Resort News, July 2020

Registered by Australia Post Print Post No. 100023799

Issue 287 | July 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Quest Robina:

No fear here: Championing the best of both worlds management rights • hotels • motels • resorts • holiday parks • time share • hosted We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

Call Dennis Clark now on 0421 384 212 dennis@hotelinteriors.com.au hotelinteriors.com.au • 1300 876 055

Dennis Clark

Founder

MDIA

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MEMBER FEEDBACK News that ARAMA members had free access to AccomProperties listing service arrived just as one of my units came up for lease, so I gave it a try. The site is easy to navigate, and I had my ad ready to go in 20 minutes, complete with photos and floor plans. I needed a little help getting it live, and a call to customer service sorted me out very quickly.

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Rabih & Christina Assaf, Resident Managers, Village Circle, Brisbane Having joined AccomProperties in October 2019, I have found the portal to be very efficient and easy to use.

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Phone: 07 5440 5322 mail@accomproperties.com.au

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.

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.

Inside our July issue FRONT DESK Editor’s Note: Not in the mood for an adventure?.................................................................05

INDUSTRY News In Brief .........................................................................06

04

Person of Interest: Jo Mathews .....................................09 ARAMA Report ......................................................................12 State Report ...........................................................................13 BCCM Report .........................................................................14 SCA Report .............................................................................16

MANAGEMENT Legal Ease................................................................................ 17

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.

By All Accounts .....................................................................18

© 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.

High Rise Painting ............................................................... 32

Thinking MR............................................................................19

32

Motel Market ......................................................................... 20 Intonet ..................................................................................... 22 Q & A: Communication ..................................................... 24 To Market ................................................................................ 26 Good Governance ............................................................... 28

TOURISM Tourism Report ..................................................................... 36 Tourism International ........................................................ 38 The Last Resort ....................................................................39

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

Lucinda Dean, Rosie Clarke

DESIGN & PRODUCTION ADVERTISING SUBSCRIPTIONS

Richard McGill

Stewart Shimmin advertising@accomnews.com.au Gavin Bill subscriptions@accomnews.com.au

CONTRIBUTORS

EVENTS & APPOINTMENTS Events & Appointments....................................................40

39

Andrew Morgan, Arvo Elias, Col Myers, James Nickless, John Mahoney, Jonathan Hanaghan, Lynda Kypriadakis, Melissa Kalan, Michelle Scott, Mike Phipps, Regina Schevvens and Trevor Rawnsley.

DEVELOPMENTS News ..........................................................................................41

PROPERTY AccomProperties Sales Report ..................................... 44 Agent Profile: Jenny Zheng - Property Bridge.......... 44 New Manager Profiles ....................................................... 44

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

04

Quest Robina: No fear here – Championing

50 FRONT DESK

the best of both worlds .....................................................50

PREFERRED SUPPLIERS Perferred Supplier Directory ........................................... 54

ResortNews | July 2020

The tourism industry has vigorously pushed for us all get out and about, support local business and plan homegrown adventures in our own state.

Along with all of you, I celebrate and fully support this message!

Still, my spirit struggles to rise to the challenge. Part of me feels as though, after negotiating so many ups and downs during this pandemic, an adventure is last thing I want!

Months of COVID panic and lockdown has forced enough of an adventure through uncharted waters for me!

Economic and COVID-concerns aside, this has been a time of grieving for many of us: grieving the loss of normality, stability, and in-person contact with friends and family. This period of grieving became more palpable this issue as we

feature a tribute to Graham’s memorable legacy as we thank him for his contribution to our publishing business, team, and MR community.

Resort News sends its deepest condolences to Graham’s family.

I tried to find some inspirational words about how life is an adventure and we must climb mountains to really find ourselves and a brighter outlook but, in all honesty, everything I found felt a bit too trite. So, here is my truth instead…

Mandy Clarke, Editor editor@accomnews.com.au received sad news that a valued member of our editorial family, Graham Vercoe, passed away.

Graham was the original voice and editor of both Resort News and accomnews. He retired several years ago, after two decades on the management rights frontlines, and many of you will remember his strong voice and kind presence in the industry. Next issue will

2020 has been nothing but a hard slog; a boggy valley of panic and fear, fending off hopelessness. Some days, you just cannot climb a mountain no matter how good you know it will feel to reach the top.

Instead, what I have found you can do, is sit with your feelings, talk to someone, make yourself a hot drink, or read a good book.

When the mountain is truly unscalable, take a seat, find

someone to chat with at the base, and have a laugh. Those of us going through tough times need to remember we are not alone: our resort industry may be small, but we are tight knit, supportive and we will get through this bloody bog.

EDITOR'S NOTE

Not in the mood for an adventure?

The July edition of Resort News is packed plenty of support from wonderful contributors – many of whom knew Graham personally and, thankfully, never fail to look on the bright side! Our industry tech icon Arvo talks spam (not the tinned meat), Mike Phipps tells us to do nothing (in the wisest of ways), and you can read on to find out if Norah is really an explorer! Our new industry reporter, Lucinda Dean has also penned a fascinating interview with the highly adventurous ARAMA director, Jo Mathews (trust me, you do not want to miss her shocking tales about a life in MR!).

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ResortNews | July 2020

hotelinteriors.com.au • 1300 876 055 FRONT DESK

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NEWS IN BRIEF

New data reveals extent of industry’s devastation and prognosis

It is (as expected) horrific news for the industry and shows an extraordinary 99.7 percent decrease in April 2019, the largest decrease on record.

Talking about the figures Australian Tourism Export Council (ATEC) managing director Peter Shelley said: “This is the beginning of what will be a deep and protracted downturn for our export tourism industry and there is absolutely no end in sight.

“COVID has simply decimated our $45 billion export tourism industry which now faces a very difficult future with many businesses unlikely to last the distance while there is so much uncertainty surrounding the reopening of international borders.

“While JobKeeper is a critical part of the business survival package in supporting the retention of valuable staff, the commercial challenge of meeting the costs of fixed overheads over 12 months without revenue will be a bridge too far for many.

“It’s devastating to see so many small businesses effectively cut down overnight after years of hard yards carving out a profitable business, with many choosing to walk away because the mountain is simply too big to climb for a second time.

“While there is some relief for businesses who can connect to domestic tourists, for many tourism businesses who have built their strength on international visitation, the prognosis is dire.”

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ATEC’s survey of export tourism businesses across Australia suggests half of these tourism businesses will fail if borders are not opened in the coming six months.

Mr Shelley continued: “Domestic tourism simply won’t be enough to plug the $45 billion hole left by our international visitors.

“While most Australians will look to holiday at home for the foreseeable future, it can’t be presumed that those people who had international travel plans for 2020 will reinvest that budget toward a domestic trip.

“Consumer confidence, employment insecurity and budget priorities will all be major factors in the spending choices of Australians and travel is likely to be one of the discretionary expenses people choose to do without.

“These issues, coupled with the business costs of social distancing, will put many thousands of tourism businesses under enormous strain and many will simply choose not to reopen or will quickly fail.

Regional short-term rental demand is bouncing back New data indicates that short-term rentals in regional Australia are experiencing a promising upswing in demand post coronavirus, showing a 189 percent increase in bookings as Aussie travellers side-step cities.

AirDNA’s vacation rental recovery report compares the number of new bookings made this past week, to the week of April 6, when the industry hit rock bottom. The results indicate that global vacation rental bookings have skyrocketed with a surge in domestic tourism.

A significant growth in future bookings is revealed, stating “promising signs of recovery for the global tourism industry, showing that short-term rental industry is beginning to bounce back to pre-COVID levels, with an impressive 127 percent climb in new bookings made on Airbnb and Vrbo in a six-week sprint across the globe as travellers see a light at the end of the tunnel”.

However, Australian locations seeing the greatest growth in new bookings are holiday and leisure destinations opposed to large cities, it is here that the growth in short term accommodation bookings is seen as COVID-19 lockdown restrictions ease.

Specifically, vacation rentals in leisure, drive-to destinations are leading the tourism industry in its ascent to recovery after hitting rock bottom in early April.

These results will be especially celebrated by providers and operators in the Blue Mountains where a new booking boom of over 900 percent is shown, this region joins Queenstown, New Zealand, on the list of top ten cities in Oceania that are seeing high growth in new bookings.

Worldwide, beaches, ski resorts, and mountains are proving particularly popular and talking about the global recovery AirDNA report states: “Despite a nightmarish start to 2020, it seems that the vacation rental industry is poised for a quick turnaround — but it’ll likely emerge looking a bit different than the pre-COVID era.

“From longer lengths of stay to shorter booking lead times, the dynamics of demand are now clearly in flux. Plus, given the newfound advantage for leisure destinations and those accessible by car, we are seeing some dramatic shifts in what’s considered a ‘good’ short-term rental market.

“Whatever comes of social distancing protocols, it’s clear that vacation rentals have a leg up on hotels. People are looking for space, safety, and comfort, even in the most crowded of urban cities.”

“We can see from the ABS data that Australia’s export tourism industry has been a strong and vibrant contributor to the national economy over many years, bringing wealth to regional communities and providing a significant number of jobs - and all of this benefit has now been destroyed.

“The government’s JobKeeper program has helped to support thousands of tourism businesses to hold on. We know most of them can remain viable once business returns, but in the meantime, they will continue to need support.”

INDUSTRY

ResortNews | July 2020

Are backpacker hostels going extinct?

These cost-effective accommodations have been a rite of passage for generations of young travellers worldwide.

Unfortunately, however, they are struggling to survive elongated COVID travel bans and long-term recovery is on shaky ground.

Skyrocketing unemployment has pushed school leavers into higher education next year rather than taking a gap year, which means backpacker hostel-type accom may struggle to recover in the medium to long term. Domestic university applications have

doubled this year, compared to 2019 figures and year-on-year Defense Force applications have also shot up by 40 percent.

Like the entire accom industry, backpacker hostels have their “backs against the wall” due to the impacts of COVID-19 on international and domestic travel.

But unlike other providers, their key demographic may be locked out of travel for the next few years. Pandemic fears around cleanliness may also make it hard to attract older travellers, who are more likely to have fears of shared accommodation and misconceptions around hygiene standards at hostels.

According to GlobalData, a leading data and analytics company, “simply relying on demand to

reappear is a risky game to play”.

Hostels will need to proactively diversify their revenue streams, as well as play to their strengths and surroundings – for example, if a hostel is near a beach, the renting of beach equipment and surf boards could be made available.

Ralph Hollister, travel and tourism analyst at GlobalData, said: “Shared dormitories create questions around sanitation and hygiene, which have now become increasingly important for travellers of all ages. According to GlobalData’s global consumer survey, 43 percent of 18-24-year olds are ‘extremely concerned’ about the COVID-19 outbreak and this figure increases to 48 percent for 25-34-year-olds.

“As these two age brackets are key

demographics for hostels, it will be crucial for these businesses to instil confidence as domestic travel restarts – applying for safety accreditation schemes may be on the agenda.”

The survey suggests that the traditional business model of backpacker hostels relies heavily on 18-30-year-olds and this lack of diversification in average customer base will increase the length of recovery post-COVID-19.

Hollister adds: “The location of many hostels will provide another disadvantage, many are based in city centres… It has been well documented that drive-to travel destinations in more rural areas will rebound before markets that depend more on-air travel such as urban/city areas.”

Is QLD’s ‘bed tax’ a smack in the face for providers?

Is the call for a bed tax a direct attack on more than 50,000 people reliant on the accommodation sector to survive? The industry thinks so.

Australia said “Queensland hotels, motels, caravan parks and accommodation providers right around the state are already struggling as a result of the devastating impact of COVID-19 with recovery unlikely before the middle of next year.”

Accommodation Association points out how tone deaf the government campaign feels for industry operators, given how severely the accommodation sector has been impacted by COVID-19 and with recovery not expected for at least 6-12 months even when restrictions ease. The sector is already one of the most highly taxed in Australia. Dean Long, CEO, Accommodation

“We are doing everything we can to keep the 9,000 people who are employed full-time in our hotels, motels, caravan parks, resorts, and serviced apartments in jobs so that the tourism sector, including in Queensland, is able to re-open and kick-start the economy. This is a sector that is already heavily taxed and the calls to add yet another tax to that burden are frankly

ResortNews | July 2020

tone-deaf and self-defeating.”

“This is a sector that already carries the weight of millions of dollars in council rates, state taxes and federal taxes each year plus a range of select taxes including the pedestal tax and taxes on car parks. Adding a bed tax to that mix in the current economic devastation shows a worrying lack of reality which endangers local jobs, and the families and businesses that rely on the accommodation and tourism sectors.”

The tourism accommodation sector in QLD pay more than $650 million in local and state charges each year:

INDUSTRY

•

60,000 tourism accommodation jobs have been lost due to COVID-19 with 8,000 Queenslanders now unemployed

•

Revenue is down a massive 85 percent, or $3.8bn in just three months as a result of COVID-19

•

The continued closure of the border is costing the QLD economy $3.1 billion

•

At best, forecasts show demand for our sector will be down at least 50 percent lower than the pre-COVID volumes until at least March 2021.

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NEWS IN BRIEF

Op-ed: Wave of bookings are like rain after the drought

The wave of recent bookings has been a huge welcome by short term operators around the country.

After cancelling Easter and forward bookings short term rental owners and managers have had months without any income due to COVID-19. Now many owners/ managers are reporting they are nearing capacity over the long weekend and receiving bookings for coming months.

According to Rob Jeffress, Australian Short Term Rental Accommodation Industry Association (ASTRA) chairman, “it’s like rain after the drought”.

“While we’re pleased with strong increases in city and metropolitan areas, the level of bookings in regional areas is a blessing for owners and managers who were devastated by bushfires and floods, only to be shut down by COVID travel bans. STRA is a key driver for regional tourism.”

Jeffress continued: “Holiday rentals have been a favourite for family holidays particularly in coastal towns where guests are looking for a relaxed, affordable holiday.”

After months of isolation, most people in the cities are keen to get away, to escape the city and spend time in country towns, beach villages and nature based destinations, where they feel safe and can enjoy getting

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back to nature. As short-term holiday rental properties provide upwards of 35 percent of accommodation in many regional centres, the locals such as tradies, cleaners, gardeners, contractors, cafes, restaurants, tourism operators and shops are looking to STR accommodation guests to help restart businesses.

For owners and managers, we are also very conscious of the need to assure safety. The threat of COVID infection is still real and deadly. So, a key focus for all operators now is to ensure our guests are safe, that they maintain social distancing, limit gatherings and keep washing their hands. Operators are ensuring their staff and workplaces are COVID safe, and that cleaners and contractors are fully equipped and briefed to maintain protocols that will protect them, guests and local communities.

As a core sector of the accommodation industry in Australia, we are pleased to be able to get back to work, help restart our local economies and give our guests the perfect space to escape. Hopefully this will also be the start of the mini boom period that will help us recover after the bushfires floods, and shut downs that have devastated us over the last six to eight months.

Peta Morrison, Board Member, Australian Short Term Rental Accommodation Industry Association

Annual wage rise deferral praised by hotel sector The Australian Hotels Association (AHA) has welcomed the Fair Work Commission’s decision to defer the 1.75 percent annual wage increase for hospitality staff until February 2021.

AHA National CEO Stephen Ferguson commended the Commission’s Minimum Wage Panel for their support during what has been the most challenging period on record for Australia’s hospitality, accommodation, and tourism sector.

“Through our representatives, the AHA and its subsidiary Tourism Accommodation Australia argued for a deferral of any annual wage increase to help provide additional support to businesses who are only just beginning to reopen after extended COVID-19 restrictions,” Mr Ferguson said.

“The reprieve offered by the Commission today will provide hospitality businesses with the extra breathing room they need as the industry seeks to recover from months of zero revenue.

“As an association we remain firmly focused on ensuring that the JobKeeper Payment

INDUSTRY

Scheme is extended for Australia’s hospitality industry.

“This extension is absolutely essential – failure to do so will result in the loss of many jobs across our sector and we will also see a significant reduction in hours for remaining employees.

“Today’s decision by the Commission is a very welcome one, however it will do little for the employees that are forced out of a job if JobKeeper is ended for our industry in September.”

The Commission announced that the following Awards relevant to Australia’s hospitality workforce has the 1.75 percent increase delayed until the first full pay period commencing on or after February 1, 2021: •

Hospitality Industry (General) Award 2020.

•

Restaurant Industry Award 2020.

•

Alpine Resorts Award 2020.

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Amusement, Events and Recreation Award 2020.

•

Fast Food Industry Award 2010.

•

Marine Tourism and Charter Vessels Award 2020.

•

Registered and Licensed Clubs Award 2010.

ResortNews | July 2020

Life in MR

PERSON OF INTEREST

Jo Mathews:

Action, adventure and clocking off at 5pm

By Lucinda Dean, Industry Reporter

Describing Jo Mathews’ long career, I would say she has dedicated her life to the service of others, but of course, the self-effacing ARAMA director says, “nonsense I have just done my job”.

Resort News talks to Jo about faith, passion, service, adventure and her beloved patch of paradise.

In David Williamson’s play, Travelling North, Frank and his reluctant companion Frances, move from Melbourne to Port Douglas in search of retirement bliss. Along the way, the characters make discoveries about themselves and others until Frank embarks on his final life journey towards death.

Happily for Jo, she took a different path to Frank and did ResortNews | July 2020

things in reverse. She found her nirvana in her early 20s, when she and a girl friend travelled to Airlie Beach for a holiday.

Jo never went home and has not looked back. Quitting a ‘safe’ career in primary school teaching, Jo worked in hospitality in tropical north Queensland islands: Hook Island, Heron Island, Bedarra Island, and even on a hair-raising misadventure in the Solomon Islands (Oceania). It was during this liberating phase of her life that Jo met her partner, David, and the couple has been steadfastly together for 38 years.

A thirst for adventure The wanderlust couple has shared adventures aplenty, coming face-to-face with two three-tonne rhinos while trekking in Nepal; following the ‘Hippie Trail’ overland from Singapore up the east coast of Malaysia and into Thailand; and getting caught up in a bizarre coup attempt in the Solomon Islands, led by a

megalomaniac Dutch chef.

Not skipping a beat, Jo told me how the staff were confronted by 100 machete-wielding, freedomfighters one morning out the front of Anuha Resort, which was closed at the time for renovation.

“We radioed the police from Telagi,” she says. “The riot squad finally arrived, and the situation was sorted.

“It had been orchestrated by a Dutch chef working for the resort who wanted to be king of the island. He had established a cargo cult with the local itinerant natives who had been thatching the new bungalows.”

After the failed coup and the chef’s removal from the island, the newly thatched rooves were mysteriously set alight and much of the resort burnt to the ground.

“When we finally flew home, we landed up in an isolation ward in hospital having contracted malaria. Interesting

INDUSTRY

times, but when you’re young, everything is an adventure!”

After island-hopping, the couple settled on the Gold Coast where Jo landed a job as receptionist of a strata-titled holiday let complex. It was her first introduction to management rights, which would become a career and lifestyle choice for Jo and David for the next (almost) 20 years. Under the auspices of Harvey World Travel, which at the time was branching into resort properties, the couple first managed an apartment complex on the Gold Coast and then in Cairns City Centre. In 1999 they were sent to manage Cairns Beach Resort at Holloways Beach. When Harvey World Travel went to public float, the company divested itself of all properties, and not long after that, in 2001, the couple bought the management rights from the Islands Group that had the major holding and whom they were working for as resident managers.

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In 2006, Jo and David sold that and travelled around Australia to find where they wanted to settle. Heeding the sirens’ call, the couple ended up back at Airlie Beach in 2007 and bought Toscana Village Resort managements rights where they currently reside. Jo explains: “At Airlie I found what was in my soul that I was looking for.

That’s why I keep gravitating back to it, because it’s just the most beautiful place.”

Rolling with the punches While Jo clearly has a spirit of adventure, she confesses she much prefers to be a behind-the-scenes person.

“When it comes to pushing myself forward, I prefer to be the one in the kitchen cleaning up, not the centre of attention,” she says.

The 63-year-old is no shrinking violet when it comes to responsibility and taking on important roles. Born in far North Queensland in a little town called Mossman, Jo’s working-class family moved to Ipswich, near Brisbane, when she was quite young.

“I grew up in a very loving family and went to wonderful Catholic

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Staff were confronted by 100 machete-wielding, freedom-fighters one morning out the front of Anuha Resort, which was closed at the time for renovation. schools, which instilled in me a great sense of ethics, empathy for others and a positive appreciation for life,” Jo says.

She credits this Catholic pedagogy for informing her teaching ethos but finds today’s approach to schooling completely different.

“Back then (early 1980s), if you knew a kid needed a hug, you’d give them one. I’m that sort of a person, very empathetic.”

Tragedy struck when Jo was 16 and still at school. Her mother passed away and, in the year prior, her sister had died of leukaemia. As the oldest child still at home, Jo took on the responsibility of looking after her family.

she says matter-of-factly.

“I was never pressured (to do it). I had a wonderful family and an amazing father considering he was still working and raising a family.

“I guess that’s just the way life goes, it gives you a path that you don’t realise you’re following but steers you on to other things because of what’s come before.”

Out of the frying pan and into the fire Jo started attending local ARAMA meetings at Airlie Beach after she and David bought the management rights to Toscana.

“I knew about cooking, cleaning, ironing and budgets,”

Approximately 12 years ago, the out-going local ARAMA president, Doug, who owned the Waters Edge in Airlie, asked

INDUSTRY

at a meeting who wanted to take over his position.

Jo strenuously denies ever wanting to do it, and when Doug tapped her on the shoulder, she tried to shrug off the nomination by suggesting other candidates.

“Being a person who finds it hard to say no, I said, ‘if you can’t get anyone else to do it, I’ll do it’.

“Of course, the president came back and asked me to do it. That’s how I got involved with the local branch.”

And Jo got more than she bargained for when ARAMA restructured in 2016 into a national organisation. ARAMA went from being exclusively a Queensland-based organisation to extending membership to NSW and Victoria, as management rights were making greater inroads in those states.

Jo found herself being the voice for north Queensland and for the smaller ‘mum and dad’ management rights businesses (typically 25 to 55 apartments) when she was made a board of director for ARAMA. Her peers nominated her despite her genuine reluctance.

Jo says the issues for smaller operations are they

ResortNews | July 2020

do not have the financial capacity to employ as many staff and are undoubtedly a lot more “hands on”.

With intra-state travel open to Queenslanders in June, Jo says bookings have started to pick up.

“As soon as Anna [Palaszczuk] made the announcement that afternoon, by the next morning we had received a flurry of bookings, which was great, but what we have to realise is, it’s not adding to what we [previously] had in June and July because now it’s working off zero occupancy,” Jo says.

“Bigger corporations can hire more people to cover the variety of roles required,” she explains.

“Smaller businesses, like ours, will see the managers doing most of the reception, marketing, accounting, maintenance, cleaning, gardening, helping guests to and from apartments, waiting for late check ins, helping out 24/7 with room issues. It certainly is a lifestyle.”

Prior to the relaxation of travel restrictions, Toscana had been doing promos to pre-book offering flexible dates but just not getting the uptake because people were still so uncertain about travel.

ARAMA believes it is valuable to have someone who has experience in the industry; is from the north (Queensland); and from a small property so we’re getting all points of view across.

After four years as an ARAMA director, Jo will be step aside at the next AGM in October to allow for a new North Queensland representative to have input.

From cyclones to Coronavirus In their first 10 years at Toscana, Jo and David weathered three Category 3 cyclones, which Jo disingenuously describes as being “quite windy!”. Despite leaf debris everywhere, the resort was operating again within a day.

In 2017: “When Cyclone Debbie came through it was a bit trickier because – like cyclones do – they go up and down, up and down, and then they decide where to make landfall,” Jo says.

“Right up ‘til the afternoon before it was supposed to go north of us, but it did come straight over the top of us.”

Jo casually recalls the first half of Cyclone Debbie was “fine” because Toscana is a brick and concrete construction and tucked into the side of the hill on very solid foundations. And having five blocks, two to three storeys in height, it provided better protection against the elements. She even took scones to the residents during the eye of the storm. Three apartments were permanent rentals and one was occupied by a young Sydney couple who decided to stay to ‘experience’ a cyclone.

It was during the second half, when the winds were coming from the north, that the destruction was done. At one point during Cyclone Debbie, Jo and David leant up against the door of the café and held it tight.

They also had to nail down one of the café doors because the winds were so ferocious. That is when the resort’s lovely, tall Cyprus ResortNews | July 2020

Life gives you a path you don’t realise you’re following, and steers you toward other things. pines went ‘snap’, Jo laments.

The next morning, when they inspected the damage, one of the penthouse bi-folds had fallen into the lounge area and some leaves had blown in. But remarkably nothing was broken – not even the glass in the fallen bi-fold door.

Fortunately, they were one of the few Airlie properties that did not have to make an insurance claim.

They did, however, go two weeks without power. The resort’s four pools were full of green matter and dead vegetation and Jo reckons they must have dredged out about four-tonnes of garden debris.

“Look, you live through it and you come out the other side, that’s just life in the tropics,” she says candidly.

Truth be told, COVID-19 has had a more devastating impact on Far North Queensland (FNQ).

The region is heavily reliant on tourism, especially international visitors, which account for 30-40 percent of annual visitation to the Whitsundays. According to Jo, it was when Chinese visitors started cancelling bookings that the locals really started to worry. The wet season month of February, usually a “dead month”, had started to attract healthy bookings in the last five-to-six years because it coincides with Chinese New Year.

“It started going from a few cancellations to

absolutely decimating our occupancy,” Jo says.

“We were able to convert a few to a longer-term rental, which is what most accom providers did, but April, May, June and July were basically empty.

“Anything we get through now is good,” Jo says. “We hope travel within Australia goes really well this year and people do come and see Australia first before they head off overseas because we’ve got some really beautiful places to visit.”

Fortunately, those in management rights have had a bit of a buffer during COVID-19 resulting from their secondary income – caretaking for the building. According to Jo, it’s this modest income that’s helped to keep “a bit of positivity going because we’re not desperate until bookings return”.

Jo jokes: “I reckon now I’m the master hedger of Airlie Beach because that’s what I’ve been doing during COVID instead of sitting at reception.”

“Tourism and accommodation are the lifeblood (of FNQ) because it filters down to the cafes, restaurants and tour operators, but unless people (tourists) are here, then there is no need for those other services, and that was the worry here.

Have a little faith

“While the local tyre shop might think he is not in the tourism game – his customers predominantly would be deriving the spending income from being employed in tourism jobs.

“Don’t come into it thinking that you close the door and walk away, or that you have weekends off or holidays whenever you want – good luck!” she laughs.

“It affects a lot of people.

You might think not going on a holiday is not a major life concern, but it has impacted everybody – the tourists as well as the industry that it supports.”

The road to recovery The recovery issues are not the same for south-east Queensland where Brisbane’s population of over two million can service the holiday destinations of the Gold Coast and the Sunshine Coast.

“We need to make sure that the northern regions have access to the same advantages via reliable low-cost travel in order to compete and sustain as a viable tourism region.”

INDUSTRY

So, what’s Jo’s advice for someone thinking about getting into management rights?

“It’s a lifestyle, and it sure beats driving to work two hours a day.

You have to like people; you have to be thoughtful and empathetic.

“I knock off at 5pm. By 17:01, I am on my balcony with my James Patterson crime novel and a glass of bubbly and I think this is pretty nice! It’s all about appreciating what you’ve got.”

Perhaps we could all take a leaf out of Jo’s book.

Her philosophy is profoundly simple: “Live in the moment and be kind and compassionate in all you do. Remember, the fact that there is a ‘highway to hell’ and only a ‘stairway to heaven’, tells you a lot about the anticipated traffic numbers!”

11

ARAMA REPORT

It is time to get on with the job After enduring what has been an extraordinary period for tourism and accommodation providers, the green shoots are beginning to emerge throughout the economy, and we are once again starting to look ahead in earnest.

That is, of course, if we ignore those who continue to talk about ‘doom and gloom’ – words I have rarely used throughout my career and certainly not since joining the management rights industry.

These purveyors of bad news will always be there, selling us down the river with ‘apocalyptic’ forecasts – but as a business community, we know what we are capable of achieving and we are ready to get on with the job.

Our sector has endured the pilot strikes and Ansett crisis and the GFC, and now we are tackling COVID-19 head-on – so these

12

optimistic with bookings starting to fill up in the months ahead.

Trevor Rawnsley, CEO, ARAMA

divas of despair can step aside.

People are starting to feel better about their job and the economy, and we have a built-up need to go out and socialise. For many, this is underpinned by a social duty to support hospitality and accommodation offerings and the local economy.

In management rights, sales brokers are reporting plenty of interest and that businesses are transacting, and certainly many operators I speak with are feeling

Of course, we would all rather be in a different situation, but things are improving by the week and I am confident the enterprising and agile operators in our industry will do whatever it takes to succeed – it’s in our DNA. However, we have to maintain our ability to ignore the knockers. We were confident enough to have a go in the first place and now is the time to back ourselves to get back on track as tourism recovers.

Our industry has been operating for 50 years and last year, management rights contributed around $55 billion to our economy. We are not going anywhere.

Management rights continues to prove to be the most effective method of serving the interests of unit owners, bodies corporate, tenants and guests – and the outlook is bright with more and more Australians embracing modern density living.

INDUSTRY

We are not expecting any major changes to legislation and we’re encouraging governments to step aside and let us do what we do best. Now really is the time to dig deep and get back on track.

In doing so, I cannot stress enough the importance of prioritising our physical and mental health. It has been a turbulent time with some tough decision-making and business and family stress will no doubt continue for some.

Our industry is unique in that we have fostered a ‘members helping members’ culture – and this year ARAMA has introduced a member assistance program to help members maintain their wellbeing.

As we approach the second half of the year, I urge you all to speak with your peers and succeed together. The more active our members are, the more powerful our industry is.

ResortNews | July 2020

In response to the impact of COVID-19 on strata and community schemes, the NSW government has made temporary changes to the law to give schemes the flexibility they need to function.

Levies and contributions The NSW government acknowledges that some owners are experiencing financial hardship as a result of COVID-19 and nonpayment of levy contributions impacts the ability of owners corporations to manage and maintain the property.

The following changes commenced on June 5, 2020 and will remain in place for six months.

Col Myers, Small Myers Hughes

Electronic voting All strata schemes and community associations in NSW can now meet and vote electronically (teleconference, videoconference, email, or other electronic means) at general and committee meetings.

Previously, strata schemes could only meet and vote electronically if the owners corporation or strata committee had adopted a resolution to allow it. Community schemes laws did not provide for electronic voting.

To ensure these owners are not excluded or disadvantaged, the scheme’s secretary must take reasonable steps to ensure all owners can participate in and vote at meetings.

At a minimum, the secretary must ensure the technology chosen: •

is accessible to all lot owners

•

does not incur unreasonable expenses for individual lot owners to use

•

has easy to follow instructions readily available.

Note, however, that the new laws simply provide schemes with the option to meet and vote validly by electronic means.

It is not mandatory to do so.

Some schemes may be able to continue holding meetings in person and paper ballots for voting, as long as they follow public health advice about physical distancing and hygiene.

The new laws also allow for meeting notices and other documents to be served by email, rather than hard copy, reducing points of contact.

Schemes may also decide to adopt a resolution to continue to meet and vote electronically after the temporary regulations expire.

ResortNews | July 2020

The financial impact on schemes will vary depending on the proportion of affected owners and the financial position of the scheme.

Common areas and shared facilities Shared facilities can remain open if restrictions are in place including physical distancing and hygiene. Most importantly, only one person per four square metres is allowed in each space.

These facilities can include:

Owners corporations by resolution at a general meeting can enter a payment plan for overdue contributions. The payment plan is limited to a 12-month period.

Subject to a resolution at a general meeting, the scheme can also agree to reduce contributions by 10 percent if they are paid before their due date.

Levy contributions in arrears accrue interest at a rate of 10 percent. The interest is payable if

•

swimming pools, saunas, and spas

•

barbeques

•

gyms

•

rooftop gardens

•

indoor recreation rooms (for example, games rooms)

•

outdoor or indoor playgrounds

the contribution is not paid within one month of the contribution being due and payable.

STATE REPORT

Temporary COVID - 19 changes for NSW strata and community associations Owners corporations can now decide, by resolution at a general meeting, that no interest applies to individual lot owners or across all lot owners. Currently, there is no provision available to reduce the interest rate.

The strata manager or committee treasurer can also review potential costs in the budget by: •

deferring special levies unless they relate directly to health and safety work;

•

deferring non-essential works to free up funds for increased cleaning and waste management.

Owners corporations can also consider taking out a strata loan to cover shortfalls if needed.

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

These facilities can be open for residents (as they are not a facility open to members of the public).

However, facilities need to operate safely and comply with physical distancing and hygiene measures.

If an owners corporation temporarily closes facilities on the common property, a notice of closure must be posted so all residents are aware.

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

Hygiene Owners corporations must also consider cleaning common areas more frequently.

Frequent points of contact such as door handles, handrails, light switches, lift buttons, and garbage chutes and rooms must be disinfected more regularly.

Strata managers, committees, building managers and contract cleaners must have procedures in place to ensure cleaning practices conform to the Department of Health’s COVID-19 policies.

For membership enquiries:

national@arama.com.au | www.arama.com.au

INDUSTRY

1300 ARAMA Q (1300 27 26 27)

13

BCCM REPORT

Mandatory self-resolution Life in a community titles scheme comes as a surprise to many new residents.

to formal dispute resolution.

Sometimes that will involve using body corporate processes such as putting a motion to a general meeting or committee.

Perhaps the most striking difference is the proximity to others in your scheme. Life in a body corporate means thinking about how your everyday behaviour might affect other occupants. Behaviour that might seem perfectly normal to you – for example, watching a movie late at night with the volume up high, allowing your dog to roam around the communal garden leash-free, or smoking on your private balcony – might interfere with another resident’s right to the peaceful enjoyment of their lot or the common property.

What are the benefits of self-resolution?

Another common point of contention in community living tends to be decision-making.

Naturally, not everyone is going to agree with the decisions made by their committee or the other lot owners at general meetings. While there are those fortunate enough to be part of a harmonious body corporate, the reality is that a low-conflict body corporate requires a conscious effort on the part of all residents.

14

Internal dispute resolution has two key benefits – efficiency and preserving relationships.

Michelle Scott

Commissioner, Body Corporate & Community Management

If there is a dispute – and particularly a ‘dispute’ of the type my Office has jurisdiction to resolve – it is important to know about self-resolution.

In line with the fundamental legislative objective of selfmanagement essential to community living, selfresolution must be attempted before lodging a conciliation or adjudication application.

Ignoring this critical step may result in your application being rejected from the outset.

What is self-resolution?

Self-resolution involves taking reasonable steps to resolve your issue internally without recourse

Submitting a formal application to my Office requires a lodgement fee, completion of an application and a waiting period before the issue is considered.

However, self-resolution gives owners a chance to settle the issue simply and cheaply by communicating openly about the issue or putting forward a motion to your committee or a general meeting.

Escalating the problem to conciliation or adjudication prematurely may also harm already fragile relationships. In a community living situation, poor relationships can be a source of considerable and ongoing stress. Keeping the matter within the body corporate goes a long way to maintaining a degree of harmony in the scheme.

INDUSTRY

What is appropriate self-resolution if I do not agree with the committee’s decision?

If the committee has the authority to make a decision on your issue, you may wish to submit a written request (referred to as a motion) for their consideration. Some common applications determined by the committee include keeping of animals, improvements to lots or the common property and maintenance.

If your motion is rejected, sending a letter or email seeking the reasons for their decision is an effective starting point (and evidence of self-resolution if you need to lodge a formal application down the track). Or, if the committee has already provided reasons and you disagree, respectfully provide the reasons why you disagree.

When drafting a letter, bear in mind that the purpose is to encourage healthy dialogue towards change rather than point out potential errors.

If your issue remains unresolved you may consider lodging a conciliation application along ResortNews | July 2020

with evidence of your efforts to resolve the issue with your committee. Alternatively, if you think the other lot owners may have a different view to the committee, you may wish to submit the rejected motion to a general meeting.

Be mindful that if the motion does not pass at the general meeting, and you wish to pursue the issue, you may need to lodge an adjudication application disputing the reasonableness of the general meeting decision.

An adjudication application may take considerably longer to be finalised than conciliation, as a binding determination will need to be made by an adjudicator. If you would prefer to gauge the opinions of the other lot owners before taking this step, you could access the body corporate roll which contains detailed information about each lot in the scheme, including the name and address for service of lot owners.

What is appropriate self-resolution if I have an issue with another occupier?

Where the actions of another resident are interfering with your enjoyment of your lot or the common property, you may wish to tell them of the impact it is having on you.

Depending on your relationship with the person – you may feel comfortable expressing your concerns in person or over the phone. Remember to document your attempts to resolve the issue verbally, as you may need this for evidence later. Alternatively, if you are uncomfortable with discussing your concerns in person or over the phone, you may prefer to send a polite informal letter to the person sharing your concerns.

If the issue persists, the next step may be to relay these concerns to your committee.

Where the issue relates to a potential breach of the by-laws, you must follow the preliminary requirements for by-law enforcement before lodging an application. The first step is to provide a Form 1 to your committee, alerting them to the breach of the by-laws. The committee has 14 days from the date of you issuing the Form 1 to make a decision about whether to issue a contravention notice.

If the 14 days has passed and you have not heard from your committee or the committee has notified you they will not be pursuing the matter, you may consider lodging ResortNews | July 2020

a conciliation application once you have exhausted attempts at self-resolution.

When would submitting a motion to a general meeting be a suitable form of self-resolution?

If you disagree with a motion passed by the other lot owners at a general meeting, you may choose to submit a motion for the next general meeting seeking to revoke the previous motion. The resolution type needed to revoke the motion must be the same as the resolution type that passed the motion initially.

Revoking a motion by submitting another motion may not be appropriate in all cases. For example, if at a general meeting the body corporate passes a motion to engage a particular company to paint the common property, another motion to revoke that previous motion may not be viable, as a binding written contract may already be in place. In these circumstances the body corporate may wish to seek independent legal advice.

If there is a by-law you believe is invalid, you could submit a motion to a general meeting seeking to amend or remove the by-law. There are a number of reasons a by-law may be invalid.

Prohibiting animals (or a type of animal), discriminating between tenants and owners, imposing monetary liability, being inconsistent with legislation or being unreasonable are just some of the reasons an owner may seek to change a by-law.

or meetings – either formal or informal – may prove especially useful for managing grievances.

In addition, smaller steps like making one committee member the first point of contact for residents or setting clear and reasonable timeframes for the committee to respond to requests or concerns may also defuse conflict.

Implementing internal dispute resolution processes means residents who feel aggrieved will have an internal forum for voicing their concerns. Without these mechanisms in place, residents may feel that lodging a formal application is the only avenue for their issue to be addressed, as there is no support within their own body corporate.

Importantly, proof of having participated in these processes within your body corporate may also be used as evidence of self-resolution should the issue remain unresolved.

What if selfresolution fails?

If endeavours to resolve the dispute internally are unsuccessful, the aggrieved person may consider lodging a formal conciliation or adjudication application with the

Submitting a motion at a general meeting serves as evidence that you have attempted to resolve the issue internally before lodging an adjudication application.

How to promote selfresolution in our body corporate?

Office of the Commissioner for Body Corporate and Community Management. Conciliation involves an impartial conciliator equipped with knowledge of body corporate legislation assisting parties to navigate their issues – either face-to-face or by teleconference. While the ideal outcome of conciliation is a good faith agreement, an adjudication application results in a binding order. In most circumstances, conciliation must be attempted first. Adjudication is generally appropriate in the first instance if you are disputing a general meeting decision.

As emphasised throughout this article, it is critical to remember that lodging a formal dispute resolution application for conciliation or adjudication is a last resort, not a starting point. With that in mind it is important that I stress that self-resolution is mandatory, and I cannot waive that requirement. If an application is lodged with my Office without appropriate evidence of selfresolution, it is more than likely it will be rejected.

TheManagement Rights Lawyers BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION

Open communication is vital for promoting a low-conflict body corporate. Of course, how you communicate your initial concerns sets the tone. Accusatory or hostile communication is only going to inflame the situation.

RENEWAL STRATEGY

DISPUTE RESOLUTION

An effective method of maintaining control over disputes is for a body corporate to develop its own dispute resolution mechanisms.

The committee or an owner may submit a motion to a general meeting to approve these processes. Establishing processes such as mediation INDUSTRY

www.mahoneys.com.au 15

SCA REPORT

Prioritising strata communities for better futures Standing up for consumer rights is one of the most critical roles SCA (Qld) fulfils as the strata industry’s peak body.

While the pandemic shut down strata communities, we had a pivotal role to play in ensuring that bodies corporate abide by the health directions and understand their role in stopping the spread of COVID-19.

As we move back to some kind of normality, we are getting ready for the 2020 State Election which for us bears the prospect of body corporate matters being prioritised, consumers being prioritised. What we have seen in the last two or three years are the cracks in the system. The built environment has many facets that need urgent attention – construction issues, community harmony and compliance with more and more safety regulations.

How can consumers keep up with the rapid change and higher standard of bodies corporate?

Well, the first step is of course to engage a professional body corporate manager. Body corporate managers have long moved on from being administrators into advisory roles where committees rely on their expertise. Now more than ever, they play a vital role in creating functional, flourishing communities in which 1.2 million Queenslanders live.

The 25 percent of Queenslanders who live in strata are significant enough to stand up for.

James Nickless, President, SCA, Qld

It is unsurprising that we have identified a few key issues that need urgent attention to make community living better for all involved. Body corporate managers, committees and lot owners are often faced with unclear government regulations, or even a lack of regulation, and protection for both managers and owners.

It is imperative that consumer voices are heard. We have set the bar high in owner, supplier, and body corporate manager education; however, with no regulatory education requirements for body corporate managers, it leaves the industry open to potential problems. Regulation of body corporate managers has been on our wishlist for decades as we believe that a lack of continuous education for body corporate managers means unskilled, uneducated, and unprofessional operators leave strata communities exposed to enormous risk.

SCA (Qld) has outlined several priorities which directly address major issues faced by the body corporate sector in Queensland. Our main concerns are consumer protection, North Queensland’s insurance crisis, the ability to self-regulate, an expanded dispute resolution framework, strata professional as well as committee protection from bullying and harassment, and mandatory minimum requirements for body corporate managers.

More than ever before, we need a robust legislative framework that protects owner’s investments and builds strong strata communities. Consumer protection from defects is a major priority for SCA (Qld) for the upcoming state election.

Faulty products, the inability to insure buildings over three storeys and the systematic issues holding the construction sector to account are just some of the issues bodies corporate face in their daily works. These must be addressed with better built environment policies and protection measures.

North Queensland is burdened with insurance fees 2.6 times greater than the average for Australia. It is crucial that the government provides relief to these communities so they can continue housing thousands of Queenslanders across the region. We are calling on policy makers to act and find solutions to offer reasonable insurance rates. With 87 percent of members indicating they had experienced an inability to obtain adequate insurance for at least one of their clients, it is critical that this issue

16

INDUSTRY

is prioritised. Another issue faced by bodies corporate is the restriction on by-laws and enforcement, disallowing selfregulation on certain issues.

Our members believe that bodies corporate should have the capacity to regulate issues such as towing, pets, smoking and short-term letting, ensuring that a community can make their own decisions on how to live in and run their scheme.

Emotive by-law issues should be in their hands to make democratic decisions on for harmonious community living.

SCA (Qld) is standing up for a sector that has seen 20,000 new schemes come onto the market in three years. They all battle with issues that are on the construction level or in day-to-day governance. As the peak association in the strata industry we have over 1,200 members who manage a total sinking fund balance of $165 million. We provide education, advice, and advocacy to allow members to better understand regulations, obligations, and owner’s rights. By bringing these issues to light towards the upcoming state election we are hoping for a large-scale change in strata management at a government level.

The 25 percent of Queenslanders who live in strata - and the prospect of strata community living being chosen over the single home in suburbia - are significant enough to stand up for.

ResortNews | July 2020

When the COVID-19 lockdown shock first hit our industry in March, unsurprisingly there was considerable angst and fear about not only the impact the lockdown would have on management rights businesses but also on the value of such businesses.

Given the historical valuation methodology where the value of such businesses is determined by a multiplier applied to the most recent 12 months of net profit, such fear and angst was understandable. After all, if net profit dipped by 20 percent over that 12 months, a corresponding drop in value and sale price would be huge. For short-term complexes where letting income evaporated for many managers the impact on values of such a massive drop in net profit would be catastrophic. Fortunately, based on conversations I have been having with valuers, that is not going to happen.

In the case of long-term residential complexes, with the expectation of many tenants seeking and achieving rent reductions or even rent holidays and increases in vacancy rates, valuers began to factor in almost universal reductions in net profit over that for the previous 12 ResortNews | July 2020

LEGAL EASE

What is my business worth?

There is no doubt that valuers will have to adopt a different approach to the past.

John Mahoney, Mahoney Lawyers

months. This had the potential to reduce values by up to 15 percent.

However, as time went on, it quickly became apparent that the impact of COVID-19 and the rent relief available to tenants was nowhere near the problem first thought. In many complexes, few if any tenants sought rent reductions and many that did simply did not qualify. In the worst affected complexes, there were only five percent or so of tenants seeking reductions while less received reductions.

The JobKeeper program and other measures to address the economic implications of COVID-19 minimised the impact on long term rentals.

In a teleconference I facilitated, the recognised valuers and some specialist accountants working in the industry agreed on a way forward. There would not be a universal assumed drop in net

profit for all businesses. Rather each complex would be looked at individually with the seller being asked by the verifying accountant and or the valuer a series of agreed questions about the numbers of tenants who have sought and obtained rent relief, rental arrears, vacancy rates, enquiry levels, time to source new tenants, tenants’ occupations, any drops in rents being achieved, owners in financial hardship and levy arrears.

The feedback I am receiving from accountants and valuers that when these questions are asked, it becomes apparent that very few complexes are affected in any material way.

As a consequence, all but a very small number of long-term management rights businesses are showing any reduction in net profit for valuation purposes.

With demand high and multipliers strong, these businesses have generally maintained their pre COVID-19 values.

MANAGEMENT

Short-term and holiday complexes are a different story.

There are very few transactions for these businesses taking place now. Almost all transactions where a buyer could terminate when COVID-19 struck were terminated. It is likely to be many months before we see some sort of recovery in this market.

There is no doubt that valuers will have to adopt a different approach to the past. 12 months of net profit will have little meaning for the foreseeable future – for sellers, buyers, valuers or banks. I expect that valuers will take a much wider view of such a business in the future and will likely look at the financial performance of such businesses for two to three years pre-COVID, what has occurred during the COVID period and projected net profit for a future period – likely to be at least 12 months.

Projecting future net profit will not be easy and accountants will face a difficult task in doing so.

17

BY ALL ACCOUNTS

$150,000 instant asset write-off to be extended The Morrison Government has announced that it will extend the $150,000 instant asset writeoff threshold for a further six months until December 31, 2020.

This means that the higher threshold can apply to assets that are first used or installed ready for use for a taxable purpose on or after March 12, 2020 and by December 31, 2020 (assuming all other basic conditions are satisfied).

Australian businesses with annual turnover of less than $500 million will be able to take advantage of this extended timeframe.

The Bill also extends the temporary suspension of the five-year lock-out rules that can apply when an SBE chooses not to use the simplified depreciation rules. The suspension of these rules will be extended to June 30, 2021.

Clients are urged to consider their own individual situation before purchasing assets up to $150,000 to receive the deduction. Talking to an accountant will help dissect your needs. Purchasing new equipment to the value of $150,000 may give you considerable tax savings, but you need the cash flow to do so, which can be a challenge in these pressing times.

Note that car depreciation cost limit still applies, for the 2019-20 year; it is $57,581.

ATO annual reporting – key dates If you employ 20 or more employees, you have until July 14 to make a finalisation declaration for your employees’ end of financial year (EOFY) payroll information. This is done through your Single Touch Payroll (STP)enabled payroll solution after your last pay run for the financial year. Employers with 19 or fewer employers must finalise by July 31. The PAYG payment summary annual report (wages, salaries, etc.), which would only be necessary to report employees

18

Australian businesses with annual turnover of less than $500 million will be able to take advantage of this extended timeframe Jonathan Hanaghan, JonathanGrant Accountants

that were not reported through STP, is due by August 14, 2020.

The 2020 Taxable payments annual report (‘TPAR’) is due by August 28, 2020. This may be applicable to management right businesses as you must lodge a ‘TPAR’ if 10 percent or more of your total GST turnover is derived from cleaning services.

Additionally, the following reports are all due by October 31, 2020: PAYG withholding where ABN not quoted, PAYG withholding from interest, dividend, and royalty payments paid to non-residents, and PAYG withholding annual report – payments to foreign residents.

The ATO has also issued a reminder for clients using the ATO’s small business superannuation clearing house - to ensure the business can claim a deduction for contributions made in the 2019-20 income year, payments will need to be accepted by the SBSCH by June 23, 2020.

JobKeeper – Monthly declaration reminder Each month you must complete a business monthly declaration to be able to keep claiming JobKeeper payments. You must do this in the first 14 days after the month you are claiming for ends. Your tax or BAS agent can also make the business monthly declaration for you.

It is important to ensure that you have paid eligible JobKeeper staff at least $1,500 during each JobKeeper fortnight. If you pay employees less frequently than fortnightly, the payment can be allocated between fortnights in a reasonable manner.

For example, if you pay your employees on a monthly pay cycle, your employees must have received the monthly equivalent of $1,500 per fortnight.

‘One in, all in’ principle Once an employer decides to participate in the JobKeeper scheme and their eligible employees have agreed to be nominated by the employer, the employer must ensure that all these eligible employees are covered by their participation in the scheme. This includes all eligible employees who are undertaking work for the employer or have been stood down. The employer cannot select which eligible employees will participate in the scheme.

JobKeeper audit targets The ATO is looking carefully at businesses that appear to have made adjustments to their circumstances to meet the JobKeeper eligibility requirements where, if those adjustments had not been made, the entity would have been ineligible or had lower JobKeeper payments. Or, where adjustments have been made to enable another entity or subcontractor to meet the decline in turnover test.

Industries or businesses that have not experienced adverse trading conditions and those that appear to have increased staff numbers are likely to be looked at closely. In its guidance, the ATO sets out a series of examples that are likely to attract their attention: •

Increase in staff

•

Deferring supplies

MANAGEMENT

•

Bringing forward supplies

•

Restructures

•

Management fee manipulation

•

Reduction in payments to subcontractors

•

JobKeeper used to reduce cost of supplies to customers

What happens if you got it wrong?

If your structure or the way you have accessed JobKeeper is on the ATO target list, this does not mean that there is a problem.

Eligibility to JobKeeper is generally based on an estimate of the negative impact of the pandemic on an individual business’s turnover. Some will experience a greater decline than estimated while others will fall short of the required 30 percent, 50 percent or 15 percent. There is no claw back if you got it wrong as long as you can prove the basis for your eligibility going into the scheme.

For those that, in hindsight, did not meet the decline in turnover test, you need to ensure you have your paperwork ready to prove your position if the ATO requests it. You will need to show how you calculated the decline in turnover test and how you came to your assessment of your expected decline, for example, a trend of cancelled orders or trade conditions at that time.

ResortNews | July 2020

Before we begin, a caveat: by the time you read this the content may be out of date. In fact, by the time I have finished typing, it might be old news.

In fact, I have now written this article three times. Each time I complete the task and head off to bed having once again dodged the dreaded deadline extension.

Each morning I awake to new news, some good, some bad.

It is like Groundhog Day with a twist. I awake to the same day but with a few bizarre nuances.

Yesterday, I was going to comment on the positives of reopening borders, today Victoria reinstates limited gathering orders and the Queensland government makes noises about selective border openings. All those jokes about the southerners needing to clear the boom gates are finally coming true. Do not get me wrong, I’m all for state-by-state passports with stamps to show where you’ve been and special hot spot stars in red to alert the unsuspecting border guards.

You could use a tracking app, I guess, but who knows what the government may do with your private personal data. It is not as though the spooks could figure that out from your tax returns, Medicare history, Facebook page, Google activity, Instagram account or Twitter.

The trick will be finding value at an acceptable risk level But in all seriousness, any buyer right now needs to be better prepared than ever.

Mike Phipps, Director, Mike Phipps Finance

bank is a bit slow sorting your request, it is not a plot to send you into receivership. God knows, who in their right mind would want to force a sale at present.

At least one of the four majors have announced that repayment holidays and interest-only conversions have been automatically extended to the end of September. I expect the other lenders to follow. One of the majors has announced an embargo on motel and holiday-based management rights lending until the end of July while another is clearly dodging any application to finance these assets.

Having said all this, deals are getting done. How can it be I hear you ask? Well, of course many buyers are using incredibly capable, professional, well regarded miracle workers like ourselves, shameless plug, sorry!

The first two questions we need to answer are: who is the borrower and why are they buying right now? Given the uncertainty out there, a borrower needs to be able to demonstrate sufficient direct and/or comparable experience to show that they have what it takes to manage and prosper if things don’t get better and fast. Remember, borrowers who decide to execute transactions now that the COVID-19 risk is a clear and present danger run the risk of being left out of future bank support packages.

If you get into strife post settlement or if things get worse, you may well be on your own. There are strategies for minimising this risk, but I cannot give away all our secrets.

Having convinced the bank that the borrower is a genius, the next step is to address the specific transaction. If it’s a permanent management rights in the ‘burbs

Anyway, enough of the frivolity.

Let’s cut to the chase: what are the banks thinking? Despite their best efforts to remain organised and supportive they are in the same boat as the rest of us. That is, they have no clear idea how all this is going to end but they are doing their best to get through and to help the rest of us survive as well. Annual reviews have pretty much been set aside for accommodation industry borrowers and I have not seen any bank insist on a revaluation. What is the point when we all know that for holiday buildings and many motels the numbers will be horrible.

All the banks have been swamped in support requests and some process these volumes better than others. Do not despair if your ResortNews | July 2020

THINKING MR

When in doubt… Do nothing? with minimal COVID-19 impact and negligible future risk (we hope) that’s a relatively straight forward discussion. If it is a holiday-based MLR in Surfers or Palm Cove, the argument needs to be whole lot more robust.

A good starting point is the level of debt coverage offered by the BC salary. Add in a property letting cash flow with conservative assumptions and a compelling business plan and we are on our way. No other external debt? Tick. Other income streams? Tick. Reasonable post settlement cash reserves?

Tick. We are on our way; not home, but on the right track.

This still doesn’t answer the question: why buy now and take on the vendor’s COVID risk?

Simple: the price reflects the risk and by the time the risk can be absolutely quantified (or even better defeated) the price will go back to pre-COVID levels. Put simply, prices right now need to reflect the unknown risks being taken by the buyer and, as such, removed from the vendor. Of course, as this once in a lifetime crisis has demonstrated, the future risks are simply impossible to quantify.

What we do know is that, just as we saw during the GFC, some clever, brave, and/or crazy people will make money. They will not be influenced by peripheral issues and fringe discontent and will focus on a two-year recovery horizon. If the price is right and you have the capital to get through, why not? The trick will be finding value at an acceptable risk level and, as I’ve observed before, I don’t see many vendors being prepared to take a bath just yet.

Of course, you could always take the safe, potentially less profitable, option and do nothing.

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MOTEL MARKET

Whatever makes you happy What do people seeking and staying in accommodation want?

How can accommodation providers give that potential guest what they want and need, satisfying all requirements?

Answering these questions forms the foundation for winning any new or existing business. Gaining the booking and then keeping the repeat booking over a long period of time builds a strong business.

Every potential guest that looks at a motel on their website, a booking site, a highway sign, makes a phone call to enquire, etc., has their own individual demands and preferences for their stay. Focusing on those things that satisfy the individual in order to have them make the booking, return next time they are coming to town, recommend the motel to everyone they know, and write a great online review, is a targeted approach to an overall good business practice.

Not everything needs to be perfect but any issues a guest has should be dealt with to secure a positive outcome and eliminate legitimate grievances.

We do not live in a perfect world and some people will never be satisfied, no matter how much we try to keep them happy… hence the word ‘legitimate’.

There is a lot involved trying to satisfy every single customer.

Whether it be working out

a unit that has not been cleaned fully and correctly will have a devastating and most likely irreparable issue for a guest. In that case expect an unpleasant online review and to never see that guest again.

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

exactly what is most important to that individual or what is going to keep them happy, through to keeping the larger guest base satisfied. What is it that can be done to satisfy as many guests as possible as well as each individual need? Some guests need constant attention; some are high maintenance; others need no effort at all and you would barely know they stayed at the property.

In no particular order, here are a few items that guests may see as their most important matters: Value for money – No-one likes feeling as though they were ‘ripped off’. If one feels as though they got good value for their hard-earned dollar, that will produce a smile and a repeat guest.

Cleanliness – Always paramount to any guest’s minimum accommodation requirements.

No matter what else happens,

Good night sleep – This covers a range of matters; however, the overall experience of a good night’s sleep is paramount to a guest no matter what the reason for travel - work, family, holiday, etc. Everyone wants a good night sleep to be able to function at their best the next day. Coming away sleep deprived and having to work a full day thereafter does not leave a positive feeling about the experience. That leads on to the next point.

Positive experience – All these matters put together add up to the experience. Was it positive or negative? This will determine whether a quest returns or not.

Bed comfort – Was the bedding of a good standard or did it sag in the middle? Often one of the first impressions when opening the door of a motel room is the look of the bed. If it sits high and looks solid, that is ideal.

If it sits low and/or sags in the middle, oh dear! The quality of the bedding is always going to be a high priority for a guest.

Without this, all other dot points mentioned are irrelevant and they will never return.

Reception greeting – How one is greeted at reception when they first enter the property is

a second first impression, as strange as that sounds. Good or bad first impressions always last.

Ease of check in and check out – How quickly and easily this process is handled, especially when one is tired and wanting a shower, or busy to get to the first meeting of the day or get on the road to get going.

Friendliness – How the guest is treated by the owner/ manager/employees of the motel reflects on the entire business. Feeling welcome is important to everyone no matter what the circumstances or environment. Some will want to be loved upon arrival, others just want to get to their unit.

Noise level – Sometimes noise from the next unit, outside the unit or external noise from the road or street is going to create an unavoidable level of noise.

Is that unavoidable noise at an acceptable or reasonable level?

Each guest’s level of tolerance will be different but trying to keep that noise to an absolute minimum is the best one can expect. Sound dampening methods and products work well but vehicles screeching tyres or kids running back and forth along a veranda are going to be too much for whatever one implements.

Room servicing – Often open to the expectations of the individual guest: some people expect servicing each day, others expect less. The length of stay will play a role here also.

Facilities – Again, what is important to one guest will not be important to another.

Restaurant and bar, conference facilities, breakfasts, meals, swimming pool and BBQ facilities, wifi, outdoor seating, pay tv and laundry facilities.

Individual preferences will dictate different levels of importance.

Carparking (uncovered, undercover or on-street) – This is very important to some guests. Work vehicles may need to be parked off the street. Other travellers do not wish their cars to be uncovered, even for one night.

The aim is always for every guest to leave happy with their stay.

The enjoyment one gets from this makes for a great sense of pride and real job satisfaction.

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MANAGEMENT

ResortNews | July 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

INTONET

By the numbers…

I have a new philosophy.

I’m only going to dread one day at a time.

The largest number of suspended Twitter accounts, totalling 23,750 profiles, were linked to the Chinese Government

So said Charles M. Schulz, and I am inclined to follow his mantra!

The first thing I heard was an angry cry: “I hate this (expletive deleted) phone; it’s now telling me that I am ringing myself! What should I do now?” My reply: “Don’t answer it and let it ring out.”

Usually spoofed calls pretend to be of interstate origin, but this was an interesting variation. As an aside, I just block numbers which are not on my contact list but obviously I cannot auto-block my own number.

A genuine caller will leave a message, spammers do not.

These calls usually originate from overseas countries and are designed to trap you into calling back which could cost you dearly. But these are not the only nasty annoyances and worries.

And I am sorry, but this topic just will not go away!

The numbers are just getting bigger and the dangers on the web continue to increase as if in unison with our COVID-19 pandemic. I am referring to the incredible amount of spam

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Arvo Elias, Cybercons

and malware doing the rounds in emails and websites.

According to Google’s latest blog, every day, Gmail blocks more than 100 million phishing emails. During the last week, they saw 18 million daily malware and phishing emails related to COVID-19. This is in addition to more than 240 million COVIDrelated daily spam messages. In addition, Twitter has suspended and removed 32,242 accounts linked to propaganda and disinformation. Our ABC, in an online article, advised that the tech giant has been investigating suspicious users, which have been flooding social media feeds with pro-government rhetoric in a bid to manipulate public debate.

Twitter has shared the data with researchers at the US-

based Stanford Internet Observatory and the Australian Strategic Policy Institute (ASPI) in Canberra.

“Every account and piece of content associated with these operations has been permanently removed from the service,” Twitter said in a statement.

The largest number of suspended accounts, totalling 23,750 profiles, were linked to the Chinese Government after a surge in activity was detected at the height of pro-democracy protests in Hong Kong.

Somewhat curiously, but perhaps predictably, Facebook appears to be out of step with its industry allies. Zuckerberg continues to

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argue his case for uncensored speech regardless of its true deposition. That argument is becoming unacceptable to the public and indeed his own staff members who are currently revolting within the organisation.

So much so, in fact, that one of their senior development engineers resigned in protest.

By way of introduction to the technical jargon and AI (artificial intelligence), Cloud AutoML is a suite of machine learning products that enables developers with limited machine learning expertise to train high-quality models specific to their business needs. It relies on Google’s state-of-the-art transfer learning and neural architecture search technology. That is Google-speak and not mine!

ResortNews | July 2020

According to Google: “Our ML models have evolved to understand and filter these threats, and continue to block more than 99.9 percent of spam, phishing, and malware from reaching users. The phishing attacks and scams we’re seeing use both fear and financial incentives to create urgency to try and prompt users to respond.

Here are some examples: Impersonating authoritative government organizations like the World Health Organization (WHO) to solicit fraudulent donations or distribute malware; this includes mechanisms to distribute downloadable files that can install backdoors.

In addition to blocking these emails, we worked with the WHO to clarify the importance of an accelerated implementation of DMARC (Domain-based Message Authentication, Reporting, and Conformance) and highlighted the necessity of email authentication to improve security.”

The tactics of malicious emails are not new but are revised to suit current issues. Issues

that are seen as, or instilling, urgency in the recipients.

The types of typical incentives to respond include impersonating authoritative government organisations; phishing attempts of employees operating in a work-from-home setting; attempts to capitalise on government stimulus packages and imitate government institutions to phish small businesses; and those that attempt to target organisations impacted by stay-at-home orders. The list goes on, but you can use your own imagination which certainly is one of the best safeguards of your own making.

From an everyday perspective, it means that we must remain very vigilant to security and what is truth on the web. Even though our average tourist companies may not be individual targets, aggregate or high-profile sites should take extra precautions.

Our accommodation providers almost certainly all use electronic trust fund banking online services. What a great little pile of money to be had at the end of every month.

We have a brilliant example to hand in Queensland, where the Lion’s group XXXX Beer Company has been brought to a crashing halt. Here it is not a customer database but rather the production control system that was the target.

No web platform escapes the attention of the bad guys whose primary aim is to create confusion and distrust if not direct harm. The latest star in these popularity stakes is TikTok. It is a Chinese video-sharing social networking service owned

by ByteDance, a Beijing-based internet technology company founded in 2012 by Zhang Yiming. It is used to create short dance, lip-sync, comedy and talent videos. ByteDance first launched for the China market in September 2016.

We of course use many Chinese platforms including, arguably the largest online shopping site, Alibaba.

Tik Tok, formerly known as musical.ly, is a social media platform for creating, sharing and discovering short music videos,

think ‘karaoke’ for the digital age.

The app musical.ly was used by young people as an outlet to express themselves through singing, dancing, comedy, and lip-syncing. If you have children, it is a fair bet that they have an account. The problem is that unacceptable pseudopolitical groups of a variety of persuasions have hi-jacked this platform for their own deprived purposes and have grown alarmingly in number since the ‘BlackLivesMatter’ phenomenon.

Another illustration of leveraging a well-recognised reference to manipulate the truth.

Of course, automation is used to generate most of these incredible volumes of obnoxious content. But these bots also lend themselves to algorithmic detection allowing our hightech companies to quote these almost incomprehensible results. Despite the 99.9 percent claimed detection rate, it still leaves almost a million variants of malware active on the web.

One can only stress again the need for a high level of awareness and self-protection.

Are you COVID-19 clean?

By Mandy Clarke, Editor

Last month, the Australian Tourism Industry Council (ATIC) launched a program of practical support for small and medium size tourism enterprises in the safe delivery of great experiences to the returning visitor.

COVID Clean Practising Business is a complimentary online program that assists tourism businesses to develop plans and procedures to create and maintain a COVID safe workplace and operations. It follows ATIC’s recent unveiling of a COVID Tourism Recovery Plan module.

The free program represents a core component of the long-standing Quality Tourism Framework (QTF). The new COVID Clean Practicing Business program also becomes a fresh offering to the already thousands of accredited star-rated and award-winning tourism businesses across Australia within the QTF.

ResortNews | July 2020

Using Workplace Health & Safety standards and reflecting individual State or Territory requirements, the COVID Clean Practicing Business program develops customised cleaning checklists that are specifically tailored for tourism businesses.

The program also supports the development of safe work practices such as social distancing, staff training and customer guidance and the creation of a COVID-19 risk register.

Once in place, these systems support individual tourism business efforts to minimise community spread of COVID-19 and to provide peace of mind to customers, guests and employees.

ATIC executive director Simon Westaway said tourism businesses that have successfully completed the new program will be able to provide an assurance to visitors and guests that additional hygiene steps and sound safe work practices are in place by displaying the COVID Clean Practising Business mark on-premises and online.

“Our industry has faced unimaginable challenges this year and we want to make every effort to support their recovery.

The COVID Clean Practising Business program will assist small and medium tourism enterprises, the backbone of our industry, to take practical, but necessary steps to provide a safe and secure place of business as well as give their prospective customers renewed confidence to book,” Mr Westaway said.

“We believe it’s also the

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responsibility of industry to be proactive and constructive in developing these types of sound guidelines and practices which we hope lead to greater confidence of State and Territory Governments and health authorities to ease remaining restrictions around their response to coronavirus in a faster and more efficient way.”

The program can be accessed online via www. qtic.com.au/about/covid-19support/covid-clean.

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COMMUNICATION Q&A

Q&A

Why communication is key to protecting your most valuable asset ©Worawut, stock.adobe.com

By Lucinda Dean, Industry Reporter

Your letting pool is where you scoop the real profit from your management rights business, so it pays to protect, defend, and grow it.

Keeping your owner-investors onside and happy should always be your number one priority because without their units in your letting pool, your business risks going under. That is why it is essential to always communicate your commitment to their investment, because their investment is your profit. Quarterly newsletters and bi-annual phone calls will not cut it unless you understand this simple marketing principle: ‘know who you’re talking to’. Understanding what is important to your ownerinvestor clients, and how to talk to them, is the key to effective business communication.

Being someone who understands the power of words, I thought it prudent to talk to Jenni Hansen, director of JJH Management Solutions, about how effective client communication can not only safeguard, but even increase, your business profitability.

Jenni Hansen, Director JJH Management Solutions

Here are some questions and answers to steer you towards business success:

Q: What are your six steps to protect, defend and grow your letting pool?

A: The key point is to know your client. This is crucial to your business. Investor owners have grown with the industry and you need to be able to meet their needs and demands as the industry evolves. Your committee is key to your business and you must be able to demonstrate your ability to adapt and adjust with the demands of the complex and the needs of the committee.

Communication is also key. It is such a simple concept but difficult to achieve. If you know your clients, then you know how to communicate with them. However you choose to communicate, whether via phone, email or newsletters, always make it informative and relevant to your client’s investment. Use relevant statistics, be knowledgeable in what is happening in your suburb, and above all, be honest. You can ask your investors if they need anything from you, be prepared they may require something from you that may take some input. However, your investor will appreciate your efforts.

Understanding your complex is key to having a collaborative and cohesive relationship with your committee. You are the ‘one-stopshop’ option for all owners in your complex. You can disseminate information to your investors, and residents who live in the complex.

Always follow the rules. Make sure you are signed up for e-newsletters from industry bodies. Take the time to read those newsletters and pass on relevant information to your investors. You will be required by your committee and investors to assist in disseminating information to them from different legislative bodies. Talk to your local service providers – fire, lifts, etc. They are very welcome to help you understand what is required. One useful document I have developed is an Owners Handbook. This is so helpful to new investors and it also sets you apart from your competitor.

Not everyone knows everything about everything, so you should seek assistance from industry bodies and consultants.

Sometimes we get caught being ‘in’ the business and lose sight of the business. So, step back, take a breath, and pick up the phone and ask for assistance.

Your point-of-difference will make you stand out from another agent. You are not just another agent; you are the onsite expert of your complex, so shout about it. Always look for ways to have a sustainable competitive advantage, whether it be digital technology, be approachable to all clients, host a morning tea. Prioritise your clients.

Q: What are the key ingredients to effective client communication?

A: I find the best approach to any communication with any stakeholder in my business is to be honest, informative, and meaningful.

A call out to Resident Managers:

Why register with AccomProperties Sales & Rentals?

Because we are honest and have always been on your team!

AccomProperties is a registered and fully licensed real estate agency that provides a unit sales and rental marketing service for resident managers.

AccomProperties Sales & Rentals provides a very costeffective way to gain direct access to the largest real estate

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websites in Australia including realestate.com.au and Domain, as well as all the leading industry tools and resources to ensure smooth transactions.

accomnews.com.au website and newsletters have supported resident managers through thick and thin for well over two decades.

AccomProperties is authentic and can provide support and knowledge from a wider network of Accom experts.

Alongside AccomProperties, Multimedia also publishes Accom News and Resort News, these titles plus the

Quite simply, AccomProperties was created to meet the needs of our resident manager readers.

AccomProperties fully supports ARAMA and its members.

AccomProperties receives

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excellent customer feedback: It is frequently referred to as the most user-friendly sales and rentals marketing service dedicated to the management rights industry – just ask our 300+ registered agents!

Do not delay! If you are a Resident Manager with a real estate license and want to take control of your letting pool, give Stewart at AccomProperties a call on (07) 5440 5322.

ResortNews | July 2020

I like to benchmark myself so that I can see if there are any shortfalls that I need to address.

I communicate that to my stakeholders; it demonstrates that I have their interests in my sight.

Q: How do I determine my point-of-difference and why is it important?

A: This is your investment too, you have invested significant dollars, so you need to understand the business that you have purchased.

You need to relate to your clients and make them feel confident that you prioritise their investment.

‘Value-adding’ does not need to cost the earth, it may be a simple as FaceTiming with your clients during your next inspection.

It costs nothing but adds great value to your relationship. You always want your clients to contact you before making any decisions on their investment.

Sounds simple, however, this is all about managing the relationship and setting realistic expectations to everyone.

Q: How frequently should I be communicating with my clients, and by what means?

A: This is never an easy answer. It is not a one-size-fits all scenario.

Once you determine who your client is, you should be able to determine how they want you to communicate with them. I like the personal touch; I like to call my clients quarterly. I make sure that I have relevant information to discuss with them. I then follow up with a quarterly newsletter. I also ask clients what they would like information on. I may pick

ResortNews | July 2020

What content should my newsletter include?

•

What proactive work the building managers have been doing in the building/grounds.

•

Unit sales in the building, what price (other unit owners will always want to know how their investment is going).

•

Property reports for sales, how their property is going compared to the rest of the suburb or town or region.

•

Property reports for rentals, how their property is going compared to the rest of the suburb or town or region.

5-to-10 clients to email and ask what they would like to know about in the next newsletter. You will normally get a reply from one or two clients. This is great, and you can incorporate that into your next newsletter. Clients like to see their queries answered.

Q: What is the importance of having a full real estate license – and the benefit of communicating that to my clients?

A: You want to maintain a full license to have the flexibility of letting and getting involved in sales. You do not necessarily have to be involved, but if you are going to get involved, then you will have more control over the ebb and flow of your letting pool.

You will have a greater connection

and other relationshipbuilding get togethers.

•

•

If it is a holiday building, occupancy percentage and rates comparison for the suburb/region – you can get this from your local tourist bureau.

Upcoming events in the building such as barbeques for unit owners

with investor-owners, particularly those who are thinking of selling, and hopefully they will come to you with their sales listing.

Q: Why do I need to keep abreast of industry rules and legislation?

A: If you receive a visit from the Office of Fair Trading, and in all likelihood you will at some time, your paperwork needs to be in order so you do not receive a Breach Notice or worse, a fine.

You always need to be compliant with legislation, this is the lifeblood of your business.

Recently there have been changes to the Residential Tenancy legislation, something we have never experienced before. It has never been more crucial to keep abreast of this information.

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•

Upcoming events in the town or region.

•

Promoting the closed Facebook group, you have created for stakeholders as a digital means to communicate.

•

Positive things other unit owners have done to increase the value of their unit such as refurbishments or installing air conditioning.

•

Industry updates with links to relevant articles.

Q: What tips or resources do you suggest for creating newsletter content?

A: There are some great websites that follow trends and statistics, you can gain data from these sites.

I like to remind clients often of the importance of landlord’s insurance.

There are organisations that you can engage to write your newsletter for you for a fee. If you are not fantastic at writing, and let’s be honest, some newsletters you’ve seen are cringeworthy, it may be well worth engaging a good editor to put your newsletter together. If you are great at creating engaging content, then go with it. Always remember to be: • Informative • Meaningful • Honest

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TO MARKET

Revenue management:

15 insights to navigate market uncertainty Travel restrictions progressively being lifted around the world is clearly good news for our industry.

During this recovery phase, albeit an unpredictable one, revenue management is critically important as it draws upon analytical and innovative expertise to plan for and react with speed to a range of ‘scenarios’ that could unfold.

It is highly likely there will be a shift in ‘normal’ booking patterns across segments and the degree of this ‘shift’ will vary across the industry. What shape or form that takes and when, is what revenue managers need to be ready to identify and optimise. There is excess supply for demand as it trickles back, so revenue managers must consider how to capture the first-responder market segments as we steer ourselves out of the pandemic.

They also need to think through how best to appeal to a domestic market segment that, under normal circumstances, may have opted for cheaper overseas holidays over local destinations for a break.

Despite the pause and slowdown observed, and the financial concerns this understandably raises, it is important to plan for a multitude of scenarios.

No-one truly knows how this will develop as it is unchartered territory for all.

Below are 15 areas of thought to assist in navigating market uncertainty 1.

Be prepared for market segments to ‘recover’ at different speeds than historically evident.

Consider the impact of this crisis across all segments, factoring in customer needs, wants and purpose of past travel behaviour. Prepare to appeal to new and previously untapped segments that can help optimise your space.

2. Ensure you are set-up for long-term success now.

Some guests may be

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The potential for disruption, or sporadic patches of disruption, is high until a vaccine is found Melissa Kalan, Founding Director, Australian Revenue Management Association

cautious but will view their travel needs as essential, others may be risk-averse and will want to travel, and these differences need to be considered. Discounts will be inevitable, as supply exceeds demand, and may be an initial stimulant for some border-line travellers and domestic customers, however, discounts must be targeted, tested, and monitored with strategy and precision. Perceived value add-ons and flexible terms and conditions that promote a diminished risk for customers should also be explored.

3. Consider what ‘rate recovery’ will look like going forward.

Price is driven by market forces and a customer’s willingness to pay – consider the financial, health and safety impact of the crisis on customer perception.

Price for value perception, willingness to pay and expectations have been altered, so be realistic in your rate recovery goals and be prepared to re-review these as conditions change.

4. The current crisis is a demand-shock, which creates patterns of nonlinear demand where the change in quantity demanded due to a change in price is not constant.

When a weak demand driver is not price related, but rather from greater market forces as in the current crisis, a shift in

price can occur to account for changes in ‘value perception’, changes in willingness to pay and to stimulate previously untapped markets. Competition for demand will be strong and consumers will be expecting ‘deals’ as supply exceeds demand for a period of time, the goal is to try and avoid unnecessarily diluting revenue from what is simply a smaller market as you navigate through the various recovery stages.

Further, when reviewing price-points, consider what alternatives are available to customers in your markets and what the behaviour changes will be for the consumer who is not always ‘rational’ in their purchasing decisions. The key here is to be flexible and ready to test the market with a range of offerings to discover which strategies will work best. It will take time for segment elasticity (responsiveness to a change in price) to be apparent and is likely to remain sporadic until the virus threat is diminished, and confidence returns. Finding the ‘recovered’ competitive price-points by segment will be difficult whilst demand remains unpredictable and unstable.

5. Make sure your messaging and actions are consistent and clear and promote a feeling of trust and control.

Cleanliness standards are paramount. A highlevel of cleanliness is an expectation under ‘normal’ circumstances, so do not assume that the promise of cleanliness and safety

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will entice consumers away from your disruptive competitors over the longer term. Customers may also be prepared to compromise on cleanliness if their perception of the overall ‘deal’ is better – assuming minimal safe standards are in place, or they are prepared to do their own additional cleaning.

6. Promote policies and procedures advising customers what to expect should an outbreak occur and how social distancing measures will be enforced to instil trust and confidence.

7.

Positive online review scores are now more critical than ever before. Reviews influence perception which influences demand, and while price positioning is always a key focus for revenue managers, many customers will filter based on review scores regardless of price. Therefore, review scores must be considered when positioning price.

8. Remember that revenue growth can continue to be achieved by increasing customer ancillaryspend, including from those that have already committed to stay with you. Offering a menu of perceived value add-ons, for example a premium for a better product or location improves your customer service and enhances the customer experience. This stock-shifting approach ResortNews | July 2020

also releases your base level product that may be able to be shifted faster in the short-term.

table or no-show customer is a cost, operators in this space need to find a newbalance between the two.

Explore how these practices might be implemented permanently where dining options are available to maximise revenue and profit from available capacity.

9. It has never been more critical to invent creative ways to optimise ‘space’.

Do not look at an accommodation room as just a room as such, think of creative ways to attract a market that exists if the right offer speaks to them.

There have been innovative ways hotel rooms have been used, for example as private dining suites or office space. Now is the time to “think outside of the box” – the catch cry of the 2019 Revenue Management Summit by ARMA.

11. Consider how corporate travel demand will look in the short to medium-term. Some employees may feel unsafe to travel and/or have preexisting health conditions and could opt for a virtual client meeting in lieu of faceto-face. Many companies have adjusted to servicing customers online and these developments could impact corporate travel demand in some markets. Shifting to dynamic rate agreements where possible and working with your loyal partners to strike a commercial balance for both parties is essential.

Review rates in stages across each recovery phase and inline with volume produced.

Vary pricing by day-of-week and/or seasonally and include perceived value addons with a focus on reducing customer risk. This will help instil confidence and trust

10. Revenue management practices have always been an opportunity for food and beverage outlets, so it is interesting to observe how imposed capacity limitations have resulted in many operators shortening their menus to promote faster turn-around of tables to optimise dining hours across the day. While dining out is a relaxing social experience, from a business perspective the lingering low-revenue generating

and increase your yield management capabilities.

12. Review all distribution channels and costs, explore all options, and consider how distribution might change going forward.

Consider what can be done proactively now by reaching out to market managers rather than hastily accepting lower than desired terms.

13. The pandemic has forced many of us to survive online from virtual catchups, food delivery, doctors’ appointments and scripts and home schooling.

Consider if third-party distribution platforms can now be of greater value to you until demand stabilises, particularly given the lower risk in marketing spend since a commission is only paid in exchange for a booking.

14. It is very important that you review your booking pace across all market segments, products and channels and review any inventory control restrictions you may have in place – ensure you do not have any restrictions blocking business that you may have neglected to remove.

15. Reduce rate leakage – search online for your property and check across all channels over a selection of dates to ensure your rates are displaying correctly, and that the sales process makes sense to the customer. Test single days and multiple lengths of stay combinations and if you have access to rate disparity alert tools then monitor these and review them regularly.

What is most important is to remember that unlike post-war economic recovery, 911 and the global financial crisis, we are dealing with a virus that has major implications in terms of its unpredictable nature.

The potential for disruption, or sporadic patches of disruption, is high until a vaccine is found and/or learning to live with the virus is accepted.

Adaptive, agile revenue managers that can analyse, push boundaries, question the face-value of a proposition and react quickly are critical.

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ResortNews | July 2020

MANAGEMENT

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GOOD GOVERNANCE

Great expectations: seeking fairness and justice under caretaking agreements For those of us who have read the Charles Dickens classic of the same name, we understand it to be a rags-to-riches story with a message of ambition and self-improvement.

Low-born Pip came into a massive fortune, then spent many years trying to improve himself to be worthy of what was perceived at the time to be high-born standards.

Diverse FMX

Some would perceive Great Expectations as a story of moral dilemma: is affection, loyalty, and conscience more important than social advancement, wealth, and class? Others remember the jilted bride still wearing her wedding gown years after being abandoned at the altar, but regardless of our personal take on the classic, it goes down in history as one of the top 10 classics according to some.

suffers. This is true in every walk of life. Just like Miss Havisham’s fixation on revenge grossly distorted her reality to the point of insanity, the Dickens message is as relevant today as ever.

So how does a classic novel from the Victorian age link to caretaking of residential strata in 2020? Delivering the duties under the Agreement is not just an exercise in providing evidence of vigilance to justify issuance of the monthly invoice for fees and to avoid receipt of a Remedial Action Notice, it is also about managing expectations.

Great Expectations does a wonderful job of playing up the snobbery and superiorityconsciousness alive at the heart of the upper classes of Victorian high society. We can even laugh at it now, but are we really that far removed from this type of superior thinking in the management rights sector?

Managing the client relationship is 80 percent of the job I love the question raised in Great Expectations: about whether affection, loyalty, and conscience are more important than social advancement, wealth, and class. We could alter it to be more management rights specific: is acting in good faith, with the best long-term interests of all of the lot owners more important than making a profit or appearing to ‘win at all costs’?

Any caretaking services provider will tell you that the biggest part of the job is managing the client relationship. Trust is everything. The minute trust is broken, the whole relationship

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Lynda Kypriadakis,

Dickens reminds us of the importance of relationships and the consequences of obsession.

‘Me Too’, ‘Black Lives Matter’ and other evolving social norms

At its ugliest, caretaking services providers can be treated like the “hired help”, with constant criticisms issued by a small group of Committee individual(s), who mistakenly hold the view that they are superior to their Agreement counter-party and are bound to unilaterally judge the efforts of their caretaker. With these types of people, nothing will ever be good enough, a bit like how Pip would never be good enough for Estella.

But this unacceptable superiority-thinking is not limited to body corporate representatives. Equally there are caretaking services providers who refuse to relate as equals to their Committees and the moral dilemma takes

hold: is acting in good faith, with the best long-term interests of all of the Lot Owners more important than making a profit or ‘winning at all costs’?

Solution lies in bestfor-building focus The one common denominator could be that [equally] both parties to the Caretaking Agreement have a moral duty to set aside obsession and the ‘need to be right’ in favour of fairness and justice. The quickest path to understanding what is fair and just is education. Just like Pip set about gaining an education so as to raise his standing and improve his position in society, so must Committees and caretakers alike.

MANAGEMENT

Everyone has a humble beginning and it is the core of human nature to strive to be better. This is true of Committees and caretakers. Caretaking and the management of common property is getting more and more complex every year.

Without building capability and the procurement of skills neither the Committee nor the caretaking services provider have any chance of avoiding the risk of making fundamental errors and losing trust in the relationship.

If everyone holds a ‘best for building’ focus, the desire for upskilling, interest in education, determination to work positively together and resolving difficulties will follow.

ResortNews | July 2020

Expressions of interest now being taken for Magnoli, Palm Beach on the Gold Coast With the finishing touches underway at Magnoli Apartments, Sunland Group in partnership with Lehmann Management Rights, formally launches the Expression of Interest campaign for the Management Rights of Palm Beach’s newest and most luxurious residential address.

Perfectly positioned between Burleigh Heads National Park and the pristine waters of Currumbin creek, Magnoli Apartments is a few steps from the ocean and a short drive to Gold Coast International Airport, and easy access to the Pacific Highway.

Labelled as a hotspot on the southern end of the Gold Coast, Palm Beach has become the ultimate lifestyle location. In addition to its picturesque beaches and vibrant café and restaurant scene, a recent report

by Urbis forecasts that Palm Beach and its neighbouring suburbs will see an incredible $2.7 billion spent in new infrastructure projects, alongside forecast employment growth of 31% over the next 25 years.

Located on the corner of Nineteenth and Brooke Avenues, Magnoli Apartments comprises of two elegant mid-rise apartment buildings, where vibrant cascading gardens spill from one balcony level to the next, as well as a striking collection of six adjoining terrace homes.

Presenting a mix of one, two and three-bedroom designs Magnoli Apartments features stylish entertainer kitchens complemented by generous

ResortNews | July 2020

outdoor living areas, and quality fittings and finishes. Ample storage and extra parking spaces ensures absolute comfort and convenience for residents.

Private amenities include a resort-style pool, lounge, and landscaped barbecue and entertaining spaces.

The six terrace homes and the south tower are now complete and have begun to welcome founding residents.

The construction of the north tower is nearing completion with the scaffolding removed and the finishing touches to the apartments and landscaping well progressed. The north tower is scheduled for completion and settlement in October 2020.

With the management rights campaign formally launching to the market this month, it is anticipated to create a buzz

within the industry as professional operators rally to purchase the rights for this prestigious development in Palm Beach.

Sunland Group Managing Director, Sahba Abedian, said, “The level of architecture, craftsmanship and amenity embedded within Magnoli Apartments is unparalleled on the southern end of the Gold Coast.”

“The beachfront is less than 100 metres from the main entrance, where the preserved Norfolk Pines will be surrounded by landscaped gardens. Positioned behind the tower is an expansive community park complete with a children’s play area, mature trees,

and on-site dining and lifestyle amenities,” Mr Abedian said.

Kristine Lehmann, Director of Lehmann Management Rights, is conducting the Expression of Interest campaign on behalf of Sunland Group. The campaign for the 204 unit complex and adjoining 6 terrace homes formally launches this month.

The unique design-led offering and beachside location is attracting young professionals and local downsizers. Rental enquiries for the prestigious development is strong with demand currently exceeding supply.

For more information regarding the Management Rights campaign, please contact Kristine Lehmann from Lehmann Managements Rights on 0412 203 770 or email k@lehmannrights.com.au.

MANAGEMENT

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2. Decide on whether or not a project manager is actually needed.

Whilst engaging a project manager might seem like a good idea – especially if nobody on the committee has a trade background – going down this path can often end up costing you a lot more than you bargained for…

If your building is in severe disrepair, and the project will consist of a wide variety of complex repair works, in addition to the painting itself, then it may be wise to have the oversight of an independent professional to ensure the works are done correctly and will last.

3 steps

to a successful repaint project (without the unnecessary cost of a project manager) If you’re thinking about handling the repaint of your building in-house to avoid the excess cost and hassle of engaging a project manager, there’s a few things you need to know to avoid getting caught out by fine print or corner-cutting contractors.

This 3 step guide will help you cut through the jargon and empower you to figure out exactly how to avoid most common mistakes made when choosing a painting contractor… and if you scan your camera over the QR code at the end, we even have a downloadable checklist and scope generator for you!

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Once you have the scope of works, you can ask them to refer you to one of their accredited contractors for quotes – these companies have already been pre-vetted by the suppliers as quality operators and will be able to issue you with a warranty that is backed by them.

3. Get educated!

Knowledge is power. Putting in a little bit of effort to understand the basics of painting and repairs can do wonders for your confidence when speaking with contactors… and keep you in the driver’s seat!

3 Quick knowledge bites

1.Use the downloadable checklist to assess if it’s time to paint.

Paint Types

Paint too late and it may end up costing you a fortune in excess repairs and extra coats of paint… Paint too early and you may be spending money unnecessarily that might best be used elsewhere.

If you notice defects such as hairline cracks, bubbling of the paint, rusty protrusions or faded/chalky looking paint, it might be time to consider a repaint before further issues occur PRO TIP: You can use our downloadable tool to do this assessment!

On the other hand, if repairs are only minor then the smarter way to go is to get your specification written by a professional paint supplier such as DULUX – FOR FREE. They will do an onsite assessment of the areas to be painted and issue you with a full specification of products and methods of application.

Membrane type paints, such as Dulux AcraTex, have double the film build of regular paints and offer a superior barrier of protection for exterior concrete and rendered walls.

generally used on substrates such as eaves, cladding, soffits, fences and pergolas.

Concrete cancer

A problem that occurs when moisture gets into the slab, the steel rebar starts to rust and expand, causing concrete to break away – rapidly becomes worse if left untreated.

It’s generally repaired by using hammer drills to dig in and remove the concrete completely from around the rusted rebar, before sanding it back to clean steel, applying rust guard, patching over the hole and repainting.

Leeching

Have you noticed white stains dripping down the side of your walls? Moisture is getting into the substrate and forcing its way out through the nearest expansion joint or crack, carrying minerals with it and leaving white calcified build-up. To remedy it, the build-up is chemically or physically removed with a scraper before repairing the crack and identifying and fixing the cause of the leeching – usually unsealed tiles, broken down silicon joints or failing waterproofing in garden beds.

Summary For a comprehensive checklist that will enable you to “selfdiagnose” the condition of your paint and figure out what solutions are needed, scan the code below with your camera phone and enter your email for an instant download!

Scan camera phone here

Acrylic paints such as Weathershield provide excellent long-lasting protection of exterior surfaces and are

MANAGEMENT

ResortNews | July 2020

Elevated expectations: Tips for painting high rise façades

Image couresty of Higgins Coatings

By Lucinda Dean, Industry Reporter

Keeping up appearances is vital; especially if your best, most valuable asset is public-facing.

I am talking about your highrise accommodation complex, of course, and there are many good reasons why you should have a regular painting and maintenance regime. Above all, a proper paint job will protect, preserve, and prolong the life of the building. Another valid consideration is aesthetics.

Figuratively speaking, ‘façade’ means outward facing, and as the building can be viewed in all its towering glory from the

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street, it is quite literally the face of your business. And first impressions count. A tiredlooking, dilapidated high-rise building won’t inspire the same confidence and aspirational desire in your guests as the neighbouring unblemished tower that is in mint condition. A goodlooking paint job in your business’ corporate colour is not only great branding, but it also enhances the building’s commercial value.

Why go with a pro?

Engaging the services of a certified, licensed professional to paint the high-rise building exterior is paramount. Not only are they certified and insured to be working at heights, but they will also ensure minimal

disruption to guests and tenants.

A suitably qualified professional will be informed about safety obligations; they will also be equipped with the latest tools and technologies to get the job done safely and efficiently.

grime over time that will break down painted substrates.

End-to-end service

The right contractor will have experience and expertise in working at altitude; their attention-to-detail will border on perfectionism; they’ll do the surface cleans and repair work including re-applications if the paintwork gets damaged or chipped; they’ll see the job through to completion, leaving the repainted site neat and clean; and will return to do touch-ups and maintenance as required.

Your professional should do everything from the pre-clean to post-paint maintenance. External cleaning is an important part of the preparation process as it is the build-up of salt, dirt and

Hot tip: After repainting, schedule an annual external wash as it will extend the paintwork by three or four years, and spare you the financially hurtful need to repaint every year or so.

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Hot tip: Ask your body corporate manager to recommend a reputable painter they have worked with, and who, critically, has undertaken projects of a similar scale and scope of your job requirement.

MANAGEMENT

ResortNews | July 2020

TAKE YOUR BUILDING TO

NEW HEIGHTS

GOLD COAST, QLD

MANTRA TWIN TOWNS Higgins Coatings had the pleasure of providing building rectification and building works of the 15-storey hotel on the Gold Coast.

The project involved a new colour scheme and extensive repairs to over 250 balconies which were accessed via a combination of swing stage suspended scaffold and industrial ropes.

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Image couresty of Higgins Coatings

Paints ain’t paints

and wellbeing of your tenants.

Not all paints are of equal quality, just as there is no one paint for every situation. The Australian climate poses unique threats to the longevity of your high-rise building’s external paintwork including salt spray, UV radiation, temperature variances, high winds, heavy rain, and tropical storms.

Where possible, choose odourless paints, which are washable after application.

At the very least, all coatings, solvents and primers should be handled and applied correctly to safeguard the health and safety of your tenants long after the project has been completed.

Tall buildings also absorb air pollutants, such as smog and gas emissions. These tiny particles of pollution arise from city streets below and stick to the building façade leaving dirtylooking grey lines and stains.

Therefore, high-rise buildings require high-performance paint coatings with sufficient thickness.

The industry recommendation is up to six times thicker than the average paint product.

The paint should also have a viscoelasticity capable of bridging cracks, withstanding peeling, and resisting water permeation.

Choose a product with UV protection: it should also contain flexible waterproof membranes, which diffuse carbon dioxide, and salts to prevent water ingress.

Use mould or microbial resistant coatings, especially in moisture prone areas, as it will save building maintenance costs in the longer run. Also bear in mind the health

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A final word: Base your paint product decision on durability, not price. Weigh up the cost per year to repaint versus buying premium paint in the first instance.

Access all areas Reaching all external areas of a tower can be tricky logistically as each building design is different and poses its own unique challenges. This access issue, plus environmental factors, such as dealing with strong winds at high altitude, means the job is best handled by an expert.

Accessing high areas from ropes sometimes has the distinct advantage of being cheaper and less invasive, meaning minimal disruption to the regular operation of your resort, apartment complex or hotel.

Using professional painters who are trained abseilers is your best option as far as quality, safety and budget are concerned.

One drawback, though, is building owners and managers cannot inspect the completed works, and so must rely entirely on the word of the contractor that the job has been done correctly.

Swing stage scaffolding is a step up from abseiling. It is a two-man operated suspended working platform swung from roof areas, which facilitates safe working access adjacent to the building façade.

Abseiling or scaffolding?

Mast climber scaffold is a very safe form of access, which is best used on very high, broad wall areas because it can hold multiple tradespeople, whereas the swing stage scaffold is limited by weight restrictions. A distinct advantage, though, is that building owners and managers can safely and easily inspect work from a mast climber.

Depending on your requirements, a combination of both is sometimes warranted.

For low-to-medium high-rise (up to a maximum height of 9m) aluminium static scaffold can

Whether you engage a contractor who uses ropes or scaffolding, the access component of any repaint can significantly increase the cost of the project, and in some cases, be the largest portion of the quote.

MANAGEMENT

be a good option for painting in small sections at a time because it is able to be easily dismantled and moved around the building.

For buildings over 10m in height, steel scaffolding is recommended.

The framework encapsulates the building and is in place for long periods of time, which can be invasive to tenants and the daily operation of your facility.

The hire cost for fixed steel scaffold is lower than aluminium; however, the installation and dismantling costs are far more expensive.

Before you commit to a decision, always consult experts who have experience and detailed knowledge in the use of all forms of scaffolding and rope access as they will recommend the best form of access for your building.

Top industry tips: Allen Rafter, general manager and director, Element Rope Access shares his top three tips for painting building facades.

1. Use a quality painting company. Get at least three references and speak to other building managers to find out who they use.

2. Make sure your contractor uses quality paint and provides a 10-year paint and application warranty ResortNews | July 2020

3. Make sure your contractor applies two coats of paint to your building. The cheapest quote is not always the best. If you are unsure, engage a project manager to check that you are getting a quality product.

This is a big investment for body corporates, so it is important that it will last.

Top industry tips: Higgins Coatings, share three things every strata manager and committee needs to know about workplace health and safety, and to complete their due diligence when hiring a contractor.

1.

2.

Scrutinise the quote: when you get a quote for a job, be sure your committee goes over the fine details.

If the contractor has not provided a detailed quote, be prepared to ask some follow-up questions. By reviewing the details of the quote, you can make sure that the contractor hasn’t cut corners, so always ask questions about how they intend to carry out the work safely.

Check insurances: it is imperative that a hired contractor is properly licensed or that their

licences have not lapsed. If it is not included with the quote, ask for a copy of their insurance policy to ensure they are fully covered in the unlikely event of an incident, and keep a copy for your own records. While you are at it, double check that your own insurances are fully up to date, too. Do not be afraid to ask for a few examples of similar work that they have done and do some basic research on the company to see if there have been any incidents in the past. Always make sure contractors

have the correct licenses to carry out the jobs they are being hired to complete.

3.

Get a risk assessment and stay involved: when discussing a proposal with a contractor, ask them for an example of a risk assessment they have completed for a similar type of project. A reputable contractor will be more than willing to provide one to indicate what controls they are planning to implement to maintain safety on site. Be sure to stay involved during

the works and, if it is a larger job, engage stakeholders regularly for updates with a meeting. It is in a strata manager and committees’ best interest to make sure the works are being carried out as planned and in line with the Workplace Health and Safety Act. Will there be interruptions to residents during the works? Are there proper detours and signage available during the job? These are just some of the questions you need to be across.

PAINTING SOLUTIONS FOR EVERY BUILDING! ABOUT US We are a large painting company that provides a range of services for the maintenance of high rise buildings from remedial works to building renovations. We work all over Brisbane and the Gold Coast from small high rises to buildings over 80 levels.

We provide highly experienced, accredited and trained painters, as well as all up to date WH&S documentation including Safe Work Method Statements and Rescue Plans.

We provide a strong experienced team that works hard to deliver the best possible result for your building.

CALL US TODAY! 1300 35 36 35 ResortNews | July 2020

Mobile: 0405 656 254 | Email: info@elementcommercialpainting.com.au

www.elementcommercialpainting.com.au MANAGEMENT

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TOURISM REPORT

Painful COVID-19

setback for Victoria: hope dashed for school holiday income

By Mandy Clarke, Editor

Just as interstate border openings seemed to be on the horizon, cases of Coronavirus began to escalate in Victoria last month. State Premier Dan Andrews told Victorians to stay at home, avoid work and cancel travel plans, leaving the accom sector once again reeling.

Resort News was saddened to hear from readers and family business owners about the impact this second wave of COVID crisis has had on them. Steve and Lisa from Warrnambool Holiday Park and Motel wrote to tell us the news “has just hammered the final nail into our coffin”.

“Given these latest directives, it now means the potential school holiday tourism income that we were so tightly clinging to and hoping to see, will not happen. The way our next six months looks has us counting

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our assets and preparing for the potential of having to close our doors forever… leaving all our staff out of work and our family business in ruins.

across every Australian town, city and region. Anywhere there’s a caravan park, serviced apartment, motel, resort or hotel will be hit.”

“Ironically, there has not been a single case linked to a caravan/holiday park, yet we are dying a very slow death.”

When asked by Resort News about the current situation, Mr Long told us: “The accommodation sector in Victoria has seen significant revenue declines of greater than 85 percent and the latest announcement on the continuation of restrictions in Victoria prior to the peak school holiday period will set recovery back significantly.

The ray of hope for Victorian providers is the JobKeeper extension, which may keep some businesses afloat.

Accom and tourism industry bodies have been lobbying the government to extend it until at least March 2021.

Accommodation Australia CEO Dean Long has slated the “lag time” for tourism business recovery.

He says that if JobKeeper is not extended beyond September, an extra 23,000 Australians currently employed in the accommodation sector will lose their jobs.

“This will hit those communities most reliant on tourism the hardest, but it will be felt right

“The current decision to maintain the 20-person cap in restaurants and bars and meetings in the state is a significant brake on economic growth and not backed by evidence base from Health. The decision impacts the livelihoods of the close to 26,000 people directly employed in the accommodation sector in Victoria.

“The sector recognises the importance of reducing the spread of the virus and has implemented strict and heightened levels of hygiene

TOURISM

control in line with government recommendations. To penalise the sector for poorly managed community outbreaks in the home is not logical and will impact not only the hospitality sector but the whole Victorian economy.

“We urge the Victorian Government to implement the National Cabinet recommended one person per 4m2 rule and remove the caps applied to restaurants, bars and meeting facilities that are well managed and abide by Health mandated hygiene measures. Not to do so will impact the viability of the industry and jeopardise jobs.”

Tourism Accommodation Australia also called for the JobKeeper program to be extended.

TAA National CEO, Michael said it is extremely disappointing: “This is certainly having a negative impact on all states as they work through their own easing of restrictions.

“With the McGowan government ResortNews | July 2020

now holding back on a date for the WA borders opening so too is the NSW Premier, Gladys Berijiklian recommending that NSW should only be travelling to Melbourne if absolutely necessary.

“This will definitely slow the recovery of the accommodation sector, not only in Victoria but right across the country with Tourism Accommodation Australia lobbying government for the extension of JobKeeper to keep the industry afloat.”

He has also called for interstate borders to open.

VTIC chief executive Felicia Mariani said: “While this outcome is not surprising given the spike in confirmed cases in Victoria, it’s incredibly disappointing for our industry and means the progress we were hoping for in the coming weeks has been suddenly dashed.

“It’s at least a comfort to know the advancements for the accommodation sector, school camps and the use of communal facilities in caravan camping grounds and ski lodges can still proceed as announced last week; but retaining the cap on 20 patrons until July 12, means our hospitality and attractions sectors remain in a difficult operating environment.

“It was good to hear the Premier say the government is considering how restrictions might be eased at different paces in our regional areas that have had little or no confirmed cases in their communities. This is something that VTIC has been calling for and will continue to work with government on how this might occur.”

VTIC recently conducted a survey of its members across the state to determine the key concerns for businesses that had opened in maintaining their operations, and why some businesses may have chosen to not open from June 1 when permitted.

have done everything they can to safely welcome visitors back.

“Sadly, the disregard of hygiene and safety measures within the community has led the Premier to the difficult point of having to make these decisions; decisions that will have a devastating effect on businesses that were already on the edge after three months of hibernation.”

Work Commission, the AHA has delivered favourable outcomes by working in good faith with unions, Ferguson stressed: •

In response to the COVID-19 crisis, the AHA worked collaboratively with the United Workers Union to change the Hospitality Award, increasing flexibility for employers and employees

AHA appointed to lead reform for hospitality and accommodation industries

•

The Australian Hotels Association (AHA) has been appointed by the Federal Government to lead the sector’s contribution and guidance in two key working groups tasked with overhauling Australia’s industrial relations system, AHA National CEO Stephen Ferguson has revealed.

Last month, Scott Morrison commissioned Federal Attorney General and Minister of Industrial Relations, and Christian Porter, MP to chair five working groups that will cover:

He told Resort News that this was a unique opportunity to reform Australia’s employment law system which has rightly been described as no longer fit for purpose.

Secured a “flexible part time” provision in the Hospitality Award designed to move casual employees to more secure part time employment

1. Award simplification; 2. Enterprise agreement making; 3. Casual and fixedterm employment; 4. Greenfields projects; and

“On behalf of our membership and the more than 1,000,000 people working in the hospitality and tourism industry, we welcome the opportunity to contribute to a process that may deliver the most meaningful reform in decades.

5. Compliance and enforcement.

The AHA has been appointed to the Award Simplification and Compliance and Enforcement Working Groups. Ferguson will represent the AHA on the Award Simplification Working Group while Philip Ryan, (AHA director legal and industrial affairs) will attend the Compliance and Enforcement Working Group.

“With much of our industry’s workforce employed under the Hospitality Award, the AHA is heavily invested in ensuring we get this right, for the long-term benefit of employers, employees and the broader economy.”

Things are looking up!

Runway opening at Sunshine Coast Airport

As the lead employer group for the Hospitality Award in the Fair

An Alliance Airlines Fokker 100, flight QQ 994, was the first

aircraft to touchdown on the new 2450m x 45m runway, 11 weeks since the airport closed its terminal and temporarily farewelled its last passenger jet.

Sunshine Coast Airport chief executive officer Andrew Brodie said the completion of the new longer and wider runway came at a critical time and would open the region to more destinations and greater export opportunities for local producers.

“The effects of COVID-19 have crippled our industry and the broader regional economy, but this new runway paves the way towards brighter new horizons which I know will come soon,” Mr Brodie said. The opening “signifies the start of many new beginnings, as in the next two decades, we’ll invest $200 million into this airport through the delivery of new infrastructure, like redeveloping our terminal, establishing a dedicated freight facility and developing our Gateway precinct.”

Sunshine Coast Council Mayor Mark Jamieson said the Council’s largest ever infrastructure project was first mooted more than 40 years ago as part of the region’s planning documents, and had been advanced substantially since 2012, as part of a suite of region-shaping projects in the Sunshine Coast Regional Economic Development Strategy 2013-2033.

“A project of this magnitude is a once-in-a-lifetime occurrence and will be a notable highlight in the history of our Sunshine Coast,” Mayor Jamieson said.

“The major area of concern for the industry is that the current restrictions make their business models unviable. These operators were looking forward to the planned increases in patron numbers in the hope of an improved business outcome.

[This] setback means this will not be happening for at least another three weeks,” said Ms Mariani.

“What’s most disappointing is that this outcome is through no fault of our industry, which has been working tirelessly to find a way to comply with the new regulations. These operators are desperate to reopen and ResortNews | July 2020

TOURISM

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TOURISM INTERNATIONAL

Sun, sand and uncertainty:

the promise and peril of a Pacific tourism bubble Pacific nations have largely avoided the worst health effects of COVID-19, but its economic impact has been devastating. With the tourism tap turned off, unemployment has soared while GDP has plummeted.

resilience and sustainable development in the region.

A good place to start would be the recent United Nations Economic and Social Commission for Asia and the Pacific report on recovering from COVID-19. Its recommendations include such measures as implementing social protection programs, integrating climate action into plans to revive economies, and encouraging more socially and environmentally responsible businesses.

In recent weeks, Fiji Airways laid off 775 employees and souvenir business Jack’s of Fiji laid off 500.

In Vanuatu 70 percent of tourism workers have lost their jobs.

Cook Islands is estimated to have experienced a 60 percent drop in GDP in the past three months.

In response, many are calling for the Pacific to be included in the proposed trans-Tasman travel corridor. Such calls have come from tourism operators, politicians and at least one health expert.

Quarantine concerns aside, there is economic logic to this. Australians and New Zealanders make up more than 50 percent of travellers to the region. Some countries are massively dependent: two-thirds of visitors to Fiji and threequarters of visitors to Cook Islands are Aussies and Kiwis.

Cook Islands has budgeted NZ$140 million for economic recovery, but this will increase the tiny nation’s debt. Prime Minister Henry Puna has argued for a limited tourism bubble as soon as New Zealand relaxes its COVID-19 restrictions to alert level 1. Cook Islands News editor Jonathan Milne estimates 75-80 percent of the population is “desperate to get the tourists back”.

A Pacific bubble would undoubtedly help economic recovery. But this merely highlights how vulnerable these island economies have become.

Tourism accounts for between 10 percent and 70 percent of GDP and up to one in four jobs across the South Pacific.

The pressure to reopen borders is understandable. But we argue that a tourism bubble cannot be looked at in isolation. It should be part of a broader strategy

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Pacific Ocean, Bay of Islands, New Zealand.

Photo by Simon Infanger, Unsplash to diversify economies and enhance linkages (e.g. between agriculture and tourism, to put more local food on restaurant menus), especially in those countries that are most perilously dependent on tourism.

Over-dependence on tourism is a trap Pacific nations such as Vanuatu and Fiji have recovered quickly from past crises such as the GFC, cyclones and coups because of the continuity of tourism. COVID-19 has turned that upside down.

People are coping in the short term by reviving subsistence farming, fishing and bartering for goods and services. Many are still suffering, however, due to limited state welfare systems.

In Fiji’s case, the government has taken the drastic step of allowing laid-off or temporarily unemployed workers to withdraw from their superannuation savings in the National Provident Fund. Retirement funds have also been used to lend FJ$53.6 million to the struggling national carrier, Fiji Airways.

Fiji has taken on more debt to cope. Its debt-to-GDP ratio, which ideally should sit below 40 percent for developing economies, has risen from 48.9 percent before the

pandemic to 60.9 percent. It’s likely to increase further.

High debt, lack of economic diversity and dependence on tourism put the Fijian economy in a very vulnerable position.

Recovery will take a long time, probably requiring assistance from the country’s main trading partners. In the meantime, Fiji is pinning hopes on joining a New Zealand-Australia travel bubble.

Out of crisis comes opportunity Supporting Pacific states to recover is an opportunity for New Zealand and Australia to put their respective Pacific Reset and Step-Up policies into practice.

If building more reciprocal, equitable relationships with Pacific states is the goal, now is the time to ensure economic recovery also strengthens their socio-economic, environmental and political infrastructures.

Economic well-being within the Pacific region is already closely linked to New Zealand and Australia through seasonal workers in horticulture and viticulture, remittance payments, trade and travel.

But for many years there has been a major trade imbalance in favour of New Zealand and Australia. Shifting that balance beyond the recovery phase will involve facilitating long-term

TOURISM

This is about more than altruism – enlightened self-interest should also drive the New Zealand and Australian agenda.

Any longer-term economic downturn in the South Pacific, due in part to over-reliance on tourism, could lead to instability in the region. There is a clear link between serious economic crises and social unrest.

At a broader level, the pandemic is already entrenching Chinese regional influence: loans from China make up 62 percent of Tonga’s total foreign borrowing; for Vanuatu the figure is 43 percent; for Samoa 39 percent.

China is taking the initiative through what some call “COVID-19 diplomacy”. This involves funding pandemic stimulus packages and offering aid and investment throughout the Pacific, including drafting a free trade agreement with Fiji.

That is not to say Chinese investment in Pacific economies won’t do good. Rather, it is an argument for thinking beyond the immediate benefits of a travel bubble. By realigning their development priorities, Australia and New Zealand can help the Pacific build a better, more sustainable future.

Regina Scheyvens, Professor of Development Studies, Massey University and Apisalome Movono, Senior Lecturer in Development Studies, Massey University. This article is republished from The Conversation under a Creative Commons license.

ResortNews | July 2020

In2thewild Tiny Holidays

By Lucinda Dean, Industry Reporter

They say that ‘less is more’ and as contradictory as it sounds, this certainly rings true of Norah.

The off-grid tiny house retreat in the Darling Downs just two-anda-half hours’ drive north-west of Brisbane is the latest addition to In2thewild Tiny Holidays’ collection of 19 tiny houses dotted across rural private properties in NSW, Victoria and Queensland. The tiny houses have a light environmental footprint and are hosted by landowners, often farmers, who derive a secondary income from doing so while the company employs locals to service them.

It is a convenient win for the community and for sustainability.

CEO Nic Chin explains the properties were selected for their beauty and seclusion, and they are within striking distance of an Australian capital city making the ‘tiny getaways’ an ideal weekender.

Norah is the company’s first tiny house in Queensland – and its June opening is timely given Queenslanders are now free to explore their own ‘backyard’. Fresh air and space to roam – sorely missed by most of us during iso!

“Tiny houses are the perfect post-isolation escape,” says Nic. “They are secluded and remote by nature, so they make for a good ‘first step’ back out into the world.

“The restriction to our homes that we experienced these past few months has left us craving to get outdoors and enjoy nature.”

Described as ‘relaxed luxury’, this tiny house experience is all about switching off from everyday life – literally. No wifi, limited mobile phone reception and power points that work only if the sun is shining!

According to Nic: “It’s all part of the fun of having a technology detox, reconnecting with yourself and escaping into the wild.”

Downsizing does not have to mean slumming it. It is about reconnecting with nature but with in-built creature comforts.

ResortNews | July 2020

THE LAST RESORT

Norah the explorer: Do not be fooled by the modest floorspace – just 15m2 – the expansive windows generously invite the outside world in.

Norah is a new design, which comfortably sleeps four adults: one queen bed and a double bed in the loft. Powered by the sun and gas bottles, this tiny abode still offers luxuries such as a hot shower, a full working kitchen, split system air-conditioning for cooler winter nights and hot summer days.

Even the modern compostable toilet is not the horror you might recall from your camping days.

Cost-wise, it is comparable to staying in a hotel or the average local B&B but it offers a priceless experience that a city hotel cannot offer: star gazing and cooking over an open camp fire.

This tiny house’s namesake, ‘Norah’, pays homage to 19th Century Australian writer, Mary Grant Bruce’s Billabong series starring a 12-year-old heroine, Norah Linton. Now considered quaint, the literature evoked a simpler era when children roamed free all day on ponies having the Australian equivalent of Enid Blyton adventures.

Looking out over ruggedly beautiful terrain with views to the mountains and rolling green paddocks, one could almost picture Norah riding past with her mates. These days, you can easily ‘saddle up’ with a picnic basket brim-full with gastronomic delights purchased enroute to Norah and hike for an hour to a picture-perfect lookout to gaze at the sweeping plains.

The tiny house tourism trend has a big following here and overseas.

“The tiny house movement originally started within the U.S. and today we are seeing a global phenomenon as more and more countries are getting on board with the minimalism trend,” says Nic. “Our focus is on providing our guests with a space where they can really switch off, put the technology down and reconnect with themselves, and their loved ones. That’s what we’re all about.”

TOURISM

39

‘Ladies in management’ luncheon returns!

Women in Management Rights gather to network and share stories in a relaxed and friendly environment.

With the recent pandemic restrictions fading into memory, Marisa Millane cordially invites you to attend the group’s triumphant return.

These ‘ladies in management’ events are open to industry newbies as well as well-

seasoned attendees and are a terrific place to catch up, share stories and network with other women in your industry!

They are usually held on the third Wednesday of every month.

Due to popular demand, and to celebrate the return from hiatus, Marisa has announced three Luncheons will be hosted for those who would like to attend:

Gold Coast Luncheon Wednesday, July 15, 12:00 Mr Hizola’s, Burleigh Brisbane Luncheon Friday, July 24, 12:00 The Story Bridge Hotel, Brisbane Sunshine Coast Luncheon Wednesday, August 5, 12:30 Rumba Beach Resort, Caloundra RSVP: Marisa, by calling 0403 764 247 or via email, marisa@womenin.com.au.

Resort News Agent Profile:

Introducing...

Matt Crimmins

Management Rights & Resort Sales - Queensland

MR Sales would like to welcome Matt Crimmins to the team. Matt will be servicing the Sunshine Coast, specialising in the Noosa area.

Matt and his wife Debbie have been involved in the Management Rights Industry over a number of years, managing two complexes in Noosa.

40

They then operated a number of caravan & camping grounds on behalf of the Noosa Council for a further five years.

Prior to this, Matt operated a large Real Estate Agency in

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

Matt Crimmins 0409 816 635 MR Sales Queensland www.mrsales.com.au matt@mrsales.com.au

Rockhampton QLD for 10+ years.

Matt & Debbie have now been residents of Noosa for well over a decade.

EVENTS & APPOINTMENTS

ResortNews | July 2020

Construction is rearing to go at the Gold Coast site of Azzura Investments’s $2.3 billion uber project. Four towers are in the pipeline for the full-scale development, with stage one boasting a 200-room Southport hotel and the tallest tower expected to soar 108-storeys high.

Azzura dubs the Imperial Square project’s hotel design “ an exciting new ‘Millennial Style, Gen Y’ brand for the group” and originally had a

‘Palm Springs style’ tourism development set for Albury

210-room hotel plus a 420room student accommodation complex slated for the Stage One Tower. However, The Urban Developer notes plans may have changed slightly since amendments were made in 2019: “New plans designed by Kris Kowalski Architects also include 222 car park lots, space for 132 bicycles and a pedestrian link from Gillian Lane to a future plaza at the back of the development site.”

DEVELOPMENT NEWS

“Millennial-style” superhotel development to blend education and tourism

Photo supplied by Technē

Multi-billion-dollar Brisbane development forges ahead A $2.1 billion transformation of the Eagle Street Pier and Waterfront Place precinct into Brisbane’s premium business and leisure destination is a step closer after commercial property group Dexus lodged development plans with Brisbane City Council this month.

State Development Minister Kate Jones said Waterfront Brisbane was a city-shaping development, which Dexus estimates has the potential to create more than 1000 construction jobs over the next decade and breathe new life into an aging section of the city’s much-loved riverside.

“The government has been working closely with Dexus to make this happen. Lodgement of the development applications for Waterfront Brisbane is a great step in the right direction.”

The project will now be assessed by Council in accordance with the Planning Act and Council’s vison, identified in the Council’s draft City Reach

ResortNews | July 2020

Waterfront Master Plan.

Subject to all development approvals, construction on the Eagle Street Pier site could commence in 2022, with the first tower being delivered in 2026.

Waterfront Brisbane is set to deliver a global-standard business and tourist destination that aims to maximise its prime riverside location with enhanced open spaces and amenity and a revitalised premier waterfront dining hub.

The precinct masterplan includes two commercial towers of 52 and 44 floors, a vibrant active retail area and approximately 9000 square metres of revitalised public realm including a portion of new city reach Riverwalk.

Dexus Chief Investment Officer, Ross Du Vernet said Waterfront Brisbane would unlock the considerable potential of the Brisbane CBD gateway site which had remained under-developed for almost 30 years.

“The project’s scale and central riverfront location will firmly establish Waterfront Brisbane as a world class destination and is set to reshape the daily experience of the many people who visit and work there,” he said.

Albury is gearing up for a much-needed tourism boost following this multimillion-dollar redevelopment from hotelier Peter Griffiths who has teamed up with Technē Architecture + Interior Design for the project. The completed Astor Hotel Motel project is expected to be revealed in September, but the first stage is due to re-open in July.

The development will see the 1960s buildings transformed into a Palm Springs style oasis including work to the bar, restaurant, beer garden, function spaces, gaming area as well as the inside and outside of the 45-room motel.

Technē director Nick Travers considers it to be the perfect opportunity to be developing and regenerating regional areas.

He said: “As international travel comes to a halt; regional cities will become even more attractive for Australians to visit and we are excited to be bringing something new and fresh to Albury this year. It’s a full and comprehensive redevelopment that centres on good design principles, going far beyond a cosmetic refurbishment. It’s a noteworthy project for the region and its future prosperity as a destination after COVID-19.

“We are being faithful to the vintage of the buildings by retaining key elements and structures but also injecting a colourful and revived personality

DEVELOPMENTS

across the motel’s spaces.”

Motels and their architectural significance have been gaining popularity in Australia with comedian Tim Ross even having a series of shows centred on the accommodation typology. Travers says they are looking forward to bringing their expertise and ability to make venues appeal to a broad audience to a regional centre, something they have already applied across notable Melbourne venues including The Espy and Village Belle Hotel.

He added: “We build flexibility in our designs and are catering to a broad demographic of patrons, from locals to visitors as well as everyone in between.

“I’ve been inspired by my own travel to Palm Springs last year and it’s the perfect opportunity to be bringing a slice of this to Australia through the project’s design.”

Hotelier Peter Griffiths from Pub Funds Pty Ltd acquired the property in mid-2019 and says he is excited to work with Technē to bring something unique to the area.

He explained: “I undertook an extensive process to determine the most suitable architect and, after visiting their most recent projects in Melbourne, Techne became the obvious choice as the clear market leader.

“The plans will see the venue fully reimagined and will enhance the area with a design outcome that leverages the building’s existing fabric and architectural origins.”

Griffiths also plans to acquire other regional pubs, in addition to his existing portfolio which encompasses multiple venues.

41

Property Council: ‘Mega’ project fast track philosophy should be applied to all approvals processes

©p a w e l - stock.adobe.com

Giant twin 30 and 35-storey towers win Brisbane River approval

Maple Development Group challenged the 20-story height limit and have now been given the nod to proceed with a $200 million project, which will include 168 five-star serviced apartments on Coronation Drive.

Maple now has a handful of developments across Brisbane, and says its Coronation Drive project will seek to restore and revitalise the 152-year-old heritage building, Davidson’s Residence, which was built in 1868.

The Prime Minister’s welcome focus on fasttracking of approvals for nation-building infrastructure projects must be adopted across the board by all levels of government involved in planning and construction approvals to deliver real economic stimulus and productivity gains for Australia, the Property Council of Australia has claimed.

The group has praised additional funding commitments from the government to get new local infrastructure projects off the ground and accelerate approvals for ‘mega’ projects.

“We need to invest in new infrastructure, we need the productivity gains it can deliver, and we need the jobs and economic stimulus these projects bring,” said council

42

DEVELOPMENTS

chief executive, Ken Morrison.

“We can’t afford for these nationbuilding, growth-enabling projects to be entangled in protracted and inefficient approvals processes.”

There are residential and commercial projects in every town and city which are subjected to lengthy planning approvals and referrals across different agencies.

“Better coordination of the process across different levels of government and between agencies doesn’t mean taking short cuts or not doing the job properly – it’s just common sense,” Morrison said.

“Now, more than ever, we need all levels of government to be focused on getting our economy moving through more efficient planning and approvals for smaller projects which are just as important in supporting jobs and growth.

“We need to build on the momentum that the Commonwealth, state and territory leaders are bringing to major projects, and commit to improved planning approval processes across the board,” Morrison said.

ResortNews | July 2020

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Sales Report

Island Waters | Sunshine Coast

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

MANAGEMENT RIGHTS Gold Coast St Ives

Wade Han & Chloe Zheng

Benowa

TMR

Debbie Slater

Kangaroo Point

MRS

Brisbane Mon Reve & Shafston Towers

Sunshine Coast / Wide Bay / Fraser Coast Island Waters Apartments

Alex and Celine Cusack

Birtinya

RB

MOTELS & OTHER New South Wales 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

Selwyn Star Lodge

Mark Mistry & Carolina Thaler

Adaminaby

RB

Ballina Beach Village

Undisclosed Buyer

South Ballina

RB

Victoria Creswick Motel

L & T Franklin

Creswick

TB

Halls Gap Motel

P & G Spooner

Halls Gap

TB

Ballarat Colonial Motor Inn

C. Hong

Ballarat

TB

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

Celine Cusack and Lisa Slatter

Local residents Alex and Celine Cusack have taken over the management rights of Island Waters from Glenn and Lisa Slatter who have moved on to new opportunities.

This upmarket permanent complex is located in Birtinya on the Sunshine Coast. The sale was negotiated by Glenn Millar for ResortBrokers who managed to settle over $10m in sales through the COVID-19 period.

Resort News Agent Profile:

Introducing...

Jenny Zheng – Personal Profile As a pioneer in Management Rights operations within the Australian Chinese business community on the Gold Coast since 2007, I managed my own Management Rights business for 7 years.

Since 2012, I have been actively selling Management Rights businesses on the Gold Coast.

I have used knowledge acquired over the course of my last 12 years in the Management Rights industry to introduce this unique business model to many buyers who are keen to become a part of this rewarding and exciting industry.

Maintaining my solid reputation and long-term relationships with both

44

sellers and buyers is my priority both during and subsequent to the selling process. Understanding each seller’s and buyer’s unique needs, quickly responding and following up with both parties from listing through to settlement is key to my success.

In order to share reliable information, to both buyers and sellers, I have also conducted many sought-after Management Rights seminars on the Gold Coast.

Since settling down on the Gold Coast in 1998, obtaining a Masters Degree from Griffith University and commencing my Management Rights industry journey in 2007, I have witnessed significant growth in the popularity and take up of Management Rights businesses within the large and well qualified pool of Australian Chinese buyers.

PROPERTY

Name:

Jenny Zheng

Mobile:

0413 922 580

Agency:

Property Bridge

Servicing: Gold Coast Web:

propertybridge.com.au

ResortNews | July 2020

NEW LISTINGS!

ID 8517 COVID-19 ADJUSTED SHORT TERM LETTING

• Must be sold • Motivated vendor • Perfect Broadbeach location NET PROFIT: ASKING PRICE: LISTING BROKER:

• 21 in the letting pool • 2 bed, 2 bath residence • Arrange your inspection today

$209,000 $1,349,000 Phil Trimble – 0418 478 966

ID 8983 TOWNSVILLE MANAGEMENT RIGHTS

• Ideal for working couple • Permanent letting • Close to waterfront, cafes etc NET PROFIT: ASKING PRICE: LISTING BROKER:

• Growth potential • Long agreements • Highly sought after complex

$150,697 $675,000 Tony Johnson – 0433 617 515

ID 8151 CHEVRON ISLAND PERMANENT

• Well-presented complex • 35 apartments in the letting pool • No set office hours NET PROFIT: ASKING PRICE: LISTING BROKER:

• Attached office on title • 23 years remaining on agreements • 2 bed, 2 bath manager’s residence

$127,000 $1,050,000 Warren Oliver – 0416 216 625

WANTED – LISTINGS! LISTINGS! LISTINGS! Speak to the experienced team at MRSales regarding listing your Management Rights business for sale. Get the right advice. Call today to arrange an obligation free discussion with one of our team.

MR Sales have an extensive range of listings Australia wide Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au

www.mrsales.com.au

Expressions of interest for Magnoli, Palm Beach With the finishing touches underway at Magnoli Apartments, Sunland Group in partnership with Lehmann Management Rights, formally launches the Expression of Interest campaign for the Management Rights of Palm Beach’s newest and most luxurious residential address.

Located on the corner of Nineteenth and Brooke Avenues, Magnoli Apartments comprises two elegant mid-rise apartment buildings, where vibrant cascading gardens spill from one balcony level to the next, as well as a striking collection of six adjoining terrace homes.

Presenting a mix of one, two and three-bedroom designs Magnoli Apartments features stylish entertainer kitchens complemented by generous outdoor living areas, and quality fittings and finishes. Ample storage and extra parking spaces ensures absolute comfort and convenience for residents.

46

metres from the main entrance, where the preserved Norfolk Pines will be surrounded by landscaped gardens. Positioned behind the tower is an expansive community park complete with a children’s play area, mature trees, and on-site dining and lifestyle amenities,” Mr Abedian said.

Private amenities include a resort-style pool, lounge, landscaped barbecue and entertaining spaces.

The six terrace homes and the south tower are now complete and have begun to welcome founding residents.

The construction of the north tower is nearing completion with the scaffolding removed and the finishing touches to the apartments and landscaping well progressed. The north tower is scheduled for completion and settlement in October 2020.

With the management rights campaign formally launching to the market this month, it is anticipated to create a buzz within the industry as professional operators rally to purchase the rights for this prestigious development in Palm Beach.

Sunland Group Managing Director, Sahba Abedian, said, “The level of architecture, craftsmanship and amenity embedded within Magnoli Apartments is unparalleled on the southern end of the Gold Coast.”

“The beachfront is less than 100

PROPERTY

Kristine Lehmann, Director of Lehmann Management Rights, is conducting the Expression of Interest campaign on behalf of Sunland Group. The campaign for the 204 unit complex and adjoining 6 terrace homes formally launches this month. The unique design-led offering and beachside location is attracting young professionals and local downsizers. Rental enquiries for the prestigious development is strong with demand currently exceeding supply.

For more information regarding the Management Rights campaign, please contact Kristine Lehmann from Lehmann Managements Rights via phone on 0412 203 770 or email k@lehmannrights.com.au.

ResortNews | July 2020

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.

BRISBANE CITY

• • • • •

HIGH INCOME & BIG SALARY PERMANENT

Prime location, walk to China Town and CBD, close to everything Fantastic Body Corporate salary of $179K 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: $310,000

TOTAL: $2,420,000

SPRING HILL

• • • • •

KURABY

• • • • •

SUNNYBANK AREA AND SOLD INCOME

Brisbane Southside, close to Sunnybank & Sunnybank Hills Strong rental area and very popular for renters Fantastic manager salary $85,000 with annual increase of 5% Large lowset standalone three beds manager residence Spacious separate office, no set office hours

NETT: $122,000

TOTAL: $1,125,000

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 RESORTS

BRISBANE

ROBINA

BIG $$$ PERMANENT

ALWAYS PREMIUM!

Body Corporate salary of $190,000 with 5% annual increases provides for a very secure business. 22 years remain on agreements with supportive committee. Conveniently close to quality schools, parklands, walking and cycling tracks. Attracting good quality tenants. Only 5 minutes from Carindale and Cannon Hill shopping centres. Managerâ&#x20AC;&#x2122;s residence is a large stand-alone 3 bed single level home. A low maintenance complex with pool and gym situated in the popular Brisbane suburb of Carina. Only 7km from the CBD this is a terrific permanent letting villa complex.

Choice permanent in superior letting location of Robina CBD with substantial rental pool and income.

Brand new 20 year Agreements and expansive office on title with no set hours. Well maintained manageable grounds with minimal grass to mow. Stylish, spacious and private 3 bedroom, 3 bathroom, 2+ car accom residence and sparkling pool, spa, rec room, gym and barbecue areas will delight all. Sunny fully fenced garden a bonus for families and pet lovers! A premium Gold Coast Management Rights for sale now!

NETT $331,000 PRICE $2,502,000

NETT $151,000 PRICE $1,240,000

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

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

BRISBANE

PACIFIC PINES

BAYSIDE OPPORTUNITY

MUST SEE PERMANENT!

An attractive townhouse complex which can be comfortably operated by one person. In the sought after Bayside location of Wellington Point. A short walk to shops, cafes and restaurants, with waterfront recreation areas close by. Birkdale Fair is just a five minute drive. Ormiston College and Redlands College are nearby. The solid business experiences very steady rental demand. Spacious and well presented 3-4 bedroom stand alone managerâ&#x20AC;&#x2122;s house. An ideal family home with double garage. There are 21 years remaining on the agreements with simple duties and a positive Body Corporate.

The manager has the luxury of a freestanding modern two storey house featuring, 4 bedrooms, 2.5 bathrooms, 2 car garage and office on title. No office hours and well presented low maintenance grounds allow for an easy to run and very profitable Gold Coast complex. With a cooperative Body Corporate committee, high proportion of investors and stable rental pool you also have comfort in knowing 23 years remain on your agreements. Secure great tenants in this popular area. Close to school, public transport and all the facilities you will need.

NETT $115,000 PRICE $1,067,000

NETT $246,000 PRICE $1,895,000

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

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

propertybridge.com.au | 1800 888 518

Quest Robina:

No fear here: Championing the best of both worlds

Holmans are proud of our association with Joshua and Fleur and wish them every success for the future

50

PROFILES

ResortNews | July 2020

By Lucinda Dean, Industry Reporter

Opening a new multi-rise complex of 80 serviced apartments on the Gold Coast in the middle of a global pandemic might seem crazy…

But as Quest Robina franchisees Joshua and Fleur Nadzielski reveal to Resort News, there is certainly method to the madness.

The newest kid on the block is $32 million Quest Robina, which boldly opened its doors to guests on May 4, confident the region’s economic boom would continue post COVID-19 lockdown.

Josh said it was a “very easy” decision to open the first Quest Apartment Hotel in Robina because of the business and lifestyle opportunities that the venture afforded them.

The couple had previously successfully owned and operated the Quest Griffith (NSW) franchise for three-and-a-half years. Buying the Quest Robina franchise was a very astute business move for the veteran franchisees.

Not only is it the first Quest Apartment Hotels franchise on the Gold Coast, but it also has the distinction of being the only hotel in Robina’s CBD catering for business and leisure travellers.

Quest Robina is located next door to Robina Hospital and is within walking distance of CBUS Stadium and close to the train station.

Catering to frontline healthcare workers was also critical to the couple’s thinking about opening during the pandemic.

Fleur said: “We wanted to be part of the local community and help in any way.

“Using the Quest Healthcare Assist booking platform, during COVID-19 we ensured some of our rooms were available at a heavily discounted rate to frontline health professionals, giving them a chance to rest and recover from the long hours they’re putting in.”

Fleur estimated that approximately five percent of their overall bookings had come from the platform since they opened.

Their decision to open during COVID-19 was a calculated risk that appears to be paying dividend: “We could see there was an opportunity to support the local healthcare system and workers as they prepared for the worst-case scenarios regarding the COVID situation,” says Josh.

“We also know the Gold Coast is going to be a very popular ResortNews | July 2020

winter holiday destination, so we wanted to support those guests coming to this region.”

The couple also thought about where they would like to raise their young family, considering where 18-month-old Cohen would eventually go to school, and ultimately what life they wanted to provide for him.

“We are extremely spoilt now calling the Gold Coast home, being surrounded by beautiful beaches and parks, and having a huge selection of restaurants, cafes and shopping precincts to choose from,” says Josh.

The popular Singapore-owned apartment hotel chain caters primarily to the extended stay business traveller. Josh says while the Quest business model of 80 percent business and 20 percent leisure guests appears to be consistent in Robina, in the shortterm, he expected to see a greater number of domestic travellers here to experience tourism.

“We have already secured long-term bookings for three months-plus for business professionals late in the year, and we’re also taking bookings from leisure travelers locking in their winter getaways in the Sunshine State,” says Josh.

Fleur observed that guests’ consumer habits had also changed in unexpected ways due to COVID-19.

“We’ve found guests still want good service, but also with a focus on safety,” she says.

“Some of our clients say they’ve been going stir crazy working from home so coming to our property allows them the freedom to work, enjoy some company and get the job done.”

Rugby league fans know Robina is home to the Gold Coast Titans; the coastal metropolis is also famous for Robina Town Centre, the Gold Coast’s second largest retail precinct, (after the redeveloped Pacific Fair); Bond University; and one of Australia’s first successful master-planned communities.

Robina’s in-land, mid-point location on the Gold Coast just west of Broadbeach makes it an enviable lifestyle choice for people wanting the best of both worlds: city and beach.

It is a stone’s throw from long stretches of golden beach; world-class surf breaks; Cavill Avenue’s ‘glitter strip’; expansive canals and waterways; popular theme parks and a hinterland resplendent in natural beauty – everything for which the Gold Coast is world-famous.

PROFILES

51

By 2050, the Gold Coast’s population is expected to hit one-and-a-half million people and Robina is designed to support this expansion. The coastal metropolis is already a hive of business and economic activity with $600 million worth of projects underway. Developer CBD Robina claims the coastal city is “perfectly positioned to become the primary Queensland hub for smart business, innovation, technology, education, sport and economic development”.

And due to the sheer luck of geography, no new business hubs can spring up near Robina because the city is located between the hinterland and the ocean. This means that Quest Robina will likely meet increased need for business and leisure activity in the area.

The Quest empire comprises more than 170 properties located across Australia, New Zealand and Fiji. The business is built on a successful franchise model backed by strong branding.

52

woven wicker lamps shades and linen-look fabrics create an inviting connection to nature.

Quest guests are familiar with the chain’s signature modular design architecture, quality amenities and excellent customer service.

Quest Robina is no exception to this winning formula.

Fleur said Quest Robina had built-in facilities to really enhance the guest experience for all travellers, with the business lounge accommodating their corporate guests’ needs, and the outdoor swimming pool great for leisure guests and families.

The architecture is responsive to the area’s mix of coastal and metropolitan living and the interior fit-out embraces the relaxed Gold Coast spirit with a sunset colour palette of navy, dusty blue, peach and flecks of pink, while organic shaped timber stools,

“The Quest Robina shuttle service bridges the gap between dining offerings and experiences and manages their safety and risk in a secure door-to-door service,” she says. “With the ability to transfer our guests to some of the best dining options in Robina, as well

as including transfers in packages, we are able to uniquely manage the guest experience beyond the four walls of the hotel.”

According to Quest chief operations officer David Mansfield, the selection process to become a Quest franchisee is “rigorous”.

He said the Nadzielskis were a good fit for Robina because they were “highly experienced with a track record of excellence and customer service which is intrinsic to the Quest brand”.

The Nadzielskis feel “incredibly proud” of their achievements at Quest Griffith and moved on to Quest Robina with the mindset that guest experience

PROFILES

is paramount. Josh said having great staff was what set Quest apart from its competitors. They planned to employ approximately 15 staff across management, front-of-house and housekeeping, when fully operational.

“We believe Quest really is aligned to our own business ideologies and values,” says Josh. “Being a part of a significant brand like Quest gives us access to a system that encourages success.

“When you buy into a Quest franchise you’re buying into a tried and trusted business with the intellectual property that comes with it.”

ResortNews | July 2020

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