Resort News, June 2020

Registered by Australia Post Print Post No. 100023799

Issue 286 | June 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Alexandra On The Pacific:

Le Cher Du Monde:

Overcoming COVID-19 setbacks

‘Adult only’ resort delights guests

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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 June 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: Are we ready for recovery? .................... 05 INDUSTRY

07

News In Brief ............................................................................ 06 ARAMA Report ........................................................................ 08 SCA Report ............................................................................... 09 State Report ..............................................................................10 BCCM Report ............................................................................12 Person of Interest: John Punch .........................................14 MANAGEMENT Thinking MR...............................................................................16

By All Accounts ........................................................................16 Legal Ease...................................................................................18 Motel Market ............................................................................ 20

14

Good Governance .................................................................. 22 Intonet .........................................................................................24 High Rise Cleaning................................................................. 26 TOURISM Tourism Report ........................................................................ 32

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 Mandy Clarke, editor@accomnews.com.au STAFF WRITERS Rosie Clarke and Trish Riley DESIGN & PRODUCTION Richard McGill, production@accomnews.com.au

Tourism International ........................................................... 34 DEVELOPMENTS:

26

ADVERTISING Stewart Shimmin, advertising@accomnews.com.au

News ............................................................................................ 36 PROPERTY AccomProperties Sales Report ........................................ 40 Agent Profile: Jim Lowe - Property Bridge.................... 40

SUBSCRIPTIONS Gavin Bill, subscriptions@accomnews.com.au

New Manager Profiles ...........................................................41

CONTRIBUTORS Trevor Rawnsley, Michelle Scott, Col Myers, James Nickless, Lel Parnis, John Punch, Arvo Elias, Andrew Morgan, Lynda Kypriadakis, Mike Phipps and Brendon Granger.

PROFILES Alexandra On The Pacific: Overcoming COVID-19 setbacks...................................... 44

KEY

Le Cher Du Monde:

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

04

47 FRONT DESK

'Adult only' resort delights guests ....................................47 PREFERRED SUPPLIERS Perferred Supplier Directory .............................................. 50 ResortNews | June 2020

Book local and book direct is the dominant message for travellers and providers have been warned to shift gear, market towards local guests and market your cleaning protocols.

In the wake of COVID-19, we cannot seem to get past the saga of squabbling states trying to decide how to open borders to interstate travel.

The Queensland government has certainly erred on the side of caution, suggesting it will be months before interstate leisure travel recommences.

Industry voices disagree and argue that it must happen sooner if we want to breathe life back into our drowning tourism industry.

Tourism Accommodation Australia CEO Michael Johnson warned: “I think the longer the QLD borders are closed, bearing in mind that the biggest feeding markets are NSW and Victoria, the more effectively QLD is cutting off its nose before allowing its

Mandy Clarke, Editor editor@accomnews.com.au businesses to start to recover.

The longer they leave it, the harder it’s going to be.”

Our industry desperately needs domestic heads on beds according to findings from the new Dransfield Hotel Futures 2020 COVID-19 Update Series report. Australians should bank on holidaying domestically to try and replace lost international visitors.

Best advice suggests the highest standards of cleanliness need to come before everything else you do and hope it gives you a competitive edge. Be proactive and advertise your COVID-19 protection protocols and OH&S procedures because guests will appreciate reminders and reassurance. Be visible, use signs to highlight your standards of cleanliness and have your cleaning team circulate at your busiest times.

The resort industry is strong, and I am constantly blown away by the standard of leadership, guidance and support from our industry partners and the good advice offered from many wise industry voices. This month, we

feature our Person of Interest: Gold Coast Management Rights founding father, John Punch.

I have also been heartened by my conversations with the resort managers in this issue’s Resort News profiles.

Their locations may be many kilometres apart, but for the defiant and determined Sunshine Coast and Port Douglas managers the struggle, worry and enduring hopefulness has been shared.

As we go to press this month, the Queensland 250km travel restrictions have just been lifted, meaning Queenslanders can now holiday throughout the whole of Queensland. The game is back on but the game is changing. How we adapt to this new marketplace may just determine how our industry survives (and hopefully thrives) over the next few years.

Enjoy this issue, get your sheen on, get busy and stay safe!

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June 2020 | ResortNews

hotelinteriors.com.au • 1300 876 055 FRONT DESK

05

EDITOR'S NOTE

Are we ready for recovery?

©Taras Vyshnya - stock.adobe.com

NEWS IN BRIEF

State border shock: Can we afford to wait until September for inter-state travel?

Annastacia Palaszczuk raised hopes that the coronavirus travel ban would end by July but has backtracked to say it might continue into September.

“I think the longer the QLD borders are closed, bearing in mind that the biggest feeding markets are NSW and Victoria, the more effectively QLD is cutting off its nose before allowing its businesses to start to recover.

The tourism and accommodation sectors are understandably shaken by the reveal.

The longer they leave it, the harder it’s going to be.

A stark warning for QLD was offered by Tourism Accommodation Australia CEO Michael Johnson. Resort News asked him whether the states can afford to wait until September for open borders: “I know the QLD Premier has said it’s being reviewed on a monthly basis, but I think considering what is going on, that’s questionable. I think it needs to be reviewed on a more regular basis.

“I think it’s critical for our industry, and particularly our hotels, that these borders are opened as per the plan that I think our Federal Government is looking for the states to be working towards,” said Johnson.

Accommodation Association of Australia CEO Dean Long told Resort News that the accommodation sector is currently experiencing revenue declines in the order of 85 percent as a result of government measures aimed

at controlling the spread of COVID-19. “The opening of borders and the ability to travel for holiday purposes are essential for the regeneration of the sector.

Prior to COVID, 79 percent of all visitor nights in Queensland were domestic. Of these visitor nights 43 percent are interstate visitor nights in hotels, motels and serviced apartments.

tourism operators in Far North

The continued closure of the borders jeopardises the opening of these properties and is not in line either with Federal or other state health mandated measures.

same story: they’re hanging

“We call on all state governments to provide a clear and recognised pathway to recovery that enables industry to regenerate and secures the jobs of the close to 240,000 people directly employed in the industry,” Long added.

Daniel Gschwind spoke to ABC about the “sorry state” of

Queensland, particularly those in Cairns and Port Douglas.

“We can only hold our breath so long under water, but at some point, you have to come up for air.

“Every operator in North Queensland would tell you the on desperately to rescuing some of the winter season for this year,” he said.

At a press conference tackling the issue, Palaszczuk stated: “Let me make this abundantly clear, I will listen to the advice of (Queensland’s Chief Medical Officer) Dr Jeannette Young.”

She also confirmed that when Dr Young says interstate travel is safe it will be allowed.

Domestic heads on beds could save our industry Australians holidaying domestically could well replace all the lost international visitors, according to hopeful new findings in the much-anticipated Hotel Futures 2020 COVID-19 Update Series report.

booking overnight stays in Australian accommodation and this is very welcome news. The results seem to support the recent upswing in government and industry body promotion of domestic travel to support local industry.

Dransfield Hotels and Resorts has shared more analysis, reflecting on what an extended closure of international borders could mean for Australian hotels.

This data suggests Australians who would otherwise be planning an overseas holiday will seek out local experiences and opportunities and may even fill up more hotel beds than the usual numbers of international visitors – many of whom stay with family rather than in hotels.

Findings suggest that an extended international border closure may increase the number of domestic visitors

Dransfield sought to test the potential impact on the sector if this shift occurs. The report states: “In short, our

06

Photo by Joshua Hoehne on Unsplash findings are that the potential transfer of outbound visitors to domestic visitors in hotels is considerably higher than the loss of international nights across cities and regional areas.

Australians taking advantage of our regional holiday spots and city hubs can provide higher Australian hotel demand than if international borders were open.

The result of the report estimates that “domestic

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replacement in hotels could be considerably higher than the loss of international nights in both the cities and regions, and by some margin.

"Whilst the analysis shows over 100 percent recovery, the step up will occur over time and will be affected by seasonality, so full immediate recovery is not expected as a universal proposition. The outlook is however much more positive than might be initially thought.”

ResortNews | June 2020

Book local and book direct and keep money in Australia not overseas or with online travel agents

Photo by Nathan Hurst on Unsplash

“There are no longer restrictions on a stay in a Sydney hotel," so where are all the bookings?

Tourism Accommodation Australia was thrilled to discover regional areas of NSW would be reopened for travel from June 1, but TAA NSW CEO Michael Johnson said more needs to be done to boost the regions.

needs to be looking at safely lifting more restrictions on dining - particularly those in areas which have never had a case of COVID-19.

“Regional travel being allowed again is fantastic news for accommodation providers and Tourism Accommodation Australia NSW congratulates the state government - in particular Tourism Minister Stuart Ayres on this move,” Mr Johnson said.

“Before making a booking, potential tourists will also want to know they can get a meal and a drink.

“However, more needs to be done to ensure once we get people back out to our regions they are able to do more of the things they see as a natural part of a holiday. The government

“It doesn’t make sense that a large venue with multiple rooms on multiple floors is restricted to 10 people for the entire premises - the same as a small café.

“Hotels in the regions are excited to finally see travel opening up again and have been provided with the TAA NSW re-opening check-lists on how to re-open safely.”

Mr Johnson also said Sydneysiders should be considering a night out in their own city.

WA is sending a strong message to kick start its tourism recovery.

Talking about the Tourism Council WA’s Holiday in WA campaign, CEO Evan Hall said: “With a roadmap to reopen intrastate travel now laid out, Western Australians will soon be able to get back out and explore all that the State has to offer.

“We have the opportunity to turn things around for WA’s tourism operators, who have been among the hardest hit

by COVID-19 restrictions – so now is the time to start booking those big, bucket-list experiences you’ve always wanted to do,” he said.

The state government’s announcement of a roadmap to lift COVID-19 travel restrictions was welcomed with open arms by the Tourism Council WA. Mr Hall described the changes as a lifeline for tourism businesses, particularly in the South West as people from Perth will be able to head south.

“We really encourage Western Australians to get out there and support tourism businesses from next week when the first regional travel restrictions lift ,” he said, adding that lot of businesses would need Perth visitors to make it viable to open due to the four-square metre per person rule.

“We recognise that the State Government has put WA’s economic recovery ahead of other States by allowing gatherings of up to 20 people, rather than the 10-person limit in other states,” he said.

Photo by City of Gold Coast on Unsplash

June 2020 | ResortNews

“We are delighted that it is expected there will be a real opening up of travel across WA from mid-June. This means tourism operators in the North INDUSTRY

West could salvage some of their peak season with the support of Western Australians.

“Tourism Council WA wants to work with the State and Federal Governments on safe and sustainable ways of allowing travel to sensitive areas such as the Kimberley and Goldfields from mid-June.”

The Holiday in WA campaign will also focus hard on encouraging people to book directly with local tourism businesses, rather than through online booking platforms which are mostly owned by large, overseas-based corporations, and charge up to 25 percent commission.

“When you holiday in WA, don’t let your money take a trip overseas,” Mr Hall said. “Each year, Western Australians are paying $13 million in overseas commissions to book locally based tourism product, costing WA tourism around 150 jobs.

“We’d like to ask people to consider making the conscious decision to book directly with tourism operators, ensuring their money stays in the local communities they are visiting.”

Mr Hall said it was expected there would be high demand for holiday bookings, particularly for the July school holidays and winter getaways to the north of WA. “Make a plan and start booking now – every booking you make with a tourism operator will give them confidence to restart their business,” he said.

The campaign website is a non-profit, local website showcasing local tourism businesses. On the website, Western Australians can find local accommodation, tours and experiences, compare travellers’ ratings and book direct with tourism businesses, avoiding overseas commissions.

07

ARAMA REPORT

Forecasting for a COVID-free future Following a period of significant downturn, it would be an understatement to say that the management rights industry has a big challenge on its hands.

Operators are busy getting their tax affairs in order and forecasting and planning for the year ahead and, this year, business strategies must incorporate a business-wide response to COVID-19.

Operators have been forced to be inventive. We have always been best placed to deliver excellence, and we are building on that reputation every day in this current environment.

Over the past two months, ARAMA has been at the forefront of developing the measures accommodation providers need to implement in order to ensure staff, guests and tenants are safe when they reopen.

As you begin your road to recovery, it is likely there will be many moving parts and I encourage you to remain engaged with your industry peers to share progress and insights along the way.

Trevor Rawnsley, CEO, ARAMA

As leaders in the accommodation sector we are also looking beyond compliance and viewing the management rights offering through a different lens.

whole new meaning and we need to be ready to exceed expectation when tourism is back in full swing.

We know that customer expectation has changed, and possibly forever. There will be those who forget COVID-19 existed, but those who remain completely conscious of hygiene and need constant reassurance.

Recent events have given customer experience a

Presentation and first impressions are absolutely critical and leading operators are already designing contactfree environments where guests can pre-pay for their stay and check in seamlessly.

It’s a shift away from the warning signs and wafts of disinfectant and to a professional customer experience where, from the moment they pull into the driveway and arrive at reception, guests feel warmth and reassurance that they have made the right choice.

We have always represented management rights as the most effective method of serving the interests of unit owners, bodies corporate, tourists and tenants – and operators are setting new benchmarks in customer experience.

Away from compliance and customer experience, leading operators are also being creative with their stock and

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

how they sell it to kick-start their recovery with generous promotions to loyal guests.

It has been reported that online travel agents (OTAs) are under growing pressure to relook at fees with accommodation providers and as a sector we need to be united at owning our customers and recalibrating some of these relationships.

As you begin your road to recovery, it is likely there will be many moving parts and I encourage you to remain engaged with your industry peers to share progress and insights along the way. It is a strange time, but this type of support which is unique to our industry is truly invaluable.

ARAMA continues to facilitate our weekly Q&A webinar discussion for members and I am pleased to report that this initiative has reached more than 1800 members over the past nine weeks. I hope to see many more of you soon with questions, ideas or concerns.

QLD - NSW - VIC - WA

For membership enquiries:

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

08

INDUSTRY

ResortNews | June 2020

SCA REPORT

Improving owner protections…

The economic impact of COVID-19 has touched us all, but some members of the Australian public have been significantly harder hit than others.

The JobKeeper stimulus package appears to be keeping people employed, but the unemployment rate still rose considerably in March and April despite the best efforts to wrap the economy in cotton wool. Many apartment owners, whether they are occupiers or investors, are now in financial difficulty and the thought of paying maintenance fees for amenities that they cannot afford and cannot use in the usual capacity is increasing already high stress levels.

Body Corporate levies are an emotive issue at the best of times as often there is a misconception about what they are for. Some owners are able or willing to pay extra for maintenance or improvements and to ensure a healthy sinking fund, whereas others want or are only able to afford the bare minimum. It is a tough balance to strike for strata schemes and, as everyone’s financial situation is different, the setting of levies is almost certain to cause debate, especially during these uncertain times.

Recent media reports have suggested a misunderstanding between who sets and who collects levy contributions, misunderstanding the advisory role a body corporate manager has. Some lot owners believe

June 2020 | ResortNews

Many people are selflessly working for the betterment of the whole James Nickless, President, SCA, Qld

that the body corporate manager is a carte blanche decision-maker, while others are blaming their committees for not cancelling levies. With this sort of confusion out there it is no wonder that Bodies Corporate are uncertain of the best course of action.

SCA (Qld) has been hearing anecdotal evidence of lot owners struggling to pay levies, requesting delays, and even some committees attempting to slash or waive the quarterly fees altogether. I understand the difficulties being faced by some and there are ways for committees to help those in need, but I urge bodies corporate to find a way to continue paying strata levies during this period as essential maintenance on buildings has to continue despite the pandemic.

Cancelling planned works will have a severe and costly impact on the workflow and budgets of strata ecosystems.

Lot owners must keep in mind that the value of their property relies on how it is maintained.

Even if common property facilities are closed or significantly less used due to the COVID-19 government restrictions, bodies corporate cannot simply stop the upkeep.

There are fixed maintenance and management costs for these areas and there is an obligation to ensure common property is in a safe condition. Many bodies corporate entered into long-term maintenance and service agreements prior to the COVID-19 crisis that requires them to pay a fixed amount each month for a caretaker or service provider to look after all common property. This includes areas that are not restricted from use, like foyers, lifts, gardens and grounds.

However, while we are urging for the continued payment of levies if possible, it is important to note that there are some actions that body corporate committees can take to help those who are suffering financial distress. Ordinarily, if lot owners do not pay levies, they may lose discounts given to those who make timely payments and become liable to pay penalty

INDUSTRY

interest. The committee is able to waive this penalty interest, reinstate lost discounts, and agree to payment plans on a case by case basis. This is a very regulated matter and committees must follow the legislation and make decisions in accordance with the Body Corporate and Community Management Act and related regulations; meaning only the collective of owners can change levies by way of a general meeting. Neither the committee nor the body corporate manager are empowered to adjust levy contributions.

This pandemic has already seen many sections of the community coming together and selflessly working for the betterment of the whole. SCA (Qld) is encouraging unit owners and committees to behave as the community that they are and reach an agreement with those who are suffering from the economic effects of the current crisis and to make decisions that best suit the interests of the entire strata community while also ensuring the body corporate’s legal and financial obligations are met.

09

STATE REPORT

Don't get caught in the crossfire!

New NSW short term letting by law legislation commenced on 10/04/2020.

Owners corporations can now adopt bylaws that prohibit short-term rental accommodation in strata schemes

Commencement date The NSW ‘Airbnb’ legislation has been in the pipeline since 2017. It was due to commence mid-April 2020. However, with the coronavirus now monopolising the government's attention, introduction of the legislation has been deferred until later in the year.

For some unknown reason, however, the NSW government has made one key exception to this deferred start date. From April 10, owners corporations are now able to pass bylaws that prohibit short-term letting in strata schemes, but only in lots that are not the principal place of residence of the hosts.

Background The legislation was always intended to be a three-prong attack to control Airbnb-type letting in residential complexes:

Changes to town planning laws A state-wide planning instrument will be introduced to overcome inconsistent existing local town planning laws around the state. These planning laws were designed to distinguish between ‘hosted’ and ‘non-hosted’ short term residential accommodation.

‘Hosted’ accommodation will be exempt from usual town planning requirements (i.e. owners will not be required to obtain specific development approval from council to carry on short-term letting) provided that it is from residential accommodation and the number of persons residing in any dwelling at any one time does not exceed the lesser of two persons for each bedroom or 12 persons in total. A current fire safety certificate is also required.

‘Hosted’ accommodation can be used for short term rental

10

Col Myers, Small Myers Hughes

365 days per calendar year.

‘Non-hosted’ short-term rental accommodation can be limited at the discretion of each local council, provided it is not less than 180 days a year. For example, Sydney and Ballina have limited their non-hosted short-term rental accommodation to a maximum of 180 days a year.

From a Management Rights operator's point of view, the important issue to note is that tourist and visitor accommodation (which definition now includes management rights operators after vigorous representations made by ARAMA) are specifically exempted from these ‘hosted’ and ‘non-hosted’ planning laws.

Code of conduct A mandatory code of conduct will apply to all relevant Airbnb style short term rental accommodation. This code, when introduced, will address the impact of noise levels, disruptive guests, and the effects of these guests on shared strata amenities. There will also be a new dispute resolution process to resolve complaints and this will be policed by the Department of Fair Trading.

Bylaws Since April 10, owners corporations can adopt by laws that prohibit short-term rental accommodation in strata schemes - but only where a lot is not the host's principal place of residence. This means if someone lives in a strata

property as their principal place of residence, they will still be able to rent out rooms while they live there or are temporarily away from home.

Importantly, any such by law will need to be adopted by an owners corporation at a general meeting by way of a special resolution. This type of resolution requires a vote based on unit entitlement (and not one unit = one vote), with no more than 25 percent of the votes cast against it. The bylaw must then be registered to give it legal effect Residential tenancy laws have also been changed to clarify that from April 10, short-term rental accommodation arrangements of three months or less are not agreements covered by the residential tenancy framework.

Key issues for the Management Rights industry in NSW: Many owners corporations would love to pass a bylaw prohibiting short-term letting as they are sick to death of what they see as the detrimental social impact that Airbnb-type letting has in their complexes.

Management rights operators, however, need to be very vigilant to ensure that they are not caught in the crossfire of these Airbnb reforms!

It is clear that these types of bylaws are directed at the Airbnb style letting and not at a typical management rights operator who conducts holiday or serviced apartment letting at

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appropriately zoned complexes.

However, if an owners corporation passes such a bylaw, management rights operators who short-term let are in trouble, even though they may have conducted this type of letting for the past 20 years and even though their town planning DA allows short-term letting to operate at the complex!

What do you need to do?

The voting threshold is high effectively a 75 percent majority (based on unit entitlement) is required to pass the bylaw.

Remember, unit entitlement is based on the value of each unit at the time the plan was registered. Larger units have higher unit entitlement.

Rally up proxies from your investment owners?

There are limits on the total number of proxies held by one person: •

one proxy vote only for schemes with 20 lots or less, or

•

schemes with more than 20 lots, a number that is equal to no more than five percent of the total number of lots.

However, a proxy cannot be used by a building manager or an onsite residential property manager for a financial or material benefit.

Material benefits include: •

extending their term of appointment; ResortNews | June 2020

•

increasing their remuneration;

Pre-meeting electronic voting

•

deciding not to pursue, or to delay, legal proceedings involving the proxy holder.

about. Timing is everything!

It could be argued that a building manager is prohibited from holding proxies to vote against a bylaw prohibiting short term letting in a complex as it provides the manager with a ‘material benefit’. However, there is nothing to stop other investment owners holding proxies (subject to the above limitation on numbers).

is something to be very careful Make sure you lobby your owners before the electronic vote becomes available. A general meeting can be called by a strata committee and held within 7-10 days in NSW!

DON’T TRUST YOUR GUESTS’ SLEEP TO JUST ANYONE.

What to do next As always, it is important that you keep open good lines of

TRUST OVER 120 YEARS OF EXPERTISE.

communication with your strata committee members and your strata manager. If you

Also, remember a proxy is worth nothing if the owner is not 100 percent paid up with their OC levies!

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conduct short-term letting in your complex and there is talk about your owners corporation trying to prohibit Airbnb-style

Beware electronic voting

letting by use of such a bylaw,

An owners corporation can now vote on matters by:

with the drafting of the bylaw

•

teleconference, videoconferencing, email or other electronic devices; or

•

pre-meeting electronic voting (this is a vote by email or other electronic means before the meeting).

Expert advice

get your lawyer involved to assist

Customised solutions

so that it exempts a manager that has a letting agreement with the owners corporation.

Short lead times

Do not become collateral damage!

Disclaimer: This article is provided for information purposes only and should not be regarded as legal advice.

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June 2020 | ResortNews

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11

BCCM REPORT

FAQs: Renting in a body corp Do tenants have the same rights as the owners in a body corporate and what are they?

These are common questions of both tenants and owners to the commissioner’s office. Below are some common enquiries to help you understand your obligations. Keep in mind that obligations and rights of tenants and landlords also fall under the Residential Tenancies Authority, you can contact them by visiting their website. The below information is in relation only to the Body Corporate and Community Management Act 1997 (the BCCM Act) and its regulation modules.

Q1. Do the bylaws in our scheme apply to both tenants and owners?

Yes, both tenants (occupiers, as they are known under body corporate legislation) and owners must abide by the body corporate’s bylaws.

Q2. I am a tenant in a body corporate, my neighbour has loud parties all the time which are becoming a nuisance. I

12

Michelle Scott Commissioner, Body Corporate & Community Management

know there is a bylaw about nuisance, what can I do?

As an occupier of a lot, you can take steps to ask the body corporate to enforce the bylaws.

You can complete a BCCM Form 1 and give it to your body corporate committee asking them to enforce the bylaws.

Refer to Practice Direction 6 for more information about bylaw enforcement applications.

Q3. I am a landlord and have given approval to my prospective tenant to have a pet, but the body corporate has said no. They are good tenants and I don’t want to lose them, what can I do?

If the bylaws for the scheme

allow a pet on approval and your body corporate has said no to the pet application, you should first attempt self-resolution to resolve the dispute. You should go back to the committee and ask why it rejected the application.

The committee may provide reasons which your tenant could accommodate. If self-resolution is not successful, you can make a dispute resolution application to our office, listing the tenant as an affected person, if you think the decision is unreasonable.

When renting a lot in a body corporate, tenants need to be mindful that they need both the landlord AND the body corporate’s approval.

Q4. I am a tenant and I want to install lattice inside my balcony. The owner said that I can, do I need approval of the body corporate?

The body corporate may have a bylaw about changing the appearance of your lot. You should check the bylaws for your scheme to see if you need approval. If you do, then write to the committee seeking the approval.

INDUSTRY

If the committee says no you can ask it for reasons.

If self-resolution is not successful, you can make a dispute resolution application to our office if you think the decision is unreasonable.

Q5. I am a tenant and have been given a contravention notice by the body corporate, what happens next?

The body corporate can issue you with a contravention notice if it reasonably believes that you have breached a body corporate bylaw. If you have been given a continuing contravention notice (BCCM Form 10) then you should cease contravening the bylaw within the timeframe provided on the notice. If you have been given a future contravention notice, then you should not repeat the contravention within the notice period – three months or a lesser time provided in the notice. If you do not comply with the notice, the body corporate may make a dispute resolution application with our office or start proceedings with the Magistrates Court to enforce the notice.

If you do not believe that you have been breaching the bylaw,

ResortNews | June 2020

you could respond to the body corporate advising your reasons why you do not believe you are contravening the bylaw.

maintain the common property in good condition. You can write to the body corporate and ask it to fix the gate. As an occupier you are not able to submit a motion to be considered by the body corporate, however the owner – your landlord – can. If the committee does not respond to your request you could try to get the owner to put forward a motion.

Q6. I am a tenant, the body corporate says they can enter my lot. I thought only the landlord’s property manager could enter the lot, is this correct?

No, the body corporate is authorised to enter the lot under section 163 of the BCCM Act. However it can only enter for the purpose of inspecting the lot to find out whether work the body corporate is authorised or required to carry out is necessary, or to carry out that work. It must give you seven days’ written notice, unless it is in an emergency. If you are given a notice under section 163 you must not obstruct the authorised person from entering the lot, otherwise penalties can apply.

If these options fail, you may be able to lodge a dispute resolution application with our office.

Q8. I am an owner/occupier in a body corporate, there is a tenant that lives next door to me who parks their car in a visitor car space. The committee says they have contacted the property manager and they cannot do anything more.

Is this correct, surely the committee can take action?

If an occupier is parking their car in a regulated parking area, this is likely a breach of your scheme’s bylaws. The body corporate is responsible under the BCCM Act for enforcing its bylaws not the landlord’s property manager. You should give a BCCM Form 1 to your body corporate asking that

Q7. I am a tenant in a body corporate, there is a gate leading to the mailboxes that has been broken for months. The body corporate has not done anything about it, what can I do?

The body corporate must

it issue a contravention notice to the tenant. If it does not respond to you within 14 days advising that it has issued a contravention notice, or it advises that they will not be issuing a notice, you may be able to lodge a dispute resolution application with our office. Refer to Practice Direction 6 for more information about bylaw enforcement applications.

You may need to ask for a copy of the body corporate roll to find out the name of the tenant. More information about accessing body corporate records can be found on our website.

Q9. I am a tenant, the body corporate refuses to communicate with me. They say that I can only contact them through my landlord or property manager/ letting agent, is this true?

No, there is no reason why you cannot have direct contact with the body corporate committee.

Ask your letting agent for the contact details of the body corporate manager if there is one. Or if you already have the details of the committee, talk or write directly to it. There is

nothing in the body corporate legislation that prohibits this.

Q10. Can our body corporate restrict tenants from using certain parts of the common property by putting in a new bylaw? We as owners think we should have more rights!

No, a bylaw cannot discriminate between types of occupiers (see BCCM Act, section 180).

Q11. I am an owner/landlord and I have been asked to breach my tenants because they are not complying with the bylaws. Is this correct, I thought the body corporate enforced the bylaws?

It is the body corporate’s responsibility to enforce the bylaws. The BCCM Act does not obligate you to do so. The body corporate can issue your tenant with a contravention notice. If it does, it must also give you a copy of the notice.

For this reason, it is important that you update the body corporate roll if you have tenants with a lease of six months or more. This is a requirement under section 193 of the Standard Module.

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INDUSTRY

13

PERSON OF INTEREST

John Punch:

A conversation with one of MR’s founding fathers

14

INDUSTRY

ResortNews | June 2020

but his legacy is woven into the fabric of this vital sector.

By Mandy Clarke, Editor

John Punch is an impressive man. Besides being a much-loved husband, father of two and grandfather, he is also a highly respected Gold Coast solicitor many would consider one of the Management Rights industry’s founding fathers.

Working alongside David Allen and others, John had a strong hand in developing the Management Rights legislation.

He says: “It took six years of hard work and many meetings with the state and federal governments to finally get the 97-legislation sorted. But, the work didn’t stop there.

“Our Management Rights legislation has constantly been under attack from those who seek to destroy it and we continue the fight to ensure it remains strong for owners and managers and the needs of financiers are also protected.”

John has dedicated much of his life to Gold Coast tourism and is a well-known figure to many of us here in Queensland.

In person, John is friendly, quietly spoken and, in his own words, very talkative. He still lives on the Gold Coast acreage he purchased with his wife, Renee, back in the 70s and works in the same Surfers Paradise office he and his partners built more than 30 years ago now. His daily routine boasts an enviable combination of predictability and bustle.

“I tried to enjoy working from home during this pandemic,” he admits, “but I prefer to go to work at the main office. When I am home, I like to be able to relax and enjoy spending weekends in our garden maintaining the wonderful oasis we have created for our family.”

John and Renee love to travel. In the early days of their marriage, they took a three-month sabbatical and travelled around Europe. The trip cemented a deep appreciation for tourism and they have since been to Asia, USA and UK but Italy retains the top spot in as their special place. John says: “There is nothing like travel to open your mind, we have gained so much from our experiences in different countries and cultures.”

They have two grown children: daughter, Simone who is an audiologist based in Sydney and son, Daniel who works as a property developer in Melbourne. Six-year-old granddaughter Amalia brings them more joy and life lessons as they eagerly await the arrival of another grand-baby.

In his downtime, John is a reader of crime fiction and thrillers: his favourite authors are Australian crime writer Chris Hammer and the legendary British thriller June 2020 | ResortNews

From its inception, the Management Rights industry has weathered many storms.

However, it is because of the strong legal foundation upon which it is built that it is able to come back stronger time and time again. This is an industry that supports ‘mum and dad’ operations up and down the state and has a unique Aussie history worth protecting.

writer, John le Carré. A big fan of a good British crime drama, John also enjoys classical music but admits he has a penchant for “a bit of rock” Rod Stewart and Sting thrown into the mix. Which style of music makes its way into the office?

Surely, a grand mix of both.

entrepreneurial opportunities that John and his peers, were eager to seize up. This early rush to build something special in the then-burgeoning Gold Coast City, built Management Rights as we know it today.

John tells me about his adventurous British ex-pat parents. They were builders who moved around Australia with him and his seven siblings!

With them, he shares a deep admiration for his mother. He says she taught him to “always be optimistic and to be as helpful to everyone as he can be”. This is something he tries to live by and instil in his family.

Proud of his input to the development of such a unique, powerful industry John humbly describes the creation of Managements Rights as “born out of necessity”. He was there at the beginning and remembers when the Gold Coast was going through its “high rise phase”, when developers and apartment owners recognised the need for some sort of regulated management of short-term lettings.

Born in a picture perfect quaint English village, John was raised in Melbourne and moved to the Gold Coast in 1961. This was an exciting era in which to arrive in the raw South Coast town that was only recently named Gold Coast City, after a post-war period of rapid growth in both population and tourist activity. The fast-developing resorts in those early days offered real estate, tourism and

Around this time, the pioneering and passionate, lieutenantcolonel David Allen arrived in Surfers Paradise and a radical new concept - Management Rights - was conceived. Dave Allen Real Estate at Chevron Island became a specialist agency for Management Rights and his passion for the industry saw him serve on the REIQ at local and state level. He sadly died in 2013

INDUSTRY

John studied law at University of Queensland and has practiced as a solicitor since 1969. Most of you will know him as a founding partner of Gold Coast law firm, Short Punch and Greatorix. As a founding director of Gold Coast Tourism Ltd, now operating as Destination Gold Coast, John served as a member of its board since its formation in 1975 and is currently the honorary secretary. In 1997 he was honoured to be awarded the OAM (Order of Australia Medal) for contributions to tourism, commerce, and charity.

Like a proud father, John describes this resilient industry: “Management Rights has weathered many legal attacks and a few recessions, but it has always bounced back, and I am confident it will also weather Covid-19. The signs of recovery are now apparent.

Those of us who are passionate about this industry have always worked as a team, alongside ARAMA we always share the load and support each other.”

“One thing is for sure,” he jests: “This industry always keeps us on our toes!”

15

THINKING MR

Stay positive…

It will all be over soon!

I have been writing these articles for many years now and, inevitably, one runs out of interesting things to say.

Most months, I build a mental picture of what I am going to write about, procrastinate until the deadline date and then frantically try to render what is in my head comprehensible.

I often find it difficult to find things to write about, hence the sometimes-rambling social commentary and hopefully amusing anecdotes.

BY ALL ACCOUNTS

In fact, the only time it is easy to come up with content is when something extraordinary happens. Something like a global financial crisis, a surprise election outcome, or a pandemic. In recent times, the GFC has been the reference point for the mother of all meltdowns but, sadly, I suspect we have a new contender on the

In the case of management rights, the benefits of a monthly caretaking salary are obvious and a certain confirmation of MRs as a lower risk operating model Mike Phipps, Director, Mike Phipps Finance

doorstep. I have tried to think of a positive spin for what comes next, but I simply do not have one. I guess our coordinated response, banking industry, government support, and likely long-term economic survival are positive touchpoints on an otherwise bleak situation.

To get some sense of the scale of our new benchmark, look no further than the raw statistics.

The economic response to the

GFC in Australia was government stimulus of about $50 billion. So far, the government response to Covid-19 is $320 billion in fiscal and balance sheet support.

Our previously expected 20-21 budget surplus of $6.1 billion is now projected to be a deficit of $24.8 billion, a $30.1 billion swing. The negative impact on GDP is estimated at 10 percent, best case scenario. Our Prime Minister quite rightly lamented the loss of 600,000 jobs in April

alone. Unemployment rose to 5.2 percent in March and increased to 6.2 percent in April.

Some analysts were expecting April unemployment to hit eight percent or higher, so that is a glimmer of good news in this sea of woe. It is also worth noting that unemployment numbers include those who are seeking work. Participation rates have tanked since the crisis started unfolding and as such give the statistics a more negative aspect.

COVID-19 has decimated my business income, why bother?

The initial government COVID-19 stimulus package included the Employer PAYGW Stimulus Boost payments to businesses reporting wages on lodgement of their March and June BAS’.

The boost income is non-assessable income; no tax is payable by the businesses receiving this support, and all related wage costs are still tax-deductible expenses as usual.

16

deferral on tax liabilities.

Lel Parnis, Partner, Holmans Accounting

At the same time, the ATO announced various concessions including low interest rate payment arrangements, four-month interest-free payment

Further still, the ATO allowed taxpayers to vary Pay As You Go Instalment (PAYGI) amounts to Nil – and to claim a refund of any PAYGI paid for the first two quarters of the 2020 financial year. There was the proviso that taxpayers varying and/or claiming PAYGI refunds did so in line with their estimated tax bill. At the time of announcing the concession, there was no other relief nor certainty as to business income in sight.

This means, we are fast approaching the end of the 2020 financial year with many taxpayers having significantly less tax ‘already paid’ along the

MANAGEMENT

way than they may usually have – better in your pocket than as a credit with the ATO. But bear in mind that the tax ordinarily paid throughout the year as PAYGI serves as a reduction of your tax bill on preparation of your tax returns. If you have no tax paid along the way, the final tax payable on lodgement of your 2020 tax returns could be higher than you expect even despite the year you have had.

Better the devil you know.

COVID-19 support income The Australian government will provide $130 billion in JobKeeper payments to ResortNews | June 2020

The cost to the big four banks (and their shareholders) of supporting consumers, borrowers and businesses is expected to hit $10 billion this year and $35 billion over three years. Bad debt provisions may well exceed expectations and I think there is a real possibility that banks will postpone dividend payments as they work to sure up their capital positions. With 98 percent of all Australian businesses with bank loans now taking some form of relief from their bank and deferred payments on 430,000 mortgages worth $153 billion, it’s easy to see that we have a potential ticking time bomb on our hands. Add the additional repayments business will need to make to repay Covid-19 assistance loans and the picture looks potentially grim. Throw in a stoush with our largest trading partner and maybe we need to retitle this article, ‘Hold Tight, This Might Sting a Bit’.

The challenge is we are currently in a Jobkeeper (six million workers) and loan repayment holiday ($211 billion in total) bubble and that bubble simply must burst in the near future.

At this stage, it will be the end of September. As such, most analysts are taking a stab in the

eligible employers in response to the COVID-19 pandemic.

The QLD state government just announced a $100 million package to assist affected small businesses. It followed NSW and Victoria’s lead in offering grants up to $10,000 per business”.

“The Australian and state government funding announcements, which affected businesses are starting to see show up in their bank accounts, is significant – unquestionably so”.

Aside from the PAYGW Stimulus Boost payments, all the COVID-19 support payments are assessable income.

Businesses will be liable to pay tax on their income for the year and if this crisis has highlighted anything it is the importance of cash flow management.

June 2020 | ResortNews

dark as to the likely economic impact once government stimulus measures start to be wound back. Most bank analysis seems to point to expectations of a relatively rapid recovery while the broader investment advisor community are expecting higher bad debt provisions, lower dividends, and a slower recovery.

Anyway, that is the situation we find ourselves in and I am guessing that until a vaccine is available, life (and business) will not return to ‘normal’. In fact, I suspect the old normal we used to know is gone forever.

I expect some businesses will use the forced work from home dynamic to review how they operate and potentially adopt that model long-term.

As a result, we may well see commercial office vacancy rates rise as business owners realise, they don’t need that expensive CBD space to conduct business.

Many in the retail sector had this worked out long before Covid-19 and had abandoned high visibility and high cost locations for a move to bulky goods warehouses and online trade. Surely, office jobs will follow; just from home, rather than a big shed.

In the accommodation sector, the permanent management

Tax planning Now that we have some clarity as to the easing of restrictions and a reasonable basis for forecasting bookings and costs to the end of June, it’s possible to estimate tax liabilities for the year ending June 30, 2020, and factor the outgoings into your cash flow planning moving forward.

rights Armageddon of rental arrears, vacancies and falling rents seems yet to manifest itself outside of some innercity accommodation. Certainly, buildings catering to overseas students will have seen an impact but in the ‘burbs all seems relatively calm. Early days but so far so good. The real impact on permanent management rights and tenant driven investment more broadly will only be known once all the economic support mechanisms and eviction embargos are behind us.

Of course, with travel restrictions, holiday and short stay rights, motels and caravan parks have been ghost towns.

In the case of management rights, the benefits of a monthly caretaking salary are obvious and a certain confirmation of MRs as a lower risk operating model.

There has been much discussion around the sale of management rights once the immediate crisis has passed. Clearly a model where the business is sold on a one-year historical P&L will be found wanting, particularly for holiday and short-stay.

I think we find ourselves at a unique crossroads in the history of management rights with a once in a generation

how you are paying workers yourselves as business operators. The government support during this period has been weighted in favour of employers and employees.

Reassess your business structure

If you are currently engaging individual contractors for labour, review the arrangements – it may be that technically they should be employees and you are at risk should you be subject to an employer obligation audit, which can be costly. Where legitimate contractors are engaged, consider whether that remains the best option for your business or whether employing individuals or using a labour hire firm would provide better security and control over your workforce.

Ahead of the new financial year take the time to consider your business structure and

How is your business income assessed in your personal tax returns – trust

While there may be limited strategies for tax minimisation in this climate (with many requiring acquiring assets or contributions toward superannuation), if you do not review your position prior to June 30, any potential for minimising your tax bill is lost.

MANAGEMENT

opportunity to move to a much more sophisticated sale and financial verification model.

That is, a model that does not expose the industry to negative asset value impacts driven by single trading period events. A model that looks more closely at sustainable net profit and as a result a model with the potential to underpin higher valuations for these assets.

And most importantly, a model that banks in the post Covid-19 environment will find appealing and acceptable from a risk perspective.

I will leave you with this prediction: The accommodation sector will survive and prosper.

People need somewhere to live and we all like a holiday.

P.S. A lot of people have asked me if taking a loan repayment holiday will impact their credit rating. The answer is ‘no’. The Australian Prudential Regulatory Authority (APRA) has stated that bank assistance provided as a result of financial stress brought about by the Covid-19 crisis does not constitute a loan default. Be aware, however, that at this stage missing repayments once the repayment holiday ends will trigger a default.

distributions? Dividends? In terms of managing ongoing tax obligations, saving for retirement by way of regular super contributions there is certainly merit to considering a shift – at least in part – to paying business operators a wage whereby the business is responsible for paying tax and super along the way as with other employees.

Further, there may be additional PAYGW Stimulus Boost credits receivable should such changes be made prior to June 30, provided any restructuring is not made for the sole nor dominant purposes of accessing the boost.

Take the time now to review your business and potential tax liabilities. Contact your accountant for any assistance required, without delay, before June 30.

17

LEGAL EASE

A couple of observations and concerns

Photo by Agence Olloweb on Unsplash

be put into effect by the Body Corporate. Some decisions are more important and may need a resolution without dissent or a special resolution, and that is understood as a practical legal need, to cater to situations that might arise (particularly in regard to the use of, or change to, the common property).

Once lawfully made, they are binding and put into effect.

For those who know me, Management Rights is virtually part of my DNA! I have certainly maintained a very strong interest in the legalities and in the running of Management Rights, particularly in Queensland, ever since the mid-1970s, when the industry was just getting started on and from the Gold Coast.

John Punch, Consistent with this, is a concern I have: I take action when I notice that matters in regard to Management Rights maybe undergoing an unplanned or intrusive and unbalanced change.

I mention this because recently there are two disturbing trends that I feel need to be opened, understood and, where necessary, corrected.

Firstly, the whole underlying principle of regulating Body Corporates to represent lot owners fully and correctly, is based on ‘majority rule’, through voting of owners at General

18

Short, Punch & Greatorix

Meetings, as contained in the Body Corporate and Community Management Act and Modules of Regulation. Each Community Title Scheme has a listing of the proportion of the vote that each lot owner will have (“Interest Lot Entitlements”) on any issues that require a decision of a Body Corporate, as an independent entity. As a democratic principle, and as a means of protecting the capital investment made by lot owners with certainty, once the majority of voting owners has decided an issue, it must

This has worked very well, even though some minority interests may feel adversely impacted at being overruled by a majority decision. However, that is the essence of community living and community investment in the scheme.

The Act specifically denies the application of Corporations Law, being the legalities that cover companies and the shareholders, separately to the property law situation of Body Corporates. That is because under Corporations Law, a large area of concern is for the protection of minority shareholder groups,

MANAGEMENT

and this protection is builtin. An aggrieved minority shareholder can apply to a court to change the path of the company if disadvantaged.

I mention all of this, and the differences, because recently I have observed some signs that the position of protecting minority groups of lot owners, may be finding favour in the commissioner’s office and other spheres of tribunal or court action, particularly because I have seen that some lawyers have been arguing for it to apply to a Body Corporate in matters with the Commissioner.

There is a principle, in corporations law, known as “fraud on a minority”, which does not in fact relate to a fraudulent act. It relies on an idea that it is a type of fraud, or bad act, for a majority owner (or a majority group of owners) to do something which adversely impacts on a minority of owners.

This principle comes into play for companies, but does not fit the Body Corporate scene, ResortNews | June 2020

where people invest in the real estate of the scheme, needing the certainty of a fixed decision, lawfully made by a majority vote on a resolution.

In Management Rights, large amounts of money are invested by onsite Managers to acquire the Body Corporate Agreements and goodwill of the business that goes with them. Reliance on the certainty of a lawfully made decision is an essential to this. The laws relating to them have a high level of consumer protection included in them.

You can imagine the financial chaos if it was decided at a later time in a Body Corporate, that a lawfully made decision was able to be overturned by an Order of the Commissioner, because it was complained of by a minority of owners, as disadvantaging them!

Knowing that the commissioner has been confronted with the argument that the use of “a fraud on the minority” concept should be activated to overturn a previously made lawful decision of the Body Corporate, leads me to alert the business and Body Corporate community to the harm that this could do, if not immediately checked.

While it is not being utilised in a Management Rights matter, in the case I am speaking of, if a decision is made it can be applied in any other area of Body Corporate decision-making.

The second item that concerns me, from what I see going on in the world of Body Corporates, is an attitude of particular solicitors and Body Corporate managers, who seem to work on the basis that operators of Management Rights are vulnerable to be attacked or handled in a harmful and adversarial manner.

They seem to work to require that onsite managers must meet their demands and costs, simply to go about the managers’ business of operating, buying or selling their Management Rights.

This is a complex area, but it is a scene that has developed in recent years, where large amounts of money are extracted from operators of Management Rights, or their proposed assignees, in the process of a Body Corporate approving of an Assignee of June 2020 | ResortNews

the agreements or considering variations to their agreements to cover items such as changes needed to correct the Gallery Vie issue or lawful options for extensions of the term.

They work under the threat of delaying or not approving the assignee on assignment consents or the agreement variations proposed, unless certain paths are followed, and documents changed. While the law states the requirement for an assignment consent is to be a decision of the committee, based simply on the committee’s assessment of the assignee, we are finding extensive requirements being imposed through the intrusion of lawyers, Body Corporate managers and other ‘experts’.

Especially for motions to extend the term, they set up arguments against the motion or seek to vary the motion, where often the material spouted by them is pseudo financial advice with no relevance to legalities.

I have seen one instance of a firm of lawyers, firstly demand that the manager meet their costs of reviewing a proposed motion, and then using the manager’s obligation to pay to produce a letter, giving a one sided attack on extensions as adding additional future costs to owners (no issue with any legalities), without ever mentioning the benefits from the caretaking work being performed!

In most cases, the lot owners do not know what is being done in their name and do not get any real benefit from what is required, particularly in the consent to assignment process.

This is an area where the Management Rights industry must be vigilant and bring about a fair and reasonable system.

Hopefully, the people guiding Body Corporate managers and guiding their recommendation of lawyers, along with those making the laws in Queensland, will realise the need for fairness and better protection of all concerned, in these areas, for a beneficial ‘community of interest’ result. I feel that it is high time that the managers operating Management Rights were given greater credit for their covering a real need in schemes!

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The next time you need to use a new supplier, why not make life easier and use a Preferred Supplier.

To find a Preferred Supplier see the directory in the back of this issue

MANAGEMENT

(07) 5440 5322 19

MOTEL MARKET

Motel leases: What is the outlook? the system since it really gained traction in the early to mid-90s. Some of these have been through improved ideas, processes, and systems from those working within, however others have been forced changes, generally because of events outside the industry’s control. Again, the same applies to many others not just accommodation.

Motel leases can be looked at in some ways as a mix of commercial, retail, and residential leases all built into one all ‘accommodating’ document.

The challenges within the accommodation industry over recent months cannot be understated, and the same goes for many other industries also.

The Mandatory Code of Conduct in regard to ‘commercial property’ has been useful as a platform to work from, but it was always going to be difficult to fully cover all the many and varied leasing arrangements across all industries, including motels. The basic fundamentals seem to have been able to assist; however, as always,

Andrew Morgan, Queensland Tourism and Hospitality Brokers

if either lessee or lessor does not act reasonably, then no system can work as effectively as it is intended.

This leads on to the fact that the leasing of motels, hotels, caravan parks, etc has seen many changes, challenges, and improvements within

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These forced changes resulting from historical local, state, national and international events both positive and negative all have played their role in shaping and moulding this successful tenure of business ownership. Some recent ones that come to mind are the GFC, the resources sector ups and downs and now a global pandemic.

Having recently been contacted by many people from both within the accommodation industry and outside, many are looking for some sort of direction going forward, particularly in regard to leasing.

Each business and property will have been impacted differently and each will have a different way of moving beyond such a situation.

Negative situations often provide business owners and creative thinkers with different and inventive ways of marketing their businesses to potential new, existing, and former guests, which is already being seen. Although in the minority, there have been some areas that have not been impacted as heavily as others. A few motels here and there with client bases that are largely work-related guests of specific industries have continued on their normal course of trading.

Not all, but some sectors within agriculture, government, medical, communications, civil construction and mining industries have continued to demand accommodation in certain areas of the state.

MANAGEMENT

The extraordinary event that we have experienced is exactly that and needs to be treated accordingly. Looking forward, regarding business’ trading data, future earnings, leasing terms including rents, etc., for all businesses, the past few months will need to be dealt with as an extraordinary event. The period that a region is economically impacted either positively or negatively needs to be considered on a more normalised trading basis as opposed to this abnormal period.

Possible ways to deal with this may be considering the business’ trading and leasing arrangements over the past few years for the impacted period of time and making the appropriate allowance.

In most cases, the affected trading period will need to be discounted altogether as it will have no real relevance to the business’ normal course of trading and future earnings going forward. This is already a common accounting practice for events that impact a business heavily in a negative or positive way.

The ongoing shaping and improvements as time goes on within the accommodation leasing industry allows it to evolve and out of such situations as the present, new and creative ideas and improvements are born.

How to deal with different situations that may not have been planned for in the past are now considered. With the benefit of experience, simple wording changes within new leases or updates/amendments to existing leases ensures the end users (lessee and lessor) have an improved platform to work within.

This continued evolution is why the leasing tenure of ownership has been so successful over the past 30 years.

ResortNews | June 2020

OVER 1000

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

GOOD GOVERNANCE

When do you need a private certifier for common property projects?

Every committee and caretaker should know the answer to this question…

•

If you are a committee member, strata manager, caretaker, facilities manager or project manager – or any person that has influence over building work projects on the common property of your residential strata scheme – you need to know when to involve a private certifier.

NOTE: If combustible cladding is being removed and replaced with Code Mark conforming cladding – regardless of the percentage of material in the project - get the private certifier involved for good orders sake.

If you do not know what building works on the common property require the input of a private certifier, then you need to get advice before embarking on any building work projects.

Assessable building work Private certifiers assist bodies corporate and project managers with the mandatory building approvals and regulatory compliance certification required for building works projects on common property. If a building work project is intended for the property, the first step should be to determine if any aspect of the works qualifies as “assessable building work” under the relevant Planning Act or Building Act. Assessable building work basically includes any works that repair/change/alter/add more

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Lynda Kypriadakis,

Cladding replacement – if more than 20 percent of the cladding is being replaced, then this is deemed to be assessable building work.

Diverse FMX

Other assessable work

than 20 percent of any structural element/s on the property and/ or relate to changing something that was previously approved by the local authority. Common examples of assessable building work in residential strata complexes include:

You may find that your local consent authority may require other permits associated with your building works project. If any of these matters are part of your project, you may need Building Approval or a permit – and a private certifier, such as: -

•

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Materials deposited on roadways or council verge areas [e.g. site bins left on the roadside need a permit]

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Building and construction noise may need a permit

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Soil and erosion control of the site [i.e. not allowing contaminants into the natural waterways]

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Erection of signage

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Driveway crossovers

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Using council car parks on the street for cranage and hoisting

•

•

Roof replacement – if more than 20 percent of the roof is being replaced, then this is deemed to be assessable building work Balustrade replacement – if more than 20 percent of the balustrade is being replaced, then this is deemed to be assessable building work Window replacement – if more than 20 percent of the windows are being replaced, then this is deemed to be assessable building work

MANAGEMENT

•

Demolition projects

•

Changes to car park arrangements in your scheme

•

Changes to fire safety installations [e.g. fire doors]

•

Plumbing or drainage works

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Clearing vegetation or trees in some instances

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Heritage listed buildings – painting, etc.

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Changing the use of an area in the property [e.g. transforming an office into an apartment]

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Changing a dual occupancy unit into two separate sole occupancy units

Insurance repair works can also be assessable building work Just because your insurance company is taking care of the repair work does not necessarily mean that the insurer is taking care of the mandatory building approvals and regulatory compliance requirements. Insurance company representatives are not qualified project managers or private certifiers. It is up to the body corporate to ensure the insurance repair works are completed in ResortNews | June 2020

certification, etc.

accordance with all building codes, local authority town planning requirements and Australian Standards. Check with your private certifier or qualified project manager to confirm that your insurance repair works comply with the Building Act and all other statutory requirements.

A building works contractor is not qualified to process mandatory building approvals, so do not assume the builder is taking care of these things.

You need a project manager or private certifier to get this done.

Building approval process

3.

Lodge the Building Application with the local consent authority

4.

Get building approval from the local consent authority

5.

Complete the approved building works withing the BA permit period

6.

Ensure the awarded contractor is properly qualified for the works (the project manager and private certifier will confirm what mandatory occupational license and qualifications are required)

7.

If the works are deemed to be assessable building works then your project manager will inform you of the process, which essentially flows as follows: 1.

Engage a private certifier

2.

Prepare the building application paperwork, which may require building plans, payment of statutory government levies and involve the engagement of engineers for design

8.

Obtain the regulatory compliance certificates from the awarded contractor once the works are done (the project manager knows what these are) Provide certification and get the private certifier to ‘sign off ’ on the building works when complete

A development approval may also be required – the private certifier will advise accordingly.

What happens if your assessable building works have already been done, but have not been certified and have no building approval?

If you have undertaken assessable building works without the necessary approvals and have failed to obtain the mandatory certification there may be serious ramifications including: •

Voided insurance claims

•

Voided builders warranty claims

•

Voided supplier warranty claims

•

Receipt of ‘show cause’ notice from the local council regarding unapproved building works

•

In extreme cases, a demand to ‘make good’ – or return to original condition - by local council (meaning you have to remove the unapproved building works and reinstate the “old” approved works)

Building owners that have inadvertently undertaken

assessable building works without prior approval can gain retrospective approval provided regulatory compliance can be proven.

Retrospective building approval and certification for assessable building works The first step is to engage a project manager to help with your retrospective approvals process as it requires significant coordination and detailed explanation of complicated documents and certification issues. A private certifier will also be necessary, and possibly engineer(s) to certify any structural aspects of the works.

Retrospective approval is costly and not ideal, often resulting in the need for upgrades to the built works in order to achieve regulatory compliance, but it must be done – and quickly.

As with most things in life, prior preparation and qualified support is key to long-term success – including project management of assessable building works projects.

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MANAGEMENT

23

INTONET

Hydrogen is great! triangulation and is far more accurate than GPS location marking. Venturing too far from their homes triggers the alert system, setting off operator calls and messages sent to the confinee to ascertain their whereabouts. If there is no reply the local constabulary will be at the defaulter’s door within 15 minutes.

“The two most common elements in the universe are Hydrogen and stupidity.”

So said Harlan Ellison the notable American author.

My frustration has been aroused by the public’s ineptitude on the introduction of our CovidSafe app.

Reasons for not installing it vary from, ‘I don't use anything that works through the microphone on my phone’ to ‘I will install it only when things get really bad’.

Just two outstanding examples.

This form of comment is typically due to lack of knowledge, belief in conspiracy theories and/or concern for privacy.

The degree to which these abound is startling but, in reality, abrogate to paranoia.

As we all know, the app relies on Bluetooth which is a radio signal and does not use a microphone.

Waiting until things become bad will be too late as, by that time, the intention of the app will have been rendered useless.

To have a wider understanding of these apprehensions and paranoia I decided to check

24

Arvo Elias, Cybercons

what the rest of the world was doing, which turned out to be quite surprising.

Those who do jump the fence immediately allows authorities to access a huge data base, including ID and credit card data.

This facilitates real-time tracking of the errant to bars, restaurants, popular night spots and the like which he/she may have just left or be currently present at.

According to new analysis by Linklaters, at the time of writing, 28 countries have launched official contact tracing apps as a tool in their attempt to reduce the spread of the virus, with a further 11 countries known to be developing tracing apps. The first country identified as using people tracking is Taiwan.

Anyone caught breaching their quarantine can be fined up to $52,000. As their National Communications Commission, which was involved in setting up the tracking system, put it: “They’ll find you and fine you.”

The monitoring system in Taiwan is described as a ‘digital fence’, where anyone required to undergo home quarantine has their location monitored via cellular signals from their phones. This method relies on

Reuters reports China is using QR technology to determine admission into public places.

Signs displaying Quick Response (QR) codes are displayed at multiple public checkpoints, including office buildings,

MANAGEMENT

shopping centres, bus and train stations, and airports. Users are required to scan the QR code with their phones and wait for their devices to display a colour-coded signal to determine whether they can pass.

A green code allows the user unrestricted movement, while a yellow or orange code requires seven days of quarantine. If the code returned is red, the user is determined to be either a confirmed case of COVID-19 or a close contact and must be placed in isolation. As well as controlling people's movement, the app also has contacttracing mechanisms in place to notify users if they come into contact with infected people.

One of the first countries after China to experience a surge in coronavirus cases, was South Korea. Their government has been deploying a series of sophisticated digital-tracing tools since March. Using mobile phone location data, along with the country's prolific CCTV and credit card transaction records, authorities retrospectively track the movements of people who later test positive.

ResortNews | June 2020

Because the technology uses GPS location data, and phone companies in South Korea require all customers to provide their real names and national government registration numbers, it's effectively impossible to avoid being tracked if you own a smartphone.

The routes taken by people later confirmed as infected are often published online, while an alert, similar to a bushfire or flood alert we might receive in Australia, is pushed to the phones of people who had visited the same locations.

After some users subject to quarantine requirements reportedly flouted tracking systems by simply leaving their phones at home, authorities announced plans to ask repeat offenders to begin wearing tracking wristbands.

To mention a few, countries like Germany, France, Canada and Cambodia have tended to a system similar to ours although some European countries are waiting to see the Google/Apple system, which, like ours, does not retain data for any long periods of time or permits other

So, yes! I am very much in favour of our app because regardless of what medical miracles may be discovered the world will be living with this virus for a very long time. use of the data. Curiously, Spain has nine such apps in use.

In contrast, Hong Kong uses both mobile phone tracking in combination with a wrist band.

The trick here is to have the user, at required intervals, scan his/ her wristband with their phone.

A neat way to validate the user is not cheating the system.

Whereas we have those opposing the app on the basis of trust, or lack of it, in our government, other nations have their governments distrusting their people. Our nay-sayers use the excuse that tracking provides governments of all persuasions their personal data. Yet we have legislated to control the use very strictly, and severely punish the

misuse, of our system. Those of us who use Facebook, Google, LinkedIn, Pinterest, eBay, Amazon, Gumtree, Instagram, Twitter, YouTube, PayPal, and the list goes on, and any other social media platform, not to mention banks, has already supplied all the personal data to create a very detailed profile of themselves.

Precisely why some months ago I wrote about browser add-ons such as Ghostery and Badger.

To be concerned about divulging their name, phone number and post code pales into total inconsequential insignificance since all that, and much, much more of personal information, is already scattered around goodness only knows how many

servers in strange places. Our app has been updated three times at the time of writing with the code available on GitHub to all who care to look. Those who are expert in security coding have inspected our code and given it a clean bill.

The only curious complaint is that the code, which allows access to the data server, is not published.

Such comments must be among the greatest of oxymorons because, is that not the point of keeping the data secure?

CovidSafe is, to the best of my knowledge, the only application in the western world to be protected by its own legislation and provide serious penalties for any breaches of the act.

So, yes! I am very much in favour of our app because regardless of what medical miracles may be discovered the world will be living with this virus for a very long time. To immunise 7.8 billion of us will take a long time, far beyond the times when borders will, for fundamental economic reasons, be open and allow this mass of people to have the association they oh so recently enjoyed.

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MANAGEMENT

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©meyerandmeyer - stock.adobe.com

Who do you look up to?

High rise cleaning more important than ever

By Mandy Clarke, Editor

Guests are just beginning to partake in leisure travel once again, after being in lockdown for months and listening to dire warnings about how easily viruses spread. It is natural that many people will have anxiety about leaving their safe, clean bubbles to stay in holiday accommodation, so building this trust and hygiene confidence is a major priority for our industry.

Ask yourself: when guests catch the first glimpse of your establishment, what impression do they get? You need your exterior to scream: “Hey! Come inside! This is a COVID-free, sparkling clean zone. When was the last time your exterior was cleaned thoroughly?

26

©AA+W - stock.adobe.com

Guests see dirty before they see clean - never has a truer word been spoken – especially during this year’s COVID-19 pandemic.

Be honest, if a resort looks shabby from the outside would you trust it was being cleaned properly inside? Go outside and inspect. If the windows and paintwork are tired, shabby, or just plain filthy, there is no time like the present to organise a clean.

Quiet periods are the best time to complete jobs that would normally disrupt guests and, let’s face it, there has never been a quieter time than now!

Australia’s harsh climate of humidity, heat, salty destructive

air and bucketing acid rain ages buildings, fades and peels paintwork, windows become coated and foggy, concrete pavements and driveways crack and mould can become a huge problem. Not to mention, cluttered gutters are a bush fire risk! They can also cause leaks and the build-up leads to filthy walls and windows.

Buildings degrade over time and when neglected they can lose their looks. A typical property maintenance program will schedule jobs over several years, but washing

MANAGEMENT

paintwork, windows and clearing gutters must be given attention on a regular cycle.

A regular schedule that details what needs doing and when, will ensure you keep on top of nasty building build-ups, such as mould, gum and litter, general discolouration and staining, water damage, etc. A schedule also encourages you to inspect areas of the building that might otherwise be neglected; for instance, shade sails or awnings that can tarnish over time and easily go unnoticed.

ResortNews | June 2020

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Our rope access solutions are fast, affordable and are carried out with high level expertise.

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MANAGEMENT

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Note: Did you know that if your building is washed externally every year, the life of your paintwork will be extended by three to four years.

Whether you want to win some post-COVID guests, increase the photogenic appeal of your property for marketing purposes, or create a ’wow factor’ to woo prospective buyers, there’s no better place to start than with a thorough and effective clean.

Here are some pointers for you to consider...

•

•

•

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Cleaning your windows would usually be done quarterly and perhaps you have an annual external wash-down; these jobs are easy to forecast but you must be prepared for all eventualities and plan accordingly.

Roof cleaning: Most experts recommend a low-pressure system for tiles because high pressure washing may cause damage and lead to water ingress into the roof cavity.

Windows and balconies:

•

•

•

•

Glass balconies require constant cleaning. With many resorts located along the coast, there is a constant battle with the elements, and sea spray builds up on the glass frontage. Using a filtrated water system gives great results on glass.

•

In terms of water blasting or scrubbing, this can also be aided by the addition of a chlorine-based solution.

trained, and they can assess what is required to keep the external facade of your high-rise building in pristine condition.

•

Never delay external building cleaning or rectification because they do not go away and only get worse and become more expensive to fix.

Do not neglect window seals; inspect and refit if needed or make sure your window cleaning professional does this for you.

In low-rise smaller resorts, you may be happy to tackle some of these jobs yourself but for most it’s not safe or sensible to go it alone without professional input, especially for those of you who manage high-rise resorts.

Right now, the demand for these skilled high-rise cleaners, window-washers and repairers is sky-high (pardon the pun) due to the massive increase of tall buildings erected over the last few years in Brisbane, Sydney and the Gold Coast… We are talking a lot of dirty windows!

Building wash-down: Sea spray also deposits onto the building and has a long-term detrimental effect on the building’s external coatings.

Exposed surfaces are prone to rusting and degradation over time therefore an annual wash is advised, especially in salt impacted environments.

It is recommended that the building is given a soft wash to remove dirt and grime build up, followed by a high-pressure wash.

The building is then rinsed to finalise the clean.

In this case, it is advisable to call a professional resort industry supplier. Accomspecialised professionals can assist with painting, cleaning and the general maintenance of multistorey buildings.

Your chosen specialist supplier or service should be O&S law compliant and they should be able to talk you through the different cleaning technologies available.

Professional abseiling window cleaners and external maintenance technicians are highly skilled and highly

MANAGEMENT

Top three tips from the experts!

Allen Rafter, Element Rope Access says: 1.

Windows should be cleaned every six months to keep the glass well maintained.

2.

Pressure cleaning of buildings should be done every three years. Every two years if you are within a kilometre of the beach.

3.

Window frames should be cleaned when the windows are cleaned. It is just as important to keep your building clean from top to bottom, the same as you do with your car. They are both big investments.

ResortNews | June 2020

Phil Clark, Rope Access Services says: 1.

Do your homework: seek references from local resorts before accepting a quote or engaging a cleaning contractor.

2.

Understand your liabilities, when you engage a contractor you become the principal; meaning, you have a responsibility to ensure the work is being carried out safely. Ask for insurances, trade tickets and safety documentation before allowing contractors to work on your building.

3.

Do not succumb to a cheap deal: if it sounds too good to be true, it probably is. There will always be people trying to make a quick buck. Do not fall for a cheap deal. Get references and check your contractor’s credentials prior to engaging or you could find yourself with damaged property or unwanted attention from the council or workplace health and safety. I am sure all building managers have heard it all before, but regular

and window washing is not just about making your building look great. Regular cleaning is imperative if you want to maximise the longevity of your building's paint, facades, fixtures, and glass. If left unchecked, corrosive contaminants such as salt, carbon, dirt, and mould will prematurely age the surfaces and may lead to more serious issues such as paint failure or calcification of the glass.

cleaning of their building is more than aesthetics, it is protecting their assets.

The coast is a volatile environment which causes damage to structures unless maintained. Regular washing is one way to remove the salts and minerals that cause issues such as corrosion and help prolong the life of their assets.

Scott Boyd at Skylabb says: 1.

My best advice is to have a good height safety system in place. Not only will this make your building safer to work on, but it will also help to speed the process up.

2.

Try to pressure wash the building at least once a year to preserve the paint.

3.

Use our time to check for window leaks and other things that may become an issue.

2.

Jared Woodbine from Alltech advises: 1.

Make a commitment to protecting your asset: High pressure cleaning

Ensure your contractors are licenced, OHS compliant and fully insured: With OHS laws broadening the responsibility of safety to all parties involved, it's now more important than ever to protect your livelihood from the losses that may result from an accident occurring with an unqualified or uninsured contractor. Unfortunately, as a busy building manager it's almost impossible to find the time to keep up with the ever-changing landscape of OHS laws and licencing requirements. Luckily, there are independent bodies who

take care of the compliance headaches for you, the most comprehensive for strata being CM3. If you want a fast way to ensure your contractor is fully compliant for the job at hand, look for a CM3 badge of certification or search their online database.

3.

Offer long term arrangements: A great way to reduce your maintenance bills is to offer long term contacts to suppliers in exchange for better pricing.

The certainty of a longterm contract will give the contractor incentive to offer better pricing and protect you from any future hikes that happen in the industry.

As a bonus it will also save you the hassle of collecting tenders and going to vote every six months or so when it is time for your next window clean. Developing a long-term relationship with your contractor will give them time to learn the ins and outs of your building and improve their ability to serve you as time goes on.

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BUILDING WASH DOWN Periodic building wash downs are essential to keeping your building in top condition especially in the Gold Coast and Brisbane area‘s due to the close proximity to the beach.

The salt air causes buildup that can produce severe degradation of painted surfaces and corrosion in areas that can produce water leaks and

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other maintenance problems.

PRESSURE CLEANING Utilising an ultra high pressure cleaner, Element can keep not only the external facade of your building in top condition but also the surrounding walkways, driveways, paths and porte cochere BUILDERS CLEAN Get your building ready for handover with a builders clean.

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MANAGEMENT

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Wash now... or pay later Having an exterior wash program in place for your building will not only ensure that it looks great, but reduce your maintenance costs and make it more likely to attract repeat guests and tenants.

But how do you decide on a wash schedule that fits your needs and won’t cost you an arm and a leg?

This guide (and FREE DOWNLOADABLE TEMPLATE) will empower you with the tools and information you need to get the most effective wash program in place for your building.

1. Get clear on why you are washing and define your maintenance goals This might seem obvious, but without clearly defined goals for the upkeep of your exterior facades and windows, you won’t be able to determine what type of wash you require or how often you should do it.

Some questions to ask yourself: Are you washing your building simply to maintain your paint warranty and prevent corrosion, or do you value having a clean presentable building at all times?

Do you only plan on cleaning your windows once per year out of absolute necessity or is being able to enjoy the view

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years most managers consider too hazardous for their residents or regular cleaners to clean and should be done by rope access.

When considering an “external washdown” proposal, make sure it includes all balcony walls and soffits – not just the building’s external facades, as this is the area where you’ll get the most value from your clean.

through crystal clear glass throughout the year important to your residents and guests?

Once you know WHY you are cleaning, it will become much easier to figure out the “WHEN” or more importantly “HOW OFTEN?”

2. Understand the impact the environment has on your building Is your building a stone’s throw from the ocean? Is there a major construction project happening next door? Does your building back onto a busy highway?

These are all important factors that you need to consider, and will have a dramatic impact on, how often you will need to clean your building in order to achieve your maintenance goals.

If you manage a high rise building over the road from the beach and your goal is to ensure that your residents can enjoy a clear view from a spotless balcony, you might want to consider quarterly glass cleans and annual building wash downs as a minimum.

On the other hand, if you manage an apartment block on a quiet

suburban street and the view isn’t a priority, then a wash down once every 2 years with an annual window clean might be more appropriate for you.

3. Know what you’re paying for Trying to determine what you are getting for your investment when considering wash down proposals can be quite confusing…

If you would like to have the power to instantly produce a cleaning schedule that’s right for your building, scan the code below to download your free excel planning tool to have a solution in minutes.

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Terms such as “inaccessible glass” or “external washdown” can mean different things depending on which company you are dealing with and not understanding exactly what you are getting could leave you severely out of pocket.

For “inaccessible glass” cleans, make sure you determine whether or not this includes the external side of your balcony glass balustrades – in recent

MANAGEMENT

ResortNews | June 2020

TOURISM REPORT

Photo by Timothée Duran on Unsplash

Op-Ed: A different approach to tourism funding – time to invest in Australia’s regional economies

By Matt Davidson, Managing Director, Tourism Property

Drought, bushfires, floods and now COVID-19.

FY2020 is almost over and what a year we would like to forget for those of us involved in the Visitor Economy.

Cruel just does not begin to describe it. Leisure tourism is reeling; there was no Summer trade in bushfire affected regions and there has been no Easter/April school holiday trade right across the country.

Corporate and government travel is near non-existent and capital cities and regions relying heavily on inbound travel have suffered greatly.

These are confusing times, yet one thing is clear – the Visitor Economy in Australia now needs serious help. The accommodation industry has seen a phenomenal

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and distressing change that happened almost overnight. Who really knows how long it will last?

international borders will remain closed for an extended period other than New Zealand, which will be very welcome of course.

Our industry is resilient, but it is also fairly rigid by design – we can’t home deliver a hotel room for the night, or ‘bring it out to your car for you’. The international borders are closed, and domestic travellers simply could not travel. Some hotels took on quarantine roles, a few others assisted with emergency temporary housing, but the majority have been mothballed.

That is a couple of hundred thousand hotel rooms across the country sitting empty.

All this highlights the hugely important role of domestic tourism for Australia. This means road trips, family holidays, couples and grey nomads, sporting events, coach tours; largely and broadly it means travel to regional cities and towns across Australia.

Surely regional travel is about to be more important to the Australian economy than it has ever been before.

Planes around the world might be grounded, however, we actually see a strong rebound for travel into Australia “when all this is over”. With the very low AUD, inbound travel to Australia remains very attractive and we will continue to enjoy direct air routes from the burgeoning populations of the world... just not for quite a while yet. Our

There is no doubt that Australian state and federal governments will look to employ an unprecedented funding campaign to help the heavily hit Visitor Economy.

I doubt Australians will need much encouragement to get out of the house and with the low AUD and very slow re-introduction of outbound travel, the domestic market stands to recover with gusto.

TOURISM

Obviously, a tourism funding package must focus immediately on domestic tourism and regional cities and towns must get their fair share.

Just in NSW alone, regional tourist accommodation makes up around 75 percent of the establishments and around 50 percent of the rooms in the state. But, sadly, and it really pains me to say it, many regional cities and towns suffer dated and poor quality tourist accommodation and now is well and truly the right time to do something about this. There are some fundamental reasons for this long-term decline in quality and I will write about that another day. For now, the accommodation industry needs to come together and push hard for governments to support funding on the ‘supplyside’ of the Visitor Economy.

The standard tourism funding model is ‘demand side’, which basically means to throw all the money at marketing.

ResortNews | June 2020

Visit Sunshine Coast CEO announces resignation

Photo by Mark Galer on Unsplash

We now have the chance to properly invest in the long-term survival of regional tourism and should take this opportunity to properly fund regional tourism infrastructure, matched by industry, to improve regional Visitor Economies. There will never be another opportunity to take such a bold move.

Now, more than ever, Australians won’t leave the comfort and safety of their homes to travel and stay in a regional three star motel and call that a holiday. I do not care how much money you spend on marketing – it just won’t happen.

The conversation of how to invest in regional tourism is always the same. We sweat and debate over what I call the “marketing minutia” – logos, colours, brands, copy, emotions, keywords, agency, blah blah blah. The truth is that we have never had a serious ‘supply side’ investment program for the tourism industry and this would have a far greater long-term impact for regional tourism.

I am advocating for a substantial government investment into a regional accommodation renovation scheme. Matched dollar-fordollar by industry and funding to be spent with local trades, suppliers, and services. This needs to be on a scale never seen before – millions of dollars per regional city and town.

The model is simple enough – supply side funding increases the quality of the product to unlock increased revenue, which flows back into the local economy. This allows the industry to increase their own marketing and critically, keep up with the ongoing capital expenditure that has been lacking for so long. The problem is, supply-side funding June 2020 | ResortNews

has just never been done before - unless you count toilet blocks and council footpaths as tourism infrastructure, I know I certainly do not.

Accommodation is the backbone of regional tourism, which in many locations is the backbone of the economy.

Domestic overnight travel will be critical to driving a recovery in regional economies.

Overnight stays are far more valuable than just day trips.

Dinner, drinks, breakfast, coffee, shopping, activities, petrol, groceries – it all helps keep regional economies going.

So, as we move into an obviously necessary and unprecedented tourism funding environment, it must be time to do something more than just marketing. The long-term sustainability of regional tourism is in the balance here and we will never see a more motivated potential customer base for regional travel.

COVID-19 has without doubt been the biggest shock ever seen in the Australian Visitor Economy. The industry employs millions of Australians and must be supported. The industry is not saved with Australians taking day trips for the June long weekend. It will not be saved when families travel in the September school holidays.

The problems will not be solved with a hopefully bumper ski season this Winter, or even with an amazing Summer this year Regional tourism needs a massive investment, and this must be led by government. We must do so much more than just offer regions marketing dollars – let’s actually help the regions create something to market and an ability to compete long term for a fair share of Australia’s $80 billion domestic travel spend.

Simon Latchford

Visit Sunshine Coast (VSC) chief executive officer, Simon Latchford, has announced his resignation after almost four years in the role, during which time the region regained its position as Queensland's most dynamic tourism destination.

Mr Latchford was appointed CEO of Visit Sunshine Coast in August 2016, after working for over a year as head of marketing & strategic relationships. After being appointed as CEO, Mr Latchford was responsible for charting the renaissance of the region's tourism profile, with the Sunshine Coast achieving record results in the National and International Visitor Surveys for 2019.

The Sunshine Coast was also Queensland’s fastest growing region in 2019 in terms of visitor numbers and visitor expenditure. Chair of Visit Sunshine Coast, David Ryan, said that Simon Latchford had invested massive energy and commitment during his five years at VSC and would now take an extended break with his family before considering his next career move.

TOURISM

"Simon arrived on the Sunshine Coast at a time when the organisation was facing acute pressures, and in the four years he has been at the helm, he has charted a significant new direction for the organisation," said Mr Ryan.

"He has worked closely to strengthen partnerships with Tourism Australia and Tourism & Events Queensland, as well as local stakeholders including Sunshine Coast Council, Sunshine Coast Airport and the Noosa and Gympie local tourism organisations.

"In 2019, the region attracted record international and domestic visitor numbers, and delivered record expenditure to the Sunshine Coast community. The arrival of COVID-19 has stunted growth, but thanks to Simon’s efforts the region is extremely wellplaced to bounce back when restrictions are relaxed.

"On behalf of the Visit Sunshine Coast Board we thank Simon for his contribution and wish him all the best in his future endeavours."

Mr Ryan said that a national campaign would be launched to seek a suitably qualified industry professional for the role of chief executive officer.

33

TOURISM INTERNATIONAL

Aussie travel plans undeterred by global pandemic fears bushfire season need local tourists more than ever. It’s positive to see that Tourism Australia’s ‘Live from Aus’ has helped build confidence in local travel as we’ve seen with our customers as they start planning their next domestic trip.

Wish listing can be an inspirational way for everyone to start dreaming about travel again, and we are committed to making it easy for them to turn those dreams into reality when the time is right.”

By Mandy Clarke, Editor

An online travel agent has analysed the wish lists created by Australians to reveal the top domestic and international destinations front of mind for travellers’ next trips.

The numbers show that Aussies are not deterred from visiting destinations impacted heavily

by COVID-19. With travel in NSW ramping up from June 1, here are some key findings: 1.

2.

3.

The USA, UK, and Italy still rank among the top ten wish listed countries, showing Australians are not deterred from countries worst affected

by Coronavirus (COVID-19).

Focus of travel dreams shifts closer to home with presence of domestic properties featuring in travel ‘wish lists’ increased to 51 percent compared to 28 percent last year.

New Zealand lower down on the list of Aussie’s international wish lists (coming in at number seven) despite signs of the trans-Tasman travel bubble opening this year.

Since Australian Coronavirus restrictions began in March, the top wish-listed destinations for Aussies are still traditional favorites of Bali, Indonesia, USA, UK, and Italy. While international destinations like Bali, London and Tokyo continue to inspire travel dreams for people across the country, it’s actually domestic stays that feature in over half (49 percent) of all those wish listed by Aussies during this time of uncertainty, a jump from the same time last year when domestic properties accounted for less than a third (28 percent) of those wish listed.

Closer to home, the top domestic destinations wish-listed by Australians included main centres such as Melbourne, Sydney, Gold Coast, Brisbane, and Perth, suggesting that travel for business and staycations are at the forefront

34

Australia ranks at #1 for Kiwis outside of their own backyard when travel resumes whereas New Zealand ranks at #7 for Aussies. Bali, Indonesia still proves to be the top spot for Aussies wanting to holiday abroad.

Top AU accommodation types wish listed:

of travel imaginations. Outside of the state capitals though, the wish list data showed that Aussies are eager to support their regional tourism hotspots including Cairns, Byron Bay and Port Douglas.

Top AU local destinations (excluding state capitals) wish listed: 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Gold Coast Cairns Byron Bay Port Douglas Noosa Heads Airlie Beach Newcastle Mooloolaba Coffs Harbour Port Macquarie

Top AU overall local destinations wish listed: 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Melbourne Sydney Gold Coast Brisbane Perth Adelaide Cairns Byron Bay Port Douglas Canberra

Some of the top wish-listed accommodations to stay in

Australia include Imagine Marco (Melbourne), Q1 Resort & Spa (Gold Coast) and Rhapsody Resort (Gold Coast).

Dreaming about a change in scenery and the opportunity to enjoy a stay experience outside of their own home, the most wish-listed type of places to stay for Australians is hotels, followed by aparthotels and apartments.

Aparthotels account for 15 percent of all properties wish listed by Australians over the last two months, noticeably higher than the global average of five percent.

Luke Wilson, Area Manager for Australia at Booking.com, said: “It’s not surprising to see the major centres topping wish lists for travel even during lockdown restrictions and we’ve seen this more obvious trend. Promising appetite for regional tourist hubs and gateway destinations such as the Gold Coast, Cairns and Byron Bay all indicate that Aussie families are still eager to get away for the upcoming June long weekend and further out to the next school holidays.

“Coastal and country regional destinations that have been severely impacted by Coronavirus directly following a devastating

TOURISM

1.

2.

3.

4.

5.

Hotel ApartHotel Apartment Resort Holiday home

Top NZ accommodation types wish listed: 1.

2.

3.

4.

5.

Hotel Apartment Motel ApartHotel Resort

Domestic wish-list share The share of Australians wishlisting went up 21 percent on the same period in 2019 from 28 percent to 49 percent. The share of Kiwi wish-listing went up 20 percent on the same period in 2019 from 25 percent to 45 percent.

A wish list is a collection of ‘liked’ properties that customers can create on Booking.com.

Customers are encouraged to save accommodations to a wish list by clicking the heart button that can be found alongside every property listing on the Booking. com platform. The aforementioned statistics are based on comparisons of wish list data on Booking.com between March and April 2020 to the same months in 2019. Customers on Booking.com can wish list properties by clicking the ‘heart’ button present on every property’s listing on the platform.

ResortNews | June 2020

Queen’s Wharf towers commence climb to the top Progress at Queensland’s largest construction site will now be more visible to the people of Brisbane as the four towers of the integrated resort start rising from the basement.

“First thing I’d like to say is thank you to the workers on site who are continuing to build Queen’s Wharf while following the government’s COVID-19 guidelines and applying social distancing rules,” Destination Brisbane Consortium Project Director Simon Crooks said.

Earlier this month, reports confirmed that Star Entertainment Group secured $1.6bn to fund the mammoth project’s completion.

“The four towers that will house three new luxury hotels brands and the 667 Queen’s Wharf Residences are now more noticeable with their lift cores being fitted with creative branded wraps. The Residences, which have been selling strongly since their launch at the start of the year, will move steadily skyward to reach 240m during 2021.

June 2020 | ResortNews

“But it’s The Star Grand Hotel towers facing South Bank and overlooking the Riverside Expressway that will be most prominent. These two towers make up the river facing side of the integrated resort and form the platform for the Sky Deck that will sit more than 100m above street level.

“The Star branding will be clearly shown on the two South Bank facing towers. These towers will include more than 330 new five-star hotels rooms, along with new world-class gaming facilities to replace the 25-year-old Treasury Casino.

“Tower 1 situated behind the old Printery heritage buildings between George and William Streets will climb to close to 200 metres and house the 4.5-star Dorsett Hotel in the lower half and the six-star luxury Rosewood Hotel in the top half of the tower.

“Nestled between and under the four towers will sit seven levels of podium containing high-end retail, restaurants, bars, conference and gaming facilities. At the heart of the resort and sitting on top of the

podium levels will be an open-air green space with outdoor movie screen, event space and pop-up market facilities.” The five levels of car park basements are close to completion with William Street expected to be re-established by July and open to construction traffic only. More than 3,000 tonnes of steel and 24,000m3 of concrete has gone into site since Multiplex commenced in July 2019,” Mr Crooks said.

“Prior to that, we excavated close to 400,000m3 of material, of which 90 percent was recycled, to build the largest basement in Queensland,” Mr Crooks said.

“We are now at level five of the car park basements and the east end of William Street has reached Margaret Street level with the complete section of William Street expected to be re-established by July.

“This means William Street will be reconstructed and used by construction traffic to build the remaining basements and podiums levels. In the future, when the whole development is open, William Street will again

DEVELOPMENTS

The Star Grand Hotel

have public vehicle access. The tallest of the four towers, Queen’s Wharf Residences on the corner of Margaret and George Streets, can now be easily identified with its lift core wrapped in branding.

Mr Crooks says the Residences’ tower will be the tallest of the four but it will likely be other architectural elements that most catch the public’s eye.

“As we look ahead, 2020 will be an amazing year for this development and the people of Brisbane will really start to see the immensity of what we are creating for this city.”

35

$1.2bn fast-tracked projects skate through as VIC pushes job revival

©selensergen - stock.adobe.com

Judgement on 5-star Westin development “a major win” for Sunshine Coast

An artist impression of the The Westin Coolum Resort & Spa Rooftop Bar with Mt Coolum backdrop

Queensland’s Planning and Environment Court has rejected an appeal against the $900m construction of a sprawling new Yaroomba Beach development, following a two-year long legal battle. Tourism body, Visit Sunshine Coast praised the decision which found the build was in the public interest.

Supporters of the appeal, including Development Watch and the Sunshine Coast Environmental Council, argued that local residents would be affected by the sevenstorey height of the proposed development if it goes ahead.

The Sunshine Coast Council rejected the original 10-storey proposal in 2015 but after a height reduction, it was approved June 29, 2018.

Project planner Sekisui House are excited by the affirmative judgement.

Yaroomba Beach Project Director Evan Aldridge said in a statement: “The Sunshine Coast can now look forward to the development of a world-class tourist destination and a residential coastal village in an exceptional beachside location. This will truly represent a landmark development in Australia, delivering a five-star The Westin Coolum Resort and Spa to showcase the best of the Sunshine Coast. It will drive new tourism to the coast including conferences and events not currently catered for. “The Westin will be the first five-star hotel developed on the Coast in over 30 years.

“The first stage of development will deliver the five-star hotel, serviced apartments and all the public elements of a new coastal village – the shops, cafes, surf lifesaving facilities, Coastal Discovery Centre and parklands. This will be a world class development creating a beautifully landscaped coastal village on the last major beachfront site on the Sunshine Coast,” he said.

An artist impression The Westin Coolum Resort Spa public park looking back to the hotel

36

The Victorian Government has fast tracked more than $1.2 billion worth of building and development projects as part of its ongoing work to kickstart the state economy and create thousands of jobs.

The Building Victoria’s Recovery Taskforce was established last month to identify and accelerate shovel-ready priority projects that will deliver short and long-term jobs. The latest major projects to receive approvals include: •

A $290 million, 21 storey office building at 140 Lonsdale Street, which will become the Melbourne headquarters of the Australian Federal Police

•

A 68-storey development at 640 Bourke Street, worth $234 million, including 857 apartments, retail space and an art gallery

•

A $180 million, 41-storey hotel development at 600 Lonsdale Street featuring 288 hotel rooms, as well as office and retail space

•

A 20 storey, commercial office and retail building at 683-699 Elizabeth St located in an emerging biomedical precinct worth $60 million

•

A $60 million residential development on the former Commonwealth Games village site at 67-81 Galada Avenue, Parkville.

Together, these projects will create thousands of construction DEVELOPMENTS

jobs and house thousands more – driving economic activity in the inner-city.

Planning Minister Richard Wynne has also called in from VCAT a $250 million development at 31 Station Street Caulfield, which includes a build-to-rent scheme, affordable housing and a supermarket, retail and office space. The call in means the Minister will make the final decision on the approval of this important project.

He said: “Our taskforce is working hard to deliver priority projects in a timely manner for the benefit of the building and development industry and for all Victorians. As the industry deals with the unprecedented challenges of the pandemic, we’re making sure priority projects are delivered more efficiently and fast tracked where appropriate.”

The Taskforce is calling for submissions of priority projects of state and regional significance that could be considered for development assistance, including those that may be awaiting a decision at VCAT or a local council.

Priority projects are being assessed for their capacity to protect and create jobs, stimulate economic recovery, and contribute to broader social objectives like affordable and social housing.

The announcement builds on the government’s $2.7 billion Building Works package of shovel-ready projects across the state that will create 3,700 direct jobs and thousands more across our supply chains, while also pumping extra dollars back into our economy.

ResortNews | June 2020

Wild ‘helipad’ construction aims to massively boost Sydney recovery Australia’s largest private hotel investor, Dr Jerry Schwartz, wants to construct a permanent helipad on the roof of his Sofitel Sydney Darling Harbour hotel.

Community and stakeholders have been invited to provide feedback at upcoming information sessions about the proposed helipad, which would involve building a large roof structure on top of the iconic 38-storey hotel.

The Sofitel is adjacent to the International Convention Centre (ICC) and is in the heart of the Darling Harbour business, tourism and convention precinct.

A heliport operated at Darling Harbour in the 1980s, but was removed to make way for the redevelopment of the former rail yards. Since then, peak tourism and business bodies have called for the restoration of a CBD helipad to service the city’s high-yielding convention and business sectors.

The helipad would also be available for use by emergency services.

Currently, the only major public helipad services are located at Bankstown and Mascot, but heavily congested roads make them impracticable solutions for

Photo by Holger Link on Unsplash

fast transfers to the Sydney CBD. “Given the devastation to Sydney’s tourism and business economy as a result of Coronavirus, there is no better time to introduce the concept of a CBD helipad to help revive the city’s economic fortunes,” said Dr Schwartz.

“The world’s great cities – such as London, Paris and New York – have CBD helipads, and even Melbourne offers city helicopter transfers to the River Yarra helipad.

“Darling Harbour is designated as a dedicated tourism, convention and business precinct, which makes it’s the ideal location for a permanent helipad. We would envisage that world leaders could arrive at Sydney Airport and be flown direct

to the Darling Harbour Helipad to make a keynote address at the International Convention Centre.

“There’s no doubt that this infrastructure would significantly benefit Sydney’s business and convention profile and provide delegates attending the ICC and Sydney CBD the highest security, while also ensuring disruptions to city traffic are minimised.

“With Coronavirus impacting all areas of life, economic stimulus needs to be a key component of the recovery process for Sydney.

This forward-thinking proposal will help stimulate the local industry, establish Sydney as one of the world’s great convention cities, and boost business opportunities for all sectors.”

Planning project boon for NSW The state government has unveiled its second wave of development plans, including 24 priority projects from a new retail centre and industrial precincts to three new schools and the relocated Sydney Fish Markets.

The move could inject more than $5.37 billion into the state economy. The Program includes 11 rezonings that will unlock major commercial, industrial and residential development

June 2020 | ResortNews

across the State to propel NSW’s economic rebound, with a determination to be made on every project in the tranche within four weeks.

new jobs, economic growth, infrastructure and services for our people,” Ms Berejiklian said.

Premier Gladys Berejiklian said the second batch of projects could provide more than 15,000 jobs, more than 3,600 new homes and enhance NSW’s status as this country’s economic powerhouse.

“This health crisis only sharpens our focus and energy as we bring forward the NSW Government’s unprecedented infrastructure spend and create an environment where private and government investment combine to help us rebound from the pandemic together.”

“NSW is streets – and roads and homes and hospitals and schools – ahead of every other State in providing

The second tranche of shovelready projects includes eight suggested by the private sector, including a specialised retail

DEVELOPMENTS

Dr Schwartz said that as the proposed rooftop helipad would be classified as an ‘aircraft facility’ under the Environmental Planning and Assessment Regulation (2000), an Environmental Impact Statement would be prepared and lodged with the consent authority, the City of Sydney Council, for consideration. This process will include extensive consultation with local residents, businesses and other stakeholders. In anticipation, the project team had already begun talking to relevant industry stakeholders about potential impacts, considerations and options for operating the helipad.

The proposed flight path will be finalised after consultation with appropriate regulatory and air traffic control authorities. It is envisaged that the flight path will be developed based on the flight lanes of existing helicopter trips around the Sydney CBD and between Sydney Airport.

Dr Schwartz said investigations were underway to assess noise impact from the operations of the helipad including approach and landing, idling and take off.

“Helicopter flights around the Sydney CBD are frequent and many already use the flight path proposed for this helipad,” he has argued. “The city has had a helipad in the past, so we are not proposing anything that is dramatically different, but its construction can play a significant role in reviving the city’s economy in the wake of the devastating impact of Coronavirus.”

centre at Eastern Creek, a waste recycling facility in Girraween, new public open space in St Peters and an expansion of the Cumberland State Forest.

Planning and Public Spaces Minister Rob Stokes said projects such as the $2.6 billion Mamre Road industrial precinct, including new environmental lands and open space, will transform NSW. “The Mamre Road project alone creates opportunities for more than 5,250 jobs and it will happen sooner because the NSW Government has reallocated planning resources to assess these projects faster,” Mr Stokes said.

37

LOCAL SPECIALIST OF MANAGEMENT RIGHTS & RESORTS SALES NEXT 团队懂得客户对我们的期望，一个具备丰富本地知识和经验，并且诚实而可靠地致力于取得客户利益 的生意专家。凭借着团队１０多年丰富行业经验，我们向您承诺我们会努力达到您的期望。无论您准备买， 卖生意，我们都可以帮助您实现您的目标。 The team at NEXT knows that our clients want to deal with consultants that have local knowledge, expertise, honesty, integrity, and are committed to achieving the best possible result for them. With many years of combined industry knowledge, you can be assured that our focus will exceed your expectations.

FORTITUDE VALLEY

• • • • •

HIGH INCOME & BIG SALARY PERMANENT

Prime location, walk to China Town and CBD, close to everything Fantastic Body Corporate salary of $175K Modern and spacious three bedrooms manager residence On title office on ground floor, no set office hours New Fortitude Valley High School only a moments walk away

NETT: $306,000

TOTAL: $2,400,000

SPRING HILL

• • • • •

WEST END

• • • • •

BUSINESS ONLY, SIMPLY & SOLID INCOME

Boutique building, close to Coles & South Bank Parkland Low caretaker work, no pool & garden, easy for one person Great remuneration $46,255 with 3% adjustment every Oct No unit to buy No office hours

NETT: $105,234

TOTAL: $595,000

Patrick Leou, 0403 265 991, patrickleou@nextrealty.com.au

Inner City area, walks to CBD, close to everything Common area refurbished, all BC’s hard work done Fantastic manager salary $84,455 with annual increase of CPI Great 2 beds/two baths/2 carparks, large open plan living unit Spacious separate office, no set office hours

NETT: $173,803

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

SOLD INCOME AND LARGE RESIDENCE

TOTAL: $1,553,800

David Jiang, 0481 500 278, davidjianghui@nextrealty.com.au

ASCOT

• • • • •

TIME TO RETIRE - OWNER SAYS SELL!

Established modern, inner city permanent complex Handy location, close to shops, transport and M1 Only 35 units with good BC salary of $59,383 Exclusive detached office, no set office hours 2 beds/2 baths/2 carparks manager unit with large yard

NETT: $110,845

TOTAL: $950,000

David Janett, 0404 204 672, davidjanett@nextrealty.com.au

NEXT 不仅专业销售管理权和酒店生意，也向客人提供专业咨询，如管理权市场和生意分析，生意合作合伙计划以及代 班经理服务。如您想了解更多的生意机会和市场发展，欢迎致电我们的专业团队。 If you are considering buying or selling, please contact NEXT, we work harder and more professionally to serve our clients for their best interest and trust!

www.nextrealty.com.au

PO Box 288, Cleveland, QLD 4163

MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND CAIRNS NORTH – PERFECT STARTER

• • •

Four star holiday complex in Cairns North.

Comprising 24 two bedroom apartments.

Very low maintenance and one person operation.

NET: $221,500

• • •

CLIFTON BEACH – BEACHFRONT LOCATION

REAL ESTATE: $270,000

TOTAL PRICE: $1,220,000

• • •

Beachfront apartments all with ocean views.

Immaculate complex. Room for business growth.

Great manager’s apartment with private spa.

NET: $128,700

REAL ESTATE: $450,000

TOTAL PRICE: $945,000

CONTACT CALVIN - 0414 889 593

CONTACT ALEX - 0414 835 128

MISSION BEACH – EMERGING HOTSPOT

PORT DOUGLAS – LOCATION & LIFESTYLE

Delightful 4 star holiday property, 100m to beach.

Well established business, many repeat guests.

Hotspot & emerging tourist mecca with Mayfair 101.

NET: $146,982

REAL ESTATE: $300,000

TOTAL PRICE: $880,000

• • •

Well located mixed letting property ready for sale.

Letting 13 of the 16 two/three bedroom apartments.

Perfect starter or add-on business.

NET: $116,000

CONTACT CALVIN - 0414 889 593

REAL ESTATE: $340,000

TOTAL PRICE: $804,000

CONTACT ALEX - 0414 835 128

For proven results and sales success Calvin Bailey Management Rights are the leading Brokers in North Queensland. Despite the uncertainty of current times, sales continue and further Listings are required. Five properties have settled since February with three currently under contract. We have these and many other properties capable of being converted to longer term rentals as an interim strategy, if so desired.

JOIN YOUR PARTNERS IN SUCCESS Contact: Mobile: Email:

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

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

Contact: Mobile: Email:

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

Australian Resident Accommodation Managers’ Association Member

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

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

June Sales Report MANAGEMENT RIGHTS

MOTELS & OTHER

Gold Coast

New South Wales

Rise Ascent and Fivechester

Green Property Group

Southport

Acqua Apartments

Michael Wheatley - Smick Property Group Palm Beach

RB RB

Brisbane

Aussie Rest Motel

R & S Kumar

Cessnock

TB

Garden City Motor Inn

D & R Khurana

Wagga Wagga

TB

Moama on Murray Resort

Undisclosed Buyer

Moama

RB

Arlington & High Street

Jason Fung

Nundah

Omega

Capital & Harvest Pty Ltd ATF Capital

Bowen Hills

RB RB

Victoria

Montalto Living

Xinhui (Emma) Wang

Carina Heights

RB

Creswick Motel

L & T Franklin

Creswick

TB

Halls Gap Motel

P & G Spooner

Halls Gap

TB

Ballarat Colonial Motor Inn

C. Hong

Ballarat

TB

Sunshine Coast / Wide Bay / Fraser Coast Aqua Vista (30% Share)

Cromski Pty Ltd

Maroochydore

MRS

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

www.accomproperties.com.au Introducing...

Jim Lowe

Property Bridge

Jim and his family moved from Auckland to Brisbane where he was introduced to the management rights business concept.

Jim subsequently purchased the Rights to a large apartment complex in inner Brisbane with multiple buildings and bodies corporate in which he operated as On-Site Manager and Letting Agent.

After managing close relationships with five committees and successfully building the business up, Jim eventually sold after nine fulfilling years. Since selling his Management Rights business, Jim has been involved in real estate and Management Rights sales and

Name: Mobile: Agency: Servicing: Web: Email:

40

has also been an active committee member in two complexes, gaining further valuable experience and insights into the relationship between Building Management and Body Corporate committees and the numerous issues that can arise for all stakeholders.

Throughout his business career and as a licensed Real Estate Agent, Jim has always focused on providing honest, straight forward and effective communication to all parties. He is prepared to go the extra mile, building long term relationships to achieve positive results for his clients and customers.

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

Jim Lowe 0403 418 115 Property Bridge Brisbane propertybridge.com.au jim@propertybridge.com.au

PROPERTY

ResortNews | June 2020

SEAPOINT ON TRINITY | TROPICAL NORTH QUEENSLAND

SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS

Over 40 years of service to the Management Rights industry, providing assistance in:

L-R Ashim Kaula and Alex Barker-Ré

Alex Barker-Ré of Calvin Bailey Management Rights congratulates Ashim, on the successful purchase of Seapoint on Trinity.

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

New to the industry, but well equipped with life’s experiences and the so essential business skills, Ashim and Brigette are looking forward to the lifestyle change of managing this lovely Trinity Beach property in Tropical North Queensland. Whilst the industry is in unprecedented times, long term confidence remains in the success and strength of the indefatigable management rights businesses model, as proven in the past.

DESPITE THE CURRENT CLIMATE, WE STILL HAVE QUALIFIED BUYERS CONTINUING TO PROGRESS WITH PURCHASING MANAGEMENT RIGHTS MORE QUALITY LISTINGS REQUIRED. UNDER CONTRACT

UNDER CONTRACT

UNDER CONTRACT

7th May 2020

8th May 2020

18th May 2020

GOLD COAST PERMANENT

YEPPOON PERMANENT

TWEED PERMANENT

UNDER CONTRACT

25th May 2020

SUNSHINE COAST 4X PERMANENTS

MR Sales remains open for business and are dedicated to seeing this challenging situation through with our clients.

We are committed to helping in any way we can. Our staff are working remotely and will continue to be available to answer all your questions.

To discuss listing your Management Rights please call MR Sales Phone: 1300 928 556 | Email: sales@mrsales.com.au | Web: www.mrsales.com.au

June 2020 | ResortNews

PROPERTY

41

NEW OPPORTUNITIES!

ID 8444 LARGE SOUTHPORT PERMANENT

• Extremely rare find • 160 single level townhouses • 57 in the letting pool NET PROFIT: ASKING PRICE: EXCLUSIVE BROKER:

• Scope to improve • Great salary • 3 bed, 2 bath manager’s residence

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Two permanent let complexes in close proximity, long agreements and no office hours. Attractive Body Corporate Salary of $80,000. Features a superb freestanding 4 bed single level home with private secure garden and well-appointed office on title in the sought after Somerset zone. Pet friendly and close to Kings, Somerset and Hillcrest Colleges, Robina Town, Varsity Station, Robina Hospital, golf courses and a myriad of other desirable facilities. Ideal for the semi-retired or an active family seeking a spacious home, second income and free time a plenty.

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Strong long-term rental demand completes this picture.

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June 2020 | ResortNews

43

Alexandra On The Pacific:

Overcoming COVID-19 setbacks this beautiful resort, usually en-route to my favourite café, The Velo Project that serves (in my opinion) the best coffee and pancakes on the coast.

I tell resort managers David Palmer and Carole Stuart, “you live in one of the best spots on the coast!” and, of course, they whole-heartedly agree.

By Mandy Clarke, Editor

Due to travel restrictions over the last few months, we have been conducting lots of telephone interviews for our profiles.

It is preferable to visit managers at the resort and experience the environment firsthand as this enables the writer to authentically transmit impressions into words.

However, as I already know this resort so well I can easily summon beautiful sensory memories of this Sunshine Coast resort, I can smell the briny air, hear the roaring waves and feel the stinging heat of the boardwalk on my bare feet.

David Palmer and Carole Stuart

Alexandra on The Pacific is a truly memorable property, partly due to its wonderful position – it sprawls grandly across a large corner - a beautiful landmark that surprises you on the drive down to the beach from the lush

hinterland. It sits on a high point looking directly over the sparkling Ocean with Alex headland to the left and Mooloolaba to the right.

I lived on the Sunshine Coast and often walked and drove past

David and Carole bought the management rights for Alexandra on the Pacific in 2015 and it was their first dip into the management rights industry. I suggest it was more of a leap!

“Taking on the management rights of this large resort with no experience what-so-ever was a sharp learning curve and demanded many hours of hard work. The experience has been a mixture of absolute joy and a fair amount of stress,” David told me.

4 Buderim Ave, Alexandra Headland Qld 4572

iinfo@alexandraonthepacific.com f @ l d h ifi

www.alexandraonthepacific.com 44

PROFILES

ResortNews | June 2020

David was born in Albury NSW and lived in the Australian Capital Territory (ACT). Carole is a “Paramatta girl” who met David when they both lived in Canberra before moving to historic Grandchester, a small rural town in the City of Ipswich.

David pointed out that although he has always worked in hospitality, his specialty was managing breweries and pubs rather than resorts.

He said: “Grandchester is a beautiful place, with a number of heritage-listed sites, including Franklyn Vale Homestead, Grandchester railway station, steam trains and Grandchester Sawmills. Here, we were privileged to own and manage the pub, the Grandchester Hotel for two years.

“We had been considering a lifestyle change for many years and heard about management rights through friends. We first looked at the business model over two decades ago and put the idea on the backburner because it was going to be such a large investment but in 2015, we decided it had to be now or never. We found

Alexandra On the Pacific and felt the resort, location and lifestyle was perfect for us.”

I can quite clearly see the intoxicating appeal of this luxury resort, which is located in the

heart of the Sunshine Coast and is well known as one of the best Mooloolaba has to offer.

It is an older, well-established resort that has been well maintained enhanced by the quality build with spacious open

plan apartments, wonderful facilities, and beautiful gardens.

The large apartments have been designed to take full advantage of the incredible views and “seductive sunsets”.

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PROFILES

45

Carole said: “We are very proud to present these beautiful apartments with contemporary furnishings, and big comfy beds our guests are always impressed. Three years ago, we refurbished and repainted the whole property and we have many compliments on how attractive the resort looks.” With 22 apartments in the letting pool and six resident owners, there is a lot of hard work to be done and sometimes there are no days off. David admits: “We also have to make sure we work and communicate well with

the body corporate and unit owners. Good communication is very important especially in times of crisis like right now!”

COVID-19 hit their business hard.

However, Carole explains that during the lockdown they have been able to take advantage of the quiet period to “clean, clean, and clean”. She said: “We are very ready and very keen to have bookings and to welcome guests back, we hope it is very soon!”

They believe that post-COVID-19 guests will want the extra reassurance of spotlessly clean

apartments, facilities, and plenty of space. They will also have procedures in place for social distancing, and plenty of hand wash available, plus reminders and signs. A questionnaire will also be given to guests prior to their arrival for health and safety, but apart from these changes they expect everything will return to business as usual.

When the resort is operating again, David and Carole will enlist help from a contract cleaning company. The retired couple who keep David and Carole’s

gardens looking picturesque and the handy man who keeps on top of maintenance will also return to work.

“When we bought this business, we had a five-year business plan, but our financial figures will be severely deflated this year causing our plans to be set back by a couple of years. But, for now, living and working in paradise is a still a pleasure.

“It has been a terrible year, but I believe we will be busier than ever when people start traveling again.”

Proud to be the Body Corporate Management company for Alexandra on the Pacific If you are looking for a responsive and efficient Body Corporate Manager, contact us and request a proposal. We care about your property and will help you achieve the long-term goals to protect and increase the value of your investment. p. 07 5448 8725 e. cath@northshorebodycorp.com.au a. 934 David Low Way, Marcoola QLD 4564 w. www.northshorebodycorp.com.au

46

PROFILES

ResortNews | June 2020

Le Cher Du Monde:

‘Adult only’ resort delights guests

By Mandy Clarke, Editor

Le Cher Du Monde or “darling of the world” is a relaxing, beautiful property in the heart of Port Douglas.

Managers Robert and Lyn Busato are incredibly proud of their adult only resort that provides its guests with the alluring promise of blissful relaxation.

The complex is comprised of tropical, self-contained units.

Walking through the property for the first time, you will notice its harmonious ambiance as singles, couples and friendly staff enjoy some peace and quiet.

The complex has 27 apartments on two levels, all looking out over the bustling Macrossan Street, Grant Street, or the beautiful lagoon pool and garden. The previous owner had replaced beds and fridges and small electrical items but since taking over as managers in April 2018, Lyn and Robert have made further improvements.

Lyn explained: “We replaced all the soft furnishings, bought new sofas and tasteful contemporary furniture for all the rooms, our touches have given the rooms a light, airy feel and more modern appearance.”

Lyn and Robert are first time resort managers with many years of

experience in fruit farming! There is a huge leap from farming to resort management and I ask why?

Lyn said: “We owned and managed fruit farms on the Tablelands as my husband Robert is a born and bred local, a lifestyle that was hard work but one that we loved. However, after a few discussions with friends, who had previously owned a management rights business in the area, we became intrigued by the business model and longed for the lifestyle we felt it could offer us as it seemed the perfect time to step away from farming.

“Then we found out that the management rights for Le Cher Du Monde was on the market and it seemed the perfect

business for us - the size, the style and the location.”

The locale offers exotic shopping and a vibrant market, with dozens of street-side cafes and outdoor restaurants offering fantastic local seafood and tropical delights.

Guests can also experience local day spas, world class golf courses, hiking trails, wildlife adventures, and charming local events in this tropical getaway.

Lyn said: “But what really sets our resort apart is the stunning 4 Mile Beach, kilometres of sand lapped by the waves from the Coral Sea and overhung by palms and tropical forests offering so many water activities.”

Lyn and Robert Busato

June 2020 | ResortNews

PROFILES

47

With very limited hospitality experience, they jumped at the chance to purchase the property’s management rights and in April 2018, with the help of MR specialist Calvin Bailey they became resort managers.

Taking on the management of a holiday complex is a massive commitment but how does it compare to fruit farming?

Lyn chuckles: “Well it is bloody hard work! At times it is even harder than fruit farming, but it is equally gratifying. It was very challenging in the first few months as we had a huge amount to learn about the business, but we thoroughly enjoyed welcoming guests and making their stay a memorable one.

“We have no regrets because the

location is beautiful, the lifestyle phenomenal and we have made some great friends through the industry from guests, our staff, other managers, and business owners. Moreover, like our farming business, you generally get back what you are prepared to put in.”

In the two years since Lyn and Robert purchased the resort, the industry, the economy, and fate

a pleasure to work with and I wish them all the best in their continuing success. We all know that most businesses in Australia have been impacted to varying degrees with COVID-19, since it struck in February this year, and we in Tropical North Queensland are no different. Sadly, the impact on our holiday industry has been considerable.

Resort News spoke with Calvin Bailey, LREA, about what makes this manager team so special.

Rob and Lyn are among the highest quality buyers I have had the opportunity to deal with in my 25 years of experience in the industry.

New to the sector and from a farming background on the Atherton Tablelands, they made the transition beautifully to a top accommodation business in Macrossan Street, Port Douglas. They were always a pleasure to deal with: intelligent, obliging, ready to listen, friendly and accepting of how an accommodation business of this type can best function. They recognised their role quickly,

48

has not been kind. Bookings for their first year did not match the level of the previous few years (It was generally a quiet year in Port Douglas and across the FNQ industry) but they were satisfied that bookings for 2020 looked great! They were both excited and prepared for a very busy year, but then a pandemic decimated their hopes and bookings.

Calvin Bailey

understanding what they needed to do to provide the necessary services to their guests and build relationships with their owners.

Rob and Lyn took over in April 2018 and immediately began to put their stamp on this

delightful property. It is a credit to them, and over the last two years they have built up a customer base which, through good reviews and top service, has ensured a large number of returning guests.

Rob and Lyn have truly been

PROFILES

Nevertheless, take heart in that we have toughed it out before with the 1989 Pilots Dispute, the Sars virus in 2003, the GFC in 2008 and various airline collapses.

This really demonstrates the resilience of the industry and the ability for tourism to bounce back. So, hang in there, and we will shortly be talking about this as we have those tough times before how we all got through.

ResortNews | June 2020

“After a couple of average years 2020 was set to be our best year yet. Our expectations have been shattered along with the entire industry and we really need to get the borders open and flights in so that we can get back to business. We fear that 2020 has set our future plans back by several years,” said Robert.

They have been supported by head housekeeper Zandra, who has worked at Le Cher Du Monde for many years alongside receptionist Sharon. “They have both been a godsend to us, their professionalism, dedication and flair for work is very impressive and we have been able to learn from them.”

Le Cher Du Monde meaning the darling of the world is very fitting for this resort. People love its charm and alluring atmosphere, which feels effortless but has a great deal of effort and heart behind it.

I have no doubt that once the COVID-19 restrictions have lifted, Lyn and Robert’s hard work and delightful property will attract the attention of interstate and overseas travellers en-masse.

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June 2020 | ResortNews

PROFILES

49

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mike@mikephippsfinance.com.au Paul Grant 0448 417 754 paul@mikephippsfinance.com.au

www.accomnews.com.au/ business-directory

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www.mikephippsfinance.com.au

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ResortNews | June 2020

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1300 665 966

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SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

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June 2020 | ResortNews

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53

Think Management Rights

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Wayne & Linda Stoll 0452 181 505

wayne@thinkmanagementrights.com.au

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54

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

CONTACT US Receive the best information. Subscribe today to receive continual practical, useful and relevant content.

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

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Buying & Selling

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Flood Legal offers all the experience & expertise of a big firm while delivering accessible, personal & affordable service that comes with dealing with a small firm.

Call Sharon Flood, Director 0459 070 871 or 02 6674 5118 sharon.flood@floodlegal.com.au www.floodlegal.com.au

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ResortNews | June 2020

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TV & VIDEO HIRE/REPAIRS

20

www.accomnews.com.au/business-directory

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SPECIALIST EXPERIENCE IN MANAGEMENT RIGHTS Short Punch & Greatorix Cnr Bundall Rd & Crombie Ave Surfers Paradise PO Box 5164, GCMC, Bundall QLD 9726 Fax: 5539 8745 john.punch@spglawyers.com.au

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Management Rights, Body Corporate and Property Law Specialists 10/1 Lanyana Way, Noosa Heads T 07 5474 5777 E info@siemonslawyers.com.au siemonslawyers.com.au

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Michael Kleinschmidt, Legal Practitioner Director PH: 07 5406 1280 info@stratumlegal.com.au

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T: 5390 1400 www.gplaw.com.au

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June 2020 | ResortNews

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55

NOW CONNECTING WITH...

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