that much – neither has the inexplicable, and unanswered, ‘when is it going to happen’.

From everything that we’re hearing and seeing, Tropical North Queensland (TNQ) has all the makings, and the potential to be a smaller version of the south east quarter – it’s just waiting for the starting gun…

Frank van der Heijden of Resort Sales says: “Scratch beneath the

40

surface however, and as with any real estate market, North Queensland is diverse – some areas are seeing impressive capital growth while other areas are flat, stagnant or even dropping. Historically, and prior to the GFC, North Queensland used to follow developments in the south east by about six-months – at the moment this gap is widening.

“There’s an oversupply of dwellings in some areas – mainly in the apartment sector – and a dearth in others, and any economic recovery in the state is yet to gain traction.

With mining in Queensland an unpredictable industry these days, tourism could be the sector to facilitate an uptick in the region’s economy. According to the CoreLogic CHIP (Cordell House Index Price) Report for July 2019, overseas investors are looking to construct largescale resorts in the northern part of the state, as well as new residential properties in 2020.

This could foster population growth in the coming years.

From a tourism perspective, Cairns International Airport continues to be a major asset for North Queensland, attracting direct services from Asia and from Europe. The region welcomed 849,000 international visitors for the year ending June 2019 with a 6 percent increase in visitors from the US, a 4.6 percent increase in visitors from New Zealand and a whopping 16 percent increase in visitors from Canada. Japanese and Indian visitors are also on the increase and China remained stable with 206,000 visitors.

It does however, warn investors to be mindful of supply levels in Queensland.

So with reports ranging from ‘diabolical' (ABC News in reference to Townsville) to PROPERTY

‘Vacancy rates in Queensland are some of the lowest in the nation, particularly in the Far North’ (Smart Property Investment) the only thing that seems clear is that not all areas are created equal, and investors must do their homework before jumping in.

One of the more subdued markets, and falling on the fringes of Tropical North Queensland is Airlie Beach, and while it may be a popular spot for tourists wanting to visit the renowned and picturesque Whitsundays and Great Barrier Reef, it doesn’t seem to hold the same attraction for investors or tenants.

“The suburb, with a population of around 7,600, currently has a vacancy rate of 12.97 percent. While this is high, it has shown some improvement over the past 12 months, down from 16.77 percent this time last year.,” says Frank.

ResortNews | January 2020

“Unfortunately, for unit owners and management rights alike, recent years have been poor; the median unit price sits at $383,500, having fallen 13 percent over the last five years.

“If we are to find a positive however, the region has recovered beautifully from the ravages of cyclone Debbie; construction on the Airlie Foreshore project is now complete, as is stage one of the rolling development works at the Whitsunday Coast Airport and the $35million Shute Harbour restoration is due to start early this year.”

Moving up the coast, Townsville

is presenting itself as part of a positive property cycle – depending on who you speak to. According to the Residential Property Prospects 2018-2021 report by BIS Oxford Economics Townsville’s residential market has stabilised and price growth is expected to last until June 2021.

As the largest city in Northern Australia, and the gateway to mining and agricultural regions, Townsville is perfectly positioned to take advantage of this growth. According to demographer Bernard Salt, ‘no city of comparable size has quite the connection into the future

prosperity of the Australian nation as does Townsville’. It offers ‘stability, urban concentration and prosperity’ along with ‘a unique mix of employment drivers’ and ‘the highest average disposable household income among Australia’s 20 largest urban centres outside of a State or Territory capital’.

Geoff Ellis of Premier Sales says: “Townsville has become somewhat of an aspirational destination, with $7 billion spending committed to infrastructure to support the diverse and growing economy and an impressive number of

neighbourhoods opening up to the beachfront promenades.

“The proposed new Sealink Terminal Complex is waiting patiently for final approvals to proceed, and the new Stadium – to be opened by Elton John in February – is nearing completion.

The Council has also approved a seven-level apartment complex (70 The Strand) and a two-level eatery and entertainment area.

“Townsville has experienced a jump of about 11 percent in demand for properties, despite employment difficulties in the area playing a part.

Alex Barker-Ré – Calvin Bailey Management Rights

Introducing... Alex Barker-Ré, Calvin Bailey Management Rights Alex is providing a breath of fresh air into our business in Far North Queensland.

His approachable manner and industry experience make him a highly desirable contact for all Buyers considering entering the industry and for those Sellers looking at a possible sale.

For 10 years Alex represented a large Resort Sales Company as their North Queensland Sales Director.

Working with one of the largest management rights brokers at that time, Alex was responsible for every aspect of selling management rights.

Alex was responsible for selling tens of millions worth of rights and associated property.

From 2001 to date Alex has also managed and owned eight different management rights properties, from the Gold Coast to Port Douglas and Cairns.

January 2020 | ResortNews

His knowledge of the industry is second to none - having hands on experience of permanent and holiday letting plus off the plan projects.

North Queensland Now a resident of our great area for over seventeen years, Alex has a strong belief in this beautiful region, its resilience, and its added value for the resort and tourism operator.

“What you are buying is not just a home and a business but a lifestyle that is second to none. Added to this, a purchase in this fantastic destination gives you so much more resort for your dollar. Everyone loves the very real bang for your buck we repeatedly deliver here.”

Call Alex today to buy or sell your next management rights or simply get advice on our wonderful industry.

PROPERTY

Name: Alex Barker-Ré LREA Title: Resort Sales Specialist Mobile: 0414 835 128 Agency: Calvin Bailey Management Rights Web: www.calvinbaileymanagementrights.com.au Email: alex@cbmr.com.au

41

After some dips in 2017, the unemployment rate rose again to where it is now sitting around the 9.6 percent mark; while this appears high, with the transitory nature of employment and nature of FIFO-style work, it’s not surprising to see such shifts in the data,” adds Geoff.

At last census, there were 149,512 people living in Townsville with the median age being 37. This is indicative of a large number of families (38,495) and working professionals in the region – pushing up the demand for a larger cultural and family-friendly scene. A higher proportionate number of the population are university graduates – shaping the face of Townsville to come.

And while not strictly real estate, but still an influencer, the largest government infrastructure investment in this area is the $100 million North Coast line upgrade between Townsville and Rockhampton that commenced in 2019, supporting more than 300 construction jobs. Work is also underway to replace 20 timber bridges between Gympie and Cairns, an $86 million project that will support a further 280 jobs.

And then there is Cairns. With an uncanny ability to reinvent

42

itself, Cairns is emerging as a modern and vibrant tourism hub. In addition to all the natural wonders the area has to offer, travellers are now recording their city experiences…

The Cairns City Centre Master Plan looks set to deliver a connected, liveable city centre with public spaces that embrace the region’s tropical lifestyle and natural assets. The plan includes additional space for outdoor dining on the Esplanade and the development of the Cairns Gallery Precinct, transforming the iconic, heritage-listed Cairns Art Gallery, former court house and former Mulgrave Shire buildings into a world-class precinct that celebrates the city’s cultural heritage. There is also the Cairns Aquarium, which is the first facility of its type built in Australia for 18 years, and the only one of its kind in the world to concentrate on showcasing the bio-diversity of TNQ’s rainforest and marine life.

Calvin Bailey of CBMR is upbeat. “Apart from a low vacancy rate, the most visible sign that the city’s fortunes appear to be on the turn is the foresight demonstrated by the $500 million Crystalbrook developments in the Cairns CBD. Their first hotel Riley opened in 2019 to rave

reviews, and the second and third, Bailey and Flynn are set to open early next year.

in the big cities, developers of new large-scale apartment stock are thin on the ground.

“We are also waiting for the first of Nova City’s $550 million ‘seven towers’ to start. With operational works under way, and the proposed billion-dollar Cairns Global Tourism Hub in the pipeline, this project is anticipated to transform the city and create thousands of jobs, with residents suggesting the creation of up-market restaurants, a casino and the city’s first six-star hotel,” he says.

“Consequently, while rental demand remains in a steady growth phase, the availability of rental stock remains unchanged.

This is providing good growth in rental yields and maintaining very low vacancy rates in most permanent letting complexes.”

Port Douglas, Cairns and the Whitsundays will also benefit from legislative changes that will allow superyachts to offer charters off the Australian coast – something the current system does not allow. These changes alone are expected to deliver a $580 million boost to the North Queensland economy and create around 4500 local jobs.

“Despite these positive indicators there has not been any significant growth in new residential apartment development,” says Geoff.

The primary reason for this still centres around tough investment finance criteria, and as North Queensland does not attract the same international investors that buy

PROFILES

Calvin agrees: “This is good news for investors and management rights buyers entering the permanent let industry – in the year to June 2019, 14 percent fewer properties were advertised for rent.”

According to Herron Todd White’s May 2019 report vacancy rates for houses stood at 1.7 percent, and units at 1.8 percent, though anecdotal evidence in the marketplace puts it even lower. The same report shows that the average median rent for a house is $420 per week and units at $300 per week.

Propertyology believes that the emergence of Airbnb as an alternative accommodation option may be having an influence on the supply of property to let. It’s not a coincidence that the common denominator among locations with low vacancy rates is tourism popularity.

ResortNews | January 2020

So what else is influencing this market? The obvious pressures exist; low new building starts, an increase in population and higher employment, but Calvin believes there is another factor at play. “What is not being seen is a high level of investor activity, and it’s not surprising,” he says. “The investment market has not been supported by APRA regulation and bank lending policies, so they have just not been active.

“It’s normal in our industry for investors to divest themselves of their investment property

when it is time for them to capitalise. What we are seeing however, is that owner occupiers are buying and taking the properties out of the rental market and they are not being replaced with new investors. What people need to understand now is that there have been changes to the APRA guidelines and with interest rates as low as they are, now is a good time to borrow.”

Geoff concurs. “Twelve months ago, there were a number of quality properties under contract to buyers from down

south looking to use other people’s money to fund their big dreams – it didn’t happen, and while the finger was pointed at the finance sector, it’s probably fair to say that they may have been more dreamers than doers.

The negative impact of those unsuccessful forays however, was a subsequent reluctance to consider selling. “That quality listings were not coming to market is, in itself, not a bad thing, for the better businesses are generally trading well and there is no strong desire to exit the business. Certainly, trading

conditions in North Queensland have the right fundamentals. “A moderate 2019 for sales means that buyers will get more ‘bang for their buck’ when investing here. Multiples have flat-lined and remain at least a full point – if not more - below multiples paid for similar businesses in south east Queensland, and as is happening throughout the industry, the time required to see any contract through to settlement is taking more than three months as lenders impose more scrutiny on their lending P46 decisions,” says Geoff.

Geoff Ellis – Premier Business Sales

Introducing...Geoff Ellis – Premier Business Sales Geoff Ellis has been specialising in selling management rights in North Queensland for over a decade and involved in selling tourism accommodation for over twenty years.

The decision to join Premier Business Sales covering North Queensland provided an ideal opportunity to work with a specialised team in management rights that shared the same values and philosophy in business. Sound advice and the best results come from experience in the market.

Geoff brings to this role years of experience in property and tourism and having been resident for over a decade in North Queensland, he knows the region intimately. His career spans over forty years in tourism and property, including training and service in government tourist bureaux, senior January 2020 | ResortNews

management and ownership of tourism companies and property development resulting in several prestigious national awards from tourism and civic bodies.

Over the past twenty years, Geoff has been involved in business broking and management rights sales, developing a wealth of knowledge in the region. An extremely successful sales record over the years demonstrates Geoff has the ability to both give confidence to you, whether selling or buying, in making the investment that is best for you.

Geoff does not list any and every business for sale for very good reason.

He lists businesses that he is confident in selling with peace of mind for all parties. However he will go out of his way to find the business best suited for you. The only good deal is the one where all parties are happy.

PROFILES

Name: Geoff Ellis Mobile: 0432 790 959 Agency: Premier Business Sales Area of Service: Far North Queensland Web: www.premiersales.com.au Email: geoffellis@premiersales.com.au

43

4.5 Star Resort in Agnes Water • • • •

EXCLUSIVE

Superior 1 and 2 bedroom fully self-contained beachside holiday villas Beautifully laid out complex with a total of 61 lots with 29 in the holiday letting pool The agreements have 22 years to run, expiring 2041 Attractive Body Corporate salary of approximately $100,000 p.a

Geoff Ellis, 0432 790 959

Price: $1,700,000

Net:$407,432

Magnetic Island – True Tropical Beachfront Location • • • • •

EXCLUSIVE

In terrific location with just 15 lots in total and 11 in the letting pool Resort pool, spa and BBQ facilities with cable television and Wi-Fi service The standard module Body Agreements run to 2027 with the option for top-up Body Corporate salary is in excess of $43,000 A business of this size is easily managed by a two person management team

Geoff Ellis, 0432 790 959

Price: $820,000

Net:$144,000

Award Winning Resort Airlie Beach • • • • • •

Hillside location with harbour views metres away from town centre 32 unit complex with 28 in the letting pool Superior freestanding 2 bedroom managers townhouse 25 year agreements with 24 years to run Body Corporate remuneration $68,143 Great repeat trade, multi award winning resort, with high occupancy throughout the year

Geoff Ellis, 0432 790 959

Price: $3,675,150

Kangaroo Point Riverfront • • • • • •

Net:$565,030 EXCLUSIVE

Modern 13 level high rise with stunning city and river views Fantastic location 143 lots with 53 units in the letting pool 2 bedroom managers residence with city views Currently operated under management, Vendors live off-site Potential to increase income with vacant office space on title

David Rotheram, 0414 706 600

Price: $3,995,346

Net:$558,200

Broadbeach Beachfront Holiday

David Rotheram, 0414 706 600

LD

Medium high rise complex with magnificent views of Broadbeach and surrounds Ideal location, 38 units in the letting pool 2 bedroom, air conditioned managers residence High occupancy, great repeat trade New 25 year agreements with over 24 years to run

SO

• • • • •

Price: $3,115,000

Beautifully Appointed Noosaville Resort • Located perfectly for holidaying guests with the river, restaurants, café’s and shops all within an easy walk • 14 x 1 bedroom apartments in the letting pool with strong occupancy levels and repeat guests • The managers 2 bedroom, 2 bathroom apartment has been fully renovated throughout

Geoff Lyneham, 0437 317 044

Price: $1,250,000

Lifestyle Management Rights Cotton Tree

Net:$154,032 EXCLUSIVE

• An exceptional complex in a central location • 4 star resort consisting of 49 units s, 6 in the letting pool • Large 2 bedroom managers unit with entertaining deck and river views

Anthony Gilligan, 0423 635 403

Price: $1,590,000

Net:$175,455

Premier Business Sales is Australia’s premier business brokers – specialising in the marketing and sale of Management Rights, Motels and Caravan Parks.

Buying or Selling an accommodation business? Contact our experienced team today: PO Box 733, Main Beach, QLD , 4217 | info@premiersales.com.au

premiersales.com.au

MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND TABLELANDS – LAKESIDE RESORT

TRINITY BEACH – WHAT AN OPPORTUNITY

EXCLUSIVE LISTING

EXCLUSIVE LISTING

Exclusive Lakefront Holiday Resort in Tinaroo TNQ. Letting spacious 2 & 3 bedroom Town Houses.

Full Resort facilities & magnificent Function Centre.

Two manager apartments, office, reception & shop

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:

36/22

Net Income:

$172,770

Total Units/Pool:

40/24

Net Income:

$128,000

Agreements:

25/22 years

Real Estate:

$595,000 (Two apts)

Agreements:

25/23 Years

Real Estate:

$295,000 (3 brm)

Salary:

$85,500 incl.

Total Price:

$1,251,000

Salary:

$49,977

Total Price:

$669,000

Contact: Calvin Bailey, 0414 889 593

Contact: Alex Barker-Re, 0414 835 128

MISSION BEACH – EMERGING HOTSPOT

TRINITY BEACH – MODERN & BEACHFRONT

EXCLUSIVE LISTING

EXCLUSIVE LISTING

Delightful 4 star holiday property, 100m to beach.

Nice mix of one & two bedroom dual key apartments.

Well established business, many repeat guests.

Hotspot & emerging tourist meca with Mayfair 101.

Luxury holiday beachfront property.

Impressive and built with quality.

Very well priced 2.4 multiplier, motivated vendors.

Perfect starter or add on business.

Total Units/Pool:

30keys/26keys Net Income:

$146,982

Total Units/Pool:

19/14

Net Income:

$149,000

Agreements:

25/23 years

Real Estate:

$300,000 (2 brm)

Agreements:

25/16 years

Real Estate:

$290,000 (2 brm)

$29,816

Total Price:

$900,000

Salary:

$38,500

Total Price:

$650,000

Salary:

Contact: Calvin Bailey, 0414 889 593

Contact: Alex Barker-Re, 0414 835 128

“YOUR PARTNER IN SUCCESS” 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

“There are approximately 2,350 management rights properties in Queensland with less than 300 being in Cairns, Cairns Beaches, Port Douglas, Townsville and the Whitsundays,” says Calvin, “and in 2019, the total number of management rights properties sold in Queensland for the calendar year was about 150 properties; 2018 was approximately 148 properties compared with 177 in 2017, 186 in 2016 and 244 in 2015 – a downward trend overall if one considers that about 10 percent of these sales were in North Queensland.

“In the last quarter of 2019 we noted a surge of interest in management rights properties from quality new buyers who recognise the value of obtaining a low risk management rights business in this beautiful area at a multiplier that is a lot less than the south east quarter.

“We believe that we will see further stabilisation in the market next year, and if the government delivers on what it has promised, then the start of

a whole new cycle for Australian tourism, and North Queensland in particular,” says Calvin.

Geoff Ellis agrees. “There is definite interest from buyers looking to secure ‘off market’ deals for they see, not only some very attractive properties, but also realise that buying in a subdued market has its attractions.

Our expectation is that 2020 should see more positive growth in market activity. Nationally the

economic and political climate is settling down and apart from within the rural sector there should be better conditions for prospective investors looking to move into, or add to, their current investments in the management rights industry.

Sources: Tropic Now, TTNQ Website - Regional Snapshots, TNQ National Visitor Survey Jun 2019, TNQ International Visitor Survey Jun 2019, Cairns Regional Council Website - Media Releases, Newsport Daily - online publication, Cairns Airport Website - News

“All in all, far North Queensland remains a buyer’s market. The corporates are around looking for the right properties but there is a shortage of the ‘mum and dad’ buyers, especially in the $1.5 to $2.0 million market.”

Ever the optimist however, Calvin believes the tide is turning and the smart operator should be planning an exit strategy.

“Interest in good quality, wellrun ‘mum and dad’ properties remains high. Managers are generally enjoying improving occupancies and room rates, and with little additional serviced apartment construction coming online, they are set to reap the benefits.

46

PROPERTY

ResortNews | January 2020

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LOOKING FOR A MANAGEMENT RIGHTS IN

NORTH QUEENSLAND? Over 44 North Queensland Listings to choose from...

From all the leading brokers visit accomproperties.com.au

Seaview Resort:

The perfect holiday destination destination.” And while he dislikes the term, Derek says that Seaview Resort ‘ticked all the boxes’ for them – a tall-storey building in a prime location, spectacular views, a high repeat booking business and a responsible and committed body corporate.

By Trish Riley, Editor

Just a short drive north from Brisbane, lies the beautiful sub-tropical Sunshine Coast with all of its natural beauty and charm, and perched on the ocean shores of central Mooloolaba is Seaview Resort – a 12-storey apartment hotel offering visitors 50 spacious and comfortable selfcontained apartments with panoramic ocean-facing views.

Guests can walk barefoot in the sand on their way to breakfast at one of Mooloolaba’s many alfresco cafe restaurants and coffee shops or just relax on their balcony overlooking the spectacular ocean…

It was just this picturesque scenario that captured the hearts and minds of resident managers Derek and Gay Ransome two and a half years ago when they chose to buy into management rights, and they couldn’t be happier with their decision.

With more than 30 years’

48

“Unbeknown to us there was even an uncanny connection with the property that we were unaware of – the chairman of the body corporate knew of my mother many years before when she was a work associate of his wife..

Gay and Derek Ransome

hospitality experience in Brisbane and the Gold Coast (hotels, catering companies and wedding reception venues), Derek and Gay know all there is to know about the industry but are still entranced by the rapidly evolving accom sector.

“Ten years ago, a friend who is a passive investor in management rights, was extolling the virtues and benefits of management rights and suggesting that I get involved,” says Derek. “At the time however, I mistakenly saw management rights as

something for retired couples and I believed we still had a lot more to give to our businesses.”

After a stint in a hotel in Cairns, they started to think about management rights more seriously, researching the market for 18 months and viewing in excess of 20 properties between the Gold Coast and the Sunshine Coast.

“The Sunshine Coast has so much to offer,” says Derek, “we saw a lot of upside; signs of development, tons of potential and a great family-friendly

PROFILES

“I’m the kind of person that needs a challenge,” adds Derek.

“I like the idea of being able to improve situations and saw immediate potential with Seaview from a marketing perspective.

“From the outset, we contracted a specialised marketing company and they have opened many doors for us. Depending on the size of the property I would strongly recommend to all new-comers that they consider doing this for the first six months. You have so much else to focus on and effective marketing is the make or break of your business from day one.”

ResortNews | January 2020

And Seaview Resort is highly marketable. Attracting those on holiday, sporting groups and business visitors to the Sunshine Coast, the property offers a selection of fully self-contained one-, two- and three- bedroom holiday apartments, minutes from the best that Mooloolaba has to offer – a patrolled surf beach, cafes, restaurants, bars and boutique shopping.

The apartments are bright, spacious and well-appointed, featuring fully self-contained kitchen and laundry facilities, open plan living areas and private furnished balconies overlooking the ocean, tropical gardens and tennis court.

In terms of facilities, guests can enjoy the large heated

swimming pool, dine alfresco at the undercover barbecue area or chill out on a sun lounge; enjoy a game of tennis on the 20m x 10m compact court, sweat it out in the guest sauna or workout in the outdoor gym located 100m across the road.

And if all the outdoors gets a bit much, one can retire to the games room where there is a coin-operated pool table and a selection of board games, puzzles and books. Every apartment also has free unlimited wifi and guests can BYOD (bring your own devices*) and content including Chrome Casts, gaming devices, AppleTV’s, Foxtel Now, Google Assistant, and so on - connectivity is easy on a secure in-room network. *Smart TVs are available in the majority of the apartments.

Tourism & Hospitality SUPPORT SOLUTIONS

Tailored online marketing and sales solutions Support and advise in a maze of marketing and technology options

$ Social Communications

January 2020 | ResortNews

PROFILES

Online Distribution

Sales and Business Development

49

Having been built in 1983, I ask whether Derek has been involved in any significant capital projects or renovations.

“There are the odd age-related matters that crop up,” says Derek, “but Seaview has been so wellmaintained throughout the years by the body corporate there really isn’t anything of concern.

The key is to stay on top of the maintenance schedule and to try to encourage the owners to upgrade their apartments regularly in an effort to keep up with guest expectations.

“Our biggest learning curve was getting to grips with the day-to-day demands of the

business and building. When we took over the property there was a maintenance firm contracted to do everything – right down to changing light bulbs. I wanted to know how the building ticked and the only way to do that was to do it myself.

“In addition to really getting to know the property and every resident, we have saved our owners money; you can’t expect owners to keep paying for things if they don’t see an improvement in returns or a reduction in costs (preferably both). We have a good relationship with our owners and the body corporate,” says Derek. “The owners are, in effect,

our employers and we respect them as such. Irrespective of whether they are investors or occupiers, we treat all of our owners the same. Circumstances change on a dime and an owner occupier property could end up in the rental pool – it just makes sense to have good relationships with all parties.”

When asked what advice he’d give to potential buyers, Derek says: “Just as we did two years ago, we have found that some new entrants think management rights is a retirement gig.

You need to have a thorough understanding of what it is and what is going to be expected of

you – then roll up your sleeves and work hard. Gay and I pride ourselves on going the extra mile with customer service and we regularly receive positive reviews to us personally –we find that particularly rewarding.”

“I’m not qualified to really comment on how the industry is changing,” adds Derek, “but just from our short experience, management rights is a great business model. If you can keep owners happy with their return on investment and overcome the ever-increasing competitor hurdles with professional marketing, then return customer business won’t be an issue.

We live by our process.

Holmans. Accountants to the accommodation industry.

Valuable services we provide at Holmans include:

• Financial due diligence • Business structuring advice • Budgeting & business planning • Cash flow & profit and loss predictions • Settlement procedures & checklists • Asset protection advice • Accounting, taxation & trust audits • Sale of business statements Holmans are registered as one of the leading accommodation advisory firms in Queensland.

Holmans are proud of our association with Derek & Gay and wish them every success for the future

Who have you entrusted to look after your financial future?

0414 228 697 | trossiter@holmans.com.au | holmans.com.au

50

PROFILES

ResortNews | January 2020

Beaconlea: The Broadwater’s best kept secret the same aspect as that of the guest apartments – large picture windows and idyllic views of the water just metres away. There’s not a lot that can happen during the day that isn’t soothed away by watching the dolphins and pelicans from the comfort of your own lounge.

By Trish Riley, Editor

Despite having been resident managers of the Beaconlea high-rise based on the Gold Coast’s Broadwater for two and a half years, there is still a feeling of disbelief from Keith and Cheryl Sharp that they are fortunate enough to have secured this premium property.

“Truth be told, we also thought that anybody staying here would just have to be in a good frame of mind and having a positive experience. Beaconlea is one of the best kept secrets on the Gold Coast,” says Keith.

Hailing from New Zealand originally, Keith and Cheryl spent nine years in South Australia, then back to Auckalnd for 25 years before finally succumbing to a 20-year old dream to own management rights.

“We came to the Gold Coast for a holiday when the children were young,” says Keith. “And while we were here we befriended a Kiwi couple who were the managers of the building we stayed in. They told us about the concept of management rights. We listened and watched, recognising the opportunity and that sowed the seed. We always hoped that one day we’d be back to do it ourselves.”

In Keith’s former life he was a self-employed business consultant working extremely long hours, and Cheryl worked as a TAFE tutor contracted to January 2020 | ResortNews

Cheryl and Keith Sharp

the Department of Corrections.

When the decision was made to consolidate and look at making the move back across the Tasman, somehow contracts ended, the children moved and everything came together really neatly.

So why this particular building?

– the majority of them with Deborah Tilley of MR Sales who was excellent in terms of working with us remotely – we narrowed it down to 12, and during the Christmas break we came over to view them. In March, we made another trip to view those we short-listed.

“We always intended to be on the Gold Coast,” says Keith, “it was the end result of many years of dreaming… and while we looked at dozens of properties

“Ultimately, it came down to Beaconlea’s position and outstanding views,” says Cheryl.

“The manager’s apartment is unusually spacious and has PROFILES

Situated right on the edge of the world-renowned Broadwater with 240-degree panoramic views of Surfers Paradise, the islands, tranquil waterways and the hinterland, Beaconlea offers 38 spacious two- and three bedroom, two-bathroom, fully self-contained apartments – many of which have been refurbished – with a perfect north east aspect.

The large open-plan living and dining areas are complimented by well-appointed kitchens, and large, private balconies overlooking the Broadwater that are perfect for alfresco dining or a quiet evening drink.

The stylish high-rise also boasts three large and tastefully furnished penthouses in the rental pool, all with three-bedrooms (two bedrooms with queen beds, and the third with two single beds).

51

All apartments also feature Foxtel and wifi, and residential guests have access to secure, underground parking.

the benefits offered by the property’s proximity to multiple beaches, Surfers Paradise, the theme parks, large retail outlets and public transport. What I’m curious about however, is how Keith and Cheryl have managed the transition from the corporate world into management rights and hospitality.

Additional guest amenities include a sparkling swimming pool, a half size tennis court, a library and games room, and less than 100 metres away both north and south, are a range of top-quality restaurants, cafés, convenience stores and the historic Grand Hotel – the forefather of Gold Coast holiday accommodation. And

“One of the biggest changes was going from what was essentially an office environment to quite physical work, and my body felt it,” says Keith wryly. “There was also the obvious adjustment from being my own boss and having flexibility in terms of hours worked, to reporting to a number of parties and being on call all the time.

These units have modern kitchens, spacious living zones, two bathrooms, a powder room and separate laundry – and of course, water views that make it hard to leave the apartment.

52

speaking of iconic, situated opposite The Grand is Charis Seafoods, Harley Park, an expansive walkway and a family beach and protected swimming area. Over 13 years, this retail seafood outlet has grown

into an international business renowned for its pelican feeding at 1:30pm daily where close to a hundred pelicans gather for their special feed of fish!

Being a ‘local’ to this part of the Gold Coast I’m familiar with

PROFILES

ResortNews | January 2020

“We feel fortunate to have been able to buy into a wellrun property in a top-class location,” adds Keith. Beaconlea had an exterior paint this year and Keith is proud of how well the project to paint the building and install new roof membrane has turned out.

Cheryl admits to loving her new

role. “I’ve always been a people person, and really enjoy meeting our guests and interacting with them. We had a couple of rental properties that we owned and managed in New Zealand previously, so we’re familiar with what’s required from the management side of things – getting to be a solution provider and host to multiple guests

and owners is a bonus. We just want to make sure everyone has a really good experience.”

number of refurbishments.

Since coming on board, the gregarious couple have updated and modernised the website, upgraded the linen quality across the board and implemented triple-sheeting for a crisp, clean look and project managed a

SPECIALIST ADVISERS TO THE ACCOMMODATION & HOSPITALITY INDUSTRY

This approach is obviously paying off. Beaconlea is busier than normal, with a very high proportion of return bookings.

When asked if their long-held dream was worth pursuing, they smile, and once again show me the view.

WE ARE PROUD TO BE ASSOCIATED WITH BEACONLEA HOLIDAY APARTMENTS

Audits | Taxation Feasibilities | Due Diligence Reports

We specialise in Management Rights Brokerage We have over 15 Brokers servicing the east coast of Australia We are committed to making every deal a success We have over 20 years’ experience

David Jackson

djackson@hostrata.com.au

Matthew Wallbridge

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January 2020 | ResortNews

www.mrsales.com.au PROFILES

53

Archer Gowland:

Expertise on tap

L to R: Smiljan Jankovic, Chris Lewis, Ian Walker and Greg Rankin

By Trish Riley, Editor

For over 30 years, Archer Gowland has been one of Queensland’s leading management rights service providers, helping clients realise their goals and aspirations, whilst building a trusted and client-centric industry reputation.

As one of the first professional services - accounting experts for the MLR industry, the firm was founded by Colin Archer in 1981, and is now led under the direction of managing director, Ian Walker, and Smiljan Jankovic – director.

Providing services across accounting, taxation, superannuation, and business advisory, both Ian and Smiljan play a strong role in supporting

the advancement of their clients across a variety of industries.

In recent years, the firm’s management rights expertise has been led by Smiljan, with his specialist management rights team, helping MLR business owners to fully manage and grow their complexes, alongside supporting new entrants.

Focused on adding value from the outset, this team

conducts critical due diligence for management rights clients including the evaluation of net operating profit by verifying the trust and general account transactions. They also set up systems and processes and check the Form 6 agreements and any other relevant information in relation to the profitability of the business, as well as analysing the actual income and operating expenses over the last 12 months.

David Jiang M | 0481 500 278 davidjianghui@nextrealty.com.au Your Management Rights Specialist covering both the Australian & Asian Communities!

Contact NEXT if you are buying or selling, we will help through the entire process. We go the extra mile.

We work harder and more professionally to serve our clients for their best interest and trust!

For more information please call NEXT’s team or visit...

54

PREFERRED SUPPLIER PROFILES

ResortNews | January 2020

As a renowned and responsive practitioner with over twelve years’ professional experience, Smiljan has established himself as an ‘industry preferred supplier’ and specialist adviser to clients.

Rights’ program, that offers members one on one business coaching with Smiljan, plus on-going financial management to improve the business cash flow, profitability and future sale price.

He said: “Resident managers tend to hail from all walks of life prior to their purchase, and being a small business owner or sole trader often involve juggling multiple tasks at once.

“In addition to the sheer peace of mind and confidence that comes with having a trusted advisor in place, the ‘Mentor for Management Rights’ program gives business owners a plan for the future to maximise the profitability of their business,” said Smiljan.

“The process connects managers with industry best practice, provides support and motivation, and allows for the quick identification and rectification of issues to reduce their risk exposure while streamlining administrative activities and paperwork.”

An outside perspective can make a world of difference to the future of a business, and as a business adviser, it is my responsibility to provide clarity and assistance to owners, helping them meet their business and finance obligations”.

In his role as one of the firm’s directors – appointed in 2018 – he aims to build deeply engaging relationships with not only owner/operators throughout Queensland, but other leading industry professionals across law, broking, and finance services.

When discussing how his role has changed since becoming one of the firm’s directors, Smiljan said – “my role now is not only to continue to offer high-level strategic advice (benchmarking, due diligence, business advisory); but also to establish a network that can support the extended needs of our clients – whether involving legal, business broking or finance matters”.

“I’m excited to be furthering connections with my industry peers which we have already developed and building collaborative working relationships”.

Ian Walker

With a focus on technical expertise, the team are well placed to provide businesses with strategic and general business advice, and to be alert to any signs that a business may be heading into difficult times.

The firm’s managing director, Ian Walker echoed their commitment to continuing to provide a high-quality and proactive service.

He explained “We’re proud to support clients within the MLR sector and help them in achieving their business goals and objectives.

Smiljan Jankovic

Gowland are familiar with the intricacies of each industry and aim to educate clients about industry-specific tax claims or potential business opportunities that could benefit them in the long-run.”

Demonstrating their innate understanding of the rapidly evolving sector and that issues are most often experienced during the on-boarding phase, this specialised division have also introduced a bespoke ‘Mentor for Management

“When you work with a chartered accountant, you get access to a professional who is bound by a strict code of standard and ethics, and because we’re complying with professional development and industry-set standards, clients can trust that they are receiving advice that is credible and up-to-date”.

Additionally, their long-standing association with the sector has seen the firm provide commentary on array of subject matters impacting operators, as well as host a networking forum to help in educating managers, owners, operators, and other professionals.

TheManagement Rights Lawyers

“Certain industries, such as the building and construction industries, have very specific tax requirements said Ian Walker. “The team at Archer

BUYING/SELLING ASSISTANCE

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January 2020 | ResortNews

Mahoneys is proud to be associated with Archer Gowland Chartered Accountants

www.mahoneys.com.au

PREFERRED SUPPLIER PROFILES

55

“Our philosophy is to educate those within the industry, helping them to make informed business decisions, and best position themselves for the future” said Ian.

Integrity. Trust. Honesty.

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“We feel that providing these observations, whether through our blog articles or networking events, will help provide MLR operators with an insight and understanding into important matters involving their industry.

As Smiljan mentioned, MLR operators and managers can be time-poor, therefore in 2020 we’ll look to release a podcast series, which will allow for these individuals listen to our commentary when best suits them”.

Finally, when discussing what may lie ahead in 2020 for the practice, both Ian and Smiljan jointly expressed their hope to continue to be recognised as a ‘preferred supplier’ within the industry and work in partnership with others offering corresponding management rights expertise.

“Our vision for 2020 will be to continue to offer clients the

56

PREFERRED SUPPLIER PROFILES

same high-level of service they have come to expect, but also to continue to work in collaboration with other professional advisers within the sector. As mentioned, we are constantly providing commentary on the industry – therefore to do so with other such ‘preferred suppliers’ would be a great and unique opportunity” Ian said.

Smiljan also confirmed – “given the high-level of tourism attraction on offer throughout Queensland – whether in Brisbane, Gold or Sunshine Coast, or North Queensland – the industry will continue to be an integral part of the State’s economies. This is an exciting period for owner/ operators, the sector, and hopefully for our firm over the course of the year ahead too”.

With offices in Brisbane and the Gold Coast, and with a progressive organisation growth plan in place, Archer Gowland is well positioned to strengthen their service offering for clients across all sectors.

ResortNews | January 2020

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ELECTRICAL APPLIANCES

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ResortNews | January 2020

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January 2020 | ResortNews

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61

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ResortNews | January 2020

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◆ YOU WON’T BE DISAPPOINTED ◆ PRICE IS IMPORTANT, but so is SERVICE AND SUPPORT 9/99 LOWER WEST BURLEIGH ROAD, BURLEIGH HEADS, QUEENSLAND 4220

PHONE: 07 5535 6161

with the same great

service

EMAIL: POOLGEAR@BIGPOND.COM

WWW.POOLGEARAUSTRALIA.COM.AU

Personal Service. Trusted Advice.

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

Heat Pumps

Proudly installed and serviced

VALUERS - REAL ESTATE

MANAGEMENT RIGHTS VALUATION SPECIALISTS Noosa 5449 7855 | Maroochydore 5443 2111 Caloundra 5438 1588

20 • equipment • repairs • regular servicing • maintenance • chemical supplies • swimming aids & toys

153 Cooyar Street, Noosa Junction (07) 5447 3896 shop@noosapoolandspa.com

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

January 2020 | ResortNews

Call John Punch on 5570 9322

CERVETTO COURTICE L AW Y E R S

Look for the sign of an Industry Specialist

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

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

PREFERRED SUPPLIER DIRECTORY

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