Resort News, August 2020

Registered by Australia Post Print Post No. 100023799

Issue 288 | August 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

Profiles: Coolum Beach Getaway Resort:

Cool holiday vibes Jacaranda Villas:

A tranquil oasis

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Cover: Sanctuary Palm Cove:

A ‘Sanctuary’ from the COVID-19 storm

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The legal stuff...

The views and images expressed in Resort News do not necessarily reflect the views of the publisher. The information contained in Resort News is intended to act as a guide only, the publisher, authors and editors expressly disclaim all liability for the results of action taken or not taken on the basis of information contained herein. We recommend professional advice is sought before making important business decisions.

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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.

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Inside our August issue FRONT DESK Editor’s Note: Annus horribilis or opportunity for change?..............................................05 Vale: Graham Vercoe ..........................................................06

INDUSTRY

06

News In Brief ......................................................................... 08 Person of Interest – Dennis Mackenzie ......................10 ARAMA Report ......................................................................12 State Report ...........................................................................13 BCCM Report .........................................................................14 SCA Report .............................................................................15

MANAGEMENT Legal Ease................................................................................16

By All Accounts ..................................................................... 17 Thinking MR............................................................................18

10

Motel Matters.........................................................................19 Intonet ..................................................................................... 20 High-rise building rectification: More than a band aid solution is needed ....................................................... 23 Good Governance ............................................................... 26

TOURISM

© 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.

Tourism Report ..................................................................... 28 Tourism International ........................................................30 The Last Resort .....................................................................31

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

EVENTS & APPOINTMENTS

48

CONTRIBUTORS

Events....................................................................................... 32

DEVELOPMENTS Development News ............................................................ 34

PROPERTY AccomProperties Sales Report ..................................... 42

Trevor Rawnsley, Michelle Scott, Col Myers, James Nickless, Lel Parnis, John Punch & Matthew Parker, Arvo Elias, Andrew Morgan, Lynda Kypriadakis and Mike Phipps.

Resort News Agent Profile - Antonio Curulli A ‘Sanctuary’ from the COVID-19 storm .....................46

PROFILES Coolum Beach Getaway Resort: Cool holiday vibes ............................................................... 48

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!

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50 FRONT DESK

Jacaranda Villas: A tranquil oasis .................................50

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

ResortNews | August 2020

We seem to have two Australias: one in an extraordinary state of lockdown as Victorians deal with curfews, police supervision, and rampant cases of COVID-19.

As the rest of us try to return to some semblance of normalcy, the truth is that our industry has suffered many devastating losses and without a vaccine, normalcy seems like a bit of a pipe dream.

Huge sector job losses announced by the Australian Bureau of Statistics (ABS) only factor in the effects of bushfires, we will not see the full effects of COVID-19 on the

cases and accelerated job loss in Queensland’s tourism sector, it is critical that we get the balance right and concentrate on protecting public health. Extended closures must be followed with stimulus for all affected.

job market until the September statistics are released.

despite the announcement that the JobKeeper scheme is being extended to help more people for longer. Queensland’s management of the crisis has been prett y successful and accom bookings were creeping back but the sudden border closure to NSW and ACT has caused another blow to visitor numbers. Many resort managers and owners had been banking on a busy interstate spring season, but health considerations are the forefront of decision making and “Queensland is putting Queenslanders first”.

We have heard heartbreaking stories from well-established accom businesses forced to cease trade altogether,

While many accom professionals feel the decision to close the border was hasty given minimal additional

Enjoy your copy of Resort News and get in touch so we can share your story and echo calls for further support.

Mandy Clarke, Editor editor@accomnews.com.au

EDITOR'S NOTE

Annus horribilis or opportunity for change?

2020 has been Annus Horribilis and the only way to turn it around is to use this time for ideas, vision, and change.

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ResortNews | August 2020

hotelinteriors.com.au • 1300 876 055 FRONT DESK

05

1946-2020

Graham Vercoe A champion of our industry, beloved father, grandfather, colleague, mentor, friend, and founding editor of Resort News, Graham Vercoe sadly passed away in June this year.

Graham was so well-respected as the voice of Resort News that since his retirement in 2015, readers continued to ask subsequent editors whether he might come back to pen a special report any time soon. Graham had an illustrious 50-year career as an author and journalist and the Multimedia team was very lucky that he chose to spend his pre-retirement years with us, passing along knowledge, wisdom, and humour.

His former colleagues, contributors, and readers responded to the sad news with words like, “we have lost an industry great” and “he was always on our side”.

Formerly of New Zealand, Graham retired to Nanango in 2016 to cherish time with his beautiful wife, Sue, who we got to know very well at our Resort News Christmas parties as the pair buoyantly shared tales of their many adventures. It was undeniable that Graham and Sue were best friends and soulmates. Sue sadly died in March 2018 and we miss them both dearly.

We shall leave you with the man himself. These were the final words Graham wrote for Resort News as editor, back in December 2015:

“Thank you to everyone who has contributed to Resort News over this time and assisted, advised, coached and badgered me during this time. Many of the words, after all, are yours or were inspired by you. Thanks again. See you soon.”

We extend our deepest sympathies to Graham’s son Stefan and all his family and friends.

– Mandy and the whole Resort News team

I met Graham as a 16-yearold intern at Resort News: he swiftly became a calm and generous mentor who always had praise and advice to give.

For years after retiring, Graham was just a phone call away, so I called with questions about leads, complaints, and story dramas.

He would always tell me what he would

06

Graham & Sue Vercoe

do in my situation and that is still how I solve most problems I encounter as an editor! I ask: What would Graham do?

During their retirement, Graham and Sue used to travel to a new place each month (Graham would proudly tell all of you that he always booked direct!).

During one catch-up Graham told me about some time they had spent living on a boat, which elicited fascination! I offhandedly said, ‘I’d like to travel someday’ and Sue gasped,

FRONT DESK

‘just go! right now, you have to go!’ and Graham nodded in quite serious agreement, ‘don’t hold off, if you want to travel then travel you don’t ever regret the adventure’.

They had an amazing spirit and I will think of them when the first thing I do post-COVID is book a flight!

Thank you, Graham for all you have given, and taught, and written, and inspired.

– Rosie Clarke, Editor at Multimedia

ResortNews | August 2020

In memory of Graham, my friend and former editor When I rang Graham Vercoe’s landline on Saturday, June 20, 2020, I wasn’t prepared for the news I was about to hear from his son, Stefan.

Graham was gravely ill in Nanango Hospital and then, on Sunday, June 21, Graham died. I felt a heavy sadness within me and realised I would not be having a chat with Graham again, in this lifetime.

Graham standing with his Alfa Romeo in 1993.

Even to this day, a few months since my dad’s passing, I am still surprised by how much he did and achieved in his life.

I grew up on his stories of travel and adventure, on friendships with presidents and celebrities, on being a journalist in Vietnam during war and apartheid South Africa, and of a childhood growing up in post-war New Zealand.

My dad was always a kind and friendly man. For much of my youth he raised me as a single parent. I learned so much from him. He taught me the importance of respecting others, no matter their skin colour, sex, or how different they are from me. He taught me to do the right thing and be the bigger person. From him, I learnt how to be funny. I know he showed me how to be a good person. I learnt the benefits of determination as I saw him create his first book. I still remember him working on his first PC with the five-and-a-quarter inch floppy discs finally printing the book on a dot-matrix printer. I swear that buzzing didn’t end for days. He helped shape me into the man I am today. He did all this while battling cancer. He showed me that sometimes you just have to survive. I never knew until I was 17.

I can never thank him enough for telling me stories of camping in the wilds of Africa or exploring the streets of Paris. His passion for travel has embedded in me that same love. I have had the pleasure of visiting so many countries to create my own stories. I have my father to thank for planting that seed. I hope I can do the same for my children.

He loved anything mechanical.

Planes, trains, but most of all cars. I couldn’t guess how many ResortNews | August 2020

cars he owned but it was a lot.

He raced historic cars and was friends with classic drivers. I don’t know how often he won races, but I never thought that was why he did it. He did it because he loved it ever since he was a kid. He loved it enough to write about it.

He wrote so many things in his career. Starting as a journalist in New Zealand he moved to London to do the same, eventually returning to New Zealand where he started a travel magazine, then on to a book or two, a few years composing speeches for a mayor, took a little break to own a store, and then with a move to Australia he also took on a role with Resort News until he retired.

My first encounter with Graham was back in October, 2010, when I applied for the position of a freelance journalist and writer, with Resort News. Graham was the managing editor, and my ‘go-to person’.

During the next two years, Graham, nurtured, trained, and further drew out my hidden writing skills. He taught me how to skilfully focus on the main message of the article, and still make it entertaining reading.

He was always available for support, and when there were any problems, he was proactive in his understanding, and always resolved any difficulties. Graham cared about his writers and nurtured us as if we were his family. I kept in contact with Graham after he retired and especially after his dear wife, Sue, died in 2018.

I have the highest respect for, and gratitude to Graham. He gave me belief in myself as a writer. I feel that, in his death, I owe him a legacy to once again, awaken that writing skill, and produce first class writing. Thank you, Graham, for being you. I will always treasure the knowledge and wisdom you shared. I miss you, but you are now at peace with Sue. Rest in peace my friend.

In 2015, when Graham sent me a copy of his book Midsummer Murders, he wrote the following in the front of his book:

Although he ultimately died of liver failure, I know that as cliché as it sounds, he died of a broken heart. Dad and Sue were fortunate enough to find each other. Just by looking at the way they saw at each other you could tell they were in love. For almost 30 years they lived for each other. I believe in my heart, however, when he lost Sue he lost too much.

‘To Marie-Clare, To be able to write in a compelling way is a very great gift. You have that gift, and it would be a wonderful legacy to use that gift to bring pleasure, thought provocation, and insight to those who would be fortunate enough to share in your words.’

Very sincerely, Graham Vercoe – Marie Claire De Vere, Friend and Writer

His passing was an unexpected shock and I wish it didn’t happen, but since then I have discovered so many people that have their own stories of my dad. Stories that offer a different point of view than mine. And it is wonderful to know that Graham had such a positive impact on so many people. I wish to thank those people for being a memorable part of his life.

I hope I can leave a positive impact on those that come into my life. I hope I can do what you did for me and be the best dad possible. I hope my wife and I have a life together as happy and full of love as yours was with Sue. Thank you for being my dad. I love you. – Stef

Graham with Marie Claire De Vere

FRONT DESK

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“Devastating” ski lift closures leave Victorian managers out in the cold The shock announcement that ski lifts at Falls Creek and Mt Hotham would immediately be suspended until August 19 has been a devastating blow for some Victorian alpine accom operators.

Keith Archibald, owner of Summit Ridge Alpine Lodge at Falls Creek, said the timing of the ski lift closures by operator, Vail Resorts, was “catastrophic”.

It comes after a shocking start to the Victorian snow season, which runs from the Queen’s Birthday Weekend in June until the first weekend of October, depending on snow fall.

Colin Hackworth, CEO Australian Ski Areas Association (ASAA) told Resort News that the season so far had been “one of the poorest on record, with limited natural snow falls and limited snow making opportunities”.

Despite this, Hackworth said all Victorian resorts would have managed to provide limited skiing on largely man-made snow by the July school holidays.

Archibald said the community was given no notice of the lift closures, and that the shock has “done a lot of damage to the goodwill among the Falls Creek community”.

“They didn’t let us know anything.

On Thursday July 9, they sent an email around, that’s it, we’re closed. It has been devastating.”

US-based operator, Vail Resorts, bought the Victorian ski field leases and related infrastructure in April 2019. In a company media release issued July 9, Pete Brulisauer, senior vice president and COO of Vail Resorts Australia said: “We did not make this decision lightly as we know our employees, guests and the communities where we operate have already endured so much hardship this year. However, we are focused first and foremost on health and safety, following local health guidelines and doing our part to support efforts across Victoria to address the recent rise in coronavirus cases.”

Archibald told us he had hoped Vail Resorts would leave three or four lifts running to keep them “limping along”, noting “there’s a whole lot of people from regional Victoria who could have come up”.

“It’s been a very difficult period and a lot of [guests] have gone, ‘that’s fine, we understand’ and we’ve transferred their booking until September or next year, they’ve been really good. But a lot of people have been really narky about it and don’t understand that we’re all small family businesses

here who have basically just lost our entire yearly income.”

It’s not like any other accommodation business that can open in October or November… we’re either making our money now or not at all.

Both The Falls Creek Alpine Resort Management Board (FCARMB) and the Mount Hotham Alpine Management Board decided to remain open. The two ski regions are offering similar winter activities including cross-country skiing, snowshoeing, tobogganing and snowplay, while local medical centres are closed and there is no local ambulance service.

Stuart Smythe, CEO Falls Creek Resort Management, said in a statement (July 10): “We are devastated for our local businesses, staff and all our guests, that such action has been necessary to respond to the spread of coronavirus (COVID-19) in Victoria.”

Since July 1, only two families have stayed at the Summit Ridge Alpine Lodge, the remainder have either cancelled their accom reservations or rebooked for the 2021 ski season.

“Because Vail Resorts has refunded all the lift tickets, basically everyone who was booked with

us for July and up till August 20 have demanded accommodation refunds,” says Archibald.

He said the costs of running a lodge above the snowline was “quite horrendous”.

“We’ve got a 20-room lodge and a restaurant but our site fees and our vTax fees are about $45,000 – coupled with insurance and other bits and pieces – that overhead is $120,000 that we have to find every winter in 3-to-4 months,” he says.

“We’re obviously not going to be able to do that this year, and that’s going to be a problem.”

Archibald had retained five staff on Jobkeeper and was keeping his restaurant open three days a week, however due to COVID-19 it can only seat 20 (not the usual 50). He said the entire Falls Creek community had rallied together to support each other by going out for dinner and having a beer at different places every night so “we can all stay alive, or at least, get some income in and keep our employees active”.

Hackworth (ASAA) said to his knowledge that almost all seasonal and casual staff have been stood down across Mt Hotham and Falls Creek. He defended Vail Resort’s lifts closure decision, which has come under fire.

Star Casino deal collapse a “welcome” development?

Destination Gold Coast welcomed the resolution of ongoing negotiations between Palaszcuzuk Government and The Star Entertainment Group.

Exclusive negotiations for a second casino licence on the Gold Coast have officially ended.

Tourism body CEO Annaliese Battista told Resort News that the fact the two parties had agreed to mutually end negotiations now provided the Gold Coast with certainty around exploring other sustainable tourism development opportunities.

08

the Gold Coast Convention and Exhibition Centre.

“The future of tourism on the Gold Coast relies on continued investment and the delivery of The Star’s $2 billion-plus Gold Coast masterplan affords us with significant economic benefits for the region.”

Apparently, by 2038, Star Entertainment pledged to deliver: Annaliese Battista

Battista commended the state government for not closing the door on discussions with Star Entertainment on the much-needed expansion of

• • • • •

$2.2 billion masterplan 9000 construction jobs 2800 operational jobs 650 additional hotel rooms 2000 luxury apartments

Group Chairman John O’Neill said the company and its

INDUSTRY

partners committed around $4.5 billion to reinvigorate tourism in South East Queensland.

Investments include Brisbane’s Queen’s Wharf; and on the Gold Coast, the refurbishment of The Star Grand hotel, the opening of The Darling hotel, and ongoing construction of the Dorsett hotel and apartments tower.

“We have confidence in the future of tourism and, under the right conditions, will continue to invest through our $2 billion-plus Gold Coast masterplan that will help government deliver further significant economic benefits for Queensland including thousands of jobs,” he said.

ResortNews | August 2020

Plans shelved for Global Tourism Hub on the Gold Coast State development minister Kate Jones said: “Through the exclusive negotiation process for a Gold Coast Global Tourism Hub we worked really hard to extract value from The Star, but the deal on the table did not stack up for taxpayers.”

In March, the Palaszcuzuk Government began a worldwide search for the best proposal to deliver a Global Tourism Hub on the Gold Coast. The hub was part of the government’s plan to boost domestic and international visitation to the Gold Coast and create thousands of new jobs.

“Global market conditions are clearly impacting investment

“Not necessarily,” she said. “There are many big ideas for new attractions on the Gold Coast.

at present and I can confirm that this government has no intention of reviving the market process for a new integrated resort – including a second casino – on the Gold Coast,” says Jones.

“It is very important that these ideas are explored with an open mind and with extensive community and visitor consultation. “The Gold Coast has more than 140 natural and manmade attractions, as well as plenty of quality resort options, so there is an abundance of activities for all tastes, budgets and personal circumstances without an additional casino.

Resort News asked Destination Gold Coast, Tourism body CEO Annaliese Battista if putting a halt to the Global Tourism Hub market process was a backwards step for tourism development on the Gold Coast.

Battista said it would take many years to recover from the economic and social impacts of COVID-19. The Gold Coast is “at a critical juncture as we emerge from crisis into kick-starting the region’s largest economic driver, which is tourism”.

Dreamworld prosecuted Ardent Leisure, the owner and operator of iconic Gold Coast theme park, Dreamworld have been charged over an horrific incident that occurred on the Thunder River Rapids ride in 2016 that claimed the lives of four of its guests.

Queensland Work Health and Safety Prosecutor filed three category two charges pursuant to section 32 of the Work Health and Safety Act 2011, for failing to comply with its duty to Health and Safety and for exposing individuals to a risk of death. Each charge carries a maximum penalty of $1.5 million.

Ardent Leisure Group acknowledged the charges and released a statement expressing their deepest symapthies to the families of Roozbeh Araghi, Luke Dorsett, Kate Goodchild and Cindy Low for their loss and ongoing suffering and apologised to all the people impacted by this tragedy”.

They stated: “There has been considerable change at Dreamworld over the last few years as was acknowledged by the Coroner in his report. Dreamworld has taken substantial and proactive steps to improve safety across the entire park and continues to enhance existing systems and practices, as well as adopt new ones, as we develop and implement our safety case in accordance with the Queensland Government’s new major amusement park safety regulations.”

Sunshine Coast’s new Indigenous cruise to connect ‘culture to coast’ In the Year of Indigenous Tourism, Queensland’s rich Indigenous heritage and spectacular coastline are hoping to draw in regional visitors with the launch of new Indigenous cruise operator, Saltwater Eco Tours.

Operating from Mooloolaba, Saltwater Eco Tours is using a century-old historic timber sailing vessel, Spray of the Coral Coast, to showcase the Sunshine Coast’s Indigenous heritage and marine beauty.

ResortNews | August 2020

Each tour will have an Indigenous story-teller on board to share the stories, traditions and culture of the Sunshine Coast’s original Indigenous inhabitants and first eco custodians, the Kabi Kabi people (who were originally known as the ‘Saltwater People’).

It is the brainchild of Simon Thornalley, a young Indigenous man of Torres Strait Island descent. Simon spent his life sailing through the Great Barrier Reef and Torres Straits as a child, honing his skills before gaining his Commercial Master Class 5 licence, which took him across many oceans, including

six cruises to Antarctica as First Officer on a charter vessel.

excited to launch Saltwater Eco Tours on the Sunshine Coast.”

Simon has incorporated his love for the marine environment, his cultural heritage, and his passion for sailing by launching a series of tours aboard Spray of the Coral Coast. Thornalley was recently appointed a Young Indigenous Tourism Leader, and said: “I am honoured and proud to launch a business that encompasses my passion for culture, as well as maritime history and sailing. Sustainable tourism plays a crucial role in today’s society and in the year of Indigenous tourism I am

Queensland Tourism Minister, Kate Jones, welcomed the launch of the Sunshine Coast’s newest tourism experience.

“There’s more demand than ever for authentic ecotourism and Indigenous cultural experiences in Queensland,” she said.

INDUSTRY

“COVID-19 has had a huge impact on our tourism industry. We need new experiences like Saltwater Eco Tours to entice visitors back to the Sunny Coast and share the message that we’re Good To Go in Queensland.”

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PERSON OF INTEREST

Dennis Mackenzie makes his own luck

By Luncdia Dean, Industry Reporter

He said: “Mum and dad were on Lindeman Island having a holiday and I rang and left a message saying I was moving out. Mum was not impressed!” His parents operated a kindergarten in the suburbs and owned a holiday shack at Burleigh Heads, so hard work was instilled in him early on.

Serendipity is the perfect word to describe how Dennis Mackenzie joined the management rights game.

Family in tow, he moved to Hervey Bay in 1991 after 20 years spent running hotels and motels. They bought a house, a café and “fell” into management rights when they became co-directors of a brand-new 54-unit complex, Riviera Resort.

“It was a huge learning curve, navigating strata management, we had no idea,” Dennis said.

While operating a café, the family established an adjunct catering business and Dennis made the local building site morning rounds, delivering “smoko” to the workers. One site development happened to be the Riviera Resort.

“He said, ‘Do you want to open Riviera Resort for us?’.”

Chance encounters with influential industry-makers Talking to Dennis, you get the sense that his life has been punctuated by serendipitous moments. Determined to make an early start in his career, Dennis moved out of home “as soon as I could”.

Midway through TAFE training, a chance encounter in the 1980s with Broadbeach Hotel general manager, Geoff Lewis gave Dennis his first break in hospitality as a young whippersnapper. Geoff was sitting opposite Dennis and his former girlfriend at the restaurant, they struck up a conversation, and the rest, as they say, is history.

“I started as a hotel trainee, finished the course off at college, and worked with President Hotels for eight years,”

Dennis says. “I went overseas on a working holiday with their blessing, worked in European hotels and came home as a young buck full of knowledge and cocky as.

“I was placed into a brand new 409-room hotel in Surfers to open with Geoff Lewis. Even to this day I still keep in touch with him.”

Building a brilliant career In the last 20 years, Dennis has had a hand in “30-odd buildings” from the ground up.

His illustrious management rights career includes Sunshine Coast holiday resort icons French Quarter on Hastings Street, Golden Beach Resort at Caloundra and the Outrigger, Mooloolaba.

“I got talking to the guys there and one of them introduced me to the developer. He asked what my background was – I said we had been running pubs, clubs and motels for the last 20 years.

Hannah Mackenzie, Dennis Mackenzie and Jamieson Mackenzie

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INDUSTRY

ResortNews | August 2020

While his students are mostly mature-age students, Dennis says he still enjoys teaching young people.

While Dennis was the assistant general manager at French Quarter, he and his family took over management for The Oaks Resort Group of the 68-apartment Ivory Palms Resort in Noosaville. Developer Forrester Kurts built more apartments on the site, so they had over 200 units in the building plus facilities. At Broadbeach, he was responsible for the successful opening and operation of Freshwater Point Resort with The Picone Family.

“One thing I’ve learned from managing resorts from 1991 onwards is having open, honest and constant communication with your owners, tenants, guests is what puts you in good stead to improve your business and your profitability,” he told me.

Opportunity knocks again It was while living and working hard on the Sunshine Coast that Dennis was approached by TAFE Maroochydore to do food and beverage training, which ultimately opened the door to owning and operating his own Gold Coast-based business, Property Training Australia (PTA), which also has facilities in Brisbane, the Sunshine Coast and North Queensland.

“While there, the deputy director came running in one day and said, ‘Mate is there any chance you could have a read of this book here and be available tomorrow to present this class?’,” Dennis recalled.

“The book was about doing licensing training for real estate agents and managers.

I started doing TAFE’s real estate courses by accident and I really, really loved it.”

At TAFE Dennis met head trainer Paul Lupi, who left TAFE in 2003 to set up Property Training Queensland (PTQ).

The two worked together in the business for 12 years.

In 2014, Paul approached Dennis to buy the business.

“I decided to go into an arrangement to buy PTQ, which we did in 2015, and we rebranded it to Property Training Australia the same year,” Dennis says. A sideline to PTA is Resort Management Licensing and Training, where we do onsite resort management training and consulting.”

ResortNews | August 2020

Future CEO Lyric Mackenzie

An industry built on relationships Relationships are very important to Dennis, and so too is networking. His friendship with ARAMA CEO Trevor Rawnsley has assisted him with the Office of Fair Trading, the Attorney General’s Department, the Licensing Department and Investigations Department.

Dennis said he has their ear about matters such as training for RTO’s and has put forward recommendations in the past.

Dennis said he was grateful that out of the 11,000 students that they’ve trained since they started in 2003, “I’ve never seen any of our students ever be charged or jailed for misappropriating real estate – and I’m so proud of that.”

Dennis counts prominent management rights lawyers: John Mahoney, Trent Pevy, Sharon Flood, Col Myers, John Punch and Michael Kleinschmidt among his business colleagues.

He also maintains professional relationships with Queensland’s leading accountants: MBA, Wicks, Archer Gowland; and financiers: Mike Phipps and Mark from MRM Finance and EBM Insurances Chris Trail.

Dennis invites these distinguished professionals to present their businesses to his students and talk to them about what is happening in management rights in legal, finances, insurances and accounting terms.

A family affair Dennis now runs PTA with his daughter, Hannah, and son, Jamieson. “They’ve come from growing up in resorts to now being involved in the business,” he said. “They can really relate to people about running resorts.”

Hannah looks after admin, online technology, accounts and is “basically running the business”.

She left the Oaks Group after working for them for eight years, where she had a lot to do with their software development.

Hannah started with PTA in 2017. Meanwhile, Jamieson has been part of PTA business since 2015 and does all the marketing, promoting new courses to exstudents via social media. New grandson, nine-month-old Lyric, is already wearing the CEO hat.

“I’m already grooming him to be the CEO,” Dennis chuckled.

“My children love the fact that we work together as a team.

There’s no boss, we make joint decisions on things, the three of us, and we very rarely have a disagreement on anything – except for pay increases!”

Working with new managers Dennis told me: “People borrow the money, they put in their own equity; they don’t want to lose that money, so they work really hard to improve the business. It’s no different to buying a corner store, you invest a lot of money, you work hard and you make money when you sell it. However, the difference is that MR managers do not have excessive stock on the shelves to sell.

“We always talk about an exit plan for students in our classes.

If you’re increasing your rental pool, you’re maintaining the caretaking, you receive a body corporate salary, the price of your manager’s unit increases, well, then if in five-years’ time you decide to sell – you’ve made a substantial profit, then you’ve done extremely well – many people upgrade to a larger complex.”

INDUSTRY

“I have a strong belief in the future of management rights for these young kids coming out of school, it’s such a great future for them, it’s a real goal for them.

There are more strata apartment complexes in Queensland than there are one-owner hotels.

So many young kids I’m seeing coming through now want to get their license to learn about selling real estate or get their Resident Letting Agent license to work in a resort, whether it’s short-term or long-term rentals.”

Dennis said he predicts fivestar properties will fade away because they are too expensive to build and operate. “There are more apartments being built now because the developers get their money selling the apartments, it’s a hell of a lot different to the old days.”

Ultimate chance encounter: hypothetical brush with fame I asked Dennis if he could have a one-on-one chance meeting with anyone, who would it be and why?

“I would love to sit down with our Prime Minister one day to talk about how he copes with such responsibility on his shoulders.

“My favourite actor is Johnny Depp, so I would love to chat with him, because I have listened to many interviews and he seems like a very intelligent man. I really respect people who are intelligent.”

Dennis also spoke highly of his meetings with ARAMA CEO Trevor Rawnsley: “When you’re talking to Trevor, you’re excited about being involved in this industry. And people should be excited! It’s a great industry: income is excellent and the lifestyle is good. You work hard but you can make a lot of money in management rights.

Dennis is a Justice of the Peace, member of ARAMA and the Gold Coast Committee, Licensed Real Estate Agent Qld and NSW, and regularly speaks at ARAMA Management Rights Induction days. He owns and operates Property Training Australia with his family.

11

ARAMA REPORT

Management rights gaining momentum Four weeks is a long time in business and momentum can change quickly.

Our industry cannot afford to return to the lockdowns and border closures we endured earlier this year

Unfortunately, much of 2020 has been out of our control but the management rights industry has continued to show resilience and optimism. Finally, momentum is swinging in the right direction.

With international travel non-existent, accommodation providers have moved quickly to target domestic holidaymakers and their willingness to spend money in their own backyard. A wave of more than 200,000 people applied to cross into Queensland on July 10 as an early indication of how Australians want to spend the billions they would otherwise splash on overseas travel.

The Sunshine State’s jewels in the

Trevor Rawnsley, CEO, ARAMA

crown - the Gold Coast, Sunshine Coast and far north Queensland – have experienced a healthy flow of traffic, and tourism drawcards like Warner Bros. Movie World, Dreamworld and Sea World reopened with reasonable numbers.

Destinations like the Granite Belt, the Whitsundays and Agnes

Waters also reported strong accommodation bookings as if it were Christmas in July and there’s no sign of anything slowing down with Queensland’s tourism drive projected to deliver $1 billion in overnight accommodation takings next quarter.

Short-stay management rights operators are not missing out on the trend to spend locally, after all, independent operators are able respond quickly to market demands. Bookings for the remainder of the year are quickly filling up with Queensland well and truly Good to Go as the tourism campaign suggests.

In New South Wales, operators in regional hotspots including the Blue Mountains, Mudgee and the Hunter Valley reported a school holiday ‘mini boom’ last month – a trend we will no doubt see for the foreseeable future as people seek both beach holidays and outback getaways.

While we remain at risk of further COVID-19 outbreaks and rolling border restrictions, we

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

can only focus on what is in our control and leading operators are busy marketing themselves to intrastate holidaymakers and ensuring their complex remains clean, safe and welcoming.

Having personally travelled to Port Douglas in recent weeks, I am proud to see first-hand how well management rights operators are integrating clean, hygienic and COVID-safe practices in their schemes. Our industry cannot afford to return to the lockdowns and border closures we endured earlier this year, nor do we want to be the accommodation provider responsible for a fresh outbreak of COVID-19.

Rather, the management rights industry continues to drive best practice standards for accommodation providers, highlight its significant contribution to the local economy, and prove time and time again that there is no better way to effectively service the interests of all stakeholders in a complex.

QLD - NSW - VIC - WA

For membership enquiries:

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

12

INDUSTRY

ResortNews | August 2020

the last place the sun shines The management rights business model is well entrenched in Queensland and New South Wales, and a growing market in Victoria.

But what is less known is that management rights are also found in Western Australia, although they may not look exactly like what you are used to seeing.

One of the reasons that Western Australia has been slower to adopt the east coast form of management rights is that the legislation that governs the operation of strata schemes has remained largely unchanged for decades. This has meant that the newer systems and processes surrounding the dayto-day management of a strata scheme that have become the norm in Queensland or New South Wales have not become the norm in Western Australia.

How owners meet and control the operation of a strata scheme in Western Australia can be fundamentally different from what you may be familiar with.

A strata company One key difference in Western Australia is that the owners group in a strata scheme are called a strata company, rather than an owners corporation or body corporate. This is significant because in Western Australia it is possible for the strata company to operate a business and generate profits like a normal company. Instead of the strata company having to engage someone else to manage and operate the letting pool, the strata company can do this itself.

This means that when you are engaged by the strata company as the building manager, your engagement may look more like a contract to provide specific hotel services for a hotel owner, rather than an authority to operate a letting business at your discretion. You may even be a direct employee of the strata company, simply there to manage ResortNews | August 2020

governance of the scheme. The fact that the bylaws determine how the strata company is operated and the bylaws can be changed, gives owners in Western Australia a broader scope of possibilities than those found in other States.

The ability of the strata company to operate the scheme as a business for profit will be set out within the bylaws for the strata scheme.

Col Myers, Small Myers Hughes

the strata company’s business as you would if you were employed for that role by a hotel chain.

It appears that, as strata companies have enjoyed a significant level of control for a very long time, the idea of giving free reign to a letting agent to run their buildings without strict control by the strata company has been slow to catch on. Many owners, no doubt, like the idea of having greater control over how their buildings are managed, possibly not realising however that they may not be the best equipped to make the necessary decisions.

Likewise, the ability of the strata company to grant exclusive letting rights to a management rights operator will also be found in the bylaws.

Bylaws that enable the strata company to operate as a business will likely also enable the strata company to switch to a conventional management rights business model.

Governance and conduct bylaws In most states, the strata bylaws deal with the day-to-day rules for use of the lots and the common property, whereas the rules governing how the owners meet and vote on matters are dealt with in the legislation. In Western Australia, the bylaws for the strata company are separated into two categories – governance bylaws and conduct bylaws.

The governance bylaws, unsurprisingly, deal with the governance of the strata company, including how meetings are held, committees formed and votes cast. They also deal with matters concerning exclusive use of the common property and the charging of levies to owners. Conduct bylaws deal with how owners and occupiers are to conduct themselves within the scheme and include any rules that don’t deal with the INDUSTRY

Making the Change

STATE REPORT

Western Australia In recent years we have assisted strata companies to move towards the conventional management rights business model, giving lot owners a way of stepping back from a business they may not be managing well, and potentially making a profit in the changeover.

As more and more owners in Western Australia get a greater awareness of the management rights business model, we expect to see a rise in both the number of strata schemes converting to the management rights model, along with a jump in developers creating strata schemes with management rights in mind from the outset.

So, as the sun sets in the east, it is still shining in the west.

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

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13

BCCM REPORT

Assistance animals and companion animals in a body corporate The committee must act reasonably when considering animal requests

Keeping animals in community titles schemes can be a highly emotive topic.

Whether an owner or occupier can keep an animal is generally a decision that requires approval of the body corporate committee under the scheme’s bylaws.

However, legislation treats guide, hearing, and assistance dogs differently to pets. Bodies corporate need to be aware that it is not just the Body Corporate and Community Management Act 1997 (the BCCM Act) that applies when dealing with people with disability who rely on a certified guide, hearing or assistance dog.

When it comes to an animal which is a guide, hearing or assistance dog, section 181 of

the dog on the lot. These rights apply regardless of scheme bylaws relating to animals.

Jane Wilson

Acting Commissioner, Body Corporate & Community Management

the BCCM Act provides that a person who has a disability under the Guide, Hearing and Assistance Dogs Act 2009 and relies on their animal, does not need to ask permission before bringing a dog into a body corporate property. If the person is the owner or occupier of a lot, they also have the right to keep

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

14

Guide, hearing, and assistance dogs are certified under the Guide, Hearing and Assistance Dogs Act 2009. Most people recognise the traditional Labrador breed as a guide dog for the visually impaired; however, assistance dogs can be almost any breed and can assist people with a variety of disabilities in their day-to-day lives. They can be recognised by the badge that they have on their harness or coat.

What about companion and emotional support animals?

Our community education and information unit often receives enquiries from owners and occupiers who want to bring an animal into their scheme, because they have bought it to help them or their child with mental health issues or other conditions. Undoubtedly companion animals do provide support to their owners.

However, certified assistance dogs are different from pets, and companion and emotional support dogs. Assistance dogs are specifically trained to help people with disability to perform specific tasks and to participate actively in public life and personal activities, which helps their handler to function independently and reduce their need for support.

As companion or emotional support animals do not fall within the meaning of an assistance dog under the Guide, Hearing and Assistance Dogs Act 2009, their owners do not have the same automatic rights under the BCCM Act as those with a certified assistance dog.

INDUSTRY

This means they will need to seek approval for their animal if their body corporate bylaw requires it. The committee must act reasonably when considering whether to approve a request to keep an animal in a body corporate.

It is important that when the committee considers a request to keep an animal they acknowledge and consider any rights the owner or occupier has under other laws, such as the Disability Discrimination Act 1992 (Cth) and Queensland Anti-Discrimination Act 1991.

If an owner or occupier asks for approval of an animal and the body corporate committee says no, the owner or occupier may make a dispute resolution application to the Commissioner’s office if they believe the committee’s decision was unreasonable. However, they may also be able to make a complaint to the Queensland Human Rights Commission.

Previous orders made regarding the approval of pets in bodies corporate can be searched online at www.austlii.edu.au.

More information relating to the Queensland Anti-Discrimination Act 1991 can be obtained from the Queensland Human Rights Commission on 1300 130 670 or www.qhrc.qld.gov.au. More information on guide, hearing and assistance dogs legislation is available on the Department of Communities, Disability Services and Seniors website.

For general information about body corporate legislation, you can contact the Office of the Commissioner for Body Corporate and Community Management on 1800 060 119 or www.qld.gov.au/ bodycorporatequestion.

ResortNews | August 2020

Ensuring lot owners benefit from any legislation and regulation changes proposed by government affecting strata and community living is at the heart of our operations at SCA (Qld).

We ensure our members’ opinions are not only heard, but actioned.

The Australian Building Codes Board (ABCB) has released a Consultation Paper on the National Registration Framework for Building Practitioners to explore the proposal for a registration of building practitioners involved in the design, construction, and maintenance of buildings.

The Paper proposes that each jurisdiction prescribes consistent registration requirements covering knowledge of the National Construction Code (NCC), competency and experience, insurance and financial viability, and integrity. The ABCB has further released the Accessibility Standards in the NCC Regulatory Impact Statement (RIS) which provides options for minimum housing standards to be implemented on new construction.

These two proposals were created to give confidence in the future that consumers are living in safely constructed properties, and that consumers with additional accessibility requirements were also able to benefit from a larger base of suitable housing stock. The RIS intends on improving the quality and quantity of housing that is readily available for those living with a mobility related disability. To put these two proposals in perspective, it is critical to appreciate that 2.9 million Australians were living with a mobility related disability in 2018. It is estimated there will be 4.7 million people over the next 40 years. The costs to alter a dwelling for all ResortNews | August 2020

The NCC should provide the minimum necessary requirements throughout Australia for safety and health, amenity and accessibility, and sustainability in the design, construction, performance, and liveability of new buildings (and new building work in existing buildings).

James Nickless, President, SCA, Qld

affected people is estimated between $2.2 and $2.7billion.

Under this proposed housing model, which is considering a silver or gold standard, multiple apartments in a complex will be built with features such as reinforced concrete for wheelchair hoists, voice recognition technology to open blinds and doors, and accessible bathrooms.

Meeting the needs of the community is a serious objective of the strata industry.

We have therefore activated our members and will be preparing a submission for each consultation. SCA (Qld) embraces the government’s intent to provide more accessible housing options for consumers living with a disability. It is important to also address the potential implications of additional standards being required for strata properties, as we know from experience that these additional features will likely increase unit prices and the ongoing costs associated with unit ownership.

The proposed amendments would have large scale impact on all new construction with agreed universal design standards to be set this year.

It would certainly provide some relief to consumers with benefits including reduced social isolation, and increased community participation and inclusion.

We applaud the ABCB for taking all Australians into consideration and for aiming to consolidate state laws with a nationally consistent minimum technical standard.

We hope that this is the first step of many, as there is still much work to be done to restore confidence in the built environment (and the property sector more broadly).

SCA (Qld) has always advocated for proper building and insurance requirements for strata communities. The ABCB proposal aims to ensure building practitioners are following proper regulations regarding design, construction, and maintenance in buildings.

There have been many construction problems in the strata industry revolving around water ingress, structural defects, and cladding and SCA (Qld) has always advocated for better regulation in the sector.

These issues have been detrimental to strata buildings for decades and have more recently become the focus of significant media attention.

SCA REPORT

Building an inclusive industry: How strata construction will change

These problems have no doubt led to a demise in public confidence that the building and construction industry can deliver compliant, safe buildings which will perform to the expected standards over the long term.

This rather bleak perspective is prevalent in strata all over the country and has caused serious irreparable financial harm to owners in some well publicised buildings.

The work required to bring positive change cannot be done by governments alone.

The industry must follow and address the root causes of sub-standard construction.

SCA (Qld) supports Australians to live wherever they want without accessibility limitations. This is a hugely positive proposal and it is important that the consumer is not left behind in implementation.

There are often unintended consequences of regulatory change on strata titled buildings, particularly where the changes are of a wide ambit, across the whole property sector. It is important that we carefully review these changes and identify any matters that may need specific provisions to properly apply to the unique aspects of strata titled properties.

INDUSTRY

15

LEGAL EASE

How does the managed investments law

become the property of the owner. Additionally, any money placed into a fund for such furniture, fittings and equipment must be returned to the owner if they withdraw from the scheme; 7.

The Letting Agreement must contain forced sale provisions, which allow the majority of owners on the letting pool force the letting agent to sell their management rights to nominated new operator.

Such a sale would be at market value;

8.

The letting agent must also hold and relevant real estate agent’s licence (state government) and issue periodic reports to their clients among other items.

apply to management rights?

Up until the late 1990s, the laws regulating activities conducted under the umbrella of management rights in Queensland were state government-based.

However, the federal government produced legislation controlling and regulating what is referred to as managed investments and gave its policy making and enforcement roles to Australian Securities and Investments Corporation (ASIC). This came as a surprise to both developers and managers at the time, as there was no real consultation with industry groups.

The Managed Investments Act 1998 (C’th) or MIA came into effect and attempted to impose significant obligations and requirements on a broad category of ‘Managed Investments’. By ASIC’s interpretation of the definitions contained within the MIA, this includes, but is not limited to, certain management rights. The obligations imposed involved substantial disclosure by prospectuses to prospective investors and registration of the operating entity with ASIC, as well as the holding of types of licences for financial services. While the Act itself has since been repealed, the provisions have been incorporated into Chapter 5C of the Corporations Act 2001.

Consequently, from responses

by Queensland representatives of the industry (including SP&G Lawyers), the federal government acknowledged that their intent was not to affect the management rights industry with such onerous conditions and issued a series of class order exemptions to grant relief to management

16

John Punch,

Matthew Parker,

Partner, SP&G Lawyers

Solicitor, SP&G Lawyers

scheme must be voluntary, meaning owners must not be required to pay to join the scheme or during the scheme, except for the reasonable expenses of the letting agent;

rights operators. Where these exemptions become relevant to the caretakers and letting agents of Queensland is the list of conditions that they must abide by to be granted the relief.

The class orders relate to the ASIC Policy Statement PS140, which sets out to capture serviced apartments only, as being a managed investment.

While there is no specific definition of serviced apartments, they are generally taken to mean those apartments that are furnished, serviced by the manager and let on an overnight basis (short-term lettings).

Developers are treated as promoters of schemes and have their obligations for disclosure under the class orders and managers are dealt with as operators of schemes.

3.

4.

The operator and each unit owner must be able to withdraw from the scheme on 90 days’ notice;

5.

The operator must ensure that any monies held must be placed in an annually audited trust account;

6.

The operator may require upfront payments from owners for standardised furniture, fittings and equipment however, this is on the basis the items

These conditions for the managers of serviced apartments exemption are: 1.

2.

The operator must provide a Product Disclosure Statement, when offering a letting appointment outlining risks, benefits and costs to a unit owner when they are given the offer to participate in the management rights scheme; Participation in the

There must be no restrictions on the use of the unit as a residency such as those imposed by the local authority under zoning restrictions or a development approval. This is to limit the reliance on the operator by the unit owner. An exemption of this rule may be applied for by the operator submitting a written statement including evidence from an independent real estate agent;

MANAGEMENT

A breach of any of these requirements for relief does not invalidate the relief granted if ASIC is notified promptly of the breach in writing.

Some of these requirements have also been built into the Body Corporate and Community Management Act 1997 such as in Section 116 where the forced sale provisions must be agreed by both the management rights owner and the manager’s unit owner where they are owned by different entities. This is to ensure that if the majority of owners in a scheme want to remove the manager, the manager’s unit goes with the management rights.

We recommend that when purchasing management rights there is a check as to whether there is a deed between the owner of the management rights and owner of the manager’s unit accepting the application of the forced sale provisions on both assets. Otherwise, the section makes the Letting Agents Authorisation Contract with the body corporate “not effective”.

In conclusion, while there is nothing that can be done to work around this federal imposition on management rights, it is important to understand the omnipresent risk posed by the MIA when developing residential apartment buildings or purchasing management rights.

ResortNews | August 2020

six months to March 2021… … For businesses continuing to be significantly impacted by coronavirus.

The government has announced further JobKeeper payment support to continue after September 27. The extended period will see JobKeeper payments at a reduced rate and will require disclosure of additional information to the existing application process, but eligibility criteria is set to remain relatively unchanged.

No more ‘once you’re in you’re in’, to access the JobKeeper payments for the extension periods… Instead, you will be required to demonstrate an actual reduction in turnover.

Unlike the existing JobKeeper subsidy, whereby once you meet the eligibility criteria by way of a real or reasonably estimated reduction in turnover you are eligible for the payment for the remainder of the period (to 27 September 2020).

The proposed changes will not impact JobKeeper payments until after September 28.

Meaning, if your business is not eligible for the extended period there is no impact upon your eligibility to JobKeeper payments already received; you will not retrospectively become ineligible as a result of the new criteria.

Additional turnover tests As per the original JobKeeper payment criteria, to be eligible for JobKeeper payments under the extension, businesses will need to demonstrate that they have experienced a ‘significant decline’ in turnover of: 1.

50 percent for those with an aggregated turnover of more than $1 billion;

2.

30 percent for those with an aggregated turnover of $1 billion or less

3.

15 percent for Australian charities and not-for-profits,

ResortNews | August 2020

Lel Parnis, Partner, Holmans Accounting

commission-registered charities (excluding schools and universities) In order to be eligible for ongoing JobKeeper payments after September 27, businesses will be required to demonstrate the relevant reduction in GST turnover (gross business income) for consecutive periods.

To access the first JobKeeper payment for the extension period of September 28 to January 3, 2021, businesses and not-for-profits will need to demonstrate that their actual GST turnover has significantly fallen in the both the quarter ended 30 June 2020 and the quarter ending 30 September 2020 relative to comparable periods (generally the corresponding quarters in 2019).

In order to be eligible for the second JobKeeper payment extension period of January 4, 2021 to March 28, 2021, businesses and not-for-profits will again need to demonstrate that they were eligible for the payments for the first extension period and that their actual GST turnover has continued to be down for the December 2020 quarter compared to the prior year.

As with the original JobKeeper payment eligibility criteria, the commissioner can exercise discretion to allow the decline in turnover to be calculated in line with the ‘alternate turnover tests’ in specific circumstances where it would not be appropriate to compare to the prior year.

As with the original JobKeeper payment eligibility criteria, the commissioner can exercise discretion to allow the decline in turnover to be calculated in line with the ‘alternate turnover tests’ Employee eligibility Essentially, there are no changes to employee eligibility for JobKeeper payment. Casual workers will continue to be eligible where they were employed consistently for 12 months as at March 1, 2020 and are not employed in a permanent capacity by another business.

Other staff and eligible business participants will need to meet the existing eligibility criteria.

Employees not engaged by your business on March 1, 2020 will not be eligible.

Reduced payment rates The payment rate per fortnight for eligible employees and business participants will be reduced and lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week on average in the month of February 2020, unlike the flat $1,500 per fortnight currently awarded regardless of hours worked.

For eligible employees and business participants who worked at least 20 hours per week on average in the month of February 2020, the extended JobKeeper amounts will be: $1,200 per fortnight from September 28; then $1,000 per fortnight from January 4 to 28 March 2020.

For all other eligible employees

MANAGEMENT

BY ALL ACCOUINTS

JobKeeper extended

and business participants i.e. those who worked less than 20 hours per week on average in February 2020, the new lower JobKeeper amounts will be: $750 per fortnight from September 28; then $650 per fortnight from January 4 to March 28.

The ATO will have discretion to set out alternate tests as to the rate applied (full JobKeeper or lower rate) where the hours worked were not usual in February 2020 due to leave or other circumstances.

The JobKeeper payment will continue to be made by the ATO to employers in arrears.

Employers will continue to be required to make payments to employees equal to, or greater than, the amount of the JobKeeper payment (before tax), based on the payment rate that applies to each employee.

Fingers crossed you’re not eligible The extended JobKeeper support is targeting businesses and not-for-profits experiencing significant and prolonged downturn as a result of COVID-19. Let’s hope that the ‘second wave’ soon peters out, travel restrictions continue to ease so Resorts keep seeing improvement in bookings, rates and occupancy and only increases in turnover from here on in.

17

THINKING MR

Op-Ed:

The poison

jellybean conundrum Isn’t social media wonderful?

means zero lending for these assets until further notice. One of their competitors has a similar policy but will not own up to it.

You get to connect with all your ‘friends’, share life experiences, buy and sell stuff, and - if you’re really lucky make interesting discoveries about people and places.

Recently, I was included in a popular post that is being shared on one platform. The premise is pretty simple; designed to make an argument relating to COVID-19 risk management. An image of a bowl of 100 jellybeans is used with a caption suggesting that the aim of the exercise to is show stupid people how dangerous COVID-19 really is.

The proposition is: if two of the 100 jellybeans were poisonous, would you randomly eat them or stay away entirely? Put another way, it is proposed that only the stupid among us would choose to congregate publicly if there was a two percent chance of contracting COVID-19.

To say this is a lazy argument is an understatement. To accept the proposition, we must first assume that there is no way of differentiating risk and no way to determine a percentile downside. This may well be the case with the bowl of sweets, but it is most certainly not the case in real life. Fortunately, the apparent support for the jellybean theory and the anger with which counter arguments are confronted does help us understand the manner in which our society sees risk.

That is, given enough negative and frenzied press coverage and a lack of comparative risk data there is a reasonable portion of our population who will hide under the bed, regardless of the real risk or the downside of said strategy.

18

Mike Phipps, Director, Mike Phipps Finance

Do not get me wrong. This pandemic is scary as hell and I understand the fear that is out there. If being isolated is your strategy, go for it. Unlike the other risks I have alluded to, the COVID-19 endgame is unknown and may get a whole lot worse before it gets better. The trick, I think, is to understand the downside of isolation and the potential long-term damage that an economic collapse may cause. We can only print money for so long before Paul Keating’s famous banana republic comes back to haunt us.* And all this, in a roundabout way, leads me to management rights and motel finance.

When COVID-19 first raised its ugly head, we took a view that lenders would move to a deal-by-deal assessment process. That is, accommodation businesses would confront a range of possible risks and as such each finance application would need to be treated on its merits. For a while that is exactly what happened but as time has passed, we have seen an interesting development.

Some management rights and motel financiers have done their best to appear to be open for business while adopting the jellybean approach. In the case of one of the majors, that

As management rights and motel finance brokers, these developments concern us.

Choosing to abdicate any individual risk assessment in favour of a blanket approach sidelines viable business transactions and runs the risk of contributing to an already challenging situation. Thankfully, there are still lenders out there who are prepared to look at opportunities on a deal by deal basis. Indeed, elsewhere in this esteemed publication you will find a story reflecting a very positive outcome and an example of the value add contributed by specialist finance brokers like us (shameless plug!).

Our advice to anyone seeking finance right now is to be very selective in terms of lenders.

Even within the same banks, we are seeing different views of policy and some disconnects between the front-line and credit departments. A lot of time and angst can be saved by engaging a specialist management rights and motel finance broker and ensuring you are not wasting your time, to say nothing of your money.

I should stress that I mean no criticism of the banking sector.

By and large the support given to the business community has been exemplary and I cannot really blame lenders for taking a pause. We note that, in all likelihood, repayment support measures will continue post September for those businesses that require it and we don’t anticipate any lender aggressively enforcing loan payment conditions at this stage. Of course, loan

MANAGEMENT

deferrals cannot go on forever but for now they are a positive support for our clients.

We also welcome the federal government’s announcement of an extension to the Coronavirus SME Guarantee Scheme. The original scheme, announced in March this year, sought to offer a 50 percent guarantee for new unsecured business loans via 44 approved lenders.

Treasury have revealed that the scheme is to be extended with the maximum loan size being increased from $250,000 to $1 million per borrower. The maximum loan term will go from three to five years and working capital only restrictions will be lifted. Importantly, secured lending will now be permitted, excluding commercial or residential property.

In summary: if you are chasing management rights or motel finance, avoid being a jellybean. You may not be as risky as the bank thinks. * Keating said, in 1986: We took the view in the 1970s – it’s the old cargo cult mentality of Australia that she’ll be right.

This is the lucky country, we can dig up another mound of rock and someone will buy it from us, or we can sell a bit of wheat and bit of wool and we will just sort of muddle through… In the 1970s… we became a third world economy selling raw materials and food and we let the sophisticated industrial side fall apart… If in the final analysis Australia is so undisciplined, so disinterested in its salvation and its economic wellbeing, that it doesn’t deal with these fundamental problems… Then you are gone.

You are a banana republic.

Ring any bells?

ResortNews | August 2020

MOTEL MARKET

Part one

No better time

than now Often, business operators get caught up in the day-to-day running of their business

are growing rapidly in numbers, popularity, and in what they offer. Again, it all comes back to having an option or a more cost-effective alternative.

Marketing, cost minimisation and other important matters can easily get pushed aside under the belief one is too busy.

It is important, in tough times such as these, that we stop for a minute and consider working on the business as opposed to ‘in’ it. One area of working on the business is looking at individual operational costs. What it is costing to run the business and get the product on the shelves?

In the case of accommodation, what does it cost to be able to sell a room for a night?

Bank and merchant fees – seek and negotiate better arrangements with the provider.

Often, when trading is good, we just go along for the ride without any real motivation to breakdown operating expenses.

Those costs lingering in the back of one’s mind may be considered high or excessive and are brushed aside on the basis that sales and income are good, so it is not an issue. It is only when income contracts that the costs suddenly become a concern. The motivation to look more closely at each expense item in the Profit and Loss Statement then leads to a printout of the general ledger, and a more thorough examination commences.

Often with startling results!

In trying to turn a negative into a positive: when trading is quiet, it is a good time to sit down and reassess the expenses of any business. Let us take a look at some of those expenses within accommodation businesses that can be drilled down on, to minimise and achieve a better profitability position.

Interest on finance – generally one of the major expenses of most businesses. It is never a set and forget situation, which ends up often being the case.

The interest rates available ResortNews | August 2020

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

for commercial lending have reduced substantially over recent years. However, many loans that have been in place for a while, will not be in-line with market rates presently available. Contacting the lender to negotiate a better rate may be possible or refinancing with another lender may result in a dramatic reduction in the cost of interest to a business.

As with most things, it pays to discuss and shop around.

Commissions – considering this expense item conjures up thoughts of unnecessary and excessive costs being incurred by accommodation businesses. Look at how guests found the business and ensuring they can book easily and directly via the business’ own website, to cut the cost of needless commissions whenever possible.

Utilities – this is always a

Cost of sales (stock) – the cost to purchase stock can be looked at in regard to the supplier and if it can be sourced cheaper elsewhere. Obviously, quality will be a consideration here. Waste may be better controlled by upgrading or amending systems within the kitchen or laundry areas.

Advertising – excessive and outdated advertising and marketing that may have been in place for years, or has not been reviewed in a while, is a good place to look for cost saving measures. Focusing on ‘bang for buck’ is key. Look at what has been working and what has not, is a good way to cut excess spending on obsolete items.

Pay TV – this has been a very high expense for businesses and in a lot of cases, excessive for what a small operation requires.

There are many options now available if these packages no longer fit. Streaming services

heavy expenditure for any accommodation business and needs to be minimised wherever possible. Actions such as moving to solar power or wholesale providers are areas where these expenses can be researched for a better deal. One or the other may be more suitable, depending on the situation. With a bit of time and effort researching this, there can be substantial savings available in an often seen as, having to ‘grin and bear it’ type expense.

Unfortunately, we are only half-way there so we will continue looking further at possible savings to operating costs in next month’s issue!

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MANAGEMENT

19

INTONET Confined with lockdown restrictions has given the bad guys plenty of time to come up with a plethora of new ideas - phone hacking a popular one!

So much so that Australians have been fleeced almost $7,000,000 dollars in the first few odd months of our travails.

Global financial heavy hitters like Jeff Bezos, Bill Gates, Joseph Biden Jr., Barack Obama, Kim Kardashian, Kanye West, and Elon Musk, just to mention a few, had their Twitter accounts hacked but with them went all their followers, some many hundreds of millions in total.

I do not belong to that illustrious group but even insignificant me was subjected to several hacking attempts of my phone.

How about you? You probably use your mobile phone on a daily basis to send text messages and emails; store voicemails; send pictures or videos to friends, your family or partner; browse the internet and social media; check your bank statement and the list goes on and on.

What if someone had access to all your personal data? That

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that should ring the alarm bells and could point to the possibility of your mobile phone being infected with spy software that is either tracking or monitoring your activities or both. The signs vary and some are hard to spot.

However, if you are aware of the typical signs, it is not that difficult to determine whether there’s spy software installed on your device.

Arvo Elias, Cybercons

would be an absolute disaster.

But why would someone spy on you? Perhaps your phone contains important business data that a spy wants to know about, or a spouse wants to find out about a potential affair, or you’re very wealthy and someone wants to hack into your check account.

Maybe you have an important job or one with a lot of responsibility.

How do you know if someone is spying on your mobile phone and what can you do about it?

Unfortunately, even a strong login password on your phone is not going to protect you from harmful spies. And there are plenty of spying apps on the market that can monitor all your phone activity without your knowledge. There are a few signs

Abnormally high data usage should be the first warning sign.

If your monthly data usage is unusually high, there is a fair chance someone has installed a spy app on your device.

Generally, lower-quality spy software tools use a significant amount of data to send the collected information from your mobile phone. On the other hand, top-notch spy software requires much less data to send the information collected from your phone. It is nearly impossible to see if a high-end spy app is installed on your device on your monthly data usage overview.

Unexpected screen activity is a certain indicator. Aside from standard incoming calls, messages and other standard notifications that trigger activity on your mobile phone,

MANAGEMENT

your phone screen should not be lighting up in standby mode. Likewise, unexpected noises or sounds should ring the alarm bells for you.

Does your mobile phone reboot without an obvious reason? In that case, it is quite possible that someone has unauthorised, remote access to your mobile phone. If someone has remote access to reboot your device, it will surprise me if that were the only thing they could do or see. Bats in the belfry? If you are hearing voices in the distance, and you are sure it is not someone close to the person you’re talking to, there’s definitely a possibility that your conversation is being tapped.

Have you received any oddlooking text messages?

Typically, a message that contains a variety of weird symbols, random numeric sequences, or other characters points to the possibility of a potential spy software tool on your mobile phone.

An obvious indication of spy software on your mobile phone is if you experience a sudden drop in the performance of your phone’s battery life. Spy software on a phone monitors all of ResortNews | August 2020

your activities and sends these recordings to a thirdparty device. In addition to the increase in data usage discussed earlier, if your mobile phone is losing battery percentages at an unusually high rate, chances are it is because of spy software.

When spy software is making recordings with the camera or speaker, it will drain a significant chunk of your phone’s battery, especially since your phone was supposed to be idle at the time.

Increasing battery temperature in idle mode is one of the least obvious signs, because the battery temperature of a mobile phone can be tied to a large number of different technical issues as well. However, if you haven’t experienced such an increase in battery temperatures before and you didn’t use your phone, but it’s still relatively warm anyway, it could be caused by spying software that is sending data to another device.

Increased shut down duration is another flag. Like a PC, which always closes all active processes after you decide to shut it down, a mobile phone follows the exact same routine.

many different apps at the same time. If you feel like your phone suddenly shows signs of a significant drop in speed, it is possibly being remotely controlled and monitored.

How do you know if someone is spying on your mobile phone and what can you do about it?

Your mobile phone will close all of its active processes before it shuts down completely.

Therefore, it will take quite a bit longer for a phone to shut down if it also has to cancel all the data-transmitting activities of spy software.

This is particularly true if you have been busy using your phone for calls and messaging as active background software may still be recording the newly generated data.

Similarly, if you are experiencing difficulties while trying to shut

So how do you confirm your phone is hacked and what can you do about it?

A good starting point is good scanning software such as ‘Malwarebytes’ and searching the web for matching symptoms.

But as always prevention is better than a cure.

down your device it could be a sign that your mobile phone has been compromised. Typically, spy software keeps running in the background and might prevent you from shutting down your device completely.

Likewise, if your mobile phone’s backlight does not seem to switch off to a completely black screen, it is likely that a spy app is causing this.

The newest mobile phones are equipped with powerful hardware and software. Your phone should be able to run

Secure your phone with good passwords. Always download your apps from the appropriate stores. Avoid, wherever possible, downloading apps from other sources. Never ‘jailbreak’ your phone as this not only voids your warrantee but also allows that nasty software to hide.

Check your app list for strange names you do not remember acquiring and validate it through your appropriate app store. As a very last resort do a factory reset which of course means a total data loss.

Be vigilant and stay safe.

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Contact Germbye today to find out how we can assist and give you piece of mind now and into the future.

MANAGEMENT

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21

Building rectifications and how different technologies can help

Using technology is more prevalent than ever before, with many people working from home and meeting with friends over video conferencing systems.

Your strata committee may be meeting online and body corporate may be expecting more data to be applied in day to day processes.

This quick transition intertwining technology with everyday life has made many businesses reconsider how they can make physical changes to their workspaces in order to leverage them further.

Making rectifications to a building’s defects or safety can be made simpler with a host of technologies available to business owners.

These technologies and their features can help identify building defects, provide a platform to send work orders, allow for preventative maintenance measures to be put in place in addition to creating better workflow management among other opportunities.

1. Modelling and work order management Using a digital modelling tool is

good for maintenance planning or changes to the design of a space. It can additionally help with keeping track of structural issues such as with walls and windows. This type of technology helps managers to make informed decisions on any rectification with a visual element.

It additionally helps businesses to understand what work orders they may require. After COVID-19 this kind of technology can help building managers to make the visual rectifications that occupants may have complained about during lockdown.

2. Leveraging data for better workflow management We all know data exists, but collecting and analysing it can be a challenge. Using data to make more informed decisions can help a facility manager to create a better space to work and live in.

Data collection can include temperature control, foot traffic numbers, efficiency of work orders and even tracking the number of confirmed or isolated COVID-19 cases in a building.

As we return to normal life, data collection such as this can help to keep people informed and safe whilst improving workflow management.

3. Smart building technology and preventative maintenance Using smart building technology can help managers to automatically control elements such as lighting, heating and cooling with devices. Smart technology also monitors environmental factors such as temperature and moisture to support with preventative maintenance measures. Any rectifications to temperature, humidity or light can be made depending on what is most beneficial for the building and its occupants. Smart technology also provides data to building managers and caretakers which can be utilised to make more efficient choices.

4. Wearable technology and team management Wearable technology is

essentially a category of technology that is worn on the body, such as smartwatches.

This can help a facility manager improve the quality of security of their personnel and collect work pattern data to find any inefficiencies. Changes to team structures or delegation can be made based on the most efficient resources available. Of course, it should not be used to micromanage, instead it should be used in a means that benefits all those on a team. Using a facility management software can help managers improve the day to day processes of their team and create a better system of communication between staff and occupants.

Managing all the above technologies and features is possible with the right software.

It can help you take control of budgets and maintenance plans, with technology that keeps track of all running issues. It is important to use this type of technology regularly and integrate it with as many elements of the management process as possible in order to get the best out of the system.

To learn more about the multiple features of facility management software and integrating it with physical technologies, visit mybos.com

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MANAGEMENT

ResortNews | August 2020

High-rise building rectification:

More than a band aid solution is needed

By Lucinda Dean, Industry Reporter

and property agents all around the country are dealing with yesterday’s problems today.

With population density rising in our capital cities, the only way for city-slickers seeking shelter, is up.

It is a simple fact that as buildings age, they deteriorate and need more attention.

The most common types of older building defects are water ingress and concrete cancer and if left unattended, can be the most significant drain on a sinking fund.

The Aussie dream of a single dwelling house on a quarter acre block has long been extinguished. Strata living is the fastest growing form of property ownership in Australia: an estimated three million Aussies now call anything from a modest unit to a penthouse apartment, home.

the University of NSW, Governing the Compact City: “Over half the new dwellings to be built in our metropolitan areas over the next decades will be strata titled.”

Consequently, the construction boom of units, townhouses and high-rises shows no sign of abating. According to a report by

It is hoped that mistakes of the past, such as the tragic and highly publicised 2017 Grenfell

Tower tragedy and, closer to home, the 2018 deterioration of Sydney’s Mascot Towers, will not and cannot happen again.

However, as existing residential buildings age, strata schemes, body corporates, executive committees, resident managers

The term ‘concrete cancer’ refers to concrete degradation caused by the presence of contaminants that cause the steel reinforcing to expand, sometimes as much as up to five times the size, thus causing the surrounding concrete to crack and undermine the strength of the building.

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MANAGEMENT

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If left untreated, the cracked concrete further exposes the steel to the atmosphere, allowing the ‘cancer’ to spread, effectively jeopardising the structure and strength of the building and leaving it susceptible to more water entering the affected area.

Generally speaking, the balustrade of the balcony typically serves as a safety feature and if the internal wall of a concrete parapet has visual signs of concrete cancer, then there is a very good chance that it may also be on the exterior of the wall, so the responsibility falls on the body corporate’s shoulders.

In recent years, concrete cancer or ‘spalling’ has become one of the biggest scourges to the health of high-rise buildings, especially in coastal regions, such as Brisbane and the Gold Coast. The salt content in the air accelerates the corrosion of a building’s steel re-enforcements.

Every concrete cancer repair job starts with a detailed diagnosis of the problem, and Resort News recommends consulting the experts.

Industry viewpoint Brian Heighes, commercial director at CIW Remedial and The Lyden Group, firmly believes that prevention is the best cure. According to Heighes, too much ongoing maintenance or repair is left by some property owners and management companies to the last minute.

As with a cancer in the human body, concrete cancer is an internal disease, and, as in the case of high-rise buildings, it is not always visible to the untrained eye. By the time the ‘symptoms’ appear, cracks or surface crumbling, it is likely that the concrete cancer has set in for some time and that there is a much bigger underlying problem.

“They, or their agent, will defer maintenance until the situation is unavoidable. Astute property owners will ensure they have a comprehensive preventative maintenance program in place and that suitably experienced consultants conduct regular inspections of the building for signs of damage.”

A related issue, of course, is the potential loss of structural integrity of balconies and balustrades on high-rise buildings.

Not only does it represent a safety risk for residents, but raises the sticky issue of who is responsible for maintenance?

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MANAGEMENT

ResortNews | August 2020

water-related problems. It then becomes a problem for the body corporate or committee, which has to budget for repairs and potential losses due to delays.

Installing low-cost passive monitors, which do ‘real time’ monitoring, would provide an additional level of protection.

Not only would the monitor alert the building manager, but via the control centre, also alert the responsible provider or warranty holder, who as part of their contract, is required to respond to and remedy the problem within an agreed timeframe.

Heighes said the costs of repairing defective buildings go far beyond the potential loss of income for the investor, loss of residence for the owner, and massive expenditure for the body corporate. He gave the example of a small leak in a unit’s washing machine, which can go unnoticed until the ceiling in the unit below blows out and collapses.

“At this point, a series of specialist trades need to be involved in what was an avoidable situation. The faulty washing machine would need to be repaired or replaced, remedial waterproofers would have to diagnose and repair any damage to the structure and integrity of the building,

“When it comes to any form of water damage, there is no onesize-fits-all solution,” he explains.

and then there would be the cosmetic touch-ups to the unit.”

An additional, but often forgotten cost, is the likelihood that insurers would increasingly decline to provide professional indemnity insurance, offering it with unacceptable exclusions or asking for unaffordable premium increases for building indemnity renewals.

Heighes believes waterproofers should have as part of their contract for new builds a provision for inspection and monitoring systems (within the waterproofing specification).

“If this was a multi-million-

dollar data storage facility it would be expected, why not so in multi-million dollar residential or resort properties?

“We already install such units on new build basements’ monitoring lift pits for potential water damage from car wash run-offs etc… The remedial costs associated with lift pits far outweighs the cost of realtime monitoring, which may only equate to a few hundred dollars a year, versus thousands of dollars for any repair work.”

Heighes said on average his company received several calls a week to repair or fix avoidable

Risk or Repair?

“The repair option depends on the building, the origin of the problem, and the extent of the damage, and while there may be no permanent cure, there is essential preventative maintenance to ensure that it doesn’t happen again that is cost-effective.”

A prescribed body corporate or owners corporation with more than 100 lots or total annual fees exceeding $200,000, is legally required to allocate an appropriate sum into a 10-year sinking fund to cover any major maintenance expenditure.

Heighes believes this should include ongoing monitoring, while the costs associated with rectification works may be enormous, the alternative is that legislation already taking hold in New South Wales will be far more costly.

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CIWREMEDIAL.COM.AU ResortNews | August 2020

MANAGEMENT

25

GOOD GOVERNANCE

Theme park turned WHS nightmare: Lessons on maintaining common property Four years on from the Dreamworld tragedy, we are now learning that the director(s) of the entity that owns the fun park have been charged with criminal offences.

You would not be the only one to wonder whether those charges include manslaughter or grievous bodily harm or some other charge relating to the tragic deaths of four innocent people, but that is not the case. Instead, an abundance of media releases show that the Queensland Work Health and Safety prosecutor has filed three charges in the Brisbane Magistrates Court for the following: 1.

Failing to maintain infrastructure and provide records of maintenance and compliance as proof.

2.

Failing to have a current Work Health & Safety Plan for the workplace.

3.

Failing to have records of training and induction of the workers into the WHS Plan for the workplace.

If I had a dollar for every residential strata body corporate committee or caretaking services provider that I had explained the importance of having a site-specific WHS Compliance Management Plan and 100 percent compliant records of maintenance of common property, I would singlehandedly be able to pay the $1.5 million fines anticipated for each of these three charges!

Why is it then, that some residential strata bodies corporate and their caretaking services providers have so much difficulty in linking the maintenance of common infrastructure – particularly the safety provisions contained within Class 2-9 structures – to WHS duties and obligations?

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Just like the Dreamworld fun-park owner, the body corporate is a corporation that holds accountability over the common property workplace all those that work there, and any innocent guests that stumble into a “workplace”.

Lynda Kypriadakis, Diverse FMX

WHS Act and implications for the common property of a residential strata scheme There are approximately 25 sections of the commonwealth WHS Act and Regulation that impose duties and obligations upon residential strata bodies corporate around the maintenance of common property in most states and territories of Australia, including Queensland, the Northern Territory and New South Wales (Victoria follows their state-specific OHS Act, which is fundamentally the same as the WHS legislation).

These WHS/OHS obligations are also imposed on all those that work on the common property, including the caretaker, the trade contractors, and the cleaning/gardening services providers. Even volunteer workers and strata managers that coordinate and arrange work orders or quotes for common property works have duties under WHS legislation.

To you and me, Dreamworld is a fun-park. We go there to enjoy recreational pursuits with our loved ones (well, we used to go there!), but to the corporation that owns Dreamworld, the “funpark” is a serious workplace to which they are held accountable for the health and safety of

Just like the Dreamworld funpark owner, the body corporate is a corporation that holds accountability over the common property workplace. The health and safety of all workers who work on the common property becomes the responsibility of the body corporate that enters into commercial arrangements with them. Any incident that occurs during work activities on the common property becomes a similar nightmare for that body corporate.

First line of defence in a WHS incident A workplace incident involves a worker and/or work – and includes any non-worker that might have access to the work area while work is occurring [e.g. someone slipping up on wet floors having been recently mopped by the body corporate cleaner in the lift lobby]. If an adverse workplace incident occurs on the common property, the very first thing the WHS investigator will ask for is: 1.

A copy of your documented safe system of work, i.e. your WHS Compliance Management Plan.

2.

Copies of training and inducting your workers into the WHS Compliance Management Plan.

3.

Copies of all your records of maintenance and

MANAGEMENT

compliance for the essential services infrastructure and safety provisions installed on the common property.

Interestingly, we can assume that these fundamental records must not have been available during the Dreamworld investigation as evidenced by the charges now laid upon its director(s).

Here is the opportunity for those that hold influence and control over a common property workplace in residential strata to learn from Dreamworld’s fundamental errors so as to ensure that the body corporate and all workers and users of common property are protected.

Risk mitigation for bodies corporate and caretakers Accidents do happen, including on common property in residential strata complexes.

The best and simplest way to minimise the risk of exposure to regulatory infringement or criminal charges is to ensure the workplace has an up-to-date, site-specific WHS Compliance Management Plan with records of training and induction for all workers. Along with full records of maintenance and compliance of common property infrastructure, you are off to a good start should a workplace incident, or public liability event, occur on the common property.

ResortNews | August 2020

TOURISM REPORT

NSW school holiday ‘mini boom’ gives accom providers hope Hope has been hard to come by off the back of a killer COVID-19 pandemic, devastating bushfires, and crippling drought.

But it is possible there could be a silver lining to COVID-19. Accom providers in regional NSW holiday hotspots like The Blue Mountains, Port Macquarie, Orange, Mudgee, Hunter Valley and the Shoalhaven, all reported a school holiday ‘mini boom’, according to Tourism Accommodation Australia.

The association’s NSW CEO Michael Johnson said the surge in domestic tourism was a “shot in the arm” for many struggling accommodation hotels, who are reporting visitor numbers similar to the busy Christmas holidays.

Michael said it was good to see NSW residents supporting their own.

“With interstate and international travel disrupted, it’s pretty clear the recovery in NSW will depend heavily on intra-state travellers.”

Espen Harvitz, owner of The Oriana, an upmarket 50-room motel in Orange, said occupancy during the two weeks of the school holidays was 90 percent compared to 75 percent this time last year.

The majority of guests were Sydneysiders with the remainder coming entirely from NSW. Espen told Resort News that Jobkeeper was “a bit of luck for us”. He was able to retain his chef and management team plus 15 staff so the motel could stay open during COVID-19. While the restaurant was closed during the height of the lockdown restrictions, the kitchen still did room service. So, when restrictions lifted, they “were ready to go”.

Espen said his motel was usually busy year-round: midweek it’s the corporate market and the weekends leisure.

five-star Lilianfels Blue Mountains Resort & Spa, said school holiday occupancy had been “relatively high”. Guests were overwhelmingly from Sydney and surrounds staying on average 2.5 nights.

According to Renee, the winter school holidays were always busy but this year the resort was seeing a higher volume of last-minute bookings and significantly more restaurant bookings in advance.

“Our rate of enquiry is definitely higher,” she said.

The group of five properties: Lilianfels, Echoes, Hydro Majestic and Parklands (Blue Mountains) and The Convent (Hunter Valley) closed for several months during COVID-19 immediately following a horrific bushfire season.

“During COVID, people are taking road trips, so mid-week stays have been leisure as well as corporate,” he said.

“It was and still is unprecedented,” said Renee.

Espen views it as a positive if the borders remain closed.

“Here we are not at all dependent on international (guests), so in normal times we have some international but very little – it’s not like the Hunter Valley or the Blue Mountains where they have a huge percentage of international guests.”

Renee Guillien, group marketing, sales and revenue manager at

Meanwhile, other regional areas of Australia have been doing it tougher. Stephen Schwer is a representative of Birdsville Tourist Park in outback Queensland, which has onsite cabins and camping. He said school holiday occupancy was down 17 percent compared to last year.

The park experienced a surge in intra-state travel, given the borders did not partially open until July 10. Most of their guests were Queenslanders, whereas usually Queensland residents make up only one-third of their visitor market mix.

“Our business has lost an estimated $200,000 in revenue so far this year directly related to the pandemic.”

“Many accommodation operators, such as ourselves, have been able to make it across and reopen, some have not.

According to Stephen, it has been one of the most unstable and fiscally difficult times experienced by this generation, way surpassing the GFC, SARS, 9/11 and the pilots’ strikes.

“How this effects the region long term remains to be seen. It is a wonderfully diverse community and region and we need diverse product for the region to keep attracting diverse guests to enjoy our wonderful mountains.”

“Recovery, in my opinion, will be slow, difficult, and fraught with false starts due to periodic outbreaks of COVID-19 in different areas. We will need to continue to pivot, innovate, adapt and evolve.”

confidently reassure each guest of a worry-free stay. The ability to be flexible and adapt is crucial at this time, and our intimate member hotels can do so in a thorough and bespoke way.

staying in small and safe hotels and nearly 230 of its member hotels say they have now re-opened. According to a recent survey of guests that it conducted, more than 90 percent of travellers said they would feel more comfortable staying in a small independent hotel.

Small is safer, insists booking website but is this good news for resort managers?

Many Australian hotels are preparing to welcome guests back - somewhat changed but with open arms!

Most large hotel chains have implemented their own stringent cleaning protocols, Airbnb released new COVID-clean measures and now members of booking site, Small Luxury Hotels of the World (SLH) have started promoting their new initiative, ‘Stay Small, Stay Safe’.

Their initiative provides and

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promotes enhanced health and detailed safety guidelines for all 520 member hotels in 90 countries with several Australian hotels including Halcyon House, Cabarita Beach, New South Wales, Ovolo fortitude Valley, Brisbane and Ovolo Woolloomooloo Sydney, Australia.

Jean-Francois Ferret, CEO at Small Luxury Hotels of the World said: “Travellers are yearning for a change of scenery and have already begun to cautiously book their next adventure, and with these new measures, SLH can

SLH believes post-COVID travellers feel more comfortable

TOURISM

ResortNews | August 2020

“Dismal” school holiday return for FNQ

Are backpacker hostels going extinct?

There is nothing more Aussie than a backpacker hostel with dorms full of enthusiastic but broke travellers!

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

Unfortunately, they are not only struggling to survive the elongated COVID travel bans right now but their longterm post-COVID future may also be on shaky ground.

However, skyrocketing unemployment has pushed school leavers into higher education next year rather than taking a gap year, which means backpacker hosteltype accom may struggle to recover in the medium term. Domestic university applications have doubled this year, compared to 2019 figures. 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. The unexpected changes globally may be even more devastating to hostels who will struggle to quell travellers’ fears of shared accommodation and facilities plus close quarters and a lack of social distancing.

According to GlobalData, a data and analytics company, “simply relying on demand to reappear is a risky game to play”. Hostels will need

ResortNews | August 2020

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.

“Dismal”, was how one FNQ accom veteran described occupancy in the region during the July school holidays.

Frank van der Heijden, ResortSales owner (Cairns and Port Douglas), said while some Cairns CBD operators survived by targeting other markets, such as healthcare workers, the regions’ holiday resorts were forced to drop their rates to try to attract local visitors.

“By just covering their basic costs, at least some holiday unit owners got a bit of rental income return,” Frank said.

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.

It makes a mockery of Tourism & Events Queensland’s Good to Go campaign, which was been widely broadcast over multiple media channels. Initially promoting intrastate travel within Queensland, the campaign is now also targeting interstate markets (other than Victoria).

Hollister adds: “The location of many hostels will provide another disadvantage, many are based in city centres, especially in Europe. 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.”

FNQ accom operators were largely reliant on local bookings and the drive market from as far south as Townsville. While Queensland briefly opened its border to domestic travel (July 10, barring Victoria), its timing, right at the end of the school holidays, did little to arrest the bookings haemorrhage.

As this issue is going to print, TOURISM

Queensland has just slammed its border shut again due to three new cases of COVID-19 confirmed in the South Brisbane region.

Tourism Tropical North Queensland (TTNQ) CEO Mark Olen said in a statement that COVID had cost the region $1 billion in visitor expenditure to date and that figure could be as high as $2.2 billion by December.

In the 12 months before our borders closed, we had 332,000 visitors from New South Wales, which was a 24 percent increase from the previous 12 months showing that interest in the Cairns and Great Barrier Reef region is high,” Mark said.

And international visitation, which accounted for 43.5 percent of total visitor nights in Cairns, according to 201819 figures released by Cairns Regional Council, has been totally decimated by COVID-19.

One FNQ resort owner is cautiously optimistic that the current international travel restrictions will actually be a boon for business.

Sanctuary Palm Cove owner Gerhard Labuschange is hopeful FNQ will benefit from the halt on international arrivals as his resort’s guests are predominantly from Victoria and South Australia.

29

TOURISM INTERNATIONAL

Colossal impact of COVID-19 on global tourism The enormous toll of COVID-19 on international tourism has become clear, with World Tourism Organization (UNWTO) data showing the cost up-to May was already three times that of the 2009 Global Economic Crisis (GFC). As the situation continues to evolve, the United Nations has provided the first comprehensive insight into the impact of the pandemic, both in tourist numbers and lost revenue.

The latest UNWTO World Tourism Barometer shows that nearcomplete lockdown imposed in response to the pandemic led to a 98 percent fall in international tourist numbers in May when compared to 2019. There was also a 56 percent year-on-year drop in tourist arrivals between January and May. This translates into a fall of 300 million tourists and US$320 billion decline in international tourism receipts – more than three times the amount lost during the GFC. Governments in every world

“Occupancy at our resort was majorly down for the July holidays,” Gerhards said.

“We’re hoping September holiday bookings will be more robust, but our Victorian guests are already cancelling their September bookings due to the lockdown.

30

across the Schengen Zone of the European Union, July 1.

While tourism is slowly returning in some destinations, the UNWTO Confidence Index has dropped to record lows, both for the evaluation of the period January-April 2020, and the prospects for MayAugust. Most members of the UNWTO Panel of Tourism Experts expect international tourism to recover by the second half of 2021, followed by those who expect a rebound in the first part of next year.

region have a dual responsibility to prioritise public health while protecting jobs and businesses, advocates UNWTO SecretaryGeneral Zurab Pololikashvili.

“This latest data makes clear the importance of restarting tourism as soon as it is safe to do so. The dramatic fall in international tourism places many millions of livelihoods at risk, including in developing countries. Governments in every world region have a dual responsibility: to prioritize public health while also protecting jobs and businesses. They also

better than figures for this time last year. Jo attributes the growth in domestic visitation to proactive marketing.

“We did lots of promos,” Jo said.

“Even with the Queensland border opening July 10, we didn’t get many more bookings.

“Over the July holidays, 60 percent of our guests came from FNQ (Mackay to Cairns), while the balance came from south Queensland, Brisbane and the Sunshine Coast.

“When Victorians are able to travel again, we’re hoping we’ll get an extended shoulder season spanning September, October and November.”

“Our guests from FNQ stayed on average three to five nights while our visitors from south Queensland stayed from between five to seven nights.”

Meanwhile in Airlie Beach, Jo Mathews, owner Toscana Village Resort said occupancy was 88 percent during the July school holidays, which was slightly

Despite the upturn in July holiday bookings, Jo said since COVID-19 hit, cancellations from March to June have cost her resort $162,090 in lost revenue,

need to maintain the spirit of cooperation and solidarity that has defined our response to this shared challenge and refrain from making unilateral decisions that may undermine the trust and confidence we have been working so hard to build.”

Restart underway but confidence low At the same time, UNWTO also notes signs of a gradual and cautious change in trend, most notably in the Northern Hemisphere and particularly following the opening of borders

which made it hard to maintain yields for her holiday unit owners. The domestic market accounts for 60 percent of the resort’s total revenue, while international was 40 percent.

Jo was circumspect about the prognosis for FNQ’s recovery.

“Depending on whether we have to deal with the reintroductions of lockdowns, plus the fact that North Queensland still really relies on interstate and international travellers will dictate how soon things recover.”

Queensland Border: what changed July 31?

To slow the spread of novel coronavirus the Queensland Government tightened border

TOURISM

The group of global experts points to a series of downside risks such as travel restrictions and border shutdowns still in place in most destinations, major outbound markets such as the United States and China being at standstill, safety concerns associated with travel, the resurgence of the virus and risks of new lockdowns or curfews. Furthermore, concerns over a lack of reliable information and a deteriorating economic environment are indicated as factors weighing on consumer confidence.

restrictions. Anyone can enter Queensland unless they have been in a COVID-19 hotspot in the last 14 days. People who have been in a COVID-19 hotspot within the last 14 days will no longer be able to quarantine in Queensland and will be turned away at the border.

People needed in Queensland for essential activities and Queensland residents who have been in a COVID-19 hotspot can return home but will be required to quarantine in government provided hotel accommodation at their own expense.

Hot spots are frequently added to the QLD Government Health website and interstate travel is now being discouraged.

ResortNews | August 2020

By Lucinda Dean, Industry Reporter

When met with a giant boot, which is actually a quirky self-contained cottage, you can’t help but think of the old English nursery rhyme, there was an old woman who lived in a shoe.

But this quaint couple’s retreat, where lovers can reconnect, relax, and unwind is certainly no place for a fictitious harried mother with too many children to scold!

Definitely not a family holiday destination, Jester House was imagined by owners Judy and Steve Richards as a cosy place for couples to retreat from the hurley burley of everyday life.

Firmly planted in Nelson, Tasman, New Zealand, “The Boot”, is just a stone’s throw away from the ruggedly beautiful Abel Tasman National Park with its pristine beaches, soaring mountains and a nearby arty community with galleries, cafes and wineries aplenty to explore.

The Richards started their sustainable enterprise with Jester House café in 1991, which was made from rammed earth and other natural building materials.

The former farmland has been reclaimed by 10,000 (and counting!) trees, which the couple planted.

Seven years later, they got an itch to create a guesthouse that was a bit different to the standard cottage-style, and so after “a good brain storming session with the help of a bottle of wine” the

ResortNews | August 2020

dynamic, creative duo settled on a boot. Steve designed the building with the same sustainability principles as the café in mind, and Judy did the interior design.

Judy explained that “The Boot”, as they affectionately call it, is an ideal shape for a small home a couple can canoodle in.

THE LAST RESORT

The funny little thing about Jester House

“Romance is a strong theme,” says Judy.

“There are many heart-shaped accessories, such as the two side tables in the lounge, the chopping board, handed-crafted hearts by a local potter and heart detail in the bedroom furniture.”

Entering on the side of The Boot brings you directly into the living area. To the left is the lounge with wonderful open fire, a lover’s couch to snuggle up on, an intimate dining table and chairs and side table holding a selection of books and games.

To the right of the door is a little kitchenette area with tea and coffee making facilities, a fridge and fresh homemade breakfast supplies. From here, you enter into the bathroom, which is a very cosy space with underfloor heating and a shower built for two, plus a very luxe composting toilet. It is supplied with plenty of fluffy towels and toiletries.

A spiral staircase takes you to the bedroom with a supercomfy queen-size bed. From the Juliette balcony, guests gaze out over the toe of The Boot and across the lawn to the pond.

Staying at Jester House is much like living a fairy-tale, with romance to boot!

TOURISM

31

Congratulations are in order Nick Smith and Red10 Finance have claimed top honours at the Mortgage and Finance Association of Australia (MFAA) State Excellence Awards, having been awarded Queensland’s Best Broker – Queensland Best Commercial Broker.

Nick said: “In what has been a turbulent year for so many people and businesses, it is nice share some positivity. Our business has grown from strength to strength since its inception in 2018 and following on from our Best Newcomer Award in 2019.

It is these extras that make our golf days so good. We must also thank our members for supporting our raffle. All monies raised go towards our Christmas golf day.

Chatting to Resort News, they introduced their new venture: “We are a specialised valuation company focussing on management and letting rights business and motel valuations.

“The MFAA has acknowledged Red10 Finance as the winner out of 520 national nominations.

Nick and Red10 Finance have been rewarded for demonstrating their professionalism, integrity, ethical conduct, growth and innovation,” said MFAA.

Alex and Alison are no strangers to the sector, having provided management and letting rights business valuations collectively for over 25 years.

Now, at long last, there is clear choice, stronger competition and all our clients will be in full knowledge that we are 100 percent focussed on their business and the industry, because this is all we do.”

Both Alex and Alison have been long time members of ARAMA.

Alex McCowan

Tee-ing up post-COVID Wasn’t it fantastic, after a four-month suspension due to coronavirus restrictions, that we were able to play golf again as a club at Hope Island golf course this month?

As your committee, we were concerned that our numbers might diminish, and the predicted wet weather might deter some.

However, on both counts we were delighted!

32

Alison Sun

“As long-time specialist valuers to the management rights industry, we recognised that clients, for a long time, have had extraordinarily little-to-no choice for their valuation requirements.

“As always, a business is nothing without its clients, so we are deeply humbled and thankful for everyone that has allowed us to assist.”

The MFAA Excellence Awards are the most rigorous in the Australian mortgage and finance industry and are judged by an independent panel of industry specialists, business professionals and experts.

Special thank you to Andrew from B Energy for the Party Pies out on course and Sam Arthur from Inside Golf Magazine for donating great prizes.

After three years working apart, Alex McCowan and Alison Sun are now working in partnership at Accom Valuers.

Why start-up now?

Nick Smith

those sponsors who added new extras on individual holes.

Who starts a business in a pandemic? Accom Valuers!

During the COVID-19 crisis, Alex was invited onto various panels for ARAMA’s popular webinars, in an advisory capacity and has been providing helpful market updates.

“We have viewed our partnership as a very positive step. Over the coming months, restrictions and border closures are expected to lift and we hope the industry can begin its comeback.”

Avvooid the rush...

Av

BOOK NO NOW!

Accommodation Industry

GOLF SERIES Round Two

The Glades Golf Club 4 player team stableford Wine Skins Thursday 3 September 12.30 pm Shotgun Start

• • • • • • • • • • •

Play 18 holes of golf at a championship course with motorised buggies Practice beforehand with free range balls Goodies bag on registration (courtesy of the sponsors) Enjoy complimentary food & drinks on course Sponsored holes with giveaways and novelty events Ham dinner after golf Stacks & stacks of prizes $1000’s in 3 grades Prizes for nearest the pins on all par three’s Prizes 2nd shot par 4’s, 3rd shot par 5’s and best drive Enjoy a really fun team event catering to all levels of golfing ability Welcome - Ladies and Gents - 4 player team stableford Wine Skins MAJOR SPONSORS

If you require more information relating to this golf series or would like to be put on our email mailing list please contact:

EVENT COORDINATOR A ATOR , TRACEY TTA AYLOR: M 0417 360 898 - E taylor77@bigpond.net.au AYLOR SUPPORTING SPONSORS

BOOKING OR ENQUIRIES CONTACT: TRACEY TAYLOR MOBILE: 0417 360 898 EMAIL: TAYLOR77@BIGPOND.NET.AU

An impressive 80 players enjoyed the day as the weather held off and Hope Island was at its best.

the $200 bar tab provided by Paul and Craig from Australian Valuers really set the scene for a great get together!

The locale ensured everyone was well catered for; meals were served after the game and

A big thanks to our regular sponsors who have remained committed to assist and to

EVENTS & APPOINTMENTS

Now, the much-anticipated results from our July 23 golf day at Links Hope Island: Competition: 4 ball best ball stableford 1st Placed Team – David and Aaron Manson – Score 51 points. 2nd Placed Team – Peter Wilkins & Rob Domican – Score – 49 points c/b. 3rd Placed Team – Justin Taylor & Wayne Holmes – Score – 49 points c/b. 4th Placed Team – Lee Taylor & Derek Learmouth – Score – 49 points c/b The extra prize run down was way too big to show but many players benefitted.

Our next special Golf event…

Make sure you are ready! Those who have played before will testify to a great fun day.

This is our annual Wine Skins event, a four-person team stableford event where there are four bottles of wine to be won on each hole.

Enjoy food and drinks on course with after play catering in the club house. Just about everyone goes home with a prize.

Venue: Glades golf course Date: September 3, 12:30 shotgun start Because of health restrictions and planning, it will again be necessary to prebook with payment.

Reach out to Resort News for further details. 24-hour notice is required for any refund.

We look forward to exceeding last month’s numbers, so please spread the word!

Your committee, Mike O’Farrell, Bruce Thomson and Tracey Taylor.

ResortNews | August 2020

Brisbane Luncheon

The ladies are back!

After our COVID-19 lockdown, we are pleased to announced that the ladies have returned, fashionable and businessminded as ever.

The first happy reunion was held July 15 at Mr Hizola’ on the Gold Coast at Burleigh. Event organiser, Marisa Millane of Freedom Internet said: “Finally, after many months in hibernation our wings were unclipped, and we were let loose to once again bring the wonderful ladies of the Gold Coast management rights industry together.

“What a wonderful event this was, with over 40 ladies in attendance re-connecting sharing their recent experiences the good, the bad and challenges we now face

moving forward. There was certainly lots of positivity.

“A big shout out to Mr Hizolas in Burleigh! It was great venue, the cuisine was to die for, the dishes just kept flowing, and when you thought there couldn’t possibly be more, another would appear.

It was certainly a perfect long lunch, great networking and the opportunity to welcome quite a number of newbies to the group.”

It was followed up by another wonderful luncheon in Brisbane, July 24 at The Bridge Hotel.

Marisa said: “The afternoon ran smoothly, along with the bubbles! It was great fun and we had some very informative conversations around the residential space and made some wonderful connections.

It was terrific to see so many new faces in the room.”

L - R: Caitlin, Yvonne, Amisha, Kelly, Carolyn and Marisa

ResortNews | August 2020

Gold Coast Luncheon

The Ladies in Management (LIM) lunches are held every third Wednesday of the month. For more details, please email: marisa.millane@freedominternet.org.

EVENTS & APPOINTMENTS

33

First megahotel in 20 years plans to bring bling back to Port Douglas Accor Fairmont will manage new $300 million Port Douglas luxury resort.

Innovative property developer, Chiodo, announced Port Douglas will be home to Australia’s second Accor Fairmont, with the luxury brand chosen to be hotel operators of a new $300 million resort.

Construction on the resort will commence at 71-85 Port Douglas Road as locals clamour to visit the newest hotel in Port Douglas for over 20 years.

According to Chiodo, the resort will offer guests a selection of 253 luxury rooms, with 136 basement car parking spaces, business centre, conference facilities, day spa, swimming pools, gym, restaurant, bars and cafe. It will nestle in a stunning location where the forest meets the sea, the new Accor Fairmont Port Douglas will be the first of its kind, in that it will be locally focused yet globally artistic, cultivating a celebration of the planet, sustainability and humanity”.

Chiodo principal, Paul Chiodo said he was thrilled to partner with Accor.

The hospitality giant was chosen from 12 hotel submissions because of a shared vision, which he said “is to deliver an environmental hotel that still encapsulates the hallmarks of a luxury hotel”.

“Accor clearly shares the same passion that we have at Chiodo Corporation for Port Douglas itself.

“We both share a love for Port Douglas and its community, and we will jointly push hard to bring Port Douglas the bling factor that it had 15 years ago, where world leaders go to play golf and Hollywood celebrities go for vacations.”

With construction set to commence in Q1 of 2021, Port Douglas hopes to boast a luxury hotel like no other that infuses the senses, the elements, culture, and nature.

34

Geelong Conference Centre to be transformed into boutique hotel Property developer BEKL is set to acquire Geelong Conference Centre with redevelopment plans to transform it into Geelong’s first ‘retreat style’ boutique hotel. Nestled in the lush botanical gardens within the Eastern Park Precinct, the development aims to become a stunning destination hotel with conference facilities.

BEKL purchased the 1.6-hectare site in March, which boasts a building area of 4,500 square metres, including seven conference rooms, 46 accommodation suites inclusive of four two-bedroom suites, a restaurant, guest lounge and bar, multi-purpose mezzanine floor, full commercial kitchen and sprawling gardens. The site also features an in-ground swimming pool and spa, laying the foundations for a unique redevelopment like no other Geelong has seen.

Managing director Katherine Liu said the development will bring an internationally artistic feel, while drawing local inspiration from its botanical surrounds and ‘bush retreat’ heritage, placing emphasis on the human

experience. “An intrinsic part of our design process is using sustainable and high-quality urban renewal practises. We are huge advocates for the practice of biophilic design, connecting people and nature within our built environments as a means of reducing stress levels, increasing mood and the overall feeling of wellbeing.

This will be a big focus as we move to create a wellness destination to be enjoyed, be it by corporate guests, leisure travellers or locals,” she said.

According to Tourism Australia, wellness tourism has grown at 7.6 percent per annum over the past five years with 900,000 visitors engaged in wellness activities for 2018. The growth rate is twice that of tourism.

“We identified a huge gap in the market, given the region is lacking in small, high-quality accommodation providers with a focus on experiential accommodation, especially where wellness is concerned,” said Katherine.

“The development will herald the return of this venue as a significant economic asset for the region and a key destination for locals and visitors alike.”

The team combines rich international experience to bring high-end, internationally inspired facilities to the

DEVELOPMENTS

region, encouraging rest and relaxation for guests looking to wind down after a conference, or rejuvenation for those seeking a weekend getaway.

“We want to provide guests with a slower, more connected experience, that allows them to disconnect from the day-to-day and reconnect with nature, and each other,” said Katherine.

Employing an authentic farm-to-table approach with ingredients sourced locally from the Bellarine region, the development’s food and beverage offering will provide guests with fresh and modern meals to nourish them through their stay.

Adjoining the East Geelong Golf Course, the site offers easy access to the Geelong CBD, with major arterials allowing an easy commute to the Bellarine and Surf Coast, with Avalon Airport just 25km away.

BEKL is currently in discussion with a number of hotel operators and hopes to appoint its chosen partner later this year.

The company has three projects currently in operation or under construction, including the recently announced appointment of IHG’s voco brand as the chosen operator of its South Melbourne site.

ResortNews | August 2020

Parramatta promised new life It has been dubbed Sydney’s second CBD and now the fast-growing inner-west city of Parramatta is slated for significant development including a high-density residential development supported by a revitalised night-time economy and open public space.

Sydney’s Polish Club set to be ‘the new kid on the block’ The Ashfield Polish Club in Sydney’s inner-west will undergo a dramatic makeover if a development application recently lodged by the club and the developer, Deicorp, is approved.

The $72 million Liverpool Road redevelopment would increase the club’s size from 1200m2 to 1850m2, and include 91 new residential apartments.

Future residents would get to enjoy state-of-the-art facilities including an auditorium, café, bar, kitchen and restaurant all located below the proposed apartment complex.

Deicorp has previously worked in partnership with Redfern RSL Club and Petersham RSL Club to deliver a new future for their members. According to Deicorp, the new Polish Club would become a focal point for the community and those seeking a cosmopolitan innercity lifestyle. Ashfield already offers some of Sydney’s best restaurants, including the club’s

Sto Lat Restaurant, which is also set to undergo a refurb.

Fouad Deiri, Deicorp managing director, said the company understands the role these clubs play for their members and the broader community.

“Deicorp will continue to deliver outstanding projects in great locations close to transport and amenities, reinforcing our reputation for outstanding quality and value,” said Fouad.

Elsewhere in the innerwest, Deicorp is currently constructing 357 apartments at The Siding, Petersham, and in the City of Sydney local area, is commencing work on a further 776 apartments in Zetland, Roseberry and Redfern.

In relation to COVID-19, the company said it had maintained its commitment to safe work environments at all of its sites through increased communication and training for all staff and subcontractors on its projects.

“Deicorp recognises the important role the construction sector plays in supporting investment and jobs. We are pleased to be doing our bit.”

This new planning idea also includes a proposal for greater commercial development and is part of the City of Parramatta Council’s Parramatta CBD Planning Proposal. The NSW Government-backed proposal will go public exhibition this month for community feedback.

Council was seeking to expand the city’s CBD boundaries and change land use controls to facilitate the proposed new development. If approved, 14,000 additional dwellings would be built in the CBD, creating 50,000 new jobs.

City of Parramatta Lord Mayor Bob Dwyer said the proposal

would help council capitalise on the “unprecedented” levels of interest and investment in Parramatta, and “cement its place at the centre of global Sydney”.

Key aspects of the proposal include: •

Expanding the CBD’s commercial core and introducing incentives for new commercial floor space;

•

Increasing height controls to accommodate taller, slender towers so sunlight and air can reach the streets and public spaces below;

•

Ensuring new development includes community infrastructure to support growth;

•

New provisions that ensure new buildings perform to high environmental standards; and

•

Introducing new controls that ensure a development demonstrates an appropriate relationship to the city’s heritage.

RELIEF MANAGEMENT

& POSITIONS VACANT DIRECTORY RELIEF MANAGEMENT MIKE McCALLUM Mb: 0417 716 385 • Puma, Hirum, REI Master, Satin, RMS and Motelier Experience • Prepared to Travel • 15 Years as a Relief Manager • Previous Owner Operator of M/Rights Area of Service

GC

BR

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WQ

CQ

NQ

GC Key: (GC) Gold Coast (BR) Brisbane (SC) Sunshine Coast (NQ) North Qld (WQ) West Qld (CQ) Central Qld (VIC) Victoria (NSW) New South Wales

POSITIONS VACANT SHORT-TERM RELIEF MANAGEMENT COUPLE IN CARDWELL, FNQ • Only 6 motel rooms & 6 apartments • Hands-on, with some cleaning, towel laundry, lawns & garden maintenance • Easy to use Preno & Siteminder systems • Flexible on dates between mid September to mid December • Beachfront Managers Apartment • Needs to be a sociable couple, who will treat the motel and guests like it was their own Please send your resume to: info.cbmotel@bigpond.com or call Janet & Steve (07) 4066 8776

To advertise, call Gavin Bill on 07 5440 5322 or email service@resortpublishing.com.au © 2020, Resort Publishing. The Relief Management Directory is provided by Resort News to provide CONTACT details only of individuals and organisations promoting services in temporary and permanent management positions. Parties should satisfy themselves as to the competency and suitability of advertisers prior to ordering any services. We accept no responsibility for the standards of service.

ResortNews | August 2020

DEVELOPMENTS

35

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

FORTITUDE VALLEY

• • • • •

HIGH INCOME & BIG SALARY PERMANENT

Prime location, walk to China Town and CBD, close to everything Fantastic Body Corporate salary of $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

• • • • •

WEST END

• • • • •

PRICED AT VALUATION DONE!

Boutique building in Central West End, close to everything Great remuneration $85K with CPI adjustment annually Verification and valuation were done, safe deal Low caretaker work, easy for one person Large manager residence, no office hours

NETT: $128,656

TOTAL: $1,290,000 (AT VALUATION)

David Jiang, 0481 500 278, davidjianghui@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: $1,503,800

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

NEW MANAGEMENT RIGHTS OPPORTUNITIES EX C AG LUSI EN VE CY

ID 8457 BOOMING PORT MACQUARIE

• 29 self-contained apartments • Located opposite patrolled beach • Stylish 3 bed residence

NET PROFIT:

• Solid repeat clientele • Ticks the key boxes • Stunning ocean views

• 10 units in the holiday letting pool • Resort style facilities • Easy access to the heart of Noosa

• Well maintained complex • 3 bed single level residence • Make the call today!

NET PROFIT:

$130,000

EXCLUSIVE BROKER: James Carrick – 0498 965 005

LISTING BROKER:

Matt Crimmins – 0409 816 635

ID 8988 IDYLLIC CLIFTON BEACH

ID 8984 TOWNSVILLE BARGAIN!

$189,872

• Only 2 in the letting pool • Great scope in improve • Easily maintained gardens

ASKING PRICE:

ID 8985 WORK, LIVE & LOVE THE NOOSA WAY

$1,522,000

• Stylish 4 bed manager’s home • 19 years remaining on agreements • No set hours required

NET PROFIT:

$79,000

ASKING PRICE:

LISTING BROKER:

Antonio Curulli – 0488 030 853

$749,000

ID 7870 GOLD COAST PERMANENT

• Motivated vendor • Presently run by single operator • Currently all permanent rentals

NET PROFIT: LISTING BROKER:

NET PROFIT: LISTING BROKER:

$995,000

• Huge potential for growth • Body Corp salary $38,000 • 1 bed unit + office/reception on title

$40,000 ASKING PRICE: Amanda Rowe – 0427 413 319 Lyn Pearsall – 0425 168 244

$295,000

ID 8986 BRISBANE NORTHSIDE COMPLEX

• Stable income during Covid • 3 bedroom residence • No requirement to live onsite

$140,000 ASKING PRICE: Gerard Dixon – 0433 617 515

• You won’t buy better • Prime position • 5/30 in the letting pool

ASKING PRICE:

$1,194,000

• Permanent management rights • Phillip Usher complex • Minutes to Westfield North Lakes

NET PROFIT: LISTING BROKER:

• Huge standalone 4 bed residence • No rental arrears during Covid • Only 3 onsite owners

$255,591 ASKING PRICE: Tony Johnson – 0433 335 679

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

www.mrsales.com.au

$1,798,000

MANAGEMENT RIGHTS RESORTS ER T D AC N R U NT CO

ER T D AC N R U NT CO

BRISBANE

MERRIMAC

$500K NET - $328K SALARY - PERMANENT

CARETAKING ONLY. NEW COMPLEX. LIVE OFF-SITE OPTION

An exclusive residential complex providing 5 star equivalent facilities. Stroll to the CBD in one direction and trendy James Street, Newstead and Teneriffe precincts in the other.

Modern and spacious manager’s apartment. 2 Bedrooms, 2 bathrooms, 150m2, 2 car spaces. Huge office space attached. A supportive body corporate, 24 years remaining on agreements and a salary of over $328,000 ensures the longevity of this healthy business.

New 25 year Management Rights Agreement. Body Corporate Salary of over $55,000 (ex-GST) per year. Option for the purchaser, at their discretion, to accumulate a letting pool should they hold a Real Estate Licence. Manager’s accommodation offers 4 bedrooms. No need for manager to live on site. All 42 townhouses have spectacular views. A short drive to first-class educational facilities, including ‘All Saints Anglican School’. Looking for a lovely Manager’s villa and stable income from the Body Corporate? Then this is for you!

NETT $503,000

NETT Body Corp Salary

PRICE $3,740,000

ER T D AC N R U NT CO

ER T D AC N R U NT CO

SPRING HILL

Expressions of Interest

REDLAND BAY

OPTION TO LIVE OFF SITE

OFF-SITE MANAGEMENT OPTION

Upmarket apartments well positioned in popular inner Brisbane suburb and only 15 minutes walk to Brisbane’s CBD. One and two bedroom units offer resort like facilities and secure basement car parking. This permanent letting business has a solid letting pool with strong demand, coupled with a Body Corporate salary of $92,000 and 23 years remaining on management agreements. Two bedroom unit of over 150 sqm, inclusive of office and reception on title.

A seaside village atmosphere on Brisbane’s bayside with lovely, near new, low maintenance, free standing villas this permanent management rights business has the flexibility to live off site should you wish. Situated in a growth location within easy walking distance to the shopping village. Offering very attractive and popular villas with a plethora of schools in the area. No requirement to live onsite. Manager’s villa currently rented out. Agreements have 22 years remaining with a current salary of $102,000.

NETT $161,000

NETT $237,000

PRICE $1,437,000

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

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

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

PRICE $1,820,000

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

propertybridge.com.au | 1800 888 518

Your Management Rights Financing Experts Management and Letting Rights Quarterly Pulse • June 20 • Tenth Series

Market Snapshot - June 2020

Data provided by The On-Site Manager website.

STOCK LEVELS…Total number of Businesses on the market has fallen back to 2018 levels June 2017

October 2017

January 2018

May 2018

August 2018

January 2019

May 2019

September 2019

January 2020

June 2020

$864m $835m $932m $1,040m $969m $914m $1,010m $985m $863m $950m 673 Properties 604 Properties 677 Properties 728 Properties 697 Properties 697 Properties 739 Properties 716 Properties 641 Properties 629 Properties on the market on the market on the market on the market on the market on the market on the market on the market on the market on the market Ç Ç Ç È È È È È È

Stock Levels have been impacted mainly in the Holiday space understandably June 2017

October 2017

January 2018

May 2018

August 2018

January 2019

May 2019

September 2019

January 2020

June 2020

Holiday - 359 Permanent - 278

Holiday - 337 È Permanent 260 È

Holiday - 328 È Permanent 250 È

Holiday - 346 Ç Permanent 307 Ç

Holiday - 355 Ç Permanent 338 Ç

Holiday - 358 ÅÆ Permanent 309 È

Holiday - 330 È Permanent 336 Ç

Holiday - 434 Ç Permanent 336 ÅÆ

Holiday - 335 È Permanent 328 È

Holiday - 283 È Permanent 311 È

4.3x Ç

4.25x È

and Multipliers…are ABOUT THE SAME BUSINESS MULTIPLIERS (ave) OVER $1m Purchase Price 5.1x ÅÆ

5.1x ÅÆ

5x È

4.9x È

4.4x È

4.3x È

4.2x È

4.1x È

and the listing period for stock on the market has fallen particularly in Permanents which have halved.

DAYS LISTED June 2017

DAYS LISTED October 2017

DAYS LISTED January 2018

DAYS LISTED May 2018

DAYS LISTED August 2018

DAYS LISTED January 2019

DAYS LISTED May 2019

DAYS LISTED September 2019

DAYS LISTED January 2020

DAYS LISTED June 2020

Has reduced by 7 days to 84 days È

Has reduced by 4 days to 80 days È

Has reduced by 4 days to 76 days È

Has increased by 10 days to 86 days Ç

Has reduced by 16 days to 71 days* È

71 Days ÅÆ

72 Days ÅÆ

74 Days ÅÆ

105 Days Ç

65 Days

Market Movers

This is the first COVID impacted set of data and points to a reduction in Holiday/Resort stock on the market to the lowest level we have recorded. The listing period for Permanents has halved indicating a focus on buyers on this part of the market. The Brisbane market appears to be largely unaffected at this point however and predicably the Gold Coast market has been deeply impacted with stock levels falling in all categories. *Remained 79 days for Holiday and Permanent

P F E

(07) 5574 0500 (07) 5574 0333

info@fnx.com.au

www.fnx.com.au company/fnx-finance

FNX Finance Group Pty Ltd ACN: 602 814 620 ABN: 75 602 814 620

Management and Letting Rights Quarterly Pulse • June 20 • Tenth Series

Management Rights For Sale - Market Analysis - June 20 Letting Pool Coverage – proportion of the total units to those within the Pool. Agreement Coverage – refers to % of total agreement term available upon purchase.

Total stock

Total stock

Days listed

Average price

Multipliers

Gross return %

Letting pool coverage

Agreement coverage

Resort / Holiday

$455,598,719

283

76

$1,609,889

4.32

23%

59%

72%

Permanent

$354,060,735

311

65

$1,138,459

4.22

24%

50%

76%

Corporate

$16,133,000

12

83

$1,344,417

4.49

22%

62%

93%

Off The Plan

$19,160,042

14

55

$1,368,574

4.35

23%

38%

82%

Caretaking

$11,744,500

16

32

$734,031

3.77

27%

10%

81%

Retirement

$6,521,535

7

53

$931,648

3.17

32%

76%

48%

Grand Total or Average

$863,218,531

643

65

$1,346,675

4.25

24%

54%

81%

Purchase Price

BUSINESS MULTIPLIERS (ave)

Ave Purchase Price

Standard Agreements

3.71x

$1.43m

Accommodation Agreements

4.42x

$1.31m

Brisbane

$211m in Properties for Sale ($371m in Jan20) 155 Properties for sale (265 in Jan20) 66 Permanent (129 in Jan20) 87 Holiday (125 in Jan20) 104 Days on Average Listed (71 Days in Jan20) 4.41 Ave Multiplier

Sunshine Coast

$175m in Properties for Sale ($187m in Jan20) 146 Properties for sale 118 Permanent 9 Corporate 10 Holiday 71 Days on Average Listed (113 Days in Jan20) 4.1 Ave Multiplier

Gold Coast

Standard Agreements multpliers have fallen from an average of 4.22 to 3.71x Accommodation Agreements have fallen from an average of 4.7 to 4.42x

$187m in Properties for Sale ($207m in Jan20) 137 Properties for sale (156 in Jan20) 26 Permanent 102 Holiday (120 in Jan20) 80 Days on Average Listed 4.37 Ave Multiplier

P F E

(07) 5574 0500 (07) 5574 0333

info@fnx.com.au

Total Properties on the market has hit a new record high.

NUMBER ON THE MARKET 750 700

728 673

650

739 697

677

716

697

630

600

641 604

550 500

Jun 17 Jul 17 Aug 17 Sept 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sept 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sept 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20

Comparison by Agreement Type - June 20

Historical Comparison of the Market

Number on the Market

NO. OF BULDINGS ON THE MARKET BY TYPE (Holiday & Permanent) 380

360 359 340

355 337

320

346 328 307

300 280 260 240

358 336

338

330 309

343 336

335 328 311 283

278 260

250

220 200

www.fnx.com.au company/fnx-finance

Jun 17 Jul 17 Aug 17 Sept 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sept 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sept 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20

‘On the Market Analysis’ - Market Pulse

Resort/Holiday

Permanent

FNX Finance Group Pty Ltd ACN: 602 814 620 ABN: 75 602 814 620

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

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

MANAGEMENT RIGHTS Gold Coast Emerald Lagoons

Juris Blossom Pty Ltd

Robina

Pavilions Palm Beach

Les Blackstock

Palm Beach

TMR RB

KPG Property Management Pty Ltd Heathwood

RB

Brisbane Infinity Heathwood

Sunshine Coast / Wide Bay / Fraser Coast Water Gallery

Are you looking for a pre-purchase financial verification report, profit and loss for sale or just an accountant who really understands your management rights business?

We provide a comprehensive range of compliance and consulting services for all entity types operating within the industry.

Jonathan Grant Accountants operates within a wide referral network of other professional industry specialists and we are dedicated to ensuring you receive the right advice from the right people.

Mike Oliver & Tracey Retzki

Twin Waters

Wayne Musson & Ling Sun

Cairns

RMS

North Queensland Royal Palm Villas

CBMR

MOTELS & OTHER Queensland Longreach Motor Inn

Gary Scarborough

Longreach

RB

Dalrymple Tourist Van Park

Brad and Tanya Chilton

Charters Towers

RB

Lam Baldock

Augusta

RB

Western Australia Molloy Caravan Park

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

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

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

Resort News Agent Profile:

Introducing...

Antonio Curulli – Personal Profile Tony has a wealth of experience in business, buying and selling large assets and investment advice.

Tony has founded 2 successful businesses, one in the consulting field and the other in sports and recreation field, both of which have been sold and still operating successfully today.

Tony owns his own Management Rights complex in FNQ, and is passionate about the Tourism and Management Rights industry.

Tony considers his strengths to be hard work, tenacity, good

42

listener and quick to understand, strategic, strong communicator and being street wise.

Tony is very familiar with Far North Queensland tourism, having worked mid 80’s on the Port Douglas Mirage Tourism Project as a young rookie, when Port Douglas and the Cairns region was in its early tourism days.

He now lives in Palm Cove, on the Cairns Northern Beaches and enjoys the idyllic lifestyle of the area and is passionate in ensuring that the region continues to grow and prosper, and encourage investment from the southern states and internationally to the region to participate as well.

PROPERTY

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

Antonio Curulli 0488 030 853 MR Sales Gold Coast www.mrsales.com.au tony@mrsales.com.au

ResortNews | August 2020

“YOUR PARTNER IN SUCCESS“ PERMANENT MANAGEMENT RIGHTS OPPORTUNITY NORTH QUEENSLAND Consider This: Top Property * Consistent Yield * COVID Proof * Great Lifestyle * Low Vacancy Rate

Net Profit: $254,000

Agreements: 21 yrs

B/C Salary: $138,380

Residence $530,000

•

One of Townsville’s newest luxury residential high-rise properties.

•

Magnificent water and city views.

•

Excellent business with opportunity to also expand letting in the adjacent building.

•

Solid base, unaffected

by Pandemic, great fixed salary and increasing area rental demand.

•

Great lifestyle with top 2 bedroom 131m2 manager’s waterfront apartment.

•

Exclusive use office.

•

Low maintenance and no gardens.

MR Business $920,000

$1,450,000

For more information, or to view this listing please contact: Calvin Bailey - 0414 889 593.

Contact: Mobile: Email:

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

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

Contact: Mobile: Email:

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

Australian Resident Accommodation Managers’ Association Member

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

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.

44

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 | August 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

A ‘Sanctuary’ from the COVID-19 storm

By Lucinda Dean, Industry Reporter

Buying the management rights to a luxury resort in tropical FNQ during COVID-19 might seem risky but for the entrepreneurial Labuschagne family it was a calculated move!

For retired South Gippsland veterinarian, Gerhard Labuschagne Sr, his wife Cavell, and son Gerhard Jr, purchasing the management rights to Far North Queensland’s Sanctuary Palm Cove in July provided a much desired sea change. The luxury holiday resort is now managed as a partnership between the couple, Gerhard Jr, and his partner Upasana Prasad.

The family’s search for a

management rights property began last year, after they sold The Econolodge in Tamworth (NSW), a 60-room motel with an a la carte restaurant, which Cavell, Gerhard Jr and Upasana had successfully run for four years.

They inspected 12 properties along Australia’s eastern seaboard

stretching from Forster, New South Wales to Palm Cove.

Documents for Sanctuary Palm Cove were signed March 8, but then COVID-19 struck, and settlement took almost 4 months, finally finalised July 1.

Gerhard Sr said that at the

beginning, banks were “wanting to throw money at us”, but the pandemic changed everything and essentially their only guaranteed income would be the body corporate remuneration.

“Because we were all cashed up, jobless, and homeless we decided to push through,” said Gerhard Sr.

L-R Gerhard Labuschagne Jr, Upasana Prasad, Cavell Labuschagne and Gerhard Labuschagne SR

Specialists in Management Rights & Tourism Properties

Martin Tranter is proud to be the chosen legal advisor for Sanctuary Palm Cove.

Resort Sales were proud to assist the GCG Partnership team on the purchase of the Sanctuary Palm Cove Management Rights and wish them every success for the future

We wish the GCG Partnership team all the best!

Address: Shop 2b/21-23 Warner Street, Port Douglas Qld 4877 Phone: Email: 07 4030 4800 mtranter@bbtranter.com.au

Supporting and servicing the needs of both buyers and sellers of management rights throughout Tropical North Queensland

Frank van der Heijden MB 0407 137 186 Nicky van der Heijden MB 0407 369 699 PO Box 1037 Gordonvale 4865 • 07 4056 6366 info@resortsales.com

www.resortsales.com 46

PROPERTY

ResortNews | August 2020

Broker Mike Phipps Finance was able to get the deal over the line and make the family’s dream of living and working in Palm Cove a reality. The lending ratio was 54 percent with a multiplier of four.

Cameron Wicking, credit representative, said the big challenge during COVID-19 was finding a bank willing to lend to the short-stay accommodation industry, however if buyers were able to find sellers in the present market, there were still plenty of opportunities.

Negotiations for Sanctuary Palm Cove happened relatively early during COVID-19 and the Labuschagne family requested

a discount on the purchase price due to the uncertainty.

As the finance and settlement dates approached, however, the vendor saw a return to normal operations in terms of forwardbookings, and was reluctant to let the property go at a discount, so it sold for asking price.

does their P&L based on last year’s profits, the “figures don’t stack up anymore”.

when domestic travel opens up again, they will come back to full operation.”

Frank said pre-COVID-19, banks would lend up to 65-70 percent on “a good property with good nett income and all the figures and arrangements stacking up”.

A word of advice from Cameron to anyone seeking to buy management rights in the current market: do your research and put together your own business plan.

“This placed time pressures on ANZ Bank, Cairns, at a time when everything was taking longer, but thanks to cool heads, we were able to get the approvals needed and settled on time,” said Cameron.

“Now, some banks have stopped lending completely while other banks say 50:50.”

Frank van der Heijden, owner, Resort Sales, said due to COVID-19, even if a seller

“It was a very stable property relying more on domestic guests than international, so

Sanctuary Palm Cove was an “unusual property”, according to Frank.

“A. S.W.O.T. analysis of the complex (and the local market for that matter) is indispensable in the current market and shows the banks that you are really thinking about the acquisition in question, and can assist in helping the buyer in deciding what they are willing to offer for an asset.”

Specialising in management rights and other accommodation business syndicates

Trent and the team are proud to have acted as the legal advisors for the Hewitsons’ in the sale of the Sanctuary Palm Cove Management Rights.

Work with the firm that delivers nationwide, industry leading transactional services and advice across all accommodation based business types. Helping hundreds of resident managers and operators each year to acquire, sell, protect and grow their business.

Phone: 07 5562 6111 After Hours: 0412 092 969 www.pevylawyers.com.au ResortNews | August 2020

PROPERTY

47

Coolum Beach Getaway Resort:

By Lucinda Dean, Industry Reporter

Exuding a laidback coastal beachside vibe, Coolum Beach Getaway Resort is a popular holiday getaway for families and longerstay couples year-round.

Located on a quiet street just a couple of blocks from popular Sunshine Coast beach, Coolum, it’s easy to see why the spacious two and three-bedroom, fully self-contained townhouses hold maximum appeal for holidaying families, especially as each with boasts two bathrooms, solid wifi and a lock-up garage. The resort’s recreational facilities include a pool, spa, tennis court and covered barbecue area.

business where they could work together. Management rights presented the ideal opportunity.

Jason Hodson and Tracey Jones

and well-rested and take away some great memories,” says Tracey.

Tracey and Jason are both Kiwis hailing from Whakatāne in the Bay of Plenty, New Zealand.

They hopped across the Tasman three years ago, hitched up the caravan and did that tourist rite of passage - a lap of Australia. When they passed through Coolum, they fell instantly in love with its charm but Yeppoon, just north of Rockhampton, was where they unhitched their caravan

and set up home for a year.

As a concreter and bricklayer, Jason got a contract doing the Mackay ringroad and running his own crew. Eventually, the 3am starts, 40-degree days and the pressures of construction work become too much and Tracey had come from owning a health supplement store in New Zealand to working at the local Chemist Warehouse. The couple evaluated their situation and decided they wanted to find a

Guests can easily explore the local area on foot. It’s an easy stroll to the patrolled beach, Tickle Park playground, Stumers Creek, Coolum’s dining and shopping strip, supermarket, the kid-friendly surf club and vibrant ‘Sunday Session’ venue, Coolum Beach Hotel.

Tracey and Jason jest that they got into hospitality “very randomly” as their first thought was to manage a motorhome camp or a motel. Jason liked the idea that “everybody seems pretty happy when they’re on holiday” and Tracey’s parents had owned a motel while she was growing up and she thought fondly of the lifestyle.

“We pretty much threw ourselves in blind as I didn’t know anything about [management rights] at all really,” Jason says.

“Coolum was appealing, and the resort was appealing.”

The sales agent, Lindsay Petty, was “awesome” and he advised the couple along their journey.

Managers Tracey Jones and Jason Hodson are big on warm welcomes and enduring hospitality.

“Because we were living in Rockhampton and doing the sale down here, we had a finance person assigned to us at ANZ bank Maroochydore, and we

“We just want our guests to have the best experience while they stay with us and leave feeling uplifted

48

The couple searched for businesses for sale online, concentrating on the Gold Coast’s Coolangatta area, and then Coolum Beach Getaway Resort popped up for sale.

It felt like fate had spoken because they loved Coolum!

PROFILES

ResortNews | August 2020

did it all over the phone, which was awesome,” says Tracey.

“She gave us contacts for an accountant and a lawyer – we knew no-one, so we were just picking on recommendations.”

The couple was sold on the business because the previous owner told them it would be a one-person job, 18-hours a week.

“That’s not what it is at all,” Jason laughs.

That was the first of a couple of unanticipated surprises they encountered after buying the management rights.

Tracey explained: “The gardens, grounds and apartments had been neglected for a long time, a lot of maintenance had to be done – everything down to lightbulbs, batteries and door handles.”

The couple do all their own apartment cleans, maintenance and grounds work so everything about this neat little resort, which currently has 10 units in the letting pool, is in tip top condition and good working order.

When they took over the business, the previous owner was still doing all bookings by pencil in a big book challenge they faced initially was dragging the office system into the 21st Century. When they took over the business, the previous owner was still doing all bookings by pencil in a big book. He was in his 70s and an old banker who used an old school ledger system.

“To do a booking took so long, I was in the office training and I thought, this can’t be how it is, it can’t take this long just to put a booking in the system,” says Tracey.

The holidaymakers mostly hailed from the Gold Coast, Hervey Bay and Brisbane.

“They were all quite last minute, the day of, and things like that.

People were very unsure, so they wanted to book last minute.”

– it’s pretty much done for you, so you can’t miss any bookings, plus you can’t double book.”

The resort was “very busy” right until the COVID-19 lockdown.

The recent July school holidays “were crazy”, they were fully booked but in the two weeks prior they had hardly any bookings.

“It’s changed the way people

The couple now ask their happy return guests to book directly with them. Jason said people were genuinely surprised when told that by booking through an online portal, they pay more for their booking, the commission goes overseas and the apartment owners get less money.

“They go, ‘wow! We’ll tell all our friends’,” Jason says.

Jason elaborated: “He had different coloured round dots for each clean and then he would call the relevant cleaners and tell them how many cleans they had. It was just ridiculous.”

“We hardly get a call about the apartments now,” says Tracey.

They now use Puma with ResOnline as the channel manager.

“Because we do all our own cleans, we’ll make sure the TV and the Foxtel are working before we put a guest into the apartment, we pretty much know there is nothing wrong with it.” The biggest

“The two systems are merged,” Jason explains. “So, if you ring up to do a booking, the system will find if there is a room available for you that they puzzle it all in and it goes straight into the system

DON’T LOSE YOUR COOL

L P R O F E S S IO N AIN G N A IR C O N D IT ION C E M A IN T E N A RESORTS - HOTELS - RESIDENTIAL - COMMERCIAL

ResortNews | August 2020

book, very much last minute, and shorter bookings,” says Tracey.

3-7 First Avenue, Coolum Beach Qld 4573

(07) 5471 6759

w w w. g e t a w a y r e s o r t . c o m . a u email: info@getawayresort.com.au

CONTACT US TODAY FOR AN OBLIGATION FREE QUOTE

PROFILES

49

Jacaranda Villas:

A TRANQUIL OASIS

By Lucinda Dean, Industry Reporter

Resident manager Martin Zhang found exactly what he was looking for with Jacaranda Villas.

The Chinese-born Australian citizen told us he was captivated by the beautiful gardens and native bushland filled with flora and fauna.

“It’s a very peaceful and tranquil place to live,” Martin says of the permanent residential living, gated complex in Mudgeeraba on the Gold Coast. Martin purchased the management rights in September last year

50

and now manages 66 villas in total. Martin says the majority of his tenants are families with children or working professionals who love the exclusive estate’s sense of community and convenient location. Prestigious schools including Somerset College, Kings Christian College, Robina State High and Bond University are on its doorstep; and the property is also within easy driving distance to Robina Town Centre, Varsity Station, Robina Hospital and the popular, historical Mudgeeraba Village.

facilities nearby, and the beautiful Burleigh Beach is only a 10-minute drive away.

For active families, there are a multitude of golf courses and other sporting and recreational

Aside from the idyllic bush setting and abundant wildlife, Jacaranda residents are spoiled

Rhonda Perkins, sales executive at Property Bridge management rights agency, said that Martin was immediately attracted to the stunning contemporary residence with ultimate skyline views, superb facilities and the secure and picturesque natural environment.

“It literally feels like you are on top of the world!”

Rhonda exclaims.

PROFILES

with impressive facilities including a residents’ lounge, swimming pool, spa, sauna, poolside barbecue area and a fully equipped gym.

Prior to immigrating to Sydney, Australia in 2011, Martin had worked for more than a decade with Fujitsu in Shanghai, China as a systems engineer and manager of a help desk team of eleven people.

Martin moved to Brisbane in 2013 when he was offered a job at a solar energy installation company. It was while working for the solar energy company that Martin bought his first management rights business.

ResortNews | August 2020

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Martin also has memberships with ARAMA and REIQ.

“Because the Australian solar industry wasn’t booming anymore, I started looking around for alternative income opportunities.”

In 2018, Martin sold his Brisbane management rights business and started looking for other opportunities. Unsuccessful in his search around Brisbane for a suitable business that had everything he wanted, he decided to expand his search to the Gold Coast region. It was around this time that Martin met Rhonda at an ARAMA forum.

“A co-worker told me there was a management rights business on the market for sale that was close to where I was already living.”

Martin’s business acumen and background in IT and management made him an ideal candidate for management rights. His first foray into management rights was a townhouse complex in Brisbane that proved quite challenging.

For three years, Martin worked all hours to get up to speed with his new responsibilities and improve the overall complex for his residents, gaining the praise of many.

“At the time I was completely new to the industry, so I had to learn everything from the ground up. I learned how to do the garden, how to maintain the pool, and how to effectively communicate with the body corporate committee and improve that relationship overall,” Martin says.

52

Martin Zhang & Rhonda Perkins

“I managed and maintained numerous properties in the rental pool by proactively keeping my investor owners’ best interests at heart by keeping them posted of any developments that might affect their investments,” Martin says.

“I also cultivated and nurtured relationships with tenants and the body corporate committee members to achieve successful outcomes that made all stakeholders happy.”

Martin has made it a priority to keep abreast of property

management legislative changes, which helps him in his day-to-day practice of solving disputes and seeking a positive outcome on behalf of clients. He also holds a Master’s Degree in Global Business Management and ECommerce from Hong Kong University and a Bachelor’s Degree in IT and IS from Curtin University. Other licenses and training include: Certificate of Building Management, Office of the Commissioner for Body Corporate and Community Management Online Training; and Management Rights

PROFILES

Rhonda said that Martin was looking for something special and he eventually found it in Jacaranda Villas, which had been a labour of love for over a decade by its previous manager who was going into retirement.

“As Martin was an experienced management rights operator, Jacaranda offered a long-term agreement, upmarket rental properties with scope to increase the rental pool and a substantial and sustainable income,” Rhonda says.

“During the purchase process Martin’s wealth of corporate business experience was evident in his methodical, organised and diligent approach.

ResortNews | August 2020

“He is articulate, an excellent communicator, keen to adapt and learn new skills and always warm and engaging, all essential attributes for success in the management rights industry.”

Jacaranda Villas is now a full-time job for Martin.

“I enjoy the hard work because it keeps me active but it’s the appreciation I receive from the residents verbally for my work that really makes me feel like I’ve provided something of value,” Martin says.

“Many people assume that a management rights business provides a stable income that

does not require much work from the owner, but this is far from the truth. You need to juggle many things at once and always be prepared to come up with new and creative ways to deal with issues at any moment.

It’s as much a physical job as it is a job based on building and managing relationships with various stakeholders.”

“If you’re a people-focused person with excellent communication skills and a drive to work as part of a community, then I recommend a management rights business to you.”

The Property Bridge team are delighted to have brokered the purchase of ‘Jacaranda Villas’ for Martin Zhang.

We take great pleasure in welcoming Martin to the Gold Coast Management Rights fraternity as he brings with him tremendous enthusiasm and past industry experience.

info@propertybridge.com.au propertybridge.com.au 1800 888 518

ResortNews | August 2020

PROFILES

53

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ResortNews | August 2020

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