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Issue 282 | February 2020 | $13.75 inc. GST
The Monthly Magazine for Accommodation Industry Professionals
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JOIN THE 75+ FAMILY OF RESIDENT MANAGERS ALREADY BENEFITING FROM ACCOMPROPERTIES MEMBER FEEDBACK News that ARAMA members had free access to AccomProperties listing service arrived just as one of my units came up for lease, so I gave it a try. The site is easy to navigate, and I had my ad ready to go in 20 minutes, complete with photos and floor plans. I needed a little help getting it live, and a call to customer service sorted me out very quickly. My previous service took 24 hours to hit realestate.com, but with AccomProperties my ad was up in 20 minutes, and any edits were uploaded equally quickly. I had three referrals in the first hour, and the property was leased within 48 hours. Result!
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Colin & Jean Sheather, Resident Managers, Marion Hall, Gold Coast One of the benefits of being members of ARAMA is utilising their affiliates such as AccomProperties. They are economical and very supportive in the setup stage and follow on service. The platform is straight forward and easy to use. We have successfully leased properties through AccomProperties as an advertising platform. Rabih & Christina Assaf, Resident Managers, Village Circle, Brisbane Having joined AccomProperties in October 2019, I have found the portal to be very efficient and easy to use. Listings are automatically uploaded to REA and Domain instantly. The cost is very competitive compared to other agencies and IT support is always available should I need it.
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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 February issue FRONT DESK
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.
Editor's Note: Resilience and hope required................ 05 INDUSTRY
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News in Brief……........................................................................ 06 Person of Interest: Tony Rossiter.......................................10 ARAMA Report..........................................................................12 State Report...............................................................................13 BCCM Report.............................................................................14 SCA Report.................................................................................16 Coronavirus: Information for Hotels and Hotel Staff........................................................................... 17 MANAGEMENT Legal Ease................................................................................... 20 By All Accounts........................................................................ 22 Motel Market............................................................................. 23
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Good Governance....................................................................24 Thinking MR................................................................................24 Intonet......................................................................................... 26 Strata Trends............................................................................. 26 Marketing................................................................................... 28 Housekeeping........................................................................... 30 Guest Experience.................................................................... 30
PO Box 1080, Noosaville BC, Queensland, Australia 4566 Phone: (07) 5440 5322 Fax: (07) 5604 1680 mail@accomnews.com.au www.accomnews.com.au
EDITOR Trish Riley, editor@accomnews.com.au STAFF WRITERS Kate Jackson DESIGN & PRODUCTION Richard McGill, production@accomnews.com.au ADVERTISING Stewart Shimmin, advertising@accomnews.com.au
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General editorial. Case studies and features may cite or quote suppliers, please be aware that we have a strict ‘no commercial content’ guideline for all magazine editorial, so this is not part of any commercially funded advertorial but may be included as relevant opinion. Happy reading!
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EVENTS & APPOINTMENTS Events........................................................................................... 36
Development News……........................................................... 38 PROPERTY Accomproperties Sales Report......................................... 42
KEY
Suppliers share their views in one-off, topical pieces
The Last Resort........................................................................ 35
DEVELOPMENTS:
CONTRIBUTORS Alexander Shashou, Andrew Morgan, Arvo Elias, Chris Irons, Col Myers, Grant Mifsud, James Nickless, John Punch, Kaitlyn Meehan, Kate Hughes, Lynda Kypriadakis, Mike Phipps, Paul Grant and Trevor Rawnsley.
Supplier information or content
Tourism International............................................................ 34
ARAMA Industry Events Calendar....................................37
SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au
Commercially funded supplier profile or supplier case study
Tourism Report…….................................................................... 32
35 FRONT DESK
PROFILES Coolum Seaside Resort: Spoilt for choice.................... 46 PREFERRED SUPPLIERS The Preferred Supplier Directory...................................... 50 ResortNews | February 2020
EDITOR'S NOTE
Resilience and hope required Resilience: noun: the capacity to recover quickly from difficulties; toughness The topic of resilience has been top of mind as I prepared this issue for publication. For months, Australia and her people have been reeling from apocalyptic bushfires that have ravaged state after state. We’ve borne witness to the defence of lives, properties and businesses and all have images of heartbreak etched in our minds. And then as we paused to catch our breath, news of the novel coronavirus broke. Every media platform is covering the unfolding medical emergency 24/7. Travel bans and warnings are being ramped up and Australia is bracing for the impact on an international tourism market already under severe stress. It is hard to comprehend how people can cope and bounce back from such overwhelming waves of crisis and negativity. But we do. One of my go-to authors is Barbara Fredrickson, a leading researcher in positive emotions, or what she calls positivity. Fredrickson's research reveals that positivity is the main mechanism of action
February 2020 | ResortNews
Trish Riley, Editor editor@accomnews.com.au for resilience. Hence, a main determinant of resilience is the ability to foster and amplify positive emotions when we are swimming in a sea of negativity. A few years ago, Fredrickson and collaborators discovered a tippingpoint positivity ratio of 3:1 -- three positive emotions for one negative emotion. Above the tipping point, people are resilient. They have the resources to change and grow, and bounce back from adversity. Below the tipping point, people languish and fall into a downward spiral. What we have learnt – and witnessed almost daily – is that the top 10 most common emotions are joy, gratitude, serenity, interest, hope, pride, amusement, inspiration, awe and love.
One of the most heart-warming aspects of the common reaction of our people and communities to these crises is the abundant outpouring of love, support and connection. Crises often bring us to our knees and help us appreciate how our relationships with others are truly the backbone of our lives, to survive and, beyond that, to thrive. Taking time to help another, even ahead of one's own needs, is nourishing for both giver and receiver. There has also been a global wave of love and support from far-away onlookers, earnest in their prayers and contributions, and hoping to help even a little. Faced with adversity, resilient people are interested, open and curious, hunting for silver linings and ways to foster positive emotions as the fuel for putting one foot in front of the other in order to rebuild lives and communities. Developing a sense of profound meaning and purpose is a rich vein of positivity: "How can I make a difference? How can I use my strengths to help others recover and rebuild? How can I make lemonade out of lemons -- noticing, amplifying and harvesting the many lessons that emerge from a huge setback?" When we make a difference individually and collectively, slowly,
FRONT DESK
arduously and patiently, we find pride in our accomplishments, which propels us to keep going. When we observe the courageous efforts of others who are close or distant, we are inspired to continue forward. My observation is that one's relationship to one's future is a particularly critical source of positivity for our well-being. Hope for a better future is an important contributor to our positivity and resilience. Hence, all the positivity that we see emerging from the crisis already described -- love, gratitude, awe, interest, pride and inspiration -- provides the positive energy that "hopefully" takes us to hope: a sense that better days are ahead and we have the resources to get there. And perhaps if we're lucky, we can find small moments of the last three of the 10 most common positive emotions -- joy, serenity and amusement -- to find things to smile or even laugh about, to be at peace with ourselves and even feel a little joy from new beginnings. Stay positive everyone – know that this is something that we will get through together. Please enjoy reading this issue.
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Coronavirus outbreak having a major impact In an unprecedented move, foreign travellers who have left or passed through mainland China have been denied entry to Australia as officials try to contain the spread of the Coronavirus. They will not be allowed enter Australia for 14 days from the time they depart or transited through the Asian superpower. and the ruling will be reviewed every 14 days. The measure - effective as from February 1 - comes after Queensland Premier Annastacia Palaszczuk called for those incoming flights to be halted until the virus is contained. With China being the largest source of short-term visitors to Australia, with 1.45 million arrivals last year, the virus is having a devastating impact on Australian tourism, with North Queensland operators alone reporting up to 1,000 cancellations per week. Leading consultants suggest the disease impact could deal a significant blow to the economy. Research by PricewaterhouseCoopers (PwC) found that Australia’s GDP could fall by as much as $2.3 billion and 20,000 jobs could be lost if the $9.2 billion spent per year by Chinese tourists and students declined. Australia’s tourism industry is already struggling in the wake of the drought and
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Booking.com announces $3.4 million to support sustainable accom
bushfire crisis, with the sector bracing for a $4.5 billion hit by the end of the year. Negative press coverage has seen international and domestic bookings plunge by as much as 35 percent. PwC Australia Chief Economist Jeremy Thorpe said "we’ve had a soft economy, the drought, the bushfires and now this virus ... It's bad news on top of bad news." As is the case with any emergency situation or epidemic, it is important for accom management to be able to react quickly to potential location closures and concerned employees. “To avoid further confusion and panic, managers must be prepared with the right strategy and tools to keep staff informed about updates to location hours, staffing, scheduling, and any new health and safety training. The simplest and fastest way to ensure staff are wellinformed of these changes is to create a direct line of communication from the head office to frontline workers.” While it has been suggested that the ban could last for two months, it may last longer if eradicating Coronavirus takes longer. Note: For the benefit of our readers and the greater industry, ResortNews have included the advice notice for the hospitality sector as distributed by the World Health Organisation.
©Aleksei - stock.adobe.com
With a mission to make it easier for everyone to experience the world, Booking.com, one of the world's leading digital travel companies, has announced the opening of applications for its 2020 Booking Booster program to support solutions in sustainable travel. Following on the success of the previous three years, the fourth iteration of the program in 2020 will focus exclusively on the topic of sustainable accommodation. The 2020 Booking Booster will bring startups, social enterprises, non-profit organisations and accommodations of all kinds together directly to explore solutions to become more sustainable. Through the 2020 program, participants with innovative products and services, including accommodations themselves, will have the opportunity to secure grants from the company's $3.4 million fund.
The accommodation focus for the 2020 Booking Booster program is underpinned by Booking. com research, which shows that 82 percent of Booking.com's accommodation partners want to collaborate on sustainability* and that 87 percent of global travellers think it's important to consider sustainable properties when travelling. "With the 2020 Booking Booster program, we're excited to be championing innovative solutions that help our accommodation partners to adopt more sustainable practices. It's not only what our customers want, but our partners, as well," said Rob Ransom, Vice President of Strategy and Corporate Development at Booking.com. "Bringing together products and services developed by start-ups and organizations from around the world with practical case studies from leading sustainable properties will accelerate our collective efforts to make every stay a sustainable one." Source: Hospitality.Net
Aussies losing almost $1m to cybercrimes per day
Source: Australian Financial Review
INDUSTRY
Data from the Cybercrime in Australia Report has revealed Australians are losing around $328 million a year to cybercrimes. Almost $900,000 is being lost daily to cybercrimes such as identity theft and shopping scams – with almost one in three
Australian adults impacted by cybercrime in 2018. More than 11,400 individual scams were referred to law enforcement between July and September, equating to a scam being reported every 10 minutes. Source: EBM Insurance
ResortNews | February 2020
Trivago faces a multi-million-dollar penalty The German-based hotel comparison giant owned by Expedia has been found to have engaged in misleading conduct and making false representations to consumers. The Australian Competition and Consumer Commission (ACCC) argued Trivago promised customers “impartial and objective” accommodation price comparisons that allow them to easily identify the cheapest offer available, but instead the company promoted its best advertisers, in some cases comparing the price of standard and luxury rooms as it filtered cheapest prices out of its lists to prioritise clients. The consumer watchdog launched court action in August over website and television advertising that aired more than 400,000 times from late 2013 to mid-2018 and this month, Justice Mark Moshinsky
behaviour of online travel websites over a number of years now, particularly in regards to allegations about misleading and aggressive tactics,” he said. “The fact that the ACCC described Trivago’s behaviour as ‘particularly egregious’ shows that this is not a benign or trivial breach – their behaviour was deliberate and widespread.
ruled Trivago contravened several sections of Australian consumer law, not only by falsely claiming it offered the “best” prices, but by displaying red strike-through text that consumers were led to believe referred to discounted rates. Trivago’s main source of income is the cost-per-click fee it charges advertisers when a consumer clicks on an
accommodation offer made through the comparison site. The fee is payable whether or not the consumer goes on to make a booking. Tourism Accommodation Australia CEO Michael Johnson said the ruling sent a “very clear signal” that Trivago’s tactics were misleading and deceptive. “There have been widespread concerns regarding the
“Given the influence that booking platforms such as Trivago have in Australia’s accommodation industry, behaviour such as this has the potential to have a significant negative impact on our hotels and the tens of thousands of jobs that they support.” The Australian Federal Court will schedule a hearing in coming months to determine the extent of Trivago’s penalties, with each of its many breaches expected to attract a fine of more than a million dollars. Source: Hillhouse Legal Partners
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February 2020 | ResortNews
hotelinteriors.com.au • 1300 876 055 INDUSTRY
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Triguboff creates strata site amalgamation in Macquarie Park
Unit dwellers powerless to stop electricity rip-off People living in apartments are being treated as “second class citizens” by paying more for electricity after the state government abandoned plans for reforms that would have saved people thousands of dollars on power bills.
Veteran developer Harry Triguboff has made his first strata-unit site amalgamation in his 56year career, buying out 60 owners of an apartment development in Sydney’s Macquarie Park. The property, which spans a 4227sq m site, is occupied by five strata buildings, and forms part of the Waterloo-Cottonwood garden precinct. Triguboff said the site, which sits close to the Westfield shopping centre and Macquarie University is located in “the best part of Macquarie Park”. “The units will be empty in a few months and we hope to start building quickly,” the Meriton mogul said. Local planning rules allow for up to 230 apartments on the parcel and a 14-level height restriction. Meriton says its latest acquisition signals “the first of many” due
Harry Triguboff
to strata owners able to sell a building with at least 75 percent of owners in agreement. “We’re going a step further than that,” Triguboff said, “and prefer to buy only if all owners agree to sell. We’re not here to force sales by reluctant owners.” Meriton’s head of acquisitions David Ritch said the company had received a number of approaches from committees acting for buildings where the 75 percent threshold had been reached. Source: Urban Developer
An embedded network is a set-up that supplies power to a site with many homes, such as an apartment block, retirement village or caravan park. A body corporate or committee is usually in charge of the main meter, meaning they can buy electricity in bulk and on-sell the power to residents. In theory, residents on embedded networks should get a better deal, thanks to bulk buying their power but that often is not the case, because whoever runs the
private network has an effective monopoly. A typical customer on an embedded network could reduce their bill by 36 percent if they were able to switch to the best deal on the market. The NSW government is being criticised for allowing developers and electricity providers to continue to run monopolies in new buildings. Source: YourPropertyInvestor
Expats to lose CGT exemption Australian expats living overseas are set to lose the capital gains tax exemptions on their family home after new legislation made its way through parliament. The changes will see gains that were formerly tax free either in full or pro rata on the period of actual residence, now become fully taxable between 32.5 percent and 45 percent if the former residence is sold while the owner is still living overseas at the time of sale. Leading taxation consultant and SMATS executive chairman, Steve Douglas reveals that "this will further compound the tax woes of expats as the former Labor Government had already removed the 50 percent Capital Gains Tax discount for general assets held more
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the changes put in motion by the Federal Government are short-sighted and may only lead to a very short-term boost to housing supply. “The measures are draconian and may force expats to return to Australia or sell their homes before 30 June 2020,” said Fei Wang.
than 12 months since May 2012, meaning any gains made since then are taxable in full." "There is a grandfathering period in place until June 30, 2020. So any expats who decide to sell their property before this date, however, will hold on to the exemption entitling them to a capital gains tax free allowance for the period the
property was their residence and up to an additional six years of being a rental property," said Mr. Douglas. The move is expected to negatively impact more than 100,000 Australian’s working overseas and will generate $581 million for the government. Principal of Prudentia Legal, Fei Wang suggested that
INDUSTRY
“This means the property market in the next 4-6 months may see a lift in supply. As a result, property prices in the next six months could be affected negatively.” Although the legislation has been in the works for a number of years, Mr. Wang believes that the new rules will force many expats who currently qualify for the CGT exemption to quickly make a decision on how to deal with their property. Source: API Magazine
ResortNews | February 2020
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PERSON OF INTEREST
TONY ROSSITER
STILL WATERS RUN DEEP By Trish Riley, Editor
There is a quiet intensity, and an air of discipline that surrounds Tony Rossiter – and despite him having an ACL injury from recent marathon preparations, and it being early in the morning, one gets the impression that he’s already accomplished a great deal today, that he is supremely focused and that he is three steps ahead of whatever I might say.
Starting from the beginning, Tony was born and grew up in Canberra, attending boarding school in Armidale in the New England region of NSW from a young age. A change of circumstances when he was in grade 11 led to a move to Robina on the Gold Coast where he attended Tweed Heads High School so as to remain in the NSW schooling system. On leaving school Tony says he found the idea of a degree in commerce appealing, and as he still had strong family ties in Canberra he returned to the capital city, choosing Canberra University to complete a Bachelor of
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INDUSTRY
Commerce and Accounting. During his final year, Tony was offered a position with local second tier firm Duesbury’s – which later merged with Deloittes – and he credits his subsequent 20-year career as a Chartered Accountant, to the sound foundation and training he received at the outset. In 2001, weary of the weather in Canberra, and in search of a better lifestyle, Tony relocated his young family to Noosa. He is quick to admit however, that he didn’t realise how difficult it might be to find suitable work in the developing region. ResortNews | February 2020
“I still remember getting the phone book out and calling every company I thought might be a prospective employer,’ says Tony. “Unlike the capital however, most accounting firms were sole operators and there wasn’t a lot of opportunity for a senior accountant at that time. Tony finally secured a position in Nambour which meant a daily commute but it was just this aspect that was instrumental in putting him where he is today. “The long drive to Nambour took me past the doors of Holman and Co. on a daily basis and every day I would look at the offices and wish I was arriving at work instead of driving by,” adds Tony. “Then, after a particularly tiring day, I just stopped on the off chance and asked to see the principal. Fortuitously, Greg Holman, was considering expanding. Tony joined the firm and has never looked back. Holmans cater for all business and personal financial requirements including accounting and taxation, self-managed super funds (SMSF), consultancy and advisory services. In 2004, Tony got the opportunity to become a partner and the company continued to grow, experiencing significant growth during a period when Robyn Clements, an experienced BDM, worked with them. Robyn was wellversed in marketing and taught Tony a lot about the importance of strategic alliances and presentations and it wasn’t long before the company was expanding into Brisbane and the Gold Coast. Holmans deliberately aligned themselves with ARAMA – and became the financial controller to the peak industry body when it transitioned from QRama to the national association, and to this day Tony is an integral part of the organisation’s annual roadshow and member events. Holmans also offer ‘no cost/ no obligation’ phone advice to ARAMA members for the betterment of the industry. “We have, over the years, become specialists in the areas of health and medical and management rights and accommodation and February 2020 | ResortNews
... For me, each relationship is personalised to ensure that I meet their aspirations and outcomes and that from the very beginning I can help them make educated and informed choices. – Tony Rossiter
tourism industry, and it feels good to give back to operators,” says Tony. “Making inroads into the accom sector wasn’t that easy however. There was, and still is, quite a barrier to entry – it takes years to win the confidence of the industry,” says Tony. “As with every one of our clients, I needed to demonstrate a commitment to the sector; showing up at industry events, learning about and understanding the challenges they were facing and networking regularly with the inner circle of industry experts. “It took two to three years before I felt like I was gaining traction, but then there was this snowball effect. If you win a client, and look after them, do the hard work, understand the industry and their specific business; if you produce results and help to increase their value, then clients are likely to refer you. A referral is the best compliment one can get.” By 2008, Holmans had outgrown the original premises and the firm moved to Noosa Junction. Greg Holman retired in 2014 and two of the long-term managers – Wayne Staal and Sharee Webster, became partners, infusing the business with new energy and ideas.
The practice has continued to grow organically and in October 2016 Lel Parnis joined Holmans as a senior accountant and team manager and moved quickly to partnership in November of 2019. Now with a team of highly qualified specialists and advisors, their clients have access to a wealth of knowledge to help them make the best decisions for their circumstances – for now and the long-term future. With two modern Sunshine Coast offices at Noosa and Maroochydore, Holmans have now expanded into satellite offices located in Brisbane and the Gold Coast. As one of the leading service providers to the accom sector, and on the coal face of the financial machinations affecting many businesses over the past 12 months, I ask Tony what his predictions are for the industry. “Management rights is based upon a sound business model,” says Tony. “Operations are quite strong and have been for some time. Long-term properties are generally consistent and short-term properties have achieved solid growth year on year – particularly on the Sunshine Coast. “In terms of development and
INDUSTRY
growth, I’m very positive over the medium to long-term. The traditional challenges – such as gallery vie and the Royal Commission into Banking are well and truly behind us – and we are now facing others; catastrophic bushfires and coronavirus will no doubt impact the tourism market in the short term. However the industry is resilient and will recover in time. "New financial policies and requirements that change constantly will also continue to influence the transaction of management rights. It’s harder now to get finance – harder but not impossible – and clients need to accept that financial institutions need additional time to meet their requirements. “In saying that, none of this has stopped the liquidity of the market,” says Tony, “There is still very little risk for prospective operators, everything is just taking that much longer.” Tony remains optimistic about the future of the industry. From an economic perspective he highlights the fact that we currently have very low interest rates (with no foreseeable end of those in sight), a recovery of the property markets in Brisbane, Sydney and Melbourne and, despite the current tourism scare, a low exchange rate so that it’s inexpensive for inbound tourism. “Having a little more disposable income makes people feel confident about travelling and taking that holiday – the focus in the short-term will be for owners and operators to redirect their efforts and marketing at local markets so they are not dependent on international tourism.” Tony’s knowledge and expertise in the accommodation sector is highly regarded by financial institutions, legal advisors, sales brokers, valuers and associated industry specialists. “Every client is unique for me,” adds Tony. “Their particular background and story provides the basis for my advice and services. For me, each relationship is personalised to ensure that we meet their aspirations and outcomes and that from the very beginning I can help them make educated and informed choices.”
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ARAMA REPORT
Representation at its finest Some big changes are coming to New South Wales next month as the state government introduces reforms to laws that govern agents in the real estate and property industry. The Property, Stock and Business Agents Amendment (Property Industry Reform) Act 2018 (NSW) will come into effect on March 23 in an effort to improve the professional standards and qualifications of agents and streamline the licensing framework. While for the large part the reforms are a positive step for the industry, and welcomed by ARAMA, there could have been implications detrimental to the future of management rights in NSW if it wasn’t for our continued representation of management rights operators over a number of years.
Trevor Rawnsley, CEO, ARAMA
Under the original reform proposal, someone looking to sell their management rights business would only be able to do so to another Class 1 licensee who had already achieved three years’ work experience in order to operate a trust account as part of the licensing requirement. Put bluntly, this virtually deems an operator’s management rights business worthless with the inability to sell it – and I can’t emphasise strongly enough how badly this would have impacted the industry across NSW.
Following our lobbying efforts and submissions on the issue however, we are proud to welcome the exemption of onsite residential property managers (OSRPM) from the experience requirement under the new law. I congratulate all of our members in NSW and other key stakeholders for coming together as a collective and representing the voice of our industry in unison. This is yet another example of the way in which ARAMA presents a valuable contribution to proposed legislative changes before they are made public. The credibility ARAMA has established with government is the result of many years of well-planned and well-presented submissions that demonstrate our solid understanding of the issues and a willingness to negotiate a fair and balanced outcome. ARAMA has also been identified as a pre-approved association authorised to deliver certain components of the continuing professional development requirement for NSW licensees. All other non-government organisations including RTO`s will be required to make application and be approved with a limit on the number of approvals granted.
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
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In another win for the management rights industry, short-term residential accommodation (STRA) businesses in strata schemes have also been carved out of the new planning laws introduced in response to the rapid rise of online booking services such as Airbnb and Stayz.
INDUSTRY
The new laws cap the use of a residence in Greater Sydney used for short-term letting to 180 days if the host isn’t present (with councils in other regions having the power to impose the same restrictions). The new regulatory framework is designed to ensure that local communities continue to gain from the economic benefits of short-stay rental accommodation such as holiday letting, while protecting neighbours from anti-social behaviour. It further recognises the economic significance of management rights businesses in the short-term letting accommodation industry – and confirms the role resident managers play in addressing these emerging concerns as the most effective method of serving the interests of unit owners, bodies corporate, tourists and tenants. Following these positive outcomes in NSW over the past 12 months ARAMA will proudly participate in various reference groups and sub-committees over the coming years that will allow us to continue to positively influence policy makers in relation to property law, residential tenancy law, and education and licensing requirements. In this regard, one can view ARAMA as insurance for the management rights industry – when the industry is threatened, it is nice to know that someone is always there to provide tangible support. ResortNews | February 2020
Unlike in Queensland where the Body Corporate and Community Management Act 1997 covers every form of strata/ community subdivision and management, NSW has long separated its community title legislation from its strata title legislation. According to government data, there were 937 community schemes, 63 precinct schemes and 1,754 neighbourhood schemes in NSW as at June 2019.
Differences between Community and Strata Titled land The main difference between community and strata titled land is the way in which the boundaries of the scheme land are defined. Strata titles apply to structures like apartment blocks, townhouses and duplexes where the units are defined by structural aspects (such as height and depth of walls and ceilings). A community title can incorporate several buildings and a great deal of land and therefore lot entitlement and boundaries relate to surveyed land measurements. Community schemes range from rural settings where they can be used for sustainable eco developments, with shared dams and communal farmland, to large residential communities with private roads, high security and extensive recreational facilities such as tennis courts, parklands, marinas and golf courses. Other benefits of shared ownership of common areas in community titles complexes can include: •
Standardised building and landscaping which may add value to the properties;
•
Country club membership, including gyms, tennis courts and swimming pools;
February 2020 | ResortNews
developed as subsidiary schemes within community lands, where the Strata Schemes Development Act 2015 and the Strata Schemes Management Act 2015 apply alongside the community schemes laws. New community legislation on the way The NSW government has recently released drafts of the changes it proposes to make to the existing community scheme legislation. The proposed changes, if passed, will completely rewrite the existing community schemes legislation and will align the legislation with the major reforms that were introduced to strata schemes in 2015.
Col Myers, Small Myers Hughes
•
Security patrols;
•
Walking trails and bike paths, and
•
Community activities and events
Community schemes in NSW are governed by two Acts:
Consistency in strata and community scheme law reforms
The Community Land Development Act 1989, which facilitates the subdivision and development of land with shared property, setting the requirements for registration of plans, changes to the subdivision and dealing with lots; and
In 2015, the NSW government delivered major reforms to modernise and streamline the strata schemes laws with the commencement of the Strata Schemes Development Act 2015 and the Strata Schemes Management Act 2015.
The Community Land Management Act 1989, which provides for the management of community schemes and their subsidiary schemes, including management of funds and accounts, association and committee meetings, maintenance of common property, insurance, the management statement (including by-laws) and dispute resolution.
With the changes to the strata laws now established and in use, the NSW government has decided that it is now time to align the community schemes legislation with the strata schemes legislation. The government believes that consistency between the two forms of legislation will reduce unnecessary duplication and make it easier for owners and industry professionals to understand their rights and obligations.
Types of community schemes
Some key new reforms
There are many similarities between strata and community schemes. However, community schemes have an added level of flexibility, with a tiered management structure based on three main types of schemes enabled by the legislation: 1.
“Community” scheme
2.
“Precinct” scheme;
3.
“Neighbourhood” scheme.
Strata schemes are often
Some of the key changes proposed include: 1.
Redefining the “initial period” for community and precinct schemes to ensure that it expires at an appropriate time, rather than potentially continuing indefinitely;
New restrictions on owners who are appointed as managing agents to better deal with potential conflicts of interest; INDUSTRY
Preventing developers from locking in neighbourhood associations into longterm contracts for the supply of utilities. Agreements for the supply of utilities to neighbourhood schemes will automatically expire at either the first annual general meeting (AGM) of the association, if the agreement was executed before the meeting, or in any other case, three years after the date on which it commenced. It will be mandatory to include a motion for such utilities on the agenda of the AGM. The intention of this reform is to prevent developers of neighbourhood schemes “locking in” owners to long term supply contracts for neighbourhood association property. It is the government’s intention that this reform will help to ensure that neighbourhood associations are able to fully consider utility contracts and ensure the contract is in the association’s interests before adopting it. Surprisingly this reform is not intended to extend to electrical embedded network agreements that apply to residents.
Building management agreements In 2003 strata scheme legislation introduced a 10-year term cap on all caretaking/building management agreements. Prior to that date there was no term cap for strata schemes or community schemes. Since that reform to strata schemes, I have been waiting on the NSW government to introduce a similar term cap on caretaking/building management agreements entered into by community schemes (especially given that when a community management statement allows it, a community scheme can contract to provide caretaking/ building management services to subsidiary strata schemes). To date, this “loophole” has not been closed but let’s wait and see what the new legislation brings…
13
STATE REPORT
Community Title vs Strata Title in NSW
BCCM REPORT
The real cost of water damage Taking into account the number of calls we receive on the issue, water damage is a hot topic for lot owners and bodies corporate.
refrigerators) having to be plumbed in, in other words, the more connections to a water source, the more chances there might be a water leak and water-related damage;
In doing a bit of basic research for this article, I came to understand that in Australia, water damage insurance claims are a big part of the insurance market. One report suggests that water damage insurance claims have risen by more than 70 percent in the last five years. The same report suggests that the average water damage claim is now more than $30,000 – no small amount of money. It has been suggested that water damage claims are now only second to wind and hail damage as the biggest source of claims, while the percentage of water damage claims have increased whereas others have stayed the same or even decreased. So, if we accept these reports (and please note, I’m not vouching for their accuracy or objectivity, just merely passing on what they’re saying), a few questions
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•
Chris Irons,
Commissioner, Body Corporate & Community Management
•
immediately spring to mind: •
What’s behind these increases?
•
Where do things stand for water damage claims in the body corporate context?
•
Are there some preventative measures that can be considered?
While my office is not the source of expertise on insurance, in relation to the first question, it seems that, from the articles I mention above and other similar reports some of the factors behind these increases might include: •
the higher numbers of appliances (e.g.
the fact that hoses (e.g. so-called braided hoses) as part of water connections can have a finite lifespan, a fact not always well known; or home owners just not being as conscious about water-related damage as they are for things like fire or theft, which can be more immediate in impact.
I think these are important factors to bear in mind. They might go some way towards addressing the third question above, which I’ll get to in more detail later in this article. For now, let’s turn our attention to the body corporate side of things. A body corporate is required to take out insurance cover as prescribed under the relevant Regulation Module. For the purposes of this article, I’ll reference the Standard Module
INDUSTRY
and in particular, sections 178 and 179 of the Standard Module which provide that the body corporate must: •
insure for full replacement value the common property and body corporate assets; and
•
ensure the policy covers ‘damage’, costs incidental to reinstatement or replacement of insured buildings and provide for the reinstatement of property to its condition when new.
Both ‘building’ and ‘damage’ are defined in section 176. Of note is that the definition of ‘building’ specifically does not include ‘appliances…not plumbed in’, while the definition of ‘damage’ does include ‘water damage’. In the body corporate context it can be very challenging to determine the source of a water leak, or water ingress as it is called. For example, if you are standing in the lounge room of your lot and there is water dripping from the ceiling above you, your immediate thought will likely be, “Well, that’s coming from the upstairs lot so it’s their responsibility to fix”. ResortNews | February 2020
To which I’d say – not so fast. While it may be from the upstairs lot and something the occupier of the lot is (or isn’t) doing which is contributing to the ingress, it also might be the failure of some part of common property contributing to it. If water ingress can be traced to common property and the body corporate’s failure to maintain common property, as is their statutory responsibility, then the general rule of thumb is that the body corporate should be responsible for the resultant damage. At this point, a lot of readers are probably asking, “Well that’s all well and good, but how do we determine the source of ingress anyway?” The answer is: by seeking expert advice from a plumber, engineer or some other professional who is qualified to provide this kind of advice. My Office certainly isn’t qualified to comment on the source of water ingress and I doubt many lot owners, committee members, caretakers or body corporate managers would be either. I appreciate that getting expert advice might be difficult (if there is a scarcity of those experts to hand) and costly. However, I’d suggest it’s the only way to say with any certainty just where water ingress is coming from. As for who might pay for this expert advice, an owner can request the committee to pay for the investigatory work to get the advice (if it is within their spending limit) and the committee or body corporate may make a decision to do so if they consider it reasonable in the circumstances. Or an owner may decide to pay for the advice out of their own pocket and this might be a more expedient way of doing things depending on the seriousness of the water damage. The owner may then look to have those costs reimbursed by the committee or body corporate at a later stage, if the expert advice is that the water ingress is a body corporate responsibility. Once there’s some expert advice regarding the source of the water ingress, then it’s a matter of seeking to resolve the situation from there and, ideally, it should be straightforward – that expert advice is accepted and agreement is February 2020 | ResortNews
reached on how to fix and who pays, in what amount. Of course, things don’t always pan out like that. One party might disagree with the expert advice. Or there might be two pieces of advice, each with competing views. Or, even with expert advice, the other party might refuse to enter into discussions to do work or to pay. It’s when there is a dispute between parties and all their efforts to resolve it are exhausted that my office has a role to provide dispute resolution. Conciliation will be the first step in just about all disputes of this type and we see excellent results in this facilitated, voluntary process. Otherwise, adjudication may be required and that is a more formal process based on written submissions which results in an order.
is an issue stemming from common property. Occupiers can approach the body corporate directly, as well as their landlord or real estate agent, depending on the particulars of the situation. Landlord insurance may be relevant in such situations.
be a preventative measure. We’ve also heard stories and seen disputes about major water ingress happening as a result of overflowing bathtubs (including people falling asleep in bathtubs), so this is something an owner or occupier can certainly be mindful of.
My office often gets enquiries from owners in situations where there has been water ingress into their lot, which has made the lot uninhabitable and that has resulted in loss of rent. Adjudicators can’t make orders for loss of rent in this situation and an owner would need to seek legal advice or refer to their own insurance policies about their options in this regard.
For the body corporate, it might mean having a proactive maintenance plan for its common property so that it can address potential water ingress sources before they actually become a problem. Doing so might also assist in reducing the insurance excess or annual premium.
Let’s now return to the third question posed earlier, namely, if there are all of these considerations in a dispute, are there any preventative measures that can be taken?
It’s much better to have a lot owner and the committee agree on terms together about addressing water ingress than have a decision imposed upon them which could take months to arrive at via the adjudication process. Although some matters might raise complex legal issues about maintenance responsibility which would need an adjudicator to determine them. Throughout this article I’ve referred to things in terms of a lot owner. A tenant, or occupier as they are known under body corporate legislation, also has a right to have water ingress investigated, if it
I’d suggest the answer is yes, for both an owner and the body corporate. An owner has a legislated responsibility to maintain their lot in good condition and the body corporate has a responsibility to maintain common property and in both cases, it stands to reason that those responsibilities extend to maintaining things sufficiently against water damage. For an owner, that might mean being vigilant about even minor-seeming things such as a dripping tap. It might also mean if the lot is going to be vacant for a period of time (such as over the holidays), turning off the water for the lot could
INDUSTRY
Another practical suggestion for the body corporate is having its roll updated and particularly having it updated with contact details to reach an owner or occupier in an emergency. If the worst happens and there is a major water issue, at least this way owners and occupiers can be quickly notified and, if the water ingress is coming from a particular lot, hopefully the owner or occupier could attend and stop it at the source. The information in this article may not solve every water damage issue in a body corporate – there are so many possible variations of water damage to consider – but it is at least a starting point to try to get a difficult situation resolved. 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.
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SCA REPORT
Northern Australia insurance inquiry In late December 2019, the ACCC released the Northern Australia Insurance Inquiry Second Interim Report, providing an overview of findings relating to the cost, pricing, and increasing unaffordability of insurance in Northern Australia, particularly in Townsville. The update outlines the extent of, and reasons for, home building non-insurance, and the potential impact that a range of measures may have on improving insurance affordability and availability in northern Australia. The report acknowledges that the rate of non-insurance is significant and growing, and that premium affordability is the main cause (estimated to be 17 percent or 62,127 properties in North Queensland, but it is unclear
•
The Townsville floods were the largest driver of the $838 million in claims in north Queensland in 2018–19, a figure 369 per cent higher than the previous year and higher than every year but 2010–11.
•
North Queensland’s 2018–19 average claim size of $17 939 is just over three times larger than the previous year and is substantially larger than the next largest average claim size of $12 200 in 2016–17.
•
Gross claims expense per policy also spiked in north Queensland, correlated with the spike in average claim size. At $2132 per policy, the claims expense per policy is the highest registered in north Queensland since 2010–11.
James Nickless, President, SCA, Qld
how many of those are in strata buildings). Premium adjustments may exacerbate affordability concerns and may result in renewing customers paying more than new customers. The reports’ findings include: •
North Queensland has continued its 10-year trend of alternating high and low claims cost years in line with major natural catastrophes.
•
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In line with the overall trend, claims frequency in north Queensland was low. It increased on the previous year because of the Townsville floods, but at 12 percent is still below the 12year average of 13 percent.
A small ray of light came at the end of November when the Insurance Council of Australia (ICA) agreed to investigate the feasibility of a reinsurance pool. ICA reiterated this point to us during a meeting and, while we were aware that some providers still had reservations about the effectiveness of a reinsurance pool, we were pleased that they were open to considering the options. Unfortunately, the ACCC report does not consider government reinsurance pools and government insurers well-suited to address affordability concerns in a targeted way, leaning towards the view that the greatest potential to help NQ consumers would be to enable targeted affordability assistance. This could help to improve rates of insurance in northern Australia, which could, in turn, reduce the burden on governments from providing post-disaster relief. Targeting insurance affordability in this way may also help the
INDUSTRY
government to support its aims of developing northern Australia. Meanwhile, bodies corporate may see benefits through investing in pre-disaster mitigation. While this would require an initial outlay of capital, it may result in increased provider availability and decreased premiums in the long run. Fortunately, the James Cook University Strata Title Inspection Program is offering free improvement assessments, and I encourage bodies corporate to take advantage of their expertise. Looking forward, the ACCC focus for the 2020 report (due November) is to gain a better understanding of how insurers currently factor in building specifications (including those that go beyond statutory minimum standards) into their premiums. The ACCC will also review how insurance considerations can be factored into land use planning processes and consider the potential for greater information sharing to improve the affordability and availability of insurance for new developments. Finally, the ACCC will explore how insurers could increase support for customers experiencing payment difficulties. There are now only ten months until this final report is due and SCA (Qld), along with residents of northern Australia, will be watching very closely. ResortNews | February 2020
Novel coronavirus (2019-nCoV)
Information for Hotels and Hotel Staff An outbreak of novel coronavirus (2019-nCoV) was detected in Wuhan, Hubei Province, China in late December 2019.
The symptoms
Can I go to work? If you have travelled to Hubei Province, China within the past 14 days, you must isolate yourself in your home for 14 days after leaving Hubei Province. If you have been in close contact with a confirmed case of novel coronavirus (2019-nCoV), or suspect that you may have come into contact with a confirmed case of novel coronavirus, you must isolate yourself in your home for 14 days after last contact with the confirmed case. You are particularly advised not to attend your work and to avoid contact with co-workers and hotel patrons. Please visit the Department of Health website for additional information on how to self-isolate. If you have travelled to mainland China in general but not Hubei Province, we do not currently recommend self-isolation. The development of cases outside of Hubei Province is being closely monitored and this advice will be updated if necessary. If you develop symptoms (listed below) within 14 days of returning from Hubei Province or within 14 days of contact with a confirmed case of novel coronavirus, you should arrange to see your usual doctor for urgent assessment. You should telephone the health clinic or hospital before you arrive and tell them that you have returned from Hubei Province within the past 14 days. Your doctor will liaise with Public Health authorities to manage your care. You must remain isolated in your home or a healthcare setting until Public Health authorities inform you it is safe for you to return to your usual activities. February 2020 | ResortNews
Hotel staff who are self-isolated due to one of the above situations should alert their employer to discuss alternative arrangements such as working from home.
I am an employer – what should I tell my staff? Hotel management should provide information and brief all employees and contract staff, including domestic and cleaning staff, on relevant information and procedures to prevent the spread of 2019-nCoV to people in the hotel setting. You should inform staff who meet the above criteria that they should remain isolated in their home. Workers should advise their employer if they develop symptoms during the isolation period, particularly if they have been in the workplace.
What is this virus? Coronaviruses can make humans and animals sick. Some coronaviruses can cause illness similar to the common cold and others can cause more serious diseases, including Severe Acute Respiratory Syndrome (SARS) and Middle East respiratory syndrome (MERS). The virus seen in mainland China, particularly Hubei Province is called ‘novel’ because it is new. It has not been detected before this
outbreak. Most people currently infected live in, or have travelled to Hubei Province, China. There have been some cases of 2019nCoV reported in other Chinese provinces and other countries. It is likely that the virus originally came from an animal, and there is now evidence that it can spread from person-to-person.
What are the symptoms?
How is the virus spread? The virus is most likely to spread from person to person through: •
direct contact with a person whilst they are infectious;
•
contact with droplets when a person with a confirmed infection coughs or sneezes; or
•
touching objects or surfaces (such as doorknobs or tables) that were contaminated by droplets from secretions coughed or sneezed from a person with a confirmed infection, and then touching your mouth or face.
Symptoms can range from mild illness to severe illness including pneumonia, and include (but are not limited to) fever, cough, sore throat, fatigue and shortness of breath.
Where can I get more information? Visit the Australian Government Department of Health homepage at www.health.gov.au.
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NSW call 1300 066 055
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NT call 08 8922 8044.
•
Call the Public Health Information Line on 1800 004 599.
Qld call 13HEALTH (13 43 25 84)
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SA call 1300 232 272
Contact your state or territory Public Health Authority:
•
Tas call 1800 671 738
•
Vic call 1300 651 160
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WA call 08 9328 0553 or or call your local public health unit.
•
INDUSTRY
ACT call 02 5124 9213 during business hours or (02) 9962 4155 after hours
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For how long can a person spread the infection to other people? The length of time that a person is infectious, that is, can spread the infection to others, is not yet known. However, there has been emerging evidence of asymptomatic or minimally symptomatic infection and pre-symptomatic transmission in at least one case cluster. It is therefore likely that a person can spread the infection from before the time they first develop symptoms until up to one day after symptoms stop. Therefore, the Australian Government Department of Health is currently recommending an isolation period of 14 days for return travellers from Hubei Province, China, and for contacts of confirmed cases.
BEFORE
Who is most at risk of a serious illness? Some people who are infected may not get sick at all, some will get mild symptoms from which they will recover easily, and others may become very ill, very quickly. From previous experience with other coronaviruses, the people at most risk of serious infection are: •
people with compromised immune systems;
•
elderly people;
•
very young children and babies;
•
people with diagnosed heart and lung conditions; and
•
Aboriginal and TorresStrait Islander people.
What if I have already returned to work but should have been isolated?
•
immediately isolate yourself from others in your home;
•
call your usual doctor or local hospital and tell them you may have novel coronavirus infection; and
•
when you get to the doctor’s clinic or hospital, tell them again that you may have novel coronavirus infection; and
•
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as soon as possible, please call your employer to notify them that you have developed symptoms and will be tested for the novel coronavirus.
•
call 000 and ask for an ambulance;
•
tell the ambulance officers that you may have novel coronavirus infection; and
•
as soon as possible, please call your employer to notify them that you have developed symptoms and will be tested for the novel coronavirus.
Can hotel patrons bring in the virus? The risk of hotel patrons who may be infected staying in hotel settings is currently extremely low. It is important that the hotel provides patrons with information about novel coronavirus to prevent spread upon their arrival to the hotel.
What if hotel patrons need to self-isolate? If hotel patrons need to selfisolate in a hotel, it is important that staff take precautions to prevent the spread of the virus. The risk to staff should be low if they wash their hands well and the patrons do not have symptoms. Staff should avoid close contact with these guests but it is safe to be in the same room (at a distance) without protective equipment when delivering food, which we recommend that the guests have in their room.
Is it safe to clean?
Your doctor will test you for 2019-nCoV and provide advice on your care. You will also be contacted by Public Health officers who will provide you with more information and who will coordinate with your employer as needed.
Cleaning staff should avoid close contact with guests who have self-isolated. They should wear gloves while cleaning, and use alcohol hand rub before and after wearing gloves. As an added precaution, your cleaning staff may wish to wear a surgical mask while cleaning the room. Before entering the room, cleaning staff may inquire if people are well, and ask them to put on a surgical mask.
How can we help prevent the spread of the virus?
What if a patron becomes ill?
Practising good hand hygiene and sneeze/cough hygiene is the best defence:
If a person who has self-isolated develops symptoms, they should be seen urgently by a doctor at a hospital and the relevant state or territory Public Health authority should be contacted. It is important to phone ahead to the hospital or doctor to get advice. Staff should avoid contact with guests who become unwell and seek appropriate medical advice if this occurs.
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If you go on to develop mild symptoms:
If you have serious symptoms such as difficulty breathing:
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You should inform your employer as soon as possible that you have recently travelled to Hubei province or had contact with a confirmed case, and isolate yourself for the remainder of the 14 day period.
•
wash your hands often with soap and water, or alcoholbased hand gel, before and after eating as well as after attending the toilet;
•
avoid contact with others; and
•
cough and sneeze into your elbow.
INDUSTRY
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LEGAL EASE
Should body corporate by-laws stop all short-term lettings? It troubles me a great deal to see people creating great divides within buildings that are strata titled. Just as we have a broader community, where the body politic has to take into account the needs of all people in the community and to determine a method of reducing conflict between those parties who make up the public, in our strata titled buildings it is important for people guiding them to act responsibly and not selfishly, or in a discriminatory manner. Perhaps that is why in the BCCM Act, there is a reason that every decision of the body corporate must be reasonable. I often look at that and try to determine through whose eyes such reasonableness is to be resolved. What we particularly see in our community, is that there is a concept of a division between those owners who rent out their
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all such use, including onsite managed serviced apartments.
John Punch, Short Punch Greatorix
lot and those who wish to live in their lot as their home. People seem to expect this division to exist and to be acted upon. I feel that this expectation needs to be countered whenever possible. If that occurs, then reasonableness can prevail in the building, despite such practical differences amongst owners. This particularly comes to the fore when the question arises of the body corporate having a by-law stopping lot owners from arranging certain types of tenancy for their lot. Particularly when it comes to short-term tenancies. Short term tenancies are generally taken to mean tenancies for terms of less than three months and cover
The news recently was that a Magistrate had ordered in Queensland that a by-law of a body corporate restricting the short-term letting of lots, was lawful. Many people heralded this as “a great step forward” and one which the government “should clear up with legislation”. In fact, the president of the Queensland SCA, which is the organisation representing body corporate managers, issued a press release saying that “it was pleasing to see common sense prevail” and the decision was “giving vent to community values.” From my perspective, the opposite applied. I say that because, in giving a body corporate the right to control who may occupy an owner’s lot, can only be a retrograde step. It also seems to brand owner’s tenants as some sort of trouble making, noncaring individuals, rather than persons wanting to enjoy all the benefits of apartment living, but for short intervals. Some years ago, I had to lead discussions with bureaucrats
MANAGEMENT
and politicians over the attack then being mounted by certain individuals and organisations, against the use of serviced apartments by short-term occupants. The law being promoted as a limitation on such use, was in respect of the uniform National Building Code, where It was argued that serviced apartments needed to be classified when constructed, as hotel buildings, being class 3 type of construction, whereas apartment buildings are class 2. It quickly became realised that buildings containing serviced apartments were not the same as hotel rooms, and that a massive number of existing apartments were included and necessary in our tourism infrastructure, providing a valid use with great benefits to the economy. To upset this established and well performing use of apartments would have been disastrous. Certainly, on the Gold Coast, Sunshine Coast and other tourism centres in Queensland, the vast majority of the existing strata titled lots are used for a mixture including tourist short term use, along with those used by permanent live in owners. ResortNews | February 2020
Therefore, when the Magistrate says that owners, who wish to live permanently in the building, are able to have a by-law that stops all other owners from letting out their apartments for short term use, it appears to me to be very dangerous, possibly leading to a categorisation of apartment users based on misconceptions and unreasonable discrimination. I am a unit owner in a resort style of strata titled building, where a large number of the units are (and always have been) run as short-term accommodation and some of the units are now used as permanent residencies. Being on the body corporate committee for many years, my experience has been that the difficulties encountered in the building come from a few selfish, permanent occupant owners, who expect everyone to work to their desires, no matter how difficult that might be for others in the building. This particularly becomes apparent in regard to a desire to keep pets, to make unapproved alterations to their lot, to use up common property parking spaces and to refuse manager’s access to check on
fire equipment and other safety needs. We have not had to deal with any major problems arising from the short-term occupants! In the management rights industry, we know that having an on-site manager, letting out apartments, assures owners that there will be regulated lettings and the manager will wish to maintain a well-run building, where short-term guests know the rules and can enjoy all the benefits. Queensland, and to a certain degree New South Wales and Victoria, have well run short-term letting arrangements in buildings through the system of management rights. Giving a disgruntled permanent resident owner the right to vote to exclude such use would be very dangerous, causing financial harm to other owners and chaos to our tourism industry. It is important to educate those dealing with buildings, including the law makers, body corporate managers and committee members, to have a more balanced approach and not to automatically condemn shortterm letting in some buildings. Body corporate managers would,
no doubt, have an overwhelming number of investor owners that they need to cater to, for their businesses. The majority of their body corporate’s unit owners would not be very pleased with an attitude that denies them the ability to let that unit through the on-site manager. On-site managers and owners would face problems if the stated attitude of SCA was acted upon by the government to prohibit short term tenancies. If it is in fact Airbnb units that produce difficulties for some other occupiers in buildings, then that type of use should be considered for improvement, rather than branding all short-term lettings as presenting any difficulty. I will finish by explaining that the decision of the Magistrate did not apply to buildings under the BCCM Act (which is our mainstream strata law in Queensland) and it only applies to a very small number of buildings that are still regulated under the previous law known as the Building Unit and Group Titles Act. (The BUGT Act has remnants of application
only for developments with specially designated government approvals – integrated resorts etc). Hence, unless the government acts to change our laws, the decision has very little application. Also, some lawyers reading the decision are quite critical of the reasoning producing the result, and it is understood that the decision is now being appealed. It therefore may be overturned, and not have any application, even under the old law. My message to everyone involved in strata titled accommodation in Queensland, ARAMA and the tourism industry promotional organisations, as well as our politicians, is to be aware of how dangerous an idea it is to start giving some owners the right to discriminate and attack the tourism use of our apartments in Queensland (short term tenancies) under our laws. Be vigilant, be vocal and appeal for reasonableness to apply - a building with management rights (onsite management helping all owners) is the right path.
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MANAGEMENT
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BY ALL ACCOUNTS
The perils of aggregation and contagion risks Borrowing money from banks has never been a more complicated, and at times, frustrating experience than it is now. It is incredible indeed that in this age of instant communication and advanced technology it now takes roughly twice as long to have a loan approved and documented, as compared to the eighties. Lurking in the background of this less than inspiring state of affairs is a regime of regulation and oversight that would have been unimaginable 40 years ago. Of course, some of the changes we have seen in the past 10 years have been a necessary outcome of the need to keep pace with a
This month we will take a very shallow dive into bank policies as they pertain to aggregated borrowings and contagion risk. It is important to understand that we will be delving into a part of bank policy that some banks can’t really explain or indeed understand. It’s just the way it is really.
Paul Grant, Senior Broker, Mike Phipps Finance
constantly changing business and technology environment, while other changes reflect a lack of imagination at regulatory and government level. In any event it is now more important than ever for borrowers to understand where they sit in this rapidly evolving jigsaw puzzle that we refer to as the financial system.
Structuring Income Verification Accounting/Taxation Superannuation Audit
Let’s start with aggregation. Put simply banks aggregate risk exposures to ensure they understand the quantum of a group debt. If you borrow money in your own right and also borrow in partnership with another person or entity, and all the debt is with the same bank, they will roll up that total when assessing your so-called group exposure. In this simple example the contagion risk is that your partner goes under and takes you with them. As such the bank will assess both your personal risk and your group risk when lending you money. In the management rights industry the application of these policies is most often encountered when groups of investors get together to buy a business. It’s not unusual for these groups to buy multiple businesses, and it’s not unusual for a variety of investors to be involved in various different transactions. Now, here’s where things get weird. Recently we were assisting a group of investors to acquire a management rights. One of the investors is involved in another partnership. The bank that was chosen did something quite remarkable. As expected, for the purposes of aggregation and contagion risk assessment, it looked at the subject transaction and the other transaction it
Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business? We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry. Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.
had funded that involved the investor. The bank then extended that assessment to every other partnership it had funded that could in any way be linked back to our investor. The end result was that our investor got caught up in an assessment of contagion risk that involved partnerships he was not involved in, just because other investors were involved. Of course, that doesn’t mean his guarantee or personal liability are caught in unrelated transactions. However, it does mean that on the basis of this policy that particular bank reached their prudential lending limit for this entire group of investors and cannot lend any of them any more money. The banks position is that if ‘Partnership A’ goes under and has even one partner who is in ‘Partnership B’ then that partnership is at risk. If any partner in A or B are in ‘Partnership C’ then that partnership gets dragged into the aggregation assessment, and so on and so forth. The application of this policy came as a complete surprise to us and it seemed, a surprise to some of the bank’s own staff. Interestingly, we raised the prospect of a similar experience with other banks and none could give us a concise summary of their likely attitude or policy. Clearly the lesson here for investors in multiple partnerships is to diversify lenders. In fact, it would seem the more loyal a borrower is to the bank, the higher the risk of being sidelined. We will certainly be taking a much closer look at aggregation policies when advising partnership clients in the future.
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MANAGEMENT
ResortNews | February 2020
MOTEL MARKET
What is a long-term lease? The confusion surrounding what a long-term lease is and what is not is nothing new. Once the clock starts ticking, without intervention, the lease term will start to run down. Leases by nature diminish, they are not the same as freehold tenure. So, what is a long-term lease? In a commercial, retail or industrial property the standard lease is accepted as a three-year plus three-year or maybe a five-year plus five-year lease. This is the norm and is widely accepted. In the motel industry however, a five-year plus five-year lease is considered a short-term lease. Why is that the case? One argument is that a motel business cannot be easily picked up and moved to another building/locality. This is also the case for many retail, commercial or industrial businesses, for example a convenience store cannot be picked up and moved to another locality, yet a three-year plus threeyear lease in a convenience store is normal practice. Many industrial businesses require large tonnage cranes in their buildings. These cannot be easily replaced without hundreds of thousands of dollars to install new equipment as per the requirements. Another argument is that one is buying a business (inclusive of the lease document) and that there is a capital outlay to buy the assets of the business. These assets diminish in value rather than appreciate once the lease reduces below a certain level of time remaining. When a motel lease is being sold a potential buyer will often say, for example, “there are only 15 years left on the lease”. If run for five years there will only be 10 years remaining. This may be the case but the return on investment of a lease is high, and will increase the lower the term of the lease for obvious reasons. At the end of the day a 10 or 15-year lease is a long-term lease. No one knows what they will be doing in 10 or 15 years, or indeed where they may be. People have February 2020 | ResortNews
Andrew Morgan,
Queensland Tourism and Hospitality Brokers
goals in life and places where they imagine they might like to be, but no one can guarantee where life will take them such a long time into the future. It is therefore, in the lessor’s interest to extend a lease for their security of tenure and to provide them with more options when refinancing, etc. It is reasonable to believe that the longer the term remaining on the lease, the stronger the position/security of both the lessee and lessor. This may not be the case when the land is situated in highly desired positions. The site may be ripe for redevelopment with a higher or better use, or the motel may be in need of major refurbishment and be deemed that it is more cost effective to be demolished rather than renovate. This sounds good in theory but what happens when the lease is close to expiration and the development market is poor. Timing is everything. Due to most lessor’s owning a motel property that is leased as a passive investment, it is often the case that the lessor will not want the lease to come to an end. The majority of the time the purpose of ownership is a passive investment, not the dayto-day operating of a business. Lease extensions are a saleable commodity in the market place due to the comments above which maintain or increase the value of a business. Most lessors whose lease term has run below 15 years, will have been asked at some stage by a lessee to extend the lease. The result
should be a mutually beneficial transaction for both parties. It does not happen often but sometimes a lessor when asked will not extend a lease. Why extend the lease when there is still 14 years to run, which is still a long-term lease?” Fair point, however a potential lessee will argue that if either party wants to sell their interest at some
stage a longer lease of say 20 years or more will be more attractive to a potential buyer on both sides. Also, a fair point. Generally, the extension of leases is a win-win situation for both lessee and lessor depending on the circumstances, and as always, both parties acting reasonably to facilitate this extension.
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MANAGEMENT
23
GOOD GOVERNANCE
New year, new start – do it right If you invest in, own or occupy a residential or mixed-use strata building, or if you are the contracted facilities manager or caretaker, the property is likely to contain substantial building assets, infrastructure, plant and equipment requiring periodic maintenance. The maintenance and keeping records of maintenance is required for not only the protection of the assets and smooth running of the building, but also in some cases, to achieve the safety standards required by law for regulatory compliance.
THINKING MR
Timely maintenance completed to relevant Australian Standards requires expertise - in both knowledge of the asset itself, as well as time management for the frequency of testing and servicing within the required specifications. This statutory duty should not be left to chance.
standard list of common property building assets having statutory maintenance obligations and generally found within the common property of a residential strata scheme, refer to the ABMA Building Management Code© or speak with a specialist facilities management plan consultant.
Lynda Kypriadakis, Diverse FMX
Asset register Without a comprehensive asset register, the building owner and its management team will have difficulty in ensuring all mandatory maintenance obligations have been met. To create an effective asset register and asset management system one not only needs to know all the assets contained within the building, but their routine servicing time frames and mandatory record keeping requirements. Understanding all the plant, equipment and infrastructure that is subject to maintenance requirements is a skill but for full details of the
Knowing all the assets owned by the owner’s corporation or body corporate provides valuable data for the committee, the strata manager and the building manager. Once the asset register is prepared, it pretty much lasts for the full life of the building (provided it is edited and updated as each asset is replaced). This asset register data can be used – not only for planning maintenance outcomes – but for cost benefit analysis of proactive vs reactive maintenance, life expectancy of the asset(s), performance of each individual asset item, forecast upgrades, etc. Depending on the size and type of the property, there may be thousands of assets in a single residential strata or mixed-use commercial building ranging
from small items such as light globes and air conditioner filters to extremely critical and sophisticated equipment such as essential machinery including boilers and air conditioning plant. Strata legislation and the Building Act, etc. require all building owners to ensure their infrastructure is maintained so as to function as it was intended when the building was brand new. This is best achieved by having an initial preventative maintenance schedule established.
Preventative maintenance schedule Once the asset register is prepared and the building owner is aware of all the plant, equipment and maintainable infrastructure contained on the common property, the preventative maintenance schedule (PMS) can be prepared. The PMS must contain maintenance and inspection schedules for all maintainable items on common property. This applies to both statutory maintenance (i.e. mandated
The habits of successful people “I am a great believer in luck, and I find the harder I work, the more I have of it” - generally attributed to Thomas Jefferson, among others. As you can imagine, after more than 40 years in the finance industry, I have run into my fair share of the successful, the nearly successful, the could have been contenders and the downright unlucky. I’m fascinated by the roads people take and the reasons why. Interestingly, the successful and unsuccessful have habits and attributes that I think
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For the purposes of these reflections I’m going to restrict my observations to success in business. That is, your own business, not running someone else’s. Success in life is a way more complicated subject and one that I am far from qualified to comment upon.
Mike Phipps, Director, Mike Phipps Finance
predispose them to predictable outcomes. In all of this, and despite the quote I have opened with, there is a degree of luck - or maybe fate, in all things.
Let’s start with education. In my experience having a degree does not predispose the holder to any head start in terms of business success. Of course, if you want to be a lawyer you’ve got no choice, but having that degree is no guarantee of success. It’s just a stepping stone in the right direction. I think the
MANAGEMENT
more important educational contribution is study undertaken while working in a role for which that study relates. I am a great believer in the immediate practical application of learned skills and knowledge. Many successful business people will speak of leaving school early with no formal qualifications but returning to study as their business interests and opportunities began to emerge. I’ve rarely met a successful business person who hated what they did. It takes a very special, some might say odd, person to thrive in a business they dislike. ResortNews | February 2020
under law) and advisory maintenance (i.e. where the maintenance and inspection is reasonably required). Among other things, various Acts, Regulations, Australian Standards, Codes of Practice and supplier warranty stipulations require maintenance and inspection schedules for items including exterior walls, guttering, downpipes and roof; electrical systems and equipment; motorised plant and equipment, including automatic doors and boom gates, pools and surrounds, including fencing and gates; air conditioning, heating and ventilation systems, including car park exhaust; fire protection equipment, including sprinkler systems, alarms and smoke detectors; security access systems, and embedded networks and micro-grids. While these assets are obviously diverse in their maintenance requirements, the standards also require the following to be included in the maintenance schedule: all warranties for systems, equipment or any other things referred to in the schedule; any manuals or maintenance requirements provided by manufacturers for any of those things, and the name and contact details of the manufacturer and installer of any of those things. Given the sheer number of critical assets in a modern strata building, along with their diverse nature, their specific service schedules and warranty
It’s a cliché to be sure but discovering something you are passionate about is half the battle. Passion brings focus and motivation, without which you are more likely to fail. In my mind most of the great innovations in business have come from people who loved what they did and were genuinely excited to get out of bed each day. If you don’t feel this way, perhaps you’re in the wrong gig. Here’s another cliché. If you want something done, ask a busy person. I would add organised to that quote. Successful people are mostly better organised than others and get more done. They don’t procrastinate, get distracted or lose momentum dealing with side issues. They have great time management skills and are outcome driven. February 2020 | ResortNews
tracking requirements, it is obvious that effective asset management involves diligence and special skills – particularly for Class 2-9 buildings containing essential safety provisions and fire protection systems. Where regulatory compliance is concerned, effective asset management systems – preferably digital – are not just a luxury, but a necessity. In today’s climate of increasing regulatory scrutiny, building owners are making life hard for themselves if they continue to leave their statutory maintenance obligations to chance. Reliance on reactive maintenance practices is paramount to an exercise in “wishful thinking”, especially in today’s world when performance requirements are heavily scrutinised, expected to be top notch and with an everdiminishing capacity for failures and lapses. The question then is, how to balance best performance verse lower costs?
Asset management systems: Go digital in 2020 Reactive or the “run-to-failure” management approach involves allowing an asset to operate until it breaks down, followed by reactive repairs and/or bringing the asset back to operational condition. Under this model, there is typically no maintenance performed between failures
unless a problem is noticed by accident. While this approach may seem cost-effective, the larger cost of breakdown is often ignored – and the building owner may be in breach of statutory maintenance requirements (check the current edition of the ABMA Building Management Code© for regulatory compliance details if you’re not sure). The inconsistent nature of breakdowns makes it hard to arrange resources for repairs, resulting in unplanned expenses, overtime resource costs, back up equipment costs and inflated prices of spare parts due to less bargaining power induced by quick purchasing needs – not to mention functional inconvenience to end users. Just imagine the entire building without hot water on a cold winter morning. The emergency nature would create an open cheque book scenario where you would be ready to pay anything to return the water heater to a working condition in the shortest possible time.
Record keeping system The sensible alternative is proactive or preventive assets maintenance, and for good reason. This approach involves regular planned tasks that are scheduled on either time passed or meter triggers to reduce the possibility of asset failure – with good records kept of all maintenance actions.
The reliability and life span of an asset can be extended via periodically checking, cleaning and maintaining the equipment, however, without records there is no audit trail to prove vigilance, so keeping all records must be a high priority. These scheduled tasks and their historical data [records] provide a platform for improved planning capacity for scheduling future upgrades and reduction in unplanned downtime, directly improving overall productivity and producing cost savings. Effective and professional asset management is supported by a strong foundation, which should be able to survive individuals while keeping a full, consequential audit trail of records of maintenance and certificates of compliance. As committee members, strata managers and facility managers or caretakers change, the asset management system should be continued for the full life cycle of the building. As a starting point, the asset management system should include an asset register, a preventative maintenance calendar and a record keeping system. The best asset management system will be able to juggle all these processes easily and efficiently for the full life of the scheme – no matter who is on the committee, or who the resident manager or caretaker is.
to think they are the only one with a good idea and they invest time and energy in keeping a close watch on their market and their competitors. They take just as much interest in ideas that fail. Better your competitor spends the time and money to prove an idea doesn’t work.
Want to take a first step? Clear everything off your desk and file it systematically. Use a calendar based ‘to do’ list and only deal with one thing at a time. Don’t be distracted by incoming emails. Tackle the tasks you dread first and use the end of the day to reflect and plan. Successful people become the masters of their day rather than having the phone calls, texts
and emails driving the agenda. In our interconnected 24-hour world this takes discipline, and I’m the first to admit that I’m nowhere near achieving this myself yet. I used to think I procrastinated but now I’m not so sure. Successful people steal! It’s a fact. They see a great idea or strategy and they adopt it as their own. They are never so blind as
MANAGEMENT
My last point relates to planning. One of my favourite business quotes is that if you don’t know where you are going, any road will get you there. Successful people have a plan. More importantly, the plan is not rigid. It’s designed to cope with surprises and forks in the road but it’s a reasonable map of the intended journey. My last cliché for this month... If you fail to plan then you plan to fail.
25
INTONET
Whatever happened to the truth?
“More important than finding the truth is finding the reason why one needs to lie.”
of Technology researchers that found that about a third of the Twitter accounts tweeting about a particular bushfirerelated hashtag showed signs of inauthentic activity.
So said somebody who's name I have forgotten but the words have stuck.
STRATA TRENDS
Allow me to rant because as the bushfires raged I discovered that the web has indeed become a very, very ugly place. As fire wreaked havoc across large parts of the country, online Australia had to battle another crisis: the waves of misinformation and disinformation that spread
We can’t fight disinformation with misinformation, however. It is important to be clear about what is, and what is not, happening. Arvo Elias, Cybercons
across social media. Much of the media reporting on this has referred to ‘bots and trolls’, citing a study by Queensland University
Have you heard the one about how the Australian fires have been caused by a secret government conspiracy to install party sparklers in rain clouds? That one turned up on a Facebook feed and I regrettably
know a number of adult people who implicitly believe in and quote from that medium. And despite taking a visible leadership role in the defence of his burning state, the premier of Victoria has been rewarded with anonymous online memes insisting on his plunder of fire fighting resources and applying them for his personal benefit, enabled the fires to grow unimpeded. Factually refuted but still reported and amplified. And unfortunately, there is more. A hazy map that tries to claim the fires are some kind of
Educating about strata Conflicting proposals from the Queensland government to introduce controversial rental reforms while also considering legislation to give bodies corporate more power reflect a lack of understanding about strata properties. The situation highlights the need for more education of tenants, and possibly government policy makers, about how strata communities operate. Bodies corporate in Queensland could have the power to enforce a ban on pets and smoking in strata title communities under QUT recommendations
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Grant Mifsud, Archers made to strata industry laws being considered by the state government but the Government’s proposed rental reforms potentially give tenants more rights than owners would have in body corporate schemes – and that includes keeping pets onsite.
This is a very confusing situation as we have conflicting proposals coming from the Department of Housing and Public Works and the Office of the Attorney General.
their strata rental properties.
On the one hand we have pet and smoke free by-laws, the ability to issue fines for by-law breaches as well as towing of illegally parked vehicles among issues being considered in a major review of the Body Corporate and Community Management Act.
The mis-match of communications highlight the lack of understanding about how strata communities work and why bodies corporate are important in the maintenance of community harmony.
And now we have rental reform proposals in which landlords are at risk of losing their fundamental rights to not renew a tenancy agreement at the end of the agreed term and also the ability to refuse pets in
MANAGEMENT
Were the people looking at these proposals for strata laws and rental reforms talking to each other?
Aside from the confusion created, there has also been criticism that the rental reforms could be bad for tenants with owners withdrawing rental properties creating a drop off in supply that may lead to higher rents as well as greater scrutiny of rental applications. ResortNews | February 2020
deliberate scheme to clear land for a high-speed rail is of concern because it directly copies an easily debunked claim made during the Californian wildfires. Even more concerning however, are that these online conspiracy theories seep into mainstream discourse. Major mastheads have been pushing the “arson emergency” theme to the fires, that are completely inconsistent with police reports. These examples are a few of many. When reality, facts or truth are inconvenient, people can simply change them, and if the desired outcome is ‘large’ enough, they can pay for it to be changed. Disinformation, which became mainstream during the 2016 US presidential election, has spawned a worldwide ‘black PR’ industry, one that manipulates data to sell more products, generate votes and, ultimately, change perceptions. More simply put, change fiction into something people will believable. Remember Cambridge Analytica Ltd? Numerous companies, brands, political campaigns and even governments are pushing spurious claims, bad science, bad faith and outright lies. These are then dressed up on pseudo news websites, legitimised by stunted polls and spread across various platforms by millions of fake accounts, resulting in an unsettling reality in which “truth” is simply a matter of perspective that you may then debate. Timothy Graham, a lecturer at Queensland University of Technology who conducted the study of Twitter accounts exaggerating the role of arson in Australia’s fires, said media companies need to be cognisant of the disinformation ecosystem and stop contributing to the problem. As an aside, it is interesting to note that WikiLeaks describes their findings on vetting articles for "truth" as follows: Human raters who are shown pairs consisting of one hoax and one non-hoax and asked to decide which one is the hoax by just inspecting the articles without searching the Web or following links perform as follows. Human accuracy on this task is only 66 percent and is handily surpassed by WikiLeaks' classifiers, who achieve 86 percent on the same test set. The reason is that February 2020 | ResortNews
humans are biased to believe that well-formatted articles are legitimate and real whereas those lacking are deemed fake. On the whole, mainstream media leaves little doubt that some headline and content writers produce attention grabbing and dramatising narrative that can be misleading at best. So where to from here… Tim Berners-Lee is the inventor of the World Wide Web and a co-founder of the World Wide Web Foundation. He published his appeal in The Times a few months ago and I quote directly from there: "I had hoped that 30 years from its creation, we would be using the web foremost for the purpose of serving humanity. Projects like Wikipedia, OpenStreetMap and the world of open source software are the kinds of constructive tools that I hoped would flow from the web. “However, the reality is much more complex. Communities are being ripped apart as prejudice, hate and disinformation are peddled online. Scammers use the web to steal identities, stalkers use it to harass and intimidate their victims, and bad actors subvert democracy using clever digital tactics. The use of targeted political ads in the United States’ 2020 presidential campaign and in elections elsewhere threatens once again to undermine voters’ understanding and choices.” We’re at a tipping point. How we respond to this abuse will determine whether the web lives up to its potential as a global force for good or leads us into a digital dystopia. “The web needs radical intervention from all those who have power over its future: governments that can legislate and regulate; companies that
design products; civil society groups and activists who hold the powerful to account; and every single web user who interacts with others online.
pose to society. In my view, governments should impose an immediate ban on targeted political advertising to restore trust in our public discourse.
“We have to overcome the stalemate that has characterised previous attempts to solve the problems facing the web. Governments must stop blaming platforms for inaction, and companies must become more constructive in shaping future regulation — not just opposing it."
Crucially, the contract also contains concrete actions to tackle the negative — even if unintended — consequences of platform design. For example, why on an exercise app should women have to worry that their precise jogging routes are shared by default with other users? Perhaps because they were designed by people not thinking about the safety needs of women. We need a more diverse work force in our technology industries to make sure their products serve all groups. And companies should release reports that meaningfully demonstrate their progress toward those diversity goals.
He continues: "I’m introducing a new approach to overcome that stalemate — the ‘Contract for the Web’. The ‘Contract for the Web’ is a global plan of action created over the past year by activists, academics, companies, governments and citizens from across the world to make sure our online world is safe, empowering and genuinely for everyone. The contract outlines steps to prevent the deliberate misuse of the web and our information. For example, it calls on governments to publish public data registries, so that they are no longer able to conceal from their own citizens how their data is being used. If governments are sharing our data with private companies — or buying data broker lists from them — we have a right to know and to take action. The contract sets out ways to improve system design to eradicate incentives that reward clickbait or the spread of disinformation. Targeted political advertising is giving political parties the ability to subvert the debate. We need platforms to open their black boxes and clearly explain how they’re minimising or eliminating the risks their products
MANAGEMENT
To make the online world a place worth being in, we must all use the ‘Contract for the Web’ to fight now for the web we want. Governments must support their citizens online and ensure that their rights are protected through effective regulation and enforcement. Companies must look beyond next-quarter results and understand that long-term success means building products that are good for society and that people can trust them." The distortion and misrepresentation of the truth about our horrendous fires is costing this industry now and will continue to cost the nation many tens, if not hundreds, of millions of dollars. One can only hope that the recovery funds are applied judiciously and effectively – and that’s another story...
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MARKETING
Gaining a competitive edge through mobile marketing By Kaitlyn Meehan, Cash Flow It Group
2020 is set to be a strong year for Australia’s accommodation industry, with domestic and international travel on the rise and a pipeline of new rooms to support the influx of visitors. Tourism Research Australia reported that there are a whopping 299 projects in the works through to 2028, and 60 percent of the resulting rooms will be open by 2020. However, as the accommodation market grows, new entrants create a more competitive environment. Additionally, growing interest in homestay style accommodation continues to impact the traditional accommodation market, with the number of nights in rented houses/ apartments overtaking those spent in hotels. So, how can hoteliers and accom managers take advantage of the growth predictions whilst competing with the growing offering of homestay style accommodation? Focusing on innovation through mobile
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technology will play a large role in the strategy going forward, as well as ensuring that brands place an equal focus on retaining their existing customer base and attracting new guests. In 2020 ‘mobile-first’ culture is defining the way that customers engage with brands, products and services. Forbes revealed that 11 percent of individuals are looking at their phone every few minutes, meaning it has never been more important to have a mobile presence. To put into context how this impacted the accommodation industry, Openkey conducted a study which found that 76 percent of travellers say their smartphone is their most valued travel tool. It is important to consider how mobile fits into each piece of the consumer journey puzzle, from research through to decision, and finally postpurchase. Google found that 70 percent of travellers have used their smartphones to conduct travel research, seeking to engage with brands through messenger and social media. Online booking platforms are also an important part of a brands digital strategy and failing to offer such a platform can impact a properties ability to convert guests. Once the guests are through the door is a great opportunity
for traditional accommodation providers can set themselves apart from the likes of homestyle and home rental offerings. Integrating an app or website into the guest experience an enhance their stay and is in high demand among consumers. Oracle found that 77 percent of guests would like to access hotel services such as in-room dining and entertainment using their mobile. The scale and resources of traditional accommodation offerings allow for such integrations to be done well. Such technology can create a more personalised experience for each guest, by providing information about local attractions, events and restaurants. Interestingly, 95 percent of those surveyed by I-AM believed that it was up to the hotelier to introduce guests to the local culture, and the use of a mobile app or website as a concierge style service is an excellent way to provide that added value to guests without placing a strain on staff. Mobile innovation is not just a tool to attract new guests and enhance the in-room experience, it also plays an important role in building loyalty behaviours and encouraging customer retention. Loyalty programs have been a long-
MANAGEMENT
standing element of the accommodation industry, and for good reason, with 77 percent of consumers more likely to stay with a brand if they are part of a loyalty program. Adapting existing loyalty programs to align with consumers preferred engagement method, mobile, will be an important part of any guest retention strategy going forward. This is particularly relevant within younger audiences, with 97 percent of millennials stating they would actively engage with such programs if they could do so from their smartphone. Such programs also allow brands to provide more personalised messaging to their customers based upon their history and preferences, giving them a higher change of re-engaging the customer for a second stay. Ultimately, innovation through mobile plays an important role in the modern guest experience and should be a top priority for any hotelier. Though competition within Australia’s accommodation market continues to increase, large scale adoption of such technology will assist hoteliers in taking advantage of growth predictions and setting themselves apart from other non-traditional offerings. ResortNews | February 2020
We all know that repainting a property is one of the best ways to increase its value, but could it also be a great way to boost staff morale? Why understanding the little known “broken window” theory could have you racing out to get a paint job for your building… (Only great managers will understand this!) My apologies for the “click-baity” title, but if you give me a moment to explain, you might just discover something revolutionary… it might even cause a monumental shift in the way you view the environment around you… but first, we must travel back in time! For this story we go back to 1982 and a little-known study by 2 social scientists name “James Q. Wilson and George L. Kelling,” who publicised the “broken window” theory; put quite simply – if a window in a building is broken and left unrepaired, all the remaining windows will soon be broken… What the study is really pointing to is an underlying tendency for people to take subtle cues from their environment, which in turn can have a not-so-subtle
impact on their behaviour. In this case, somebody sees a broken window going unrepaired as a signal that nobody cares about the property and therefor there is no cost to breaking more. Cue the sound of breaking windows! The police metro department then used this knowledge to change the way they policed neighbourhoods as vandalism was now seen as a gateway to more serious crimes. In some communities, funds were even reallocated towards improving the upkeep of public spaces as a means for lowering crime as an alternative to increased law enforcement. And the results were astounding! When the money was spent on improving the environment – painting over graffiti, fixing broken glass at bus stops etc. acts of vandalism went down dramatically as signals were being sent to the community that somebody cares for this place – and therefore, they should too! “That’s a nice story” I hear you say, but, “WHAT ON EARTH DOES THIS HAVE TO DO WITH PAINTING MY BUILDING??” My point is, the overall state of your property is a signal to every single one of your staff and guests as to how much you care about your property, and therefore, how much they should care about it! NOW BACK TO PAINT! Paint covers nearly 90% of your property. There is nothing else that gives a greater impression as to the state of your property (good or bad), than the state of its paint work! If your building were a person, a new paint job would be like a shining new business suit that commands respect and lets the
February 2020 | ResortNews
whole world know it is cared for and that they should do the same!
building! It could be costing you more than you think!
Imagine if your staff took a little bit more pride in their work and went that extra mile to look after your guests, not because you asked them to, but because their environment made them inherently motivated to do so! Would that be a revolutionary idea?
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What about guests? Will they be likely to leave you a 5 star review and make sure the room is left tidy on the way out… or will they be disappointed by the state of disrepair, leave a nasty review and not respect your property the way you’d like them to? What is the state of YOUR building signalling to your staff and guests RIGHT NOW? Don’t let faded paint, cracked walls, bubbly render or dirty mouldy soffits and facades send the wrong signal about your
MANAGEMENT
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HOUSEKEEPING GUEST EXPERIENCE
By Alexander Shashou
Wh hou y nee sekee a te ds ping ma ch keo ver
Accoms today are implementing technology in every aspect of their operations from ordering room service on an Apple TV to mobile check-ins, and the housekeeping department should be no exception, especially when the efficiency and care of housekeepers directly impacts guest satisfaction and, in turn, the bottom line. The housekeeping department is the backbone of every accom, ensuring rooms meet guest expectations, amenities are in order, and requests are taken care of. As a key service, usually with the most staff, they hold the keys to keeping guests happy and turning over
rooms for newcomers—the two biggest factors when it comes to an accom’s profitability.
Communication is key Even in today’s digital age, communication within hotel departments can remain behind the times, especially for housekeeping staff. Room assignments are given out verbally or if you’re lucky, on paper at the beginning of the day, and aren’t updated throughout the day based on guest check-outs, do-notdisturb signs, or overall progress. Housekeeping staff also can’t easily communicate when they need extra supplies or encounter a maintenance issue, so they spend time calling others and backtracking for supplies. Their managers can’t track progress in real time. Seamless communication technology can help. For instance,
Six things accoms should know about guests with sensory needs By Kate Hughes
People with sensory issues – that is, people who struggle with receiving and responding to information coming from their senses, including bright lights, loud noises, and strong smells – can have a difficult time while travelling. Tanya Acosta knows this first-hand, not just as a speech pathologist, but also as the mother of a son with sensory issues. So she decided to do something about it. Acosta founded Sensory City, a not-forprofit organisation dedicated to offering guidance to businesses that wish to make their spaces friendlier for individuals with sensory needs. The organisation assesses accoms and offers tips and training to make them more sensory-friendly. There is huge demand for sensory-friendly properties.
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Acosta shares what she thinks hoteliers need to know about this niche market.
It’s under-served According to the CDC, 1 in 59 children are identified as having autism spectrum disorder and an estimated one-third of people with autism are nonverbal. More importantly, over the next decade, an estimated 500,000 teens (50,000 each year) with an autism spectrum disorder will enter adulthood, and the community is less than prepared. “I once had a mother tell me that finding a hotel that could accommodate her child with autism was like finding a unicorn,” Acosta says. “If an accom offers sensory-friendly spaces, families will seek that property out before any of the others in its market.”
Have necessities on hand Acosta recommends having kits available to guests with sensory
issues. These might include comforting items like weighted blankets or noise-cancelling headphones. She also notes that having a spare set of sheets and extra towels in sensoryfriendly rooms can ensure parents aren’t stuck waiting for a spare set if there’s an accident in the middle of the night.
Small solutions can make a big difference Many of the solutions Acosta’s team recommends are very simple to implement. She gives an example: “We once visited a space that had this really long communal table and lots of chairs. When you moved those chairs in or out, they made a horrendous noise. We suggested putting felt pads on the bottoms of the chair legs. It completely solved the problem.”
Be sure guests can communicate Acosta says that having communication boards for the front desk is a huge step in making an accom sensory-
MANAGEMENT
friendly. “For those who are nonverbal or have a limited ability to speak, it can be a huge issue to ask for simple things like extra pillows or shampoo. Front desks should have a picture book or sheet that they can bring out so that people can point to what they’re looking for.”
Training staff is essential “Changing spaces is the easy part—changing minds often proves more difficult.” Sensory City offers training for employees via webinar and email, but the key to it all is making sure staff understand what these guests and their families are up against.
Spread the word Accoms that have sensoryfriendly spaces should be vocal about their offerings. “It’s a nobrainer,” Acosta says. “It helps sell empty rooms and it’s good for the community. It also offers a wonderful PR opportunity for your hotel, because you’re doing something for the betterment of humanity.”
ResortNews | February 2020
create more efficiency with communication and assignments, it frees up their time to deliver more exceptional guest experiences. With integrated technology, housekeeping staff on the go can access any special guest requests for the rooms they are preparing. This means they can see that a frequent guest always requests extra towels and stock the room rather than wait to be asked.
staff with a compatible channel management system, wearable technology like a smart watch or even just an app on their mobile phone can easily track their progress, allowing managers to see in real time which rooms are clean and ready for new guests. To help overcome any language barriers, technology that enables housekeepers to take and send pictures will be crucial for immediately and clearly communicating issues like damaged items or if a guest left something in the room.
Prioritising room assignments Without integrated technology, housekeeping staff make their way through assigned rooms from one end to the other. However, with technology, department managers can receive push notifications on check-in statuses, or new guests looking for room availability, and then immediately contact staff on the go and assign them new priority rooms to be handled immediately. Rather than needing to rush off and find someone, radio or phone the entire team on walkie-talkie looking for someone
February 2020 | ResortNews
available, they can alert the staff member closest to the room with a simple push notification. For instance, a VIP arrives and asks for an early check-in. A housekeeping manager can see the VIP, check the room, and, if it hasn’t been cleaned, immediately assign a housekeeper to attend to the room. The housekeeper receives a simple push notification on the new priority, and marks the room “clean” when it is
ready, triggering front-desk staff to send the guest up. This seamless communication between staff keeps the situation low stress, ensures the room is cleaned quickly, and keeps the VIP guest happy with the immediate service.
Personalising the guest experience When housekeeping staff
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Another example is if a staff member sees the guests checking in are VIPs on their honeymoon, they can send a quick note to room service to have a complimentary champagne ice bucket set up in the room when they are finished cleaning. At the end of the day, accoms will always rely on housekeeping staff to deliver hospitality by ensuring rooms are not only clean but welcoming for guests. Technology that helps them do this important job more efficiently frees up their time to go above and beyond, delivering exceptional, personalised service, and ultimately turning a onetime guest into a regular.
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Gold Coast targets cashed-up over-50s to shore up tourism Gold Coast tourism bosses have announced a nineweek, $2million campaign, aimed at the big-spending over-50s market to offset projected losses from the coronavirus outbreak and an horrific bushfire season.
Holiday makers urged to keep it local Following on from the $76 million government grant announced recently, Tourism Australia has launched a new $20 million advertising campaign ‘Holiday Here This Year’, which is aimed at encouraging domestic tourism to support communities affected by the bushfires. The campaign calls on Aussies to help those affected by filling up places like restaurants, hotel rooms, caravan parks and beaches. It will be rolled out across billboards, print, social media, radio and outdoor ads. It’s part of a bid to boost Australia’s tourism industry, with Aussies encouraged to share their holiday experiences with their friends and online using the hashtag #holidayherethisyear. “There is no doubt that Australian tourism has been hit hard by the recent bushfires. It’s critical that we help the industry get back on its feet as soon as possible,” Phillipa
Harrison, managing director of Tourism Australia said. “Push domestic tourism.”
Tourism bosses have designed the campaign to target the traditionally high-spending visitors by talking up some of the city’s lesser-known experiences.
“The desire from ordinary Australians to assist the communities impacted both directly and indirectly by the bushfires has been overwhelming. This campaign seeks to show them how they can directly support the recovery by simply holidaying here in Australia,” he added. The local tourism stimulus comes as part of the federal government’s National Bushfire Recovery Fund. As part of the campaign, Tourism Australia also highlighted eight ways travellers can help with bushfire recovery efforts such as sharing the message, buying locally and filling a suitcase with local souvenirs, visiting animal sanctuaries and sharing those unforgettable memories to #holidayherethisyear. The Holiday Here This Year campaign is the first of a number of measures Tourism Australia will be rolling out in the coming weeks and months to help Australia’s tourism industry recover. Source: AusLeisure Management
Early estimates suggest the coronavirus could cost the Gold Coast $40 million as the lucrative Chinese tourism market weakens. This could increase significantly, depending on how and when the coronavirus is contained, and the threat removed. “Visitor numbers to the Gold Coast from Greater China for the year ending September 2019 totalled 340,000 and delivered $428 million into the local economy,” Destination Gold Coast chief executive Annaliese Battista writes in a Bulletin column today. “The latest setback couldn’t have come at a worse time, with the temporary group travel ban coming into effect two days into the Chinese Lunar New Year holiday period. “We are seeing widespread cancellations, as a result affecting our leisure and business events sectors. This is on top of a 20 per cent decrease in group bookings that we were already shouldering. Ms Battista said the focus on the new campaign was on attracting high-spending travellers (HSTs). “The 50-plus market represents Australia’s most rapidly growing demographic by expenditure and therefore the biggest opportunity to grow our domestic market share,” said Ms Battista. The campaign will be directed at the Sydney, Melbourne and Brisbane markets. A Destination Gold Coast insights report shows the
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TOURISM
over-50s market has increased 54 percent in 18 years. “This demographic accounts for 41 percent of the nation’s population,” Ms Battista said. “Median household wealth for those aged 55-64 and over 65 has grown by 39 percent and 61 percent respectively from 2002 until 2014.” Tourism Research Australia data shows national domestic overnight expenditure for the 50-plus segment increased 179 per cent to $33 billion, while spend for the 15-49 segment jumped 69 per cent to $45 billion. Comparatively, visitor expenditure in the over-50s market on the Coast increased 144 percent to $1.3 billion. “It is crucial that as destination marketers we take advantage of opportunities to remain competitive and to innovate our tourism offering by applying sound research to give the Gold Coast a competitive edge,” Ms Battista said. “Research shows that this group desire holiday experiences that prioritise relaxation, time with their partner and comfort as important reasons for choosing to visit the Gold Coast." A 2018 Bulletin report found the over-65s market would inject $3.5 billion into the Coast economy by 2023. It has also sparked a major property boom of unit towers across the city targeted exclusively at downsizers. Source: Gold Coast Bulletin
ResortNews | February 2020
State government to launch new Whitsundays tourism campaign The Palaszczuk Government has announced stage two of the ‘Wonders of the Whitsundays tourism campaign’ will be launched in 2020 following the overwhelming success of the first stage of the initiative. Tourism Industry Development Minister Kate Jones said phase two of the campaign would see the region’s new brand taken to market for the first time. “Driving holiday bookings means supporting tourism jobs in the Whitsundays,” Ms Jones said. “That’s why the government has invested in this campaign in partnership with Tourism Whitsundays and local businesses to help attract more tourists to the region.
“The results of this campaign are a huge victory for the Whitsundays which relies heavily on tourism,” she said. “This campaign brought some of the region’s biggest operators together to promote the wonders of the region overall and drive benefits across the whole industry in the Whitsundays. Phase two will build on that momentum.” Tourism Whitsundays CEO Tash Wheeler said the campaign was a great success. “This is off the back of widespread publicity around the Intercontinental Hayman Island Resort and Daydream Island Resort re-openings.” Ms Jones said the first phase of the campaign delivered more than 2000 holiday bookings and $3.53 million in sales to Whitsundays tourism operators during the threemonth campaign period.
“The collective group are all thrilled with the results this campaign has yielded not only in dollar value but also recognise the success this campaign has had in consumer awareness, not only for their individual brands but across The Whitsundays as a destination. “It was also great to have some of the major operators in The Whitsundays working
as a collective group. We hope these successful relationships can continue as opportunities arise in the future.” Stage one of the Wonders of the Whitsundays campaign ran in the key markets of Sydney and Melbourne, as well as across Queensland, from June to August, and was a cooperative partnership between the Palaszczuk Government, Tourism Whitsundays, Cruise Whitsundays, Daydream Island Resort, Hamilton Island and InterContinental Hayman Island Resort. Stage two will see 11 local businesses join the campaign which will build on the awareness already generated through out-ofhome advertising, social media, digital and search, as well as content partnerships with relevant travel brands. Tourism is worth $671 million to the Whitsundays economy – almost a quarter of the region’s gross regional product – and support 6300 jobs, more than one third of employment in the region. Source: Tourism Qld
Queensland takes a bigger slice of the American pie Queensland’s tourism industry experienced record growth in the year ending September 2019, with the latest figures from Tourism Research Australia showing more than 28 million visitors spent $25 billion in the Sunshine State. Acting Tourism Industry Development Minister Grace Grace said new International visitor survey data showed a record 239,000 Americans spent a record $422 million in Queensland over the year. New Zealand tourists also spent more than ever, generating $590 million for Queensland’s economy with strong 21.3 per cent growth in the Japanese market boosting visitor expenditure to $470 million. “By growing our tourism industry, February 2020 | ResortNews
$25 billion in the year ended September 2019. Domestic visitors to Queensland led the way with record expenditure of $19 billion. A record number of Victorians experienced a Queensland holiday in the 12 months to September 2019 leading the strong growth in domestic visitation.
we’re creating more jobs for Queenslanders,” Ms Grace said. “Diversifying our visitor mix is an important part of that strategy. That’s why it’s great to see more Americans than ever before coming to Queensland. This is thanks to an aggressive marketing campaign in North America. “These are great numbers that should be bolstered
further by new flights from San Francisco and Chicago set to take off later this year and the destination marketing campaigns that will support them.” The combined national and international visitor surveys show year-on-year growth of 12.2 percent in overnight visitors and 7.4 percent growth in visitor expenditure, with a record 28.4 million visitors spending TOURISM
“A number of other regions experienced record growth as well, with Tropical North Queensland, Sunshine Coast and Fraser Coast hitting record expenditure for combined international and domestic figures. “Tropical North Queensland, Southern Queensland Country, the Outback and Fraser Coast also experienced record overnight visitation for combined international and domestic figures.” Source: TEQ Queensland
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Global Tourism Plastic Initiative unveiled The Travel Foundation has announced its commitment to tackle plastic pollution as part of the Global Tourism Plastics Initiative, led by the UN Environment Programme and the World Tourism Organisation (UNWTO), in collaboration with the Ellen MacArthur Foundation. The initiative unites the tourism sector behind a common vision to address the root causes of plastic pollution. It enables businesses and governments to take concerted action, leading by example in the shift towards a circular economy for plastics. Jeremy Sampson, CEO of Travel Foundation said: “Through the initiative, we are creating a supportive network for businesses and governments to close the loop around plastic. The Travel Foundation has a long track record of successfully working with hotels and other businesses to reduce their plastic and other waste. Ligia Noronha, director of UN Environment Programme Economy Division said: “Through the initiative, tourism companies and destinations are supported to innovate, eliminate and circulate the way they use plastics, to help achieve circularity in the use of plastics and reduce plastics pollution globally.” Zurab Pololikashvili, secretarygeneral of the UNWTO said: “Front-running tourism companies and destinations will set quantifiable targets and accelerate the transformation of the tourism sector towards more integrated solutions and circular business models”. Already accommodation giant Accor has announced its commitment to join the UN Global Tourism Plastics Initiative and to remove all single-use plastic items in guest experience from its hotels by the end of 2022.
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In addition to its previous commitment to eliminate all plastic straws, stirrers, and cotton buds, Accor’s new commitment includes the removal of individual plastic toiletry amenities and cups by the end of 2020 and the elimination of all remaining single-use plastics in guestrooms, meeting areas, restaurants, and all leisure activities areas (e.g., spas, fitness centres, etc.) by the end of 2022. “We are aware of the significant impact we have on our planet and our responsibility to create tangible benefits for our employees, guests, suppliers, partners, and host communities,” said Sébastien Bazin, chairman and CEO, Accor. “What guides us is the consciousness and social awareness that drives every person who strives
to be a good citizen. It’s about being aware, socially conscious, and consistent.” Single-use plastics are defined as disposable items that are used only once and then discarded. Examples include plastic straws, cotton buds, coffee stirrers, plastic cups, plastic bags for laundry or extra pillows, plastic water bottles, all plastic packaging (e.g., for food, welcome products, etc.), plastic takeaway dishes and tableware, plastic gifts and welcome products (e.g., toiletries, slippers, pencils, etc.), and plastic keycards. The company plans to propose relevant alternatives to plastic for each specific item, considering life cycle assessments to ensure better environmental performance.
18 percent of travellers lost an important belonging like a wallet or passport while taking a snap, 18 percent broke their phone and 17 percent were caught doing something they shouldn’t.
Selfie Failures Most travellers record their journeys with a few selfies, but few realise they could be jeopardising their travel insurance. According to a survey by an Australian travel insurance provider, 75 percent of travellers take selfies while on holiday and then share them with the world via social media (55 percent post the selfie on Facebook, 21 percent on Instagram and 13 percent on Snapchat). But not many people realise that those selfies could result in a travel insurance claim being declined. Taking selfies on holiday can be risky, the survey found
Another insurer reported that 13 percent of people had been injured while posing for selfies (that number jumps to 18 percent for Millennials), while stats from the Journal of Family Medicine and Primary Care reported 259 tourists died as a result of selfierelated mishaps between 2011 and 2017 (drowning was the leading cause, followed by falls, fires and vehicle accidents). Although some intrepid adventurers think nothing of posing precariously (at heights, with weapons, whilst in charge of a vehicle, close to dangerous animals, in prohibited areas) to get the most ‘liked’ shot, many travellers don’t realise that taking part in risky activities, being reckless or being intoxicated could void their policy if they get injured. Source: EBM Insurance
Accor hosts more than 120 million guests and serves more than 200 million meals each year. With more than 200 million single-use plastic items used annually in all areas, hotels are already reducing significantly their impact. Several have deployed effective solutions by choosing more sustainable alternatives. For instance, 94 percent of Accor’s hotels have eliminated the use of straws, cotton buds, and stirrers; the remaining 6 percent (mostly in China) will make the move by end of March 2020. Additionally, 89 percent of ibis’ hotels are using dispensers for amenities such as shampoo, and Fairmont has begun incorporating water filtration taps in guestrooms to eliminate bottled water altogether, per new construction and renovation standards. “Plastic pollution is one of the major environmental challenges of our time, and tourism has an important role to play in contributing to the solution,” said UN Environment Programme Economy Division Director Ligia Noronha. “Through the Global Tourism Plastics Initiative, tourism companies and destinations are supported to innovate, eliminate, and circulate the way they use plastics, to advance circularity in our economies and reduce plastics pollution globally.” “Our efforts do not stop here. We are an innovative group by nature and we continuously search for more areas where we can reduce our impact on the global environment while helping our local communities in their efforts to create a healthier, more sustainable future,” said Bazin. “As we work to deliver on our commitments, we are grateful to our dedicated teams of employees all over the world who share our belief in making the world a better place for our guests, while they are traveling with us and even while they are not.” Source: Lodging
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ResortNews | February 2020
If you’re not adverse to being watched, all the time – even while you sleep (if you can) – then the luxury Reef Suites, a floating ‘hotel’ on the Great Barrier Reef is a must do… The Reef Suites are the centrepiece of an $8 million redevelopment of the Reefworld pontoon by Cruise Whitsundays and the Queensland Government, after damage sustained in Cyclone Debbie in 2017. Described as a game-changer, Reefworld is a two-story, 6,000-square-foot floating platform offering premium king or twin-single accommodation below sea level, complete with a private glass ensuite, that enables guests to sleep with the fishes. The two exclusive suites sit four metres below the surface, with just three inches of glass separating guests from the reef life outside. At night, outside lights illuminate the surrounding waters for a rare look at what happens after dark. Fitted with floor to ceiling windows, there is no wifi or phone signal if digital detox is your thing. Reaching it is a trek—from Brisbane, it’s an hour-and-ahalf flight to Airlie Beach, then a three-hour boat ride over to the reef. But in this undersea sanctuary, you can observe 1,500 species of fish, as well as turtles, rays, and even sea monsters from floor-to-ceiling windows, all without wetting a single toe. There is also an option for guests to glamp under the stars with the roof of the pontoon set up to accommodate a dozen queen beds in custombuilt canvas canopies. The floating pontoon is situated 39 nautical miles from Airlie Beach and accommodates up to 300 day visitors for activities including underwater observatory access, semisubmersible tours, scuba diving and snorkelling. The removal of the original pontoon mooring infrastructure involved the largest natural
February 2020 | ResortNews
TOURISM
coral transplant ever to be achieved on the Great Barrier Reef. Over a week, almost 4000 pieces of coral were sustainably removed from old moorings and replanted onto the existing reef wall to rejuvenate the Hardy Reef environment. The unbelievable sensory attraction is expected to bring an extra 60,000 visitors per year to the Whitsundays, provide both local and international guests the chance to gain a deeper appreciation of the wonderful Great Barrier Reef And for those concerned about the impact of the installation on the environment, it’s comforting to know that only eight percent of the entire reef is set aside for tourism. (For perspective, the whole of the Great Barrier Reef is larger than Italy, spanning a 135,000-squaremile area. That means roughly 9,000 square miles are allocated to tourists—which is geographically huge, but just a small part of the overall reef). The operators are required by the GBRMPA to acquire a permit ensuring that they meet strict environmental standards during construction and operation, and work closely with the GBRMPA to monitor visitor behaviour and reef health. Additionally, all tourism operators are required to pay an environmental management charge per visitor to the GBRMPA, part of which goes toward protection and conservation activities, as well as toward environmental research. This means that every tourist, whether they’re aware of it or not, is actually helping to fund conservation efforts on the reef. This is not an aquarium: This is the reef. And while it’s one thing to go out snorkelling or fishing for the day, it’s another thing entirely to spend the night underwater, surrounded by marine life. It allows people to make a connection with the environment that they wouldn’t otherwise get, and that makes all the difference. So, when an aquatic monster emerges from the depths and you register him as an interloper, an unexpected guest in your room, remember he lives here. And you are the guest in his house.
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THE LAST RESORT
Reef Suites: A beautiful and bizarre privilege
By Trish Riley, Editor
Holiday for a Hero: Calling on accom for hospitality Over the past three months as bushfires took hold of Australia, burning 18.6 million hectares, taking 30 lives, incinerating and damaging 5900 buildings including 2683 homes and killing over a billion animals, everyday Australians and citizens from all over the world came together with one common cause: how can we help? In addition to the millions raised and thousands of hours undertaken by volunteers countrywide, a nucleus from within the accom sector birthed a new initiative. From one generous thought, Holiday for a Hero was born. What started as two residential managers wanting to say
Congrats are in order for CEO
Grant Hunt AM
Congratulations to Grant Hunt AM, CEO of Voyages – Indigenous Tourism Australia, who was awarded an Australia Day honour for significant service to the tourism and hospitality sectors.
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tickets to local zoos, dinners and even offers of specialist PTSD accommodation (offering support from service animals and therapies).
thanks to these brave firefighters and emergency services personnel by collecting accommodation donations from fellow managers and owners to offer these incredible people the holiday they missed out on, and most certainly deserve, Holiday for a Hero has grown into much more.
As at the end of January, there have been a total of 89 donated stays. The donated holidays include holiday accommodation from New Zealand, Bali, Spain, Portugal, Hungary and the UK. There are also vouchers for yoga classes, stand up paddle boarding, a visit to an educational facility/animal rescue centre, boat crossings,
Farming to flat whites for young people To help young people from rural areas between 15 and 24, a training program has been established offering the opportunity to gain experience and qualifications to do off-farm work. The free training courses are being delivered by a State Government program through TAFEs in badly drought-affected communities. TAFE Western NSW's Amanda Glassop said the course would teach the students about making coffees and mocktails and about hygiene practices essential in the hospitality industry. “With properties lacking livestock and few crops in the ground, young people across New South Wales are looking at other ways to get skills and qualifications to earn a living. "Those off the farm would
normally be working around the property but they've had to modify that way of thinking and are having to find other sources of employment," Ms Glassop said. "What they're doing here will give them immediate access to finding work in a cafe or bar." Those who passed would be given their RSA licence and Responsible Conduct of Gambling licence, allowing them to find work in licensed establishments. Among the courses offered are hospitality, robotics and first aid. Source: ABC.net
EVENTS & APPOINTMENTS
With more than 6000 emergency personnel to cater for, the Holiday for a Hero initiative is seeking donations for their program to be able to provide a get-away and accommodation for those firefighters and emergency services workers who put their live on the line for us, and as much as the international generosity is appreciated, the focus at the moment is on ‘staycations’; local travel and expenditure injecting normality and business back into the damaged towns. The coordinators of Holiday for a Hero are working with the RFS who will ensure the holidays are distributed in a just and fair manner. Source: TEQ Queensland
First 'Women in Management' luncheon for 2020 The renamed group of entrepreneurial women operating in the management rights and property management space (formally Ladies in Management) will be holding the first Gold Coast luncheon of the year on Wednesday, February 19, at the iconic Moo Moo's in Broadbeach from 12:30. Please register your interest via the 'WIM' Facebook page or contact Marisa Millane on 0403764247. ResortNews | February 2020
Industry training on critical issues
Domestic business events campaign Australia’s minister for tourism, Simon Birmingham, and the assistant minister for regional tourism, Jonathon Duniam, have announced that Tourism Australia's specialist business events unit, Business Events Australia, is coordinating a domestic campaign for the events industry.
provide a boost to the events industry in the wake of the bushfires.
Part of the National Bushfire Recovery Fund, the Event Here This Year campaign urges organisations to hold their conferences, events, exhibitions and incentives in Australia this year to
Event Here This Year aligns with Tourism Australia’s broader tourism campaign encouraging Australians to Holiday Here This Year. While Business Events Australia is spearheading the campaign, it is hoped the success of the campaign will also be driven by the events industry sharing the message as widely as possible. Source: Tourism Australia
ARAMA invites industry members to training and education events featuring leading experts who will guide them through the often complicated issues relating to caretaking compliance obligations. These events are designed especially for ARAMA members and will focus on demystifying legal forms, contracts and processes associated with the management rights industry. The purpose of this event is to explain your obligations within the business and advise you of the things you should do to avoid disputes with your body corporate and breach notices for noncompliance.
Topics being covered: •
Obtain a top up or an extension
•
Understand the difference between a top up and an extension
•
Achieve an increase in your remuneration
•
Avoid disputes and manage disputes with your body corporate if/ when they do occur
•
Minimise or mitigate your legal risk
Scheduled events are being held in Port Douglas on February 19, in Cairns on February 20 and Airlie Beach on February 25. For more information contact ARAMA on 1300 27 26 27 or email national@arama.com.au
2020 ARAMA INDUSTRY EVENTS CALENDAR For registration and/or event information please contact us on 1300 ARAMA Q (1300 27 26 27), email national@arama.com.au or visit: https://www.arama.com.au/ BRANCH
EVENT TITLE
DATE
TIME
LOCATION
REGISTRATION
Gold Coast
Members Social Lunch
Tuesday, 10 March 2020
12pm – 2pm
TBA
Open
Online
Educational Webinar
Wednesday, 18 March 2020
11am – 12pm
Register online
Opening Soon
Brisbane
Management Rights Industry Training Program
Wednesday, 25 March 2020
8:30am – 4pm Riverside Hotel
Byron Bay
Industry Update
Tuesday, 31 March 2020
6pm – 8:30pm Byron Bay Services Club Open
Sydney
Industry Update
Wednesday, 1 April 2020
6pm – 8:30pm Adina Hotel Sydney
Open
Port Macquarie
Industry Update
Thursday, 2 April 2020
6pm – 8:30pm The Glasshouse
Open
February 2020 | ResortNews
EVENTS & APPOINTMENTS
Open
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New face for Sunshine Coast Kawana Waters hotel Accor, together with hotel owners, Stay Centro GC, have announced the Best Western Plus Lake Kawana Waters has been rebranded to Mercure Sunshine Coast Kawana Waters, under a franchise agreement. Built in 2015, Mercure Sunshine Coast Kawana Waters is located in Lake Kawana, a masterplan development by Stockland, worth an estimated $5 billion to the local economy. Set on the waterfront, the hotel offers 81 spacious suites spanning four floors, with a full restaurant and bar, two separate yet adjoining function rooms (that can be combined), and ample car parking. The hotel is just one hour from Brisbane Airport, and 20 minutes from Sunshine Coast Airport. Simon McGrath, Accor Pacific's
Chief Operating Officer, says the Mercure is a strategic and welcome addition to the network with the Sunshine Coast region on the precipice of a significant tourism boom, with major infrastructure works underway set to elevate the destination. "The Sunshine Coast has experienced significant tourism increases into the region as of late, with a total of 3.8 million visitors spending $2.4 billion (FY 2018). Domestic visitation grew by 1.8 percent whilst international visitation to the region outpaced Queensland's overall average, recording a growth rate of 8.5 percent.
Coast International Airport to bring it up to a global standard, in addition to another runway which will increase air capacity.
"Such positive visitation growth figures are buoyed by significant tourism investment and major infrastructure projects which will elevate the destination, including construction of a multimillion-dollar redevelopment of Maroochydore CBD, expansion of the Sunshine
"The delivery of a major international submarine broadband cable mid-2020 is set to position the Sunshine Coast as a leading 'smart city' stimulating business even more, in addition to significant investment into the University of the Sunshine Coast as
©Tobias Arhelger - stock.adobe.com
well as a major upgrade to the region's largest shopping precinct, Sunshine Coast Plaza. "The destination's already strong business events market is set for even greater growth opportunities (up 5.5 percent FY 2018), with the recent completion of the $10 million Sunshine Coast Convention Centre, as part of the Novotel Sunshine Coast Resort," concluded McGrath. Source: Hotel News Resource
NSW plans ratings tool for developers, builder and certifiers
Queensland government supports eco project
Developers, builders and certifiers will be rated on their record of building failures, finances, complaints, insurance claims and other such factors under a new tool being developed by NSW Building Commissioner David Chandler and data company Equifax.
Each tour of around 12 guided walkers will hike to a new location each day and stay overnight in two new low-impact sustainable eco-camps within the Main Range National Park and three existing sites adjacent to the national park at Spicers Hidden Vale Retreat, Mt Mistake Farmhouse and Hidden Peaks Cabins.
"This will start to join up the players," Mr Chandler told The Australian Financial Review. "When you look into a project that is about to be developed, it’s useful to people like regulators, to people like banks, to people
like insurers and people who might be purchasing off the plan, to have some sort of view of what is the composite riskiness of the players who are about to make the project. Consumer advocates welcome the idea. "It’s part of a jigsaw that’s starting to come together to re-regulate and recalibrate the industry," said Karen Stiles, chief executive of the Owners Corporation Network. "This is a really powerful tool for the building commissioner to identify risky developments and be able to act on that before they become the problem of the innocent purchasers." Source: Financial Review
As part of the project, Spicers Retreat will partner with the government to build two new eco-camps at the Main Range National Park. The key infrastructure, to be supported through the government’s Growing Tourism Infrastructure Fund, includes the Amphitheatre Eco-camp and the Timber Getters Eco-camp within the Main Range National Park. Each site will include modular prefabricated buildings with connecting raised walkways and supporting infrastructure including water tanks, solar energy and low amber lights to minimise nocturnal animal disruption. Tourism Industry Development Minister Kate Jones said once
38
DEVELOPMENTS
it was finished, the Scenic Rim Trail in southeast Queensland’s high country would be one of the ‘Great Walks of Australia’. Minister Jones noted “Eco and adventure tourism is a booming global market – it makes sense for Queensland to be a world leader in this space.” Minister Jones expects the expanded walk to attract an extra 1300 tourists a year and pump an extra $5 million into the local economy adding that the trail “will include more than 27 kilometres of new public walking trails – making the entire walk more than 50 kilometres long. “It will run from Thornton Trailhead to Spicers Peak Nature Refuge, within and adjacent to the Main Range National Park and the Gondwana Rainforests of the Australia World Heritage Area.” Work on the project is under way and is expected to be completed in time for the first guided walkers in mid-2020. Source: AusLeisure
ResortNews | February 2020
11,072,37
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Jewel developer offloads another major asset Yuhu Group, the developer behind the Gold Coast’s Jewel and Sydney’s One Circular Quay projects, has sold another major asset ahead of a judgement by the NSW corruption watchdog over the actions of former chairman Xiangmo Huang. The 20 Berry Street tower at North Sydney was sold to private developer Holdmark for $114 million within two weeks of going on the market. Mr Huang’s Australian residency visa was cancelled last year on character grounds, and in October the Australian Tax Office froze his assets after issuing Huang with a $140 million tax bill and accusing him of establishing complicated business structures to thwart efforts to recover money from him. The Chinese billionaire is a former donor to both the Australian Liberal and Labor parties and is under investigation by the NSW Independent Commission Against Corruption over alleged undisclosed political donations.
The latest property sale follows Yuhu’s offload of a half share in One Circular Quay and Jewel for $575 million last year, part of an expected $1.1 billion asset offload by the group. Huang passed chairmanship of the Yuhu Group to his son, Jimmy, at the end of last year and is no longer a shareholder or participant in the company. The future of the One Circular Quay development, described by The Guardian Australia as “nothing more than a hole
in some of Sydney’s most expensive dirt”, remains unclear. Planning permission remains for two Kerry Hill Architectsdesigned towers encompassing more than 300 luxury apartments and a hotel at the prime harbourside address on the corner of George Street and Alfred streets. Huang is reported to have retained the development rights, but its ownership and development plans remain unclear.
More townhomes, duplexes needed? The latest data from the Australian Bureau of Statistics (ABS) reveal that there is a lack of approvals for medium to high-density housing options like townhouses and duplexes across the country. Looking at the breakdown of approved dwellings, the local government areas (LGAs) in south-east regional and metropolitan centres appear to be witnessing a more significant number of housing developments. In fact, a quarter of the 171,760 new dwelling approvals in the year to November were
40
situated in just 10 LGA regions. "These include the ACT region, Brisbane, Sunshine Coast and Gold Coast Councils, parts of Western Sydney, and areas on the fringe of the Melbourne metropolitan," said Eliza Owen, head of Australian Research at CoreLogic. The combined number of housing units approved for these 10 regions alone is roughly 43,000. Of these approvals, 60.7 percent were for detached housing while 25.2 percent were for high-density units. Mediumdensity developments, however, accounted for only 14.1 percent of all approvals. This could indicate that there is a "persistently missing middle", with fewer townhomes, duplexes, and other
low-rise units getting approved, Owen said. As the population continues to grow, especially in metropolitan regions, there is a need for diverse housing options, something that the 10 LGAs apparently lack according to recent data. "Medium-density housing options is important for young families who seek a more affordable housing option close to city centres, but require more space than in a unit, or older Australians wishing to downsize in their current area of residence to reduce housing costs in retirement," Owen said. This concern is not confined within the 10 LGAs. The limited growth of medium-density approvals was also evident in the 478 regions that recorded new
DEVELOPMENTS
Work is meanwhile nearing completion on the tripletower Jewel, Australia’s largest beachfront mixeduse development. It’s ownership is also hard to ascertain, but the interior fit-out of at least two of the DBI-designed towers has been under way for some time, and international brand Langham has been chosen to operate the five-star hotel in the third tower of the glitzy development. Source: Urban Developer
dwelling approvals for the year. Of the total approvals in these LGAs, only an average of 14.9 percent were for townhomes, duplexes, and unit blocks with less than three storeys. "The development of more mediumdensity housing in Australia is particularly efficient for infilling major metropolitan areas, because it takes advantage of established transport and social infrastructure," Owen said. "As populations continue to converge in metropolitan regions, demand for such diverse housing options are likely to grow. If development continues to focus on the two extremes of density, metropolitan areas may see an erosion of diverse age and family demographics," she said. Source: Hotel News Resource
ResortNews | February 2020
N
TS IND H G US RI T T
YEARS 5 2 • IN Y R
AT I N G F O R OV T
H
EM
ANAGE
M E N
Industry Leaders Since 1995
Gold Coast 07 5576 7059 Brisbane 07 3252 2219 enquiries@pcsfinance.com.au | www.pcsfinance.com.au
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Note: Agent/Broker involved in the sale is listed last. Agent - KEY: RMS - Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RB - Resort Brokers Australia; RS - Resort Sales; TO - Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH Ward Commercial Hotels. * In conjunction
The trusted source for buying Management Rights, Motels and Caravan Parks from all the leading brokers.
visit accomproperties.com.au 42
www.accomproperties.com.au PROPERTY
ResortNews | February 2020
NEW YEAR NEW OPPORTUNITIES ID 7968 RUNAWAY BAY RESORT
ID 8971 CARETAKING ONLY EX C AG LUSI EN VE CY
• 72 unit complex with 27 in the letting pool • Absolute water frontage • Opportunity for future growth
• Excellent resort facilities • 3 bed, 2 bath residence with views • Well maintained complex
NETT PROFIT:
$188,000
ASKING PRICE:
EXCLUSIVE AGENT:
Phil Trimble – 0418 478 966
$1,426,500
ID 8233 ABSOLUTE BEACHFRONT
• Holiday building in magnificent Main Beach • Lots of repeat business • Close to everything
$234,000
ASKING PRICE:
LISTING BROKER:
Gerard Dixon – 0433 617 515
30 storey highrise in Main Beach Just across the road from the beach Large salary of $142,000 First class facilities
NETT PROFIT:
$36,300
LISTING BROKER:
Elizabeth Forrester – 0433 336 900
• Central Cairns location • Stable business with upside for marketing savvy buyer • 121 of 131 in the letting pool
ASKING PRICE:
$400,000
• Generous administrative salary + cleaning salary • Full training provided for approved buyer
ASKING PRICE:
$1,760,000 LISTING BROKER:
ID 8645 PRESTIGE PLUS!
• • • •
• Close to medical centres and all services • Private 2 bed, 2 bath manager’s residence
ID 8973 COMMERCIAL MANAGMENT RIGHTS
• Ocean views from all apartments • Supportive committee • Can be easily managed by a couple
NETT PROFIT:
• Low maintenance and low workload • No specified hours • Handy to Runaway Bay Shopping Centre
$2,999,998
Tony Johnson – 0433 335 679
ID 8674 MISSION BEACH MANAGEMENT RIGHTS
• Magnificent reception area & no set office hours • Looking for lifestyle with income?
NETT PROFIT:
$165,000
ASKING PRICE:
LISTING BROKER:
Warren Oliver – 0416 216 625
$1,800,000
• Easily managed by a couple • Excellent reviews • Consistent growth
• Great facilities • 2 bed, 2 bath manager’s residence • Pet permitted with BC approval
NETT PROFIT:
$146,982
LISTING BROKER:
Tony Johnson – 0433 335 679
MR Sales have an extensive range of listings Australia wide Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au
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ASKING PRICE:
$880,000
The fastest growing accommodation listings website Listings from all the leading brokers on the one website
“A website for buyers/sellers such as Accom Properties has been well overdue for years. Buyers don’t want to view multiple websites to see whats for sale in a particular region or town, they want all properties on the market with relevant criteria at their fingertips now and you’ve been able to provide a platform which is fantastic. Well done.” – Brett Salter, National Accommodation Manager, ALH Group Limited
www.accomproperties.com.au
MANAGEMENT RIGHTS RESORTS VE
I LUS EXC
VE
CARRARA
ROBINA
I LUS EXC
CENTRAL GOLD COAST
CONVENIENCE IS KEY
A quite gated community well located with public transport at your doorstep. School is a short drive along with shopping and the M1 Motorway. Metricon Carrara Stadium, golf, tennis and other world class sporting facilities abound. Body Corporate salary of over $102,000 gives you a solid income base. Long management agreements in place. These two-bedroom townhouses are popular with tenants and shared facilities are straight forward with pool and BBQ only.
Upmarket permanent resort in central Robina residential and commercial precinct. Versatile 1, 2 & 3 bed townhouses & apartments. Potential future commercial leasing opportunities. Walking distance to Robina Town, train station, high school, hospital and hotel. Long Agreements, Accom Module, office on title, no set hours and minimal lawns. Superb 4 bed townhouse. Dual living areas, 2 car garage and secured garden ideal for approved pet. Premium package in prized location!
NETT $156,000 PRICE $1,253,000
NETT $137,000 PRICE $1,338,000
Bobo Qi 0438 027 771 bobo@propertybridge.com.au
Rhonda Perkins 0418 767 115 rhonda@propertybridge.com.au
VE USI L C EX
VE USI L C EX
LOGAN
MUDGEERABA
RESORT STYLE LIVING
LIVE OFF SITE, SCOPE TO IMPROVE
Enjoy this secure complex WITHOUT the need to manage the resort style facilities such as, golf course, function room, pool and tennis courts. Located midway between the Gold Coast and Brisbane. Manager’s unit is spacious with fencing for privacy, large backyard, plenty of storage, 2 car spaces and a sizeable office. 21 years remain on agreements. A salary of $84,000 offers secure income as a supplement to the manager’s permanent rental income from the letting pool.
Current manager rents out their onsite apartment for $300 p.w. (income in addition to net profit shown) No office hours. 19 years on agreements. Body Corporate salary of $37,000 comprises most of income. Easily operated by one person. Pet friendly community located in the heart of village and so close to the convenience of Robina town centre and all that it offers. Opportunity to increase profit by adding to rental pool from outside agents.
NETT $129,000 PRICE $1,076,000
NETT $44,000 PRICE $500,000
Jim Lowe 0403 418 115 jim@propertybridge.com.au
Jenny Zheng 0413 922 580 jenny@propertybridge.com.au
propertybridge.com.au | 1800 888 518
Coolum Seaside Resort:
By Trish Riley, Editor
contained laundries and kitchens with European appliances and generous inclusions, and it’s easy to feel right at home with ducted air-conditioning and fans, The property that prides itself on always providing more also offers guests the ability to access and stream their own content. complimentary Foxtel TV and wifi.
Awash with the beachy hues of golden sand, crystal waters and sea foam, Coolum Seaside Resort is, without a doubt, one of the best kept secrets on the Sunshine Coast. Much like Coolum Beach – the unobtrusive and sometimes overlooked seaside town that is bypassed for the glamour of Noosa – Coolum Seaside Resort is a hidden gem offering 4.5-star apartment accommodation and a wide range of facilities for family holidays or couples seeking a retreat. Perched at the top of a hill, Coolum Seaside Resort is ideally positioned to take advantage of the gentle sea breezes while being marginally removed from the hub-bub. It is also just a few minute’s stroll from the heart of the beachside village, the beautiful Coolum beach which is patrolled, and a range of boutique stores and bustling cafes and restaurants. It is
46
Some apartments even feature in-room spa baths and/or private rooftop terraces. Sandie and Murray Benson
also conveniently central to all Sunshine Coast attractions. Not that you need to stray far. Deceptively large, the property boasts a wide range of facilities set among award-winning gardens including three heated swimming pools (including a 20-metre lap pool), four heated spas, a full-sized tennis court (with complimentary rackets and balls), a variety of barbecue areas at which to entertain and dine alfresco and a dedicated library and business lounge – available for small conferences with complimentary computer use, printing, and
library book borrowing. And then there are the apartments. The same level of thought and attention expended on the design of the development has gone into the diverse range of luxurious studio, one, two and three-bedroom apartments, all of which are serviced by lifts and have access to secure undercover parking. Designed with comfort in mind, the apartments are unusually spacious and feature private balconies or patios with pool or garden views. The larger apartments have fully self-
PROFILES
Coolum Seaside Resort also offers a one-bedroom unit that is wheelchair-friendly, and the fact that there are smooth, wide walkways and no steps, means the entire property is inclusive. The attention to detail evident throughout the complex, has become a trademark of resident managers, Murray and Sandie Benson. It’s obvious, from the manicured gardens and commitment to service that this is more than a business, it’s a labour of love. During our interview, Murray provides me with detailed maps of the property and directions on how to reach the village, he gives
ResortNews | February 2020
me advice on local restaurants and things to do in the area and is knowledgeable about bus routes, local tours and attractions. He even tells me they offer a grocery ‘put away’ service… These are certainly the kind of people I would want to have looking after my investment property, and it appears the body corporate and committee concur. “We have a very good relationship with the committee,” says Murray. “A number of them are former and existing business people, and they have been nothing but supportive.” As a former financial consultant and registered nurse, Murray and Sandie purchased the
management rights of Coolum Seaside Resort five years ago after deciding they wanted a sea change from Brisbane. “We looked at a number of properties back then,” says Murray, “and favoured the laid-back atmosphere of the Sunshine Coast over the pace of the Gold Coast. When we saw Coolum Seaside Resort we knew it was the right place for us. “Entering the industry in December 2014, straight into peak season with the Christmas holidays may not have been our wisest move,” smiles Murray. “It was a veritable trial by fire and we learnt a lot of lessons the hard way.
“Even now, there are things about the property that we are still learning. There is no manual that one can study beforehand and until something goes wrong, you don’t know it’s going to be a problem.” When asked what their biggest challenge has been, Murray responds quickly – housekeeping. “We learnt really quickly that efficient, thorough and reliable housekeeping is vitally important; every review depends on it. We’re pedantic about our cleaning standards and having tried various systems have established that having our own team is what works best.
“Management rights is equally as rewarding as it is challenging,” he adds. “We have been fortunate to have had help from a number of specialist service providers, and we have learnt a tremendous amount from networking and from being ARAMA members. “We’re really lucky here in Coolum,” adds Murray. “Twice a year our publican gets all the resident managers together, and the ladies meet for dinner regularly. It’s good to hear, and know, that we have similar challenges and to be able to learn from others. We support each other wherever we can – including helping each other out with accom at Christmas.”
Lo cated i n t h e heart of C oo l u m ’s B eachsi de Vi l l a g e
T UN CO WS S I E D TN % 1 0 RESORs whent* f o r eader direc r ked boo
Proud to support Murray & Sandie and wishing them every success for the future Brisbane Level 4, 97 Creek St, Brisbane 07 3002 2699
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PHONE (07) 5455 7200 E M A I L i nfo@c ool um s e a s i de . c om 6 -8 Pe rry S t re e t , C ool um B e a c h Q l d 4 5 7 3
Smiljan Jankovic: smiljanj@archergowland.com.au www.archergowland.com.au
February 2020 | ResortNews
*Subject to availability
W W W. C O O L U M S E A S I D E . C O M PROFILES
47
So why management rights, and what advice would they give to people considering management rights as a business… “The best part of our business are the guests,” says Sandie, “you need to be people people.” “We deliberately chose a property offering short-term lets because it’s important for us to see people enjoying themselves. It’s particularly rewarding to see the transformation in people once they have been here a few days - on holiday, enjoying, having fun. “Our passion is ensuring our guests enjoy their time with us so much that they
48
don’t want to leave…” And to do my bit to ensure this gem isn’t bypassed by visitors any more… Coolum Beach is perfectly situated to enjoy and explore the Sunshine Coast. It is just 20 minutes south of Noosa and 20 minutes north of Maroochydore, and the beautiful hinterland towns of Yandina, Eumundi, Montville and Maleny are close by. And for those coming from further afield, Coolum Beach is only 15 minutes from the Sunshine Coast Airport – which has international flights from New Zealand and a range of direct interstate flights.
PROFILES
ResortNews | February 2020
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ABSEILING SERVICES Specialist Advisers to the Accommodation & Hospitality Industry
Chartered Accountants & Business Advisors Specialist Advisors to the Accommodation Industry
T: 07 5449 9992
info@pbbconsult.com.au | www.pbbconsult.com.au
Accounting – Audits – Taxation Due Diligence Reports
- GOLD COAST -
07 5631 6900
erika thomas & associates MANAGEMENT ACCOUNTANTS
info@hostrata.com.au www.hostrata.com.au
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phone 07 5575 9649 | mobile 0411 841 868 erikathomas@bigpond.com www.managementrightsauditor.com.au
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www.archergowland.com.au
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C
Specialist Management Rights Accountants M
porielley@mcadamsiemon.com.au
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Y
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When your Business Needs a Tune or a Service
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ResortNews | February 2020
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February 2020 | ResortNews
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51
ELECTRICAL APPLIANCES
FINANCE
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Gold Coast Paul Geary
0401 992 632
Brisbane Lina Jin Blake McLucas
0422 646 388 0434 367 812
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0411 023 531
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ResortNews | February 2020
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February 2020 | ResortNews
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The Management Rights Specialists
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Wayne & Linda Stoll 0452 181 505
wayne@thinkmanagementrights.com.au
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Look for the sign of an Industry Specialist
PREFERRED SUPPLIER DIRECTORY
Fixed Price Available
(07) 5343 1000 Ask for Natalie
managementrights@ascendia.com.au
www.ascendialawyers.com.au
ResortNews | February 2020
TRAINING & DEVELOPMENT Management Rights, Body Corporate and Property Law Specialists
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Whatever, Wherever, Whenever! www.accomnews.com.au/ business-directory
February 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
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PREFERRED SUPPLIER DIRECTORY
55
11,072,37
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