ResortNews, September 2020 by Multimedia AU/NZ

Registered by Australia Post Print Post No. 100023799

Issue 289 | September 2020 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Person of Interest: Song Dynasty – Michael Song’s MR Empire Profile: The Duporth Riverside management rights • hotels • motels • resorts • holiday parks • time share • hosted We specialise in furniture for hotels, motels, serviced apartments, resorts and refurbishments.

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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.

Advertising Conditions The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement. The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material.

Disclaimer Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein. Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law. Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties.

Inside our September issue FRONT DESK Editor’s Note: Management rights can lead us through this crisis .......................................05

INDUSTRY Sunshine State COVID Report: How is your region faring? ...............................................06

Person of Interest: Michael Song...................................15 ARAMA Report ......................................................................18 State Report ...........................................................................19 BCCM Report ........................................................................ 20 SCA Report .............................................................................21

MANAGEMENT Legal Ease............................................................................... 22 By All Accounts .................................................................... 23

Thinking MR........................................................................... 24 Good Governance ............................................................... 26 Motel Market ..........................................................................27 Intonet ..................................................................................... 28

TOURISM

Tourism Report .....................................................................30 Tourism International ........................................................ 32 The Last Resort .................................................................... 33

PO Box 1080, Noosaville BC, Queensland, Australia 4566 Phone: (07) 5440 5322 Fax: (07) 5604 1680 mail@accomnews.com.au www.accomnews.com.au EDITOR

Mandy Clarke editor@accomnews.com.au

STAFF WRITERS

Rosie Clarke

DESIGN & PRODUCTION ADVERTISING SUBSCRIPTIONS

Richard McGill

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

EVENTS & APPOINTMENTS

CONTRIBUTORS

Events & Appointments.................................................... 34

DEVELOPMENTS Development News ............................................................ 37

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

Paul Shih, Trevor Rawnsley, Michelle Scott, Col Myers, James Nickless, Jonathan Hanaghan, John Mahoney, Arvo Elias, Andrew Morgan, Lynda Kypriadakis and Mike Phipps.

New Manager Profile: Villa Samos................................ 42 Resort News Agent Profile: Mark Neale ..................... 42

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

46 FRONT DESK

The Duporth Riverside: One of Maroochydore’s finest ........................................46

PREFERRED SUPPLIERS Perferred Supplier Directory ...........................................50

ResortNews | September 2020

can lead us through this crisis It has been six months since our industry was upended by COVID-19!

beds since March and fading hope for an increase in bookings with the renewed border closures, while others shared stories of hope and positivity.

For the special report this issue, “How are you?” was one of the questions I put to regional industry leaders and operators across the state. I wanted to hear how the drastic drop in visitor numbers had impacted each location and whether there was any sign of early recovery.

Mandy Clarke, Editor editor@accomnews.com.au

I admit that after seeing the most recent (bleak) domestic traveller snapshot from Tourism Research Australia, I feared the worst response from the regions. The snapshot revelations, although predictable, were still very sobering and show that domestic travel had begun to wane as early as March when overnight spend fell by 41 percent. Then, April saw domestic

overnight spend plummet by 91 percent from 2019. However, I was surprised by the volume of feedback from our regions (in a very good way) the response showed our regional experts, spokespeople, and operators, were all keen to share their journeys. Like a tale from Dickens, some had very bad news stories of mostly empty

Some regions reported that after an early drop in visitors they began to see a resurgence of travellers as driving restrictions across the state eased. While usually popular coastal locations like Surfers Paradise do not seem to be faring well, the quiet pockets further north like 1770 are seeing signs of recovery and even popularity. The report also tells a story of how locations that attract “a drive market” and “health and wellbeing visitors” seem to be recovering faster; some regions are successfully inspiring domestic travellers to visit them. It seems to me that signs of post-pandemic recovery

depend not only on where your business is located but also on how strong your leadership is. In such uncertain times we need strong, clear, and consistent leaders.

EDITOR'S NOTE

Management rights Most importantly, we all need to do everything we can to get people travelling again, with safe protocols... this is our new reality. Management rights, with its history of adapting to change and a reputation for having solid, generous leadership, can do this! In Resort News you will find a generous menu of ideas and plans from some of our sector’s most solid leaders, all sharing industry know-how and a mix of personal and professional experiences for you to devour. Enjoy your copy of the magazine this month and get in touch so we can publicise your COVID journey.

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ResortNews | September 2020

FRONT DESK

Sunshine State COVID Report:

How is your region faring? By Mandy Clarke, Industry Reporter

We asked regional industry leaders and operators across the state how they have been impacted by plummeting visitor numbers and whether they are seeing any signs of early recovery... Bushfires and coronavirus crushed domestic tourism this year, according to the latest monthly snapshot from Tourism Research Australia, Austrade. The statistics confirm what struggling resort managers, accom providers and tourism operators throughout the South East Coast have been telling Resort News for months. The research shows that domestic travel began to wane as early as March when COVID-19 struck and overnight spend fell by 41 percent or $2.6 billion for the whole month. April saw domestic overnight spend plummet to $666 million, this was 91 percent or $7 billion less than in April 2019. The easing of lockdown measures saw May improve slightly but overnight spend fell 82 percent to $1.1 billion, creating a loss of $4.8 billion compared with May 2019. The report shows domestic overnight tourism dropped around $13.7 billion (41 percent) between January and the end of May, due to the one-two punch of the summer bushfires then COVID-19. Easter and school holidays are usually a busy time, but the travel restrictions and uncertainty meant Australians took just 1.6 million overnight trips in April -86 percent or 9.6 million fewer than in April 2019. Without a vaccine, there is no end in sight to the disruption with clusters of the virus still appearing. However, Australia seems to be following the global trend as more recent statistcs from STR show that early, post-pandemic

Glass House Mountain, supplied by Visit Sunshine Coast

recovery varies widely depending on where your business is located. Gold Coast targets locals and South Australians, but the nation’s favourite playground is suffering. “Some operators are faring better than others,” Destination Gold Coast’s Executive Director of Marketing, Carla Anderson confirmed. “Particularly those with business models that are less reliant on international travellers and those that have strong consumer relationships with the drive market. In the absence of key interstate markets of Sydney and Melbourne, now is the time to encourage Queenslanders to venture here, but also to mobilise Gold Coasters to be tourists in their own city. The Gold Coast’s reputation as a safe destination is a priceless asset to drive momentum for our tourism recovery as travel confidence remains a key influencer in determining booking behaviour at this critical time,” Carla told us. “Our economic modelling shows

that in 2020, COVID-19 will cost Gold Coast’s tourism sector between $3.3 billion to $4.3 billion, with a potential loss of some 6 to 9 million visitors. “Contextually, in 2019 the Gold Coast attracted a record 14.2 million total visitors… so the gravity of this impact to Gold Coast’s visitor economy cannot be understated. “The recovery of the tourism sector is a progressive journey, and will no doubt be determined by key factors that influence travel confidence, which we know will continue to return as restrictions are eased domestically. The Gold Coast has seen gradual growth since July and we’re cautiously optimistic in expecting this upward trend to continue well into next year, although we know it will take some time, before we see domestic visitation return to pre-COVID levels. “A more recent trend we’ve seen is an uptick in travellers booking last minute trips to the Gold Coast to take advantage of value-for-money deals.”

INDUSTRY

Destination Gold Coast told us it is working with a flexible plan to ensure that destination marketing remains agile in a shifting landscape, to target key markets that are most likely to be responsive to our efforts.” Manager of Surfers’ beachfront apartments, Viscount on the Beach, Amber Woodroff confirmed that her resort has been largely empty since mid-March and due to the recent Queensland border closures she now has cancellations for the September and October holidays. She explained: “I have found that all the people who used to come from Victoria, ACT and Tasmania for longer stays over the cooler months are not coming and Queenslanders are not coming to the Gold Coast either. I think many Queenslanders are ‘going bush’ or north, to places they cannot usually afford. “There is a fine line with pricing because you don’t want to go so low that you get the wrong kind of clientele, but you also can’t stay the same,” she admitted. ResortNews | September 2020

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Photo: Jordan Robins

“I’m sad as well. I’ve been getting phone calls from my regulars who come up every year and they are not happy, but most have moved bookings forward to 2021.” However, she did have a full weekend recently (the first time since last Christmas) and attributed this to Brisbane’s EKKA long weekend. For now, she said: “I’m trying to take care of past guests, enticing them with great deals, after all people need holidays now more than ever for their mental health. I’m hoping that our beach location will help me compete against the big multi-nationals who can substantially lower their prices.”

Amber is currently surviving on JobKeeper and is worried that Queensland Tourism’s push for people to go to places they have not visited before could discourage people from heading to the Gold Coast. Trevor Rawnsley, Australian Resident Managers Association (ARAMA) CEO is also worried about the effects on mental health, he is concerned that Queenslanders lives are being put at risk by the Government trying to eliminate the virus. He said: “What I mean by the lives of Queenslanders being put at risk is that many of our ARAMA members are in severe mental stress from the prospect of not being able to trade and

Wilson Island December 2019 , Photo: James Vodicka

conduct their business due to the border closure. I have never seen anything like it.” As a result, ARAMA is now offering free counselling to members via a network of professional counsellors. Carla added: “Although recovery is going to take some time, we are focused on regaining our domestic share, while also capturing outbound demand that remains high for the Gold Coast and will continue to be as international borders remain closed. “We have remained nimble during this unprecedented period and in early May, pioneered a scalable marketing recovery plan to time market forces. Queensland’s early success to flatten the COVID-19 curve allowed us to anticipate that the drive market would be the first catchment to open up.” In mid-June, the body launched a $1.5 million Queensland-centric campaign to encourage more locals and Queenslanders to explore their own backyard. They included localised marketing within the Gold Coast by asking locals to support the sector and businesses of all stature who need tourism dollars and they have trialled marketing in South Australia to capitalise on and support the new aviation route direct from Adelaide into the Gold Coast.

INDUSTRY

Carla revealed: “Further afield, interstate, Destination Gold Coast retains a watchful eye over COVID-19 developments to reassess all domestic markets and any destination marketing activity as it becomes viable. Travel confidence remains a key influencer in determining booking behaviour.” Gold Coast’s 4,600 tourism businesses and 60,000-strong workforce have displayed extraordinary resilience and ability to innovate in response to COVID-19. “The global impacts of COVID-19 are being felt right around the country, so we know that Gold Coast’s economy will take a few years to recover from the fallout of this pandemic - though we know that tourism, the region’s main economic driver, will be instrumental in its recovery. We are in a fortunate position where we can leverage our highly successful brand ‘Australia’s favourite playground’ to entice our bread and butter domestic market. That said, support from all three tiers of government, including the extension of the JobKeeper payment, continue to provide vital measures of support for the tourism sector.”

Sunshine Coast makes in-roads with the drive market Destinations that emphasise nature, health, and well-being ResortNews | September 2020

might be in pole-position, but some coastal resorts are on a “knife edge”. Craig Davidson, interim CEO at Visit Sunshine Coast told us: “The impact of COVID-19 hasn’t been uniform across the region. Clearly, loss of interstate and international (particularly New Zealand) markets has impacted the region, but we moved very quickly to target the drive market and so areas like the Sunshine Coast Hinterland have experienced a highly successful winter. “This has been fuelled by the Brisbane and south-east Queensland travellers, who – rather than flying overseas to escape the winter - have actually chosen to embrace the cold, opting for log fires, red wine, and long walks. Many accommodations have enjoyed their best-ever winter, though the region’s usually popular wedding season in spring is likely to be badly affected by COVID restrictions. “Some of the coastal resort areas have been more impacted by the loss of interstate and international business, but the

ResortNews | September 2020

Photo courtesy of Mackay Tourism

region has looked to innovative solutions such as the launch of direct services by Alliance Airways from Cairns, targeting the north Queensland market. “Visit Sunshine Coast moved to a Queensland-focused strategy quite some time ago because the issue of borders was always likely to be volatile. We had been hopeful that regional NSW would have remained open because that was our strongest growth

market in 2019, but having some four million people within a 300km radius of the Sunshine Coast - who can only holiday within Queensland - means that we have a very powerful market. “Some of our resort areas have reported reductions of business by over 40 percent because of the loss of Victorian, NSW and New Zealand business, but beach areas like Caloundra have enjoyed good occupancies

INDUSTRY

with strong support from Brisbane. Operators have been reporting much shorter lead times on bookings and shorter stays generally, which has placed pressure on resourcing when combined with a lack of staff to choose from. “Weekends have been very popular across the Sunshine Coast region, with the Ekka longweekend in August seeing hotels in places such as Mooloolaba full.

all related to bookings from NSW and VIC. He said: “We are fortunate to have 80 percent return guest traffic and so even just addressing our return guests from Queensland has generated extremely positive responses. Discounting is not the answer, it really is about working hard and trying to get a continuous stream of bookings and traffic flow into the facilities.

Image supplied by Capricorn Enterprise

However, hotels and destinations that rely on groups and conferences have found the winter season more challenging, though some of them have been able to substitute traditional business with football and netball teams from interstate. It has really highlighted the Sunshine Coast’s sporting pedigree, and sports/outdoors related business will undoubtedly grow significantly in the future. “Government programs such as JobKeeper have undoubtedly lessened the impact of Covid-19, as have many of the State and Sunshine Coast Council measures, but the prolonged closure of borders meant that many accommodation and tourism businesses have been operating on a knife edge.

State and federal government support to assist with deferring any fees and charges for tourism businesses will assist with cash flow and help them along. Getting the virus under control in the southern states, and then a progressive reopening of borders in time for summer, will be essential if some operators are to recover. “The times have definitely changed and will have long-term implications. Destinations that emphasise nature, health and well-being, spaciousness and authenticity are in pole-position in the current environment, and fortunately the Sunshine Coast is ideally placed to benefit from our reputation in this area. We have built our brand over many years on a “Naturally Refreshing” theme

and will build on this with a new brand launch in Spring to further emphasise our credentials in this area. We have also attracted key people – such as Jenny Aitken in New Zealand – to prepare for an eventual relaxation in borders.” Eric Van Meurs manager of Sunshine Coast Resort, Atlantis Marcoola was optimistic. He told us: “Queenslanders have proven to be very resilient and eager to travel and we’ve been very pleased with the way the bookings were initially impacted due to the closure and then reversed with bookings coming from Queenslanders.” Although he saw thousands of dollars’ worth of bookings cancelled within 3-4 days of the latest border closure announcement, they were

“We’ve done very little discounting! We’ve done a tremendous amount of lowcost promotion and focused everything on direct bookings. You really don’t know from one week to the next what the rules of the game are really going to look like, and so you just need to be very mobile and pliable.” Eric hopes that, with any luck, weekending Queenslanders will continue to fill the gaps in bookings left by southern state visitors who usually stay this time of year to escape the cold.

Gladstone and the Discovery Coast: Agnes waters, 1770, and campsites are nearing capacity! Gus Stedman, CEO of Gladstone Area Promotion and Development Limited told us: “Initially, the impacts of COVID restrictions heavily impacted our region’s tourism industry. However, with the easing of Queensland restrictions we have seen a noticeable upswing in visitor numbers, our operators on the Discovery Coast have been especially busy. “The Gladstone Region initially marketed heavily within the region to encourage locals to holiday in their backyard. This was through radio advertising, print and social media. We have also been leveraging off the great work TEQ has done on the ‘Good To Go’ campaign, reaching the South East corner. Looking forward we are now focusing on our 400km drive radius and planning some great marketing initiatives to increase visitation from our surrounding regions and the drive market. “Our members are reporting reasonably strong numbers for this time of the year and we are delighted to see so many first-time visitors coming into the region. Agnes Water and 1770 has been nearing

Pumicestone Passage

INDUSTRY

ResortNews | September 2020

capacity for a few weeks now, which is fantastic to see! “In particular, the caravan parks on the Discovery Coast are nearly booked out weeks in advance. Our operators are happy with the return of visitors, however hoping that this influx continues in the weeks/months to come. Heron Island has also been reporting great visitation back to the island since the easing of restrictions, again hoping this continues. “Being a small region with a focus on the drive market we would like some more support for directional signage to the region. To become a destination of choice for relaxation, reefs, beaches, hinterland escapes and good old-fashioned service. A known gateway to the Southern Great Barrier Reef.”

Capricorn Coast “drive market” aids recovery but island operators plead for extended lease/land tax relief Feedback from regional tourism body, Capricorn Enterprise is mixed. Prior to the second border closure, operators advised that bookings had been strong and the June/July school holiday period was busy as the industry braced for more the uncertainty. Feedback from regional operators dating back to the last school holidays was positive. Maria Harms from Bronsan Pty Ltd, noted: “School holidays are off to a cracker start with the van park full, hundreds of people on tours every day.” Amanda Hinton from Capricorn Caves said: “We [had] fantastic bookings for the June/ July holidays (more pre-bookings than we have ever had by far).”

Hinchinbrook Family supplied by Townsville Enterprise, Photo: Megan Mackinnon

date marketing. Alyssah said: “The entire industry is grateful to locals supporting locals, the 400600km drive radius is a significant visitor market and geographically our region has an advantage. Our operators understand the challenges that come with COVID-19 and are implementing measures and business improvements along the way are adapting to their new ‘normal’.” Despite intense travel restrictions, the Capricorn Coast Visitor Information Centre welcomed 2356 domestic and 67 international visitors to the Visitor Information Centre throughout the months of June/ July, in comparison to the same period in 2019, which welcomed a total of 3368 guests (3081 domestic and 287 international) – a drop of only 725 domestic

and 220 international.” NOTE: this is not entire visitors to the region – just those who visited the information centre. Throughout the testing months of April and May, Capricorn Enterprise rolled out the first two phases of the region’s recovery campaign, enticing visitors to explore their backyards and support our local tourism industry. Alongside Tourism and Events Queensland’s ‘Good to Go’ promotions there are positive signs of slowly rebuilding our destination’s battling tourism sector. Capricorn Enterprise’s CEO Mary Carroll said: “Our local businesses and members have been incredibly grateful for the

constant support they have received from us as their Regional Tourism Organisation. Both federal and state government support to the tourism industry has been substantial. However, with uncertainty surrounding border closures and loss of bookings, we are asking the state government to provide an additional six month lease/ land tax relief particularly for our island operators. The extension of JobKeeper for businesses is most appreciated. “Fortunately, for Central Queensland, we have $4.5 billion worth of major projects underway and planned for the next decade, as well as a diverse economy including resource/ mining, agriculture, transport/ logistics, health, education, so our regional economy is healthy.

The second border closure was not totally unexpected, though still concerning, and local operators felt they were in a stronger position the second time around. Operators told us they are seeing bookings cancelled from interstate travellers but on the flipside, they are retaining visitors longer in Queensland; for instance, caravan travellers have decided to continue their stay in the Sunshine State, rather than return to southern states. Capricorn Enterprise has been promoting the concept of Queenslanders supporting Queenslanders, which has benefitted forward bookings to ResortNews | September 2020

Yeppoon Lagoon supplied by Capricorn Enterprise

INDUSTRY

The tourism sector will benefit from this regional growth and job creation. The development of Great Keppel Island Resort and Keppel Bay Convention Centre in Yeppoon are two major tourism projects which will take our destination appeal to the next level.” Tas Webber, chief executive officer of Mackay Tourism told us: “The relevant domestic and international visitor survey statistics are not yet available to quantify any reductions in visitor numbers, however antidotal evidence suggests COVID-19 caused a significant downturn in visitors to the region. With the easing of restrictions, Mackay Tourism is pleased to report a strong recovery in visitation as tourism in The Mackay Region looks set to return pre-COVID growth.”

Townsville’s strong drive market and new tourism projects aid recovery! Lisa Woolfe, Director of visitor economy and marketing for regional body, Townsville Enterprise told us: “The COVID pandemic and its evolving restrictions have continued to disrupt the tourism and hospitality industry in Townsville North Queensland, and like many of our neighbouring regions, our visitor numbers are reflective of this with reduced visitation across both

$3.5 billion into the regional economy in the 12 months before borders closed with 55,000 visitors a day compared to the 5,000 we have now.”

Family beach courtesy of Visit Sunshine Coast

tourism and hospitality in what is typically our peak season. “While we have seen reduced visitation as compared with other years, we are still seeing a relatively strong demand from our drive market from Cairns to Mackay and west to Mount Isa, which continues to occupy close to 70 percent of our typical tourism market. Townsville North Queensland is uniquely placed with new tourism products set to aid the region’s recovery substantially, particularly with the recent launch of the Southern Hemisphere’s first underwater museum, the Museum of Underwater Art, which is now open to domestic travellers. “Our region also continues to work closely with neighbouring RTOs and we have collaborated on a driving holiday campaign to encourage Queenslanders to take a holiday in the north, with a dedicated website, and substantial social media advertising investment. “Members, operators and hospitality managers continue to

navigate the COVID restrictions as they look to rebuild their business, but admit that while there is strong local support and patronage, the ongoing restrictions are prohibitive to their long-term viability, particularly with changes to the government support packages. “Townsville Enterprise will continue to advocate for our members to receive the support they need to regain confidence in the industry and rebuild their businesses, while remaining sensitive to the evolving health situation in other parts of our State and Nation.”

Tropical North Queensland went from 55,000 visitors a day to 5,000 Tourism Tropical North Queensland (TTNQ) Chief Executive Officer Mark Olsen told us: “COVID had cost the region more than $1 billion in visitor expenditure and that figure could be as high as $2.2 billion by December. Tourism generated

According to Mark, TTNQ led the charge to lobby state and federal politicians for assistance, including asking for a wage subsidy which resulted in JobKeeper, one of the many lifelines enabling businesses to continue trading. Last month he said: “Tropical North Queensland has the greatest number of businesses on JobKeeper of any region in Australia and 70 per cent of the region’s businesses are still closed. We are grateful the federal government will continue JobKeeper beyond September and would like to see an extension of other relief measures by the state government. “Businesses need the Queensland government’s Business Support Program extended to June 2021. This includes permit and application fee waivers, port and passenger charge waivers, payroll and land tax reductions and rental assistance. We also ask for a full fee waiver on commercial vehicle and vessel registration until June 2021 for businesses on JobKeeper, additional loans for businesses in tourism dependent communities and for funds in the Industry Support Package to be quarantined for significant employers in tourism and tourism dependent communities. “This support will ensure our destination retains the visitor experiences that have made the Cairns and Great Barrier Reef region Australia’s most desirable nature-based coastal and aquatic destination. The Cairns and Great Barrier Reef region has what the world wants once travel resumes - space, warmth and an environment that makes us Sir David Attenborough’s favourite place on Earth.

image courtesy of Capricorn Enterprise

INDUSTRY

“TTNQ is working hard to ensure we take advantage of this so we can grow market share in the post-COVID world. The ‘See Great, Leave Greater’ marketing campaign was reshaped to suit the rapidly changing domestic marketplace with the enviable result of Cairns now the number one region in Australia for Google travel searches.” ResortNews | September 2020

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Michael Song’s MR Empire By Paul Shih, PRET Australia Trainer

From a cleaning business to a management rights empire, Michael Song’s enviable portfolio now boasts more than 20 buildings across three states, including some of Australia’s tallest buildings.

I found it hard to believe, upon our first meeting, that such a young man was the founder and CEO of Song Properties, a group that manages over 3500 units across 20+ buildings in Queensland, Victoria, and South Australia. At just 34 years’ old, Michael Song has achieved more than most in our industry!

PERSON OF INTEREST

(Song Dynasty):

Back in 2003, Michael arrived in Adelaide as an international high school student from China, then moved to Brisbane in 2006 to study accounting at Queensland University of Technology (QUT). His first job was working as a waiter at a Chinese YumCha restaurant, serving hot tea, clearing dishes, and figuring out how to carry more plates at once without breaking any. Michael attributes his success to a few key lessons he learned from his parents: how to deal with people, how to analyse problems from different perspectives, how to work hard, and how to save money. He learned to be adaptable at work and appreciate any opportunities thrown his way. He says he always believed that in this lucky country he would not starve but that hard work would bring him a better life. Michael started his own cleaning business back in 2009, and this marked his first encounter with the management rights industry. One day, after an argument with one of his onsite manager clients, he came back home to his apartment, hungry and tired. His roommate had prepared a hot pot for dinner, and as he went through the leftovers, Michael noticed the Chinese newspaper used to cover the dining table had an advertisement listing for Pine Tree Apartments Management Rights for sale. He thought to himself, I can do better than other onsite managers. So, he used his hard-earned savings and bought his first management rights business off-the-plan in 2011. There were many challenges for an inexperienced onsite manager to face in an offthe-plan apartment.

Michael Song

ResortNews | September 2020

INDUSTRY

Australia 108, Southbank, Melbourne

With so many vacant units at settlement and investors demanding high rental and minimal vacancy periods, Michael did whatever it took to lease out the units, utilising all possible platforms, channels, and personal connections. Within two weeks, the developer had smooth settlements, all investors had rental incomes, and all tenants had comfortably moved in. At the very beginning, Michael did everything himself; leasing, cleaning, simple repairs, and communicating with body corporate. His company grew from one person to two when his mother came to Australia in the second year to help her son with cleaning. The Song family purchased their second management rights at Woolloongabba, with the mother-andson team working seven daysâ&#x20AC;&#x2122; a week for five years. Client satisfaction gave Michael a great sense of achievement, and this is when the Song Empire blossomed into existence.

INDUSTRY

Before the COVID-19 crisis at the beginning of 2020, Michael had employed about 450 contractors and team members across 20+ buildings, including the tallest residential towers in Brisbane and Melbourne. Michael explains that every team member had a say in the company, with every suggestion analysed by higher management and trialled at one of the buildings. If the ideas worked, they would then be actioned across all buildings to improve the whole system. â&#x20AC;&#x2DC;One Team One Dreamâ&#x20AC;&#x2122; is the Song business motto and employees are encouraged to pursue personal growth as the business expands by learning from each other and complementing each other. Michael strongly believes people make the brand; the brand does not make the people. His team is extraordinary, and he treats each member like family, from frontline cleaners to executives. As the foundation of his brand, Michael makes time to mentor and encourage team members so they are empowered to implement and trial cutting edge ideas that can propel the company to reach new heights. He proudly explained: ResortNews | September 2020

TIMELINE “Without great people sharing a common vision there is no ‘One Team One Dream’.” The most challenging project Michael has worked on was the Brisbane Skytower, he told me. The developer settled over four stages: Michael’s team had to operate the first 16 levels when the builder built to 35 levels. At first it was marketed like it was completed and not a construction site, but stage one had no recreational facilities whatsoever and two construction lifts would carry tradies up and down close to a hundred times a day, creating noise and vibrations throughout the building. The noise of the concrete pumps became louder and louder and the building continued to grow taller and taller. Every landlord wanted their units rented yesterday, without realising these difficulties. Tenants could only move in after construction workers had finished using the lifts. Michael had to become creative to combat the initial downfalls to operate a business in these conditions. He communicated with all owners that getting $20 less per week is better than losing $500 per week with their unit sat vacant, ResortNews | September 2020

and implemented incentives like free minibars upon arrival and free internet for long- and shortterm guests at his cost. Michael also lowered the building’s rating to four-star during the height of construction difficulties and his team is now working to adjust the rating back to five-star. As a result of

2003 2009 2011 2013 2014 2016

Studying Accounting at QUT

2017

The Eminence @ Carlton VIC Brisbane Skytower @ Brisbane QLD Ivy and Eve Apartments @ South Brisbane QLD

2018

Atlas @ South Brisbane QLD Arise on Hope Street @ South Brisbane QLD Harmony Apartments @ South Brisbane QLD Ruby @ Gold Coast QLD

2019

Northcliffe Residences @ Gold Coast QLD Brisbane One @ South Brisbane QLD Sky One @ Box Hill, VIC Arise Kawana Waters @ Buddina QLD Collins House @ Melbourne VIC

2020

Australia 108 @ Southbank VIC Arise @ Fortitude Valley QLD Arise @ Adelaide SA Marine Quarters @ Gold Coast QLD

Started Cleaning Business Pine Trees Apartments @ Mt Gravatt QLD Eastwood Apartments @ Woolloongabba QLD Arena Apartments @ South Brisbane QLD Soda Apartments @ South Brisbane QLD Spice Apartments @ South Brisbane QLD Princess Regents @ Woolloongabba QLD

this strategy, the first stage was leased out within six weeks! The key takeaway for Michael was that communication resolves unnecessary problems. Michael and his team have always strived to achieve maximum return for their landlords, so half of the units they managed were short-

term rentals prior to COVID-19. However, the pandemic has hit hard in areas of the CBD and in tourism hotspots. So, they have been busy turning most of their short-term rental units to long-term, working with struggling landlords. He explained that management rights operators’ interests are always aligned with the property owners; so, when the market is tough, everyone is in it together. The current aim is to achieve stable income for all investors to maintain some cashflow. Michael has continued to improve his corporate structure and prioritise team building during this challenging time. He said he foresees the post-COVID era over the next 5-20 years will face various challenges due to changes in lifestyle and consumer habits. Michael said he supports ARAMA as it provides a voice for the industry and he consults expert trainers from PRET Australia for his business.

Sky One, Box Hill, Melbourne

INDUSTRY

Finally, he shared that his role model in life is Warren Buffett : “I would love to talk to him about ‘the snowball effect’ and the sustainable growth of his empire.”

ARAMA REPORT

Resident managers: a counterpart for long-term success Buildings with management rights thrive in good times and, as we have seen this year, perform relatively well in the face of adversity. Body corporate committees, on behalf of their lot owners, would be hard-pressed finding a more capable counterpart for the longterm success of their building and its stakeholders than a management rights operator. The support they offer is broader than it ever was and their importance and value cannot be overlooked or misunderstood in what is a fast-moving industry with many suppliers and consultants. Management rights operators, or resident mangers, live and work in the complex and it is their business to provide caretaking services and

Creating and maintaining harmony is in the best interests of the scheme and its lot owners, including the resident manager Trevor Rawnsley, CEO, ARAMA

manage onsite letting. This arrangement puts them in the unique position to understand the intricate needs of a complex and its stakeholders and offer considerably more value than any external provider ever could in providing advice and action. They build confidence with bodies corporate and trust with investor owners;

something that can only be achieved by performing well, building relationships, and maintaining a proactive focus on the ongoing success of the building at large. Their intimate knowledge of a building places them best to ensure its condition and appearance are maintained at the highest level. They balance costs with the benefits and desired outcomes and bring experience and value to this challenge.

closely with their resident manager will know that they can deliver better bang for buck compared to finding and managing external contractors.

They also live alongside tenants and guests they let units to, providing other residents with comfort rentals are being managed properly. Investorowners are also confident their asset is being protected.

Creating and maintaining harmony is in the best interests of the scheme and its lot owners, including the resident manager.

From understanding legislation and by-laws to keeping across local news and developments, resident managers make it their business to understand everything that impacts on a complex to best serve the needs of its stakeholders. Bodies corporate who work

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

After all, operators have a management rights agreement – a saleable commodity – to protect. It is absolutely in their best interests to do a good job and maintain relationships with the body corporate and lot owners and protect their capital gain when it’s time to sell.

Body corporate committees come and go, lot owners come and go, and resident managers come and go, but history shows us that ‘best for building’ decision-making delivers the best results. I am proud that management rights operators prove time and time again to offer immense value and reliability in helping schemes function and flourish.

QLD - NSW - VIC - WA

For membership enquiries:

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

INDUSTRY

ResortNews | September 2020

The NSW Government passed The State Revenue Legislation Further Amendment Act 2020 (“Act”) effective from June 24. It is relevant to trustees of discretionary trusts (including discretionary testamentary trusts) that own or will purchase residential property in NSW and have trust deeds that do not contain a term preventing foreign beneficiaries from benefitting under the trust.This includes building managers who buy residential units in the name of their family trust. The transitional provisions under the Act allow for exemptions and refunds of surcharge purchaser duty and land tax, provided that the trust deed contains terms that prevent a foreign person from benefitting.

Background On June 21, 2016, ‘foreign persons’ in NSW became liable to pay: 1.

a surcharge purchaser duty (currently eight percent of the market value of the property) on the acquisition of residential property in NSW, and a surcharge land tax (currently two percent of the unimproved value of the land) for any residential property in NSW owned as at December 31 each year.

ResortNews | September 2020

This includes building managers who buy residential units in the name of their family trust. the trust is a foreign person (the ‘no foreign beneficiary requirement’); and

Col Myers, Small Myers Hughes

Under the transitional provisions at the time, a trustee of a discretionary trust was deemed not be a foreign person if the trust deed prevented a foreign person from being a beneficiary prior to the commencement date of the Act (i.e. date of assent being June 24). The Act provides that trustees of discretionary trusts who have amended their trust deeds on this basis will be entitled to an exemption from, or refund of, prior surcharge liabilities.

Trust deeds amended between June 24 and December 31, 2020 From 24 June 2020, to access the exemptions (and refunds of prior surcharge liabilities) and not be considered a foreign trustee, the amendment to the discretionary trust deed must meet both of the following requirements by December 31, 2020: •

•

the terms of the trust must not be capable of amendment in a manner that would result in a foreign person being a potential beneficiary (the ‘no amendment requirement’).

Opportunities before December 31, 2020 Trustees of discretionary trusts which own residential property in NSW should strongly consider whether to amend their trust deeds before December 31, 2020 to irrevocably prohibit foreign persons from benefitting. If the trust deed is not amended to irrevocably exclude foreign persons from being a beneficiary of the trust before midnight on December 31, 2020, the trustee will be considered a foreign trustee and: •

no potential beneficiary of

INDUSTRY

surcharge purchaser duty (currently eight percent of the market value of the property) will apply to the purchase of residential property in NSW;

•

land tax surcharge (currently two percent of the unimproved value of the land) will apply annually on the residential property in NSW held as at December 31 of each year;

•

land tax surcharge will apply for the 2017, 2018, 2019 and 2020 land tax years: and

•

there will be no entitlement to receive refunds for surcharge duty or surcharge land tax already paid in respect of the above transactions or land tax years.

STATE REPORT

Does your family trust have residential property in NSW?

Summary If you have a family trust deed and you intend to acquire residential property in NSW in the future, act now and arrange for you solicitor to make the appropriate amendment to your trust deed before December 31, 2020. After that date, the opportunity to avoid the substantial additional taxes will be lost! Disclaimer: This article is provided for information purposes only and should not be regarded as legal advice.

BCCM REPORT

COVID-19 financial impacts

in community titles schemes With Queensland experiencing a gradual re-opening through the easing of many restrictions, a lot of the state is returning to business as normal, or perhaps a new normal. The effects that COVID-19 border closures, physical distancing requirements, travel restrictions, job losses and consumer uncertainty have had on economic outcomes for many in the community titles sector are ongoing. The Queensland Government has introduced a range of measures designed to support community titles schemes to manage the economic impacts of COVID-19 within their schemes. In the community titles sector, these economic outcomes mean that many owners who are suffering financial distress may be experiencing difficulties paying their usual body corporate levies. Body corporate levies are crucial to the short and longterm viability of community titles schemes. At the annual general meeting each year owners, by ordinary resolution, agree on administrative fund and sinking fund budgets required for the satisfactory operation of their scheme, and the amount and dates of the levies that owners will need to pay during the scheme’s financial year to ensure the scheme can meet the budgeted expenses. Administrative fund budgets cover recurring day-to-day expenditures and insurance premiums for the financial year. Sinking fund levies are based on the scheme’s capital works requirements in the current and future nine years. Late or non-payment of levies can therefore have a significant impact on all aspects of a scheme’s day-to-day operations, as well as the ability to maintain scheme common property to the standards required or sought by owners well into the future. The Government’s Justice and

The restriction on charging penalties for overdue levies during the COVID emergency period applies to all schemes Michelle Scott

of the COVID-19 emergency, or for all owners generally;

Commissioner, Body Corporate & Community Management

Other Legislation (COVID-19 Emergency Response) Act 2020, which commenced May 25, 2020, provides a toolkit to assist bodies corporate to respond to financial challenges, such as late or non-payment of levies, that are resulting from the COVID-19 emergency. For community titles schemes under the Body Corporate and Community Management Act 1997, the Act includes measures from May 25, 2020 until December 31, 2020 (the COVID emergency period) to: •

prevent bodies corporate from charging a late payment penalty for overdue levies during the COVID emergency period;

•

allow bodies corporate to, by ordinary resolution, adopt a sinking fund budget for the current financial year that does not meet the usual requirements to provide for capital expenditure for the next nine years. A body corporate that has already adopted its budget may, by ordinary resolution, adjust it to reduce the amount for capital expenditure for future years, but if it does so, it must refund any overpaid amounts to owners regardless of whether they request a refund;

•

permit bodies corporate to delay recovery action for unpaid levies; and

•

borrow up to double the usual amounts by ordinary resolution.

budget to cover these costs. •

how extending due dates for levies for some or all owners will impact on the body corporate’s ability to meet its payment obligations to service providers. The committee must consider the body corporate’s ability to meet necessary and reasonable spending from the body corporate’s administrative fund and sinking fund for the current financial year in deciding whether to extend the due date for payment of a levy. Committees are encouraged to ensure they understand the timing and nature of the body corporate’s payment obligations, and the legal consequences if the body corporate is unable to meet these obligations, before extending due dates for levies.

•

how delay will impact on the prospects of success of debt recovery action and the body corporate’s ability to meet payment obligations in the short and longer term. Bodies corporate may wish to consider professional advice on these issues.

It is important to note that the restriction on charging penalties for overdue levies during the COVID emergency period applies to all schemes, whether there has been a prior decision of the body corporate to apply penalties or not. However, whether - and to what extent - a body corporate should utilise the remaining tools or measures in the Act to alleviate the financial burden of body corporate levies on owners, or otherwise manage COVID-19 financial impacts in their scheme, will very much depend on the circumstances and requirements of each scheme. This is because bodies corporate are still required to act reasonably. Important considerations will include the short and longterm needs of all owners in the scheme, for example: •

allow committees to extend the due date for payment of levies for a particular owner if the committee is reasonably satisfied the owner is experiencing financial hardship because INDUSTRY

how adopting a reduced sinking fund budget in the current financial year will affect the sinking fund budget and levies in future years. In most cases a reduction in the sinking fund budget will delay but not remove the need for planned capital works in a scheme and associated levies to be raised. If so, a corresponding increase in sinking fund levies or special levy may be required in the next financial year to “top up” the scheme’s

Bodies corporate may also need to revisit these decisions over the COVID emergency period, as financial impacts continue to emerge and evolve. For further information about the measures in the Act and body corporate and committee obligations during the COVID-19 emergency, please refer to www.qld.gov. au/bodycorporate or contact my Office on 1800 060 119. ResortNews | September 2020

How can we work together? We are now almost 12 months on from the deadline for relevant QLD buildings to engage a fire engineer and register the details with the QBCC and around eight months away from the next deadline on May 3, 2021 to complete the building fire safety risk assessment, fire engineer statement and the combustible cladding checklist. We are now over 12 months on from the last significant update in relation to the progress of body corporate law reform in Queensland and over seven years on (yes, seven!) from the announcement of the review of property law (including body corporate legislation) by the then Attorney-General, Jarrod Bleĳie, on August 15, 2013. Oh, and did I mention that the Queensland state election is looming? I must admit that there has been a great deal of consultation by the government in relation to body corporate law reform. But, to date, there has been very little action. The strata sector is an incredibly important part of the State’s economy and community. With so many Queenslanders living, investing, working in, or servicing strata titled buildings, why are our voices not being heard loud enough? We have not had significant action on even the most simple and procedural reforms, such as the new Regulation Modules (as at the time of writing), let alone the other more controversial changes being explored in relation to the BCCMA. Additionally, when reforms are made that affect our industry, they are implemented with little understanding of, or consideration for, the ResortNews | September 2020

SCA REPORT

Body corporate issues and the upcoming election: Why are our voices not being heard loud enough?

James Nickless, President, SCA, Qld

challenges and costs that are imposed upon the stakeholder’s strata titled buildings. Many of these issues affect lot owners, bodies corporate and management rights owners alike. They have the potential to cause great tension within buildings and costs to all stakeholders in the industry. Take the response to flammable cladding as an example. Of the 19,000 buildings identified in October last year as potentially containing unsafe cladding, almost 17,000 buildings have been cleared of combustible cladding concerns by the QBCC. But for the approximately 2,700 buildings that are remaining, it means that they will not know the fate of their building until May 3, 2021. Well after the election. The problem with the approach taken by the Queensland government is that it passed the responsibility, liability and cost of identifying the buildings which had dangerous flammable cladding on to the owners, who are the very people that have been disadvantaged by the use of non-conforming building products in their buildings. Lot owners have been required to pay thousands of dollars to date in order to go through the process of registering their building, engaging a building industry professional to report on the type of cladding materials present in the building and

engaging a fire engineer. This has narrowed down the buildings that require a fire engineer’s report from potentially more than 19,000 to around 2,700. But that is still 2,700 buildings in Queensland that may have dangerous flammable cladding on their buildings and will not have a fire engineer’s report until May 3, 2021, depending on availability of fire engineers. That means that for these 2,700 buildings it will have taken around 3 years for them to be informed of how to ensure the safety of their residents. These 2,700 buildings have been at potential risk of a disaster like Grenfell Tower all this time. The owners of these buildings have done nothing wrong here. They have spent a large amount of money to buy their homes and are now being required to spend more money to find out the risks posed by the building materials used in their buildings and will be required to rectify any safety issues at their own expense. A motor vehicle is a much smaller investment, yet when they identify safety risks in motor vehicles, manufacturers must recall and repair those products at no expense to the consumers. Do we not deserve the same rights to safety where we sleep? Also, all of this has been at the cost and risk of the owners and any rectification works, which could be many millions of dollars per scheme, will also likely be at the expense of the owners. It is incredibly unfair. The statutory insurance scheme needs to be reformed to protect buildings

INDUSTRY

that are over 3 storeys in height. There also needs to be a statutory duty of care introduced with retrospective effect in order to enable these owners to seek compensation of the costs of cladding rectification from the responsible parties. We are seeking reform to the statutory insurance scheme as part of our election priorities that we have put to both sides of government. The comparison of the NSW Government’s advancements in establishing a statutory duty of care under the Design and Building Practitioners Act really shows a huge step forward in protecting the rights of unit owners and it is one that the Queensland got should also take. We hope that others within the strata industry will join us in calling out for proper and meaningful change to consumer protection in Queensland strata buildings by the introduction of a fairer statutory insurance scheme and a statutory duty of care owed to bodies corporate and lot owners. This type of reform will benefit lot owners, bodies corporate and management rights owners alike. Please join the conversation and stand up for your buildings and your industry. SCA (Qld) has published its Election Priorities ahead of the 2020 State Election and has called on the parties to address body corporate issues in the state, particularly the lack of room for self-governance in schemes. Read our full election priorities on our website: qld.strata.community.

LEGAL EASE

Topping up your agreement: A right or a privilege? I recall an experienced manager called Bill being asked at a management rights information seminar, “Don’t you worry about the body corporate not extending the term of your agreements?” That was quite an understandable question when you consider that the relatively high value of management rights in comparison to other businesses depends on a secure tenure. The response was enlightening: “That is the last thing I worry about. I know that the owners are aware of and appreciate the work I do for them and that when the time comes to add another option to my agreements, I will receive overwhelming support.” And he did, time and time again, in many complexes and over many years.

I appreciate that managers invest large amounts of money in buying these businesses but that does not give them the right to a top up

John Mahoney, Mahoney Lawyers

In my long career working in the area of management rights, I have witnessed many successful managers like Bill where the adding of options to the term of agreements (or ‘topping up’ as it is known) is almost a formality. There are many reasons for this but the two most critical are performance and communication. These managers have a thorough knowledge of their duties and

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present their complex (especially the grounds and gardens) in the best possible way. They make sure via newsletters and emails that their owners know they are doing a great job and they build strong relationships with owners and like-minded committee members whose focus is the good of the complex. Such managers do not consider a top up to be a ‘right’ or an ‘entitlement’ but rather something that they need to earn through working harder and smarter. If more managers realised this when they purchased their businesses, there would be a lot fewer problems with achieving top ups than we are seeing at the moment. I appreciate that managers invest large amounts of money in buying these businesses but that does not give them the right to a top up. I have had managers say that having paid hundreds of thousands of dollars for their business, or having the largest investment in the complex, entitles them to a top up. Unit owners might well respond that they are not the ones to whom the manager paid the money for the investment. If owners are being asked to support a top up request they are entitled to at least feel that they have benefited and will continue to benefit from the services the manager provides. At the risk of repeating what I have written and spoken about many times before, here are some tips for ensuring the most likely prospect of success when you seek your top up:

MANAGEMENT

•

Start thinking about your top up when you purchase your management rights.

•

Recognise that at some stage you will need owners to support a to top up of your agreements, so you need to give owners a reason to give you that support.

•

Build strong relationships with your owners to show that you care about them, about their complex and about their investment.

•

Do not ask, ‘how can I do less work and be paid more for it?’ but rather, ‘how can I improve this complex for my owners and build a good relationship with them?’.

•

Understand your duties and perform them to meet or exceed the owners’ expectations; go the extra mile, even if something may not strictly speaking be part of your specified duties.

•

Make sure owners are aware of the good work you are doing. Keep them regularly informed with newsletters or social media posts. Send photos of how good the complex looks and point out your high occupancy rates and rents.

If you follow the advice in this article you will hopefully not have too much trouble when the time for your top up comes but if you do, we have lots of material to give our clients facing opposition to a top up! ResortNews | September 2020

©kuprevich - stock.adobe.com

BY ALL ACCOUNTS

Are you ready for the Tax Man? Every year from July 1, all Australian resident taxpayers need to provide the deputy commissioner of taxation with a compliant tax return declaring all amounts of assessable income and the associated expenses they have incurred in earning this income. For some, this is quite a simple affair but for most trading within the accommodation industry, it can be more complicated. More often than not, an entity tax return i.e. trust, company, or partnership must to be completed as well as at least one individual tax return. I will now go through a stepped approach that should be useful in collating the required information and ensuring you meet your taxation reporting obligations.

Step 1: Due date for lodgment Find out from your accountant or tax agent what your due date for lodgment is. This due date will range from October 31 to May 15 the following year. For most businesses lodging with an accountant their due date will be May 15.

Step 2: Obtain a checklist or information request Contact your accountant for this. This may be a standard checklist or a more customised and detailed list of the information required. ResortNews | September 2020

Step 4: Ensure your bookkeeping software program is accurately reconciled to June 30 Whether you use MYOB, QuickBooks, Xero or another program you need to ensure that your data is accurately reconciled to June 30 of the relevant financial year. Jonathan Hanaghan, JonathanGrant Accountants

Step 3: Agree on timing and logistics Discuss how, when and where your work will be processed. Your accountant should have a standard processing timeframe. You may also want to confirm that your work will be completed in your accountant’s office and not via an offshore processing office. There is a growing industry trend for Australian accounting firms to outsource accounting and tax work to cheaper overseas countries. This is fine if you (the client) are aware that your accountant is doing this and are comfortable with it. I personally do not agree with this new trend as I believe in protecting and creating local jobs for Australian accountants and I have grave concerns regarding the security of taxpayer’s highly confidential financial data being transmitted back and forth overseas. Agreeing on the time frame for completion is even more important if you require your tax returns for a finance application, an annual bank review or are part of a corporate agent partnership.

This is important as it provides the starting point for your accountant to begin processing your work. Those that have their books kept internally by their accountant’s in-house bookkeeping services don’t need to worry about this step.

Step 5: Collate supporting information as per your checklist or information request This may require getting copies of bank and loan statements, purchase and sale contracts for assets bought and sold (including property, shares, motor vehicles etc.). You may need to contact your bank, solicitor, stockbroker, or real estate agent. This can take time, so it is best to get onto this as soon as possible.

Step 6: Make sure all ATO payments have been made and are up to date Ensure that any outstanding amounts of income tax, GST or PAYG have been paid. If this is not the case, you will need to advise your accountant.

MANAGEMENT

Step 7: Forward all information to your accountant This involves sending all requested information to your accountant together with any other written instructions including details to who is best to deal with any queries that may arise. At this point you may also be required to sign an engagement letter or similar document outlining both party’s roles and responsibilities. If you are unsure on any matter contact your accountant before sending. It is better to not start an engagement until all relevant information is with your accountant.

Step 8: Dealing with queries Make yourself available via phone or email to deal with any queries from your accountant. Most taxation compliance jobs have transactions that require clarification. It is best to deal with them as quickly as possible.

Step 9: Debrief This can involve a meeting or a phone call to discuss the resultant financial statements and tax returns. It is important that each client understands the contents of the tax returns as each taxpayer is ultimately responsible for the contents of their own tax return. This is also a good opportunity to discuss any other issues or questions you may have i.e. changing software programs or even selling the business. In summary, the taxation system in Australia is based on selfassessment so each taxpayer needs to take care when preparing their tax returns. This all starts with the quality of the information supplied to your accountant and the planning that goes into the process. A smooth engagement with minimal or no queries will always result in a much better outcome for client and accountant.

THINKING MR

Rabbits, hats, and getting your ducks in a row To pull a rabbit from a hat means “to do something very clever and unexpected that solves a problem”, according to the Macmillan Dictionary. What strange days these are. Not that long ago, our business was booming, and new loan approvals were coming in thick and fast. In fact, the loan approval was scarcely cause for celebration as we ran like hell just to keep up with demand. As of today, business is ok but no records are being set. New loan approvals are met with a mixture of elation and relief and we are running ads suggesting that getting a deal approved is akin to pulling a rabbit from a hat. In truth, it is not quite that difficult, but the marketing theme and imagery was too good to miss! Of course, the key to a positive outcome in the current environment is not just to be reliant on the fluffy-tailed hopper… Before the magicians in finance can conjure the trick, ducks must be assembled and put in a row. Like most magic tricks, preparation is key and best done in private to impress the audience.

Before the magicians in finance can conjure the trick, ducks must be assembled and put in a row Mike Phipps, Director, Mike Phipps Finance

banks as a highly organised professional with exemplary management and record keeping skills. Try to help us prove it by being just that. Our staff are here to help. If you suck at collating bits of paper tell us and you will get all the support you need. We want to turn up at the bank with everything they need and no hint of the amount of paddling those ducks are doing below the surface.

Financial records and the Tax Man Lodge your tax on time, have your last few returns ready and make sure you have no overdue tax payments. If you have, tell us and let us get this sorted before we turn up at the bank. If you have the money to clear

Skeletons in the closet Got an ex-partner with asset claims? Maybe contested credit arrears and a loan guarantee on a relative who has done a runner? We need to know, and we need the back story. Painful as it may be to disclose this sort of stuff it will speak volumes as to your character. Make no mistake, nothing looks worse than the bank finding out that you failed to make appropriate disclosures.

Risk and SWOT

While it is not possible to write a definitive finance application preparation list here, let us have a look at a few key areas that may help.

Finance application

©Oleksandr Moroz - stock.adobe.com

Yes, it is a laborious task and a spectacular example of the nanny state we live in. Resistance is useless and raging against the process is a waste of energy. Do not paint yourself as ‘difficult’ lest the bank decide that you are trouble. Stay calm and carry on filling in the many, many forms.

Timeliness We will describe you to the

the arrears do so. If not, we are going to need one hell of a story and preferably a true one.

MANAGEMENT

Our job is to paint a picture. That picture should reflect a low risk transaction for a lowrisk borrower. There is no such thing as zero risk, so the trick here is to identify risks and mitigate them. A compelling business plan, a few embarrassingly positive references (not from your mum), a detailed CV, including your Nobel Prize in Economics and a SWOT analysis goes a long way. What’s SWOT you ask? No, it is not a paramilitary credit approval persuasion team… It is a way of addressing key areas of your application via Strengths, Weaknesses, Opportunities, and Threats. ResortNews | September 2020

The headings are selfexplanatory but given that accommodation and property management have their own unique characteristics we are happy to review your plan and edit, as necessary. Like the business plan, SWOT analysis should not get bogged down in waﬄe. For example, growing the letting pool as an opportunity only works if you can describe how you are going to do it.

the summit is out of reach, just that it might be better to start with Mount Tamborine.

Equity and debt servicing You will need some equity by way of cash, sale of assets or supporting security such as a house you may own. If you are getting the dough from a third party, we need to know. If it turns out that money you said was yours turns out to be a ‘gift’ your bank application will likely turn into a large paper plane heading our way at speed and on fire. A genuine gift from family is fine provided we know about it from the get-go and it is documented accordingly. Equally, borrowing against your house is fine while borrowing against your 90-yearold mums, not so much. As always, we need to know exactly what is going on as we get one chance to present a compelling case to the bank.

Demonstrating self-awareness is a big positive with lenders. Admitting a weakness and outlining the plan to get up to speed reflects strong business planning skills and will be well received. Trust me, the credit manager looking at your application can see where the weaknesses are so addressing them early just makes good sense. We will always discuss the pros and cons of your situation and work with you to develop a plan that maximises the chance of a good outcome. On the other hand, if you are clearly trying to climb Everest without oxygen or a rope, we will suggest a stop at base camp. Not saying

Much has been written about debt service standards post banking royal commission. Having said that, not much has really changed and that

is because the fundamentals remain true. We have got to be able to show a bank that you can meet your commitments from day-to-day cashflow, regardless of your gearing and asset position. If your loan term is 20 years and you take five years’ interest only, you have got to be able to show that you can meet payments to clear the debt in 15 years, the so-called balance term. On top of this, we have got to stress test your repayment capacity by using a higher interest rate than currently available. Arguments around the likelihood of interest rate rises, capacity to clear debt from asset sales, etc., do not usually cut it. Following the royal commission living expense tests, which can have a significant impact on debt service capacity outcomes, have moved to a more individual level rather than a standard allowance as was previously the case. This has led to borrowers being compelled to detail living costs in great detail and lenders to trawl through bank statements in some bizarre attempt to establish the lifestyle costs of

the punter. The premise is that borrowers have no capacity to adjust their lifestyles in order to meet their commitments. This whole laughable saga came to a head when ASIC had a crack at Westpac in respect of their responsible lending living expense testing. I will leave you with what Justice Nye Perram had to say in his landmark, and entirely sensible, skewering of the ASIC case: “I may eat wagyu beef every day washed down with the finest shiraz but, if I really want my new home, I can make do on much more modest fare,” wrote Justice Perram as he carved up the argument that a consumer’s declared living expenses should be key to assessing whether they CAN meet loan obligations. “The fact that the consumer spends $100 per month on caviar throws no light on whether a given loan will put the consumer into circumstances of substantial hardship.” A blow for common sense to be sure.

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ResortNews | September 2020

MANAGEMENT

GOOD GOVERNANCE

Combustible cladding: Stage 3b and beyond Is your building one of the thousands of bodies corporate that contains some form of combustible cladding in Australia? Are you registered on the Queensland Safer Buildings Cladding Register and heading toward the Stage 3b deadline? Are you wondering what to do next? The Building and Other Legislation [Cladding] Amendment Regulation 2018 [Queensland] was introduced as an amendment to the Building Regulation 2006 [Queensland] in October 2018. It essentially outlaws the use of combustible cladding materials in Class 2-9, Type A and B construction in new buildings, and requires removal [or risk management] if installed in buildings older than January 1, 1994, built prior to October 1, 2018. If your building falls inside this category, you should have by now registered at Stage 1 and 2 of the Safer Buildings Cladding Register and be looking toward completing Stage 3b. Most likely, you will have engaged a fire engineer and possibly completed your Cladding Report. If you have done this, you will also be displaying your Aﬀected Private Building Notice (Form 42) in the entry area as well as informing all your occupants of the presence of cladding in the building via the Aﬀected Private Building Notice (Form 42).

Lynda Kypriadakis, Diverse FMX

It is likely that at Stage 2 your building would have been flagged with the Queensland Fire & Emergency Service (QFES) as a higher risk property so that if a fire breaks out onsite, the fire brigade can come prepared for a potential combustible cladding emergency. At least you can expect a prompt response to your fire alarm call! Perhaps a small perk of the big brother is watching scenario…

Safer Buildings Cladding Register Stage 3b Deadline - May 3, 2021 For applicable buildings, you have until May 3 to have your Building Fire Safety Risk Assessment (BFSRA) statement completed by the fire engineer. This statement will detail the extent of risk and propose remedial options to eliminate or reduce that risk as well as interim measures to implement until you remove, or otherwise, your cladding. Interim mitigation measures are

simply actions to be taken to reduce the risk of a catastrophic fire event occurring prior to the building owner can getting sufficiently organised to install the suggested upgrades required to eliminate the cladding fire risk. These may include additional evacuation procedures, extra notices around the building, changes to smoking onsite rules, etc. These interim fire safety measures will be prescribed within the fire engineer’s report and are likely to also be detailed by your building insurer. The most important thing to focus on at Stage 3b is the implementation of the interim fire mitigation measures recommended by the fire engineer in the BFSRA and the insurer under the policy for the building. As a body corporate (and/or a facilities manager or caretaker under a caretaking agreement with the body corporate) it would important that you retain an audit trail of implementing the prescribed interim fire mitigation measures. If a fire event was to occur on the common property of the scheme, the insurer would certainly be requiring these records as evidence of vigilance in risk management. Readers of this article who have influence over the common property, i.e. committee members, strata managers or building managers, are encouraged to take heed and ascertain who, i.e., which individual, is taking care of this important duty.

Building upgrades required due to combustible cladding concerns can be expensive and involve a great deal of financial distress and disruption to bodies corporate. The temptation to put these works off will for various reasons will no doubt be there, however the primary repercussion of avoiding replacement of your combustible cladding and relying on interim fire mitigation measures is likely to be a spike in your insurance premium, additional excess charges and potentially further requirements imposed by your insurer. Eventually your building may find itself uninsurable. When projecting costs for cladding or fire protection system upgrades, do not forget to include these other associated costs: •

Q-Leave Levy for works over $150,000

How long do we have until we have to remove our cladding or upgrade our fire protection system?

•

Private Certiﬁcation. These works will be considered assessable under the Building Codes and will require certification.

If your fire engineer has prescribed that full removal of cladding or some sort of upgrade to the fire protection system is ultimately required to deem your building to be compliant under the Regulation and Building Code of Australia, it is likely that these measures will require significant costs and outlays.

•

Engineering design and certification

•

Project management

•

Colour consultant

•

Town planning consultant. If you are changing the colour of your cladding, you may also need to get an amendment to the Development Approval.

There doesn’t appear to be

a deadline for how long you can continue to implement your interim fire mitigation measures and avoid cladding upgrade building works or fire protection system upgrades; however, we expect that your insurer will have something to say about it! Expect changes to your insurance policy if you have combustible cladding and are implementing interim fire mitigation measures, so the key to your decision making is the cost of insurance premium increases over time, versus the cost to undertake the required building works.

MANAGEMENT

ResortNews | September 2020

No better time than now Last issue, we considered how day-to-day operations engulf every business owner’s time. When things are good, operating costs are not an issue. However, when activity decreases, the opportunity to look closely at excessive operating costs and how they can be reduced is available. It is only when a business operator drills down on specific expense items that they realise costs have blown out without being detected earlier. Considering some of those expenses we touched on last issue included interest on finance, cost of sales (stock), advertising, pay TV, bank and merchant fees, commission, electricity and gas. Let us now continue with the following that will eat into revenue if not kept to a minimum:

Rent If operating a leasehold motel this is relevant. Is the rent an acceptable market rent, not too high or too low? Rent evolves over time, as does the market. They can become too high or low: open communication and understanding between the relevant parties works both ways.

Repair, maintenance, renovation

Andrew Morgan,

Queensland Tourism and Hospitality Brokers

and chemicals. If offsite, then shopping around (if options are available) is a possibility, if onsite, then looking into reducing the costs of chemicals, power and labour. Power was covered off previously with solar or wholesale options as a possibility.

Laundry

Insurance

There are always differing opinions within the industry as to what is the most cost-effective, onsite or offsite? Offsite involves the cost paid to the laundry for pick up and replacement. Onsite involves the cost of wages, electricity/ gas, linen purchase, water,

Always an issue, it seems. Especially over the last 10 years. The rising costs of insurance have been a problem for everyone from small business owners to homeowners to multi-national companies. The absolute best thing to do in this respect is shop

ResortNews | September 2020

around. Do not accept the renewal that is emailed on the day the policy is due. Seek alternatives if you are not happy with the offering. Consider what the premium was the previous year and what is being offered now and why. Look at the sums insured and the excess. Really pull it apart and determine if you are over- or under-insured.

I include renovation here, although it is thought of as a capitalised item, however with changing taxation opportunities, some of these costs can be expensed immediately rather than being depreciated over time. Maintaining the required standard of presentation means constant repairs or upgrades. Completing this efficiently and cost-effectively as one can requires time and consideration. Seeking costeffective replacement items, etc., and quotes to ensure the required job is completed as opposed to something that may be excessive or more cost-effectively rectified.

Subscriptions What industry or non-industry bodies is the business subscribed to? Often businesses sign up to various groups that seemed like a good idea at the time but when you drill down on what and who you are paying to be a part

MANAGEMENT

of each month, a lot of these are no longer relevant or of interest. Cut what is no longer beneficial.

Telecommunications (telephone and internet) Making sure one is on the best and most relevant deal available can save dollars. How many phone lines are required? Is the data plan the best for the individual business? Is there a better option available with your current provider or with another? There are a lot of questions that need to be answered here and discussions with the provider (which can be long winded and require time) can be productive.

MOTEL MARKET

Part 2:

Wages One of the biggest expense items of any business needs careful consideration. It is not easy getting the required hours and what is needed versus excessive correct. Constant monitoring can only assist as far as areas such as cleaning goes. The amount of time required to clean a unit correctly without being excessive depends on many factors, such as unit size, whether it is self-contained, floor coverings, number of beds, etc. Deep cleaning is now a ‘buzz’ term for many businesses, which may really just be an extension of the ‘spring clean’ that was conducted regularly anyway. Consider wages in all areas of the accommodation business - units, reception, kitchen/ restaurant, yard/maintenance. Are these areas operating as efficiently as possible? All the above items are easily put to one side when occupancy rates are high. The opportunity to streamline them comes when things may not be as busy.

©MclittleStock - stock.adobe.com

INTONET

What is the value of your website? Buying or selling a business today invariably includes a website. It does not really matter whether you are the seller or buyer because either party must establish a dollar value as it is an asset. Just as obviously, the vendor’s view is a mirror image of the purchaser’s considerations and diametrically opposed.

So, why does a website have a value? The reason that a website has value is because a potential buyer can make a profit from it just as the seller can claim he has derived that profit. Nothing more, nothing less. If you seek the help from a plethora of various professional valuers, you may become totally confused and arrive at a very inflated value. Their usual equation looks something like this: total worth of the website = value of the amount of revenue earned from the website + value of age and inbound links + value of the domain name

website is invariably included in the trading account’s income column. The other components often break down into subcomponents and unless we are dealing with a major enterprise like the eBays or Amazons of the world there is a far simpler and, in my view, a more realistic way to unravel this conundrum. Arvo Elias, Cybercons

+ value of the page views and the unique visitors to the website + value of the amount of the website’s content. My first reaction is to wonder how one can possible establish the value of each variable in that equation. The monetisation method of each factor is debateable and often quite obscure even before that view is flavoured with the assessor’s own agenda. That equation is fine if one considers the website as a standalone commodity. In your case that is not so because the income generated by the

To begin, I would start to rearrange the order of the factors in that equation… The first component to inspect is the domain name. If it mimics the business name, we are doing well and if it ends in dot com or preferably dot com.au the first goal has been reached. In other words, if your enterprise is called “My Great Venture” then the preferred domain name should be “mygreatventure.com.au”. The second most important component is the actual content. That should be extensive but without repetition. Reading the content should be akin to a book; lots of valuable, concise, relevant, and interesting

MANAGEMENT

text. The sole purpose of all this content is to sell. Sell whatever the business you are buying offers to your potential clients. The most important information, complete with a call to action, should come first.

Clever selling prose relies on emotion rather than cold facts Effective content must have keywords accurately placed within the text with sentence structures playing a major part in search engine optimisation. There is also a relation between the visible text and certain aspects of code structure. If you have any doubts about evaluating these aspects, then professional advice is highly recommended. Today the compliance of the design for mobile rendering is very critical. Google has declared that dual indexing has commence and ultimately evolve into an index of mobile sites only. This means that currently a website will be listed in the normal manner irrespective ResortNews | September 2020

of its suitability for mobile devices while, at the same time, a second index of mobile friendly sites will be generated. The current classification of the site could, at worst, then mean that the whole design may have to be scrapped because of this non-compliance, or at best just have some minor code modifications applied. So, this is your first serious warning flag. Obviously to satisfy yourself of the true status just requires you to direct your mobile phone to the site and see if it displays properly: better still, go to the horse itself at “https://search. google.com/test/mobile-friendly” and do a more thorough check. To check if you are indexed in Google just go to Google, then search for “site:yourwebsite. com” and check the results bar that is returned. Your site results should show up under the “All” heading alongside “Image”, “News” and so on. This aspect is called responsive design and you should be fully converted by now. If the site still displays problems when displayed on mobile devices, it is best you obtain assistance

ResortNews | September 2020

The second most important component is the actual content

from a professional designer. Bear in mind that there is a tendency for what in effect are single page designs to be the preferred structure today. Again, brought about by the prevalence of mobile devices. Inbound links as a generalisation have little if any value; links from major brands however could have significant value, it really is a question of relevance and the amount of traffic they direct to the domain in question.

Finally, check the server log for the website. This will describe the number of unique site visitors, the pages viewed, where the visitors originate from and even the search terms used to land on the site. Make sure you view this log because, if nothing else, it will validate any claims as to the number of bookings/sales the site may have generated. Many logs will also display the time a punter has spent viewing a page and the last page viewed. Short visits

MANAGEMENT

can indicate a wrong search target having been reached. In other words, the visitors had no real interest in whatever was on offer; if however the majority of visits fall into this category there are grounds for questioning the overall effectiveness of the sit. Again, it may mean a full redesign is desirable. How you decide on the value is a vexing question for you… If a redesign appears necessary, you could be facing a significant outlay and professional guidance should again be sought. It is very important however that you have the registration and ownership of the domain transferred to you. Included in this should be the domain access keys, all the passwords and access data to allow you to manage the website, email system and the automated reservation systems which may be attached.

This is pure paperwork and must not be neglected I hope these brief comments may work as a guide for you before to acquire the keys to your new kingdom. Good luck!

TOURISM REPORT

Tourism businesses fighting for more support from pollies

“Are we as a country looking for eradication or suppression? If it is suppression then we need to have strategic plans and set guidelines across states to allow businesses to operate. “There is a need to implement more strategy on stimulating revenue for the industry.” TAA, in conjunction with AHA, have submitted a proposal to government for the exemption of FBT for three years for SMEs – this would stimulate both accommodation and food and beverage sales across the industry. He explained: “We are also working closely with Australian Chamber of Commerce and Industry and with Martin representing us on the Tourism Restart Taskforce which has been reporting directly into the NCCC – now the NCC.

©alphaspirit - stock.adobe.com

Hard border may not eliminate virus but will eliminate Queensland jobs, says sector

First, Michael gave the committee a quick overview of what the pandemic has done to the sector over the last six months and where it stands today – utterly decimated.

He said: “We now find the majority of hotels in CBDs right around the country operating 50 to 60 percent down on same time last year with Sydney and Melbourne hardest hit, with room revenues down in excess of 75 percent.

say it will take up to four years for our industry to return to anything like pre-COVID-19 occupancies and profitability.

Without a vaccine the industry needs help.

“The federal government’s support, in particular, JobKeeper has been our saving grace. It has effectively been able to keep our businesses afloat and our staff engaged while revenues have disappeared.” He thanked the government for the decision to extend Job Keeper. But continued: “With state border closures extended… no sign of international borders re-opening… and even our New Zealand bubble no longer an option… our industry will need ongoing support if we are to survive. “2020 is a write off and the first half of 2021 is not looking much brighter. In fact, forecasters

©Aleksej - stock.adobe.com

Tourism Accommodation Australia (TAA) CEO Michael Johnson and Chairman Martin Ferguson addressed the Federal Senate Committee, August 20, 2020. Due to the dire state of the industry in the shadow of COVID-19 and with no end in sight to travel restrictions, they demanded more clarity from the government on strategic plans and guidelines for businesses to decide now whether they can carry on for the long haul.

He said: “We need federal and state governments to be more in sync when it comes to border closures and openings… the industry needs to promote itself domestically and to the world and we cannot do that until the uncertainty ends. “We also need to understand whether we have the appetite or capabilities to operate in a COVID-19 world.

TOURISM

Now that Queensland’s premier has confirmed borders will remain closed until there are no cases of community transmission in New South Wales and Victoria, it may be Christmas before they open. Industry leaders and operators from across the sector have spoken out. The closures, although necessary for public health, are a continuing blow to Queensland’s faltering accom industry and are sure to cause further job losses. Talking about the border closure earlier in August Tourism Accommodation Australia CEO Michael Johnson said while health obviously had to come first, the closure was another blow to the struggling hospitality and accommodation sector in both states, especially in the regions. Accommodation Association CEO Dean Long said of the closures: “The accommodation sector agrees that health considerations must be at the forefront of decision making however this decision comes with absolutely no warning and will now mean an acceleration of job losses in Queensland’s tourism sector.” “The closing of Queensland’s border to the whole of New ResortNews | September 2020

South Wales and the Australian Capital Territory when there have been just 21 cases in total over the past month, less than one case a day, is extremely disappointing.” He asked that the government get the “balance right between protecting lives and protecting jobs and we should have a more collaborative and constructive approach.” Trevor Rawnsley, Australian Resident Managers Association (ARAMA) CEO told us he could not agree more. He said: “We wholeheartedly support [Dean Long’s] comments and we concur. The Queensland Government is hellbent on eliminating the virus and in attempting to eliminate the virus they are eliminating jobs. We are totally opposed to any hard border closure between NSW and QLD. We understand the concern all Australians have about what is happening in Victoria at the moment and our heart goes out to businesspeople and the general community in Victoria. The hard border closure between NSW and QLD is the most damaging thing that they can do to negatively impact the tourism industry and business in general.”

ARAMA wants open but shored up borders. Trevor, talking about recent cases of people dodging QLD border controls said: “Instead of putting people who fraudulently make statements on their border pass in a five-star hotel, quarantine them in prison in the remand cell until their day in court to send a clear and strong message to other Australians who are travelling across the border that there are consequences for their actions. “The entire population of QLD should not be punished for the poor choices of a few people.” In a message to the government, Trevor said: “Give the people of Queensland some hope by opening borders and let us get on and generate income from our efforts so we don’t have to rely on government handouts! At the end of the day, we’re talking about Queensland families at the brink of a mental depression as well as an economic depression because they’re not able to do what they know and are trained to do and want to do.” ResortNews | September 2020

Rainbow Beach courtesy of Visit Sunshine Coast

Queensland Premier Annastacia Palaszczuk told 7News that the health of Queenslanders must come first as the southern states grapple with new coronavirus cases. “I think we’re going to continue to see restrictions in Victoria up until Christmas time. That’s very unfortunate for people living there but it’s a serious situation,” she said.

Stars aligned for Sunshine Coast as Hemsworths and Adam Scott drive surge in booking searches for Maleny & Rainbow Beach The worldwide attention that accompanied Chris and Liam Hemsworth’s visit to Rainbow Beach, and Adam Scott’s live broadcast of a round of golf at the picturesque Maleny Golf Club, has seen online searches for the two Sunshine Coast destinations surge into Booking.com’s fastestgrowing Top 10 in Australia. The Booking.com survey

revealed the top ten searched destinations in Australia with a search-rank increase of over 100 places in July 2020, compared to the same period in 2019. The presence of the worldfamous acting and sporting greats further propelled the destinations’ status as rising stars, with Maleny teeing off to number two and Rainbow Beach beaming at number nine in the fastest-growing Top 10. Maleny – in the Sunshine Coast Hinterland – hit the headlines when world-champion golfer and Sunshine Coast resident, Adam Scott, used some of his isolation time to play a few games of golf at Maleny Golf Club, including one that he streamed live to his global social media audience. The unheralded club has never been busier. Rainbow Beach saw the arrival of the Hemsworth brothers and respective families in July, and while they enjoyed a very relaxed and low-key stay, their social media posts against the stunning beach backdrop sent

Adam Scott tees off at Maleny Golf Club courtesy of Visit Sunshine Coast

TOURISM

the Booking.com search engine into frenzy. Rob Gough – aka the Ice Man of Rainbow Beach – became an overnight celebrity for serving Thor his favourite salted caramel ice cream. “The fact that the Sunshine Coast has been able to create so much interest for two such diverse destinations highlights what makes the Sunshine Coast such a special destination,” said interim CEO of Visit Sunshine Coast, Craig Davidson. “While we have some of Australia’s most exceptional beaches, we also have a lush Hinterland, with its spaciousness and stunning natural attractions. “The reason why both celebrities and other travellers love the region so much is that it is so relaxed. Even the biggest stars let nature take centre-stage.” Commenting on the survey, Luke Wilson, Area Manager for Australia at Booking.com, concluded: “It is heartening to see travellers heading back to iconic coastal QLD and WA destinations for their winter holiday sun fix. “Our July search trends demonstrate confidence is slowly returning. Queenslanders, conscious of not being complacent of restrictions returning are also looking to travel to traditional coastal destinations mostly within one to two hours’ north drive of Brisbane. This correlates directly with our previous May and June wish list data which highlighted QLD was on the top of Australian travellers’ minds for the school holiday period.”

©Przemyslaw Koch, stock.adobe.com

TOURISM INTERNATIONAL

This is no time For timid leadership By Mandy Clarke, Editor

Echoing sentiments that came from our frustrated Australian industry leaders earlier this month, the World Tourism Organization (UNWTO) has said it is possible to safely revitalise world tourism but it requires strong leaders. Our governments must coordinate an international strategy that not only safeguards guests’ health but also creates a new travel norm that can save a multi-billion-dollar industry and countless livelihoods. Aside, perhaps, from those who have a significant financial stake in online retail, the COVID-19 pandemic has cost everyone a lot, but the travel and tourism industry has suffered an overwhelming blow. The global effects have been devastating. UNWTO secretary general Zurab Pololikashvili said that between January and May, the sudden and rapid fall in tourist arrivals cost an estimated $320 billion worldwide.

He stated: “That’s three times greater than the impact of the Great Recession in 2007-2009 on our sector – and this is just for the first five months of the year. The re-opening of borders to tourism is a welcome relief to millions who depend on our sector. But this alone is not enough, especially in view of recent announcements and measures which seem further and further away from the international coordination that UNWTO has been calling for since the pandemic erupted. “In these uncertain times, people around the world need strong, clear and consistent messages. What they don’t need are policy moves which ignore the fact that only together are we stronger and able to overcome the challenges we face. Those in positions of leadership and influence have recognized the importance of tourism for jobs, economies and rebuilding trust. This is only the first step. Now, they must do everything they can to get people travelling again, following and implementing all the protocols which are part of the new reality. “As UNWTO has said from the

start of this crisis, governments have a duty to put the health of their citizens first. However, they also have a responsibility to protect businesses and livelihoods. For too long, and in too many places, the emphasis has overly focused on the former. And we are now paying the price. “It doesn’t have to be this way. As a sector, tourism has a long history of adapting and responding to challenges head-on. In recent weeks, global tourism has led the way in finding and implementing solutions that will help us adapt to the new reality as we wait for a vaccine that could be many months away. Rapid but rigorous testing at ports and airports, and tracing and tracking apps have the potential to drive the safe restart of tourism, all of which builds on the learning curve of the behaviour of individuals and societies during these difficult past months. “These solutions need to be fully embraced, not just cautiously explored. To delay will be a catastrophe and risk undoing all the progress we have made to establish tourism as a true

TOURISM

pillar of sustainable and inclusive development. Moreover, it will be the most vulnerable members of our societies who will be hit the hardest as those most shielded from the economic and social consequences of tourism’s standstill urge continued caution. Shortsighted unilateral actions will have devastating consequences in the long run. By and large, people have learned how to behave in a responsible way. Businesses and services have put protocols in place and adapted their operations. Now it’s time for those making the political decisions to close the gaps, so that we all can advance together.” Zurab Pololikashvili has been Secretary-General of UNWTO since January 2018. He was Ambassador Extraordinary and Plenipotentiary of Georgia to the Kingdom of Spain, the Principality of Andorra, the People’s Democratic Republic of Algeria and the Kingdom of Morocco and Permanent Representative of Georgia to the World Tourism Organization (UNWTO) up to December 2017. ResortNews | September 2020

Tangalooma Island Resort By Mandy Clarke, Editor

TripAdvisor’s 2020 Travellers’ Choice Best of The Best Awards are based on millions of real guest reviews across hotels worldwide and focus on uncovering those that deliver the greatest overall guest satisfaction. Tangalooma Island Resort’s Bernie O’Keefe told me he was thrilled about the resort’s success.

This month, our Last Resort features more of a First Resort as we sought to spotlight a local provider doing amazing work! Surrounded by white sandy beaches, crystal clear waters, fringed by national park, Moreton Island is home to a pod of wild bottlenose dolphins, sunken shipwrecks, and Tangalooma Resort. This is possibly South East Queensland’s most iconic Island resort and the ‘first resort’ many of us Aussies ever visited. Tangalooma was also my first resort experience when, in 1982, I remember holidaying on the idyllic deserted tropical island paradise. We camped on the beach, swam with the dolphins, snorkelled in and around the wreck, and of course visited the resort daily. It was certainly another world for me (a pom from the Midlands in the UK) and I could not believe that this nirvana was right on Brisbane’s

ResortNews | September 2020

doorstep - only a 75 min trip. Over the years, I revisited the resort many times and took my own children who also loved the Island. They especially loved that Tangalooma Resort was used as a location for the 2002 Scooby Doo movie and I will never forget their delight at arriving on the old Tangalooma jetty. To my kids, Tangalooma Resort will always be “Spooky Island” but today there are not many reminders that the film was shot there, as the resort has been beautifully developed and transformed. Although not everything has

Recently, Tangalooma Island Resort on Moreton Island was named top three in TripAdvisor’s 2020 Travellers’ Choice Best of Best Awards.

He said: “It’s great to see that we are hitting the mark as a familyfriendly destination. We are lucky to have such a stunning location so close to a major city, but it’s great that our guests feel that the proximity to Brisbane and ease of access is being matched by the variety and calibre of tours and activities and overall experience on offer. It’s an honour to be recognised for delivering on that premise. Families keep telling us how safe they feel at Tangalooma.

This recognition places them in the top one percent of hospitality businesses around the globe. It is also one of the top three Family Hotels in Australia and one of the Top 10 Family Hotels in the South Pacific region.

“There are no cars, highways, or traffic jams to worry about. Our calm waters mean you don’t need to worry about the waves, and even when the resort is at capacity, it often feels like you have the beach all to yourself.”

changed over the years and the highlight of any stay is still the opportunity to interact closely with nature and hand feed the dolphins daily.

TOURISM

THE LAST RESORT

Coming in first:

Keeping up with

the Ladies in Management SUNSHINE COAST

The lucky door prize winner Leslie Baker from Joanne Apartments gifted by Melissa & Kelly from REI.

The inaugural Sunshine Coast Ladies in Management Rights luncheon was a huge success attended by over 40 from all over the coast. Thanks to Rumba Resort for hosting, Taylered Hospitality Services for updating us on current trends in the market and our sponsors Resort News, Resort Brokers and Freedom Internet. Looking forward to our next scheduled for November. The August luncheon held at Sunset Bar & Grill, Marina Mirage certainly set the scene for a relaxing lunch on the Gold Coast with more than 35 ladies taking to their seats for lots of great conversation, positivity, laughs and networking. Save the date for September 16 if you would like to attend the next monthly event! The Ladies in Management (LIM) lunches are held every third Wednesday of the month. For more details, please email: Marisa.Millane@freedominternet.org.

GOLD COAST

EVENTS & APPOINTMENTS

ResortNews | September 2020

New Gold Coast appointment for The Sheraton Grand Mirage Resort

Tourism Australia lands a new boss

Andrew Hutchinson

Domestic and New Zealand Tourism Australia has appointed Andrew Hutchinson to the newly created role responsible for leading the organisation’s focus on the domestic tourism opportunity, as well as the approach in New Zealand once border restrictions start to lift.

Keith Massey

Keith Massey has been appointed the resort’s new general manager. Keith comes to Sheraton Grand Mirage from Thailand, where he was general manager of the highly acclaimed JW Marriott Khao Lak Resort & Spa. Prior to Thailand, Keith held various positions across the globe in Singapore, China, India, France, Hong Kong and Malaysia bringing over 25 years’ experience in the hospitality industry to his new role. “I studied hotel management at a university here on the Gold Coast and have been able to work internationally for an extended period of time which has been wonderful but returning home has long been my ambition. To be offered an opportunity at the iconic Sheraton Grand Mirage, Gold Coast is just fantastic and I very much look forward to working with the hotels team in further strengthening the resorts positioning here on the coast and interstate.” Sean Hunt, Area Vice President, Australia, New Zealand and Pacific, Marriott International said: “It gives me great pleasure to welcome Keith Massey into his new role. This appointment will play an integral role in the ongoing growth and success of the Sheraton Grand Mirage Resort, Gold Coast during these unprecedented times.” ResortNews | September 2020

Jenny Aitken

New Zealand’s most experienced ‘Aussie travel specialist’ to represent Visit Sunshine Coast Visit Sunshine Coast (VSC) has secured the services of former Tourism Australia New Zealand manager, Jenny Aitken, who will now represent the Sunshine Coast region. Jenny successfully drove major increases in leisure and business events travel to Australia in her 12 years at the helm of Tourism Australia in New Zealand. New Zealand is the Sunshine Coast’s primary international market, attracting 84,000 visitors to year end March 2020, an increase of 20.5 percent from the previous year. The increases were built around a high-visibility in the New Zealand market and the growth in direct airline services into Sunshine Coast, which were temporarily postponed as a result of COVID-19. With the prospect of New Zealand returning as Australia’s first inbound international market, interim-CEO of Visit Sunshine Coast, Craig Davidson, said the timing of Jenny’s appointment will provide a major boost

in confidence for the Sunshine Coast region’s tourism operators. “New Zealand is in many ways a ‘natural’ market for the Sunshine Coast because of the attractiveness of our beaches, our year-round temperate climate and the range and diversity of our attractions,” he said. “Jenny offers VSC invaluable experience promoting Australia in New Zealand and she is already very familiar with what the Sunshine Coast offers Kiwi travellers. “In the short term, leisure travel will be the primary focus but as the current situation eases we will be looking to grow groups and business events travel out of New Zealand, especially once direct flights resume to Sunshine Coast Airport’s new international-capable runway. In the longer term we would anticipate growth in direct routes from beyond Auckland. “Jenny brings to the Sunshine Coast an extensive career in tourism, exceptional relationships across the New Zealand market, and a great ability to anticipate and fulfil market trends. She will be an outstanding addition to the Sunshine Coast tourism team.”

EVENTS & APPOINTMENTS

Andrew has 25 years of experience in the tourism industry, and takes up the Sydney-based role starting this month. He will manage Tourism Australia’s trade and consumer activities for the domestic and New Zealand markets. He joins the national tourism organisation from Adventure World Travel, where he was Head of Product and Operations Australia and New Zealand. Previously, Andrew worked for major travel brands such as Flight Centre, Qantas Holidays and STA as well as Pinpoint Mastercard. Tourism Australia Managing Director, Phillipa Harrison said his understanding of both the Australian domestic and New Zealand travel markets along with his commercial experience were deciding factors in the appointment. She said: “Australian tourism is facing unprecedented challenges due to the multiple crises impacting the sector, starting with the summer bushfires and now the coronavirus pandemic. In response to these events, we are reshaping our business and our marketing strategy to hone in on opportunities that will be critical to kickstarting recovery – starting with domestic travel and then New Zealand as travel and border restrictions are lifted.” The appointment of Mr Hutchinson follows the departure of Jenny Aitken who is now with Visit Sunshine Coast.

Highly acclaimed chef joins The Calile Hotel

Brasserie, then in Sydney at Bécasse under Justin North before relocating to France. He worked in Paris for six years within a number of Michelin-starred restaurants including Les Ambassadeurs at Hôtel de Crillon, Le Taillevent with Michelin-starred Alain Solivérès, and Le Cinq at Hotel George V with Michelinstarred Christian Le Squer. Upon Gunn’s return to Brisbane, he assumed the role of Executive Chef at acclaimed restaurants The Euro and Urbane working alongside Head Chef and now wife, Amélie Gunn.

Andrew Gunn

Former Urbane and The Euro Head Chef Andrew Gunn brings his vast international experience to The Calile with a new menu taking inspirations from Japan to Spain, France and Columbia, recalling his travels and experience in Michelin-starred restaurants. Hailing from Brisbane, Gunn began his career locally at Isis

Andrew said: “I’ve spent a long time in Europe training in 1 to 3 Michelin starred restaurants and learning about food all around the world and have come back to Brisbane wanting to share that unique knowledge and experience with locals and visitors alike! Our cuisine focuses on locally sourced Queensland produce that speaks for itself on the plate. I believe cooking the food you love is what makes you the best version of yourself and that’s what we’ve done here at Lobby Bar.”.

ARAMA presents some upcoming events Don’t miss the one-hour ARAMA Educational Webinar at 11:00, September 16: What is the Professionals’ view of the ‘New Normal’? There will be another at the same time, October 21. The ARAMA Management Rights Industry Training Program Brisbane (MRITP) is taking place September 30, as ARAMA has developed a one-day fully interactive training program for beginners and experienced management rights business owners. It will be hosted at Riverside Hotel in South Brisbane between 08:30 and 16:00.

Free virtual cleaning event, Cleaning Interactive The cleaning industry’s first high-tech event incorporating visualisation technology, will showcase a wealth of innovation and practical infection control insight. It is free to attend and the virtual event takes place October 6-7. The interactive stage will be a world first for the cleaning

industry, with virtual reality (VR) and augmented reality (AR) for an almost full sensory experience. Flexible format sessions will also be delivered via the Indie Stage, which you can find online from the event website.

Australian Tourism Export Council’s (ATEC) Build Back Better & Road to Recovery Tourism Now is a good time to work on your business and these ATEC webinars aim to prepare you for when people start travelling again. The ATEC series involves two parts: the first is Build Back Better (BBB), which is an ATEC leadership webinar where members can gain insights from panellists as they discuss a range of industry-relevant topics and challenges we are all facing. Road to Recovery Tourism (R2R) is a 36-week program designed to provide our industry with all the necessary tools to be ready for the bounce back. The Road to Recovery Tourism tutorials are 45 mins, free of charge and hosted every Thursday at 14:00 AEST. You can access these on the ATEC website.

PROGRAMME

RELIEF MANAGEMENT

& POSITIONS VACANT DIRECTORY

This months suppliers to the programme ACCOUNTANTS & AUDITORS

Erika Thomas & Associates pbb consult

BUILDING MAINTENANCE SERVICES

CIW Pty Ltd

FURNITURE

Hotel Interiors

FURNITURE - OUTDOOR

Daydream Leisure Furniture

MANAGEMENT RIGHTS AGENTS

Property Bridge

SIGNS

Signarama

VALUERS - REAL ESTATE

Herron Todd White

ROB & LYN KEEN Mb: 0406 884 343 E: roblynkeen@gmail.com

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

POSITIONS VACANT SHORT-TERM RELIEF MANAGEMENT COUPLE IN CARDWELL, FNQ

• Relief Onsite Managers • Experience with managing both short term and permanent complexes • Gold Coast, Brisbane, Sunshine Coast preferred

• Only 6 motel rooms & 6 apartments

Area of Service

• Flexible on dates between mid September to mid December

All Preferred Suppliers have been recommended by other accommodation properties for their service and have qualified for inclusion in the programme. The next time you need to use a new supplier, why not make life easier and use a Preferred Supplier.

RELIEF MANAGEMENT

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

• Hands-on, with some cleaning, towel laundry, lawns & garden maintenance • Easy to use Preno & Siteminder systems

• 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.

EVENTS & APPOINTMENTS

ResortNews | September 2020

New Travelodge hotel for Australia’s largest health precinct TFE Hotels and Drill Management Pty Ltd have announced a new Travelodge Hotel will be built as part of the multi-million-dollar West Grove development in Sydney’s western suburbs. The 100-room hotel, which is expected to open in 2023, will sit at the gateway to Westmead’s Health Precinct, and fill an important gap in the market – servicing both the hospital and medical industries as well as nearby corporates. TFE Hotels’ CEO Antony Ritch, said TFE was proud to partner with Drill and introduce the Travelodge Hotels brand into Australia’s largest health and innovation precinct. “Not only will the Travelodge Westmead debut a fresh new interior design with warm timber and earthy tones,” he said. “But, in partnership with the West Grove development, it will deliver long-term benefits as the thriving Westmead community continues to grow.”

Travelodge Hotel Westmead

The hotel’s proximity to the Westmead Hospital will also provide a comfortable and convenient midscale accommodation option for patients and their families at a time when they need it most. According to Ritch, Travelodge guests can expect to see a contemporary-look and feel when it comes to design that will elevate Travelodge’s traditional brand offering. Led by one of the world’s leading design studios, Chada, the hotel will feature simple yet stylish interiors throughout including the rooms, sixth level lobby, eatery and bar. “Chada had studied the market mix and are committed to providing

According to Mark Hovey, CEO of Drill Pty Ltd, the Travelodge Hotel is a key component of the West Grove development. “Drill are the first to introduce this option within the Westmead Health Precinct, so it fills an important gap within the overall district offering,” he said. “At the moment, if you are family living outside Greater Sydney and your child or other family member is transferred to Westmead, your only options for hotel accommodation are 15 minutes away. At West Grove you will be just metres away.” Hovey said West Grove would become the future heart of the Westmead Health and Innovation Precinct for health care professionals as well as local and regional visitors. Central design features include a lush, landscaped courtyard space activated with restaurants, cafes and bars. Construction on the hotel is expected to start in 2021.

Melbourne approves mixed-use mecca for 2021 construction The City of Melbourne’s Future Melbourne Committee has approved a new $600 million development venture that will be built on Maribyrnong River. A boutique hotel has been approved as part of the development, but no operator is attached just yet. WMW Developments will run with the project, working with developer Perri Projects and architects Foster and Partners and Fender Katsalidi. The staged development is pencilled in for 2026 completion.

Travelodge Hotel Westmead Precinct Courtyard at night

Travelodge Hotel Westmead Precinct Courtyard

ResortNews | September 2020

our guests with hotels rooms they’ll want to spend time in, and flexible relaxation and workspaces for modern travellers,” Ritch said.

DEVELOPMENTS

Someone has been busy during lockdown… A former Sunshine Coast motel has been reborn as a chic boutique hotel with a touch of glam. Loea Boutique Hotel is a stunning new example of ‘everything old is new again’. Located opposite the Maroochy River on Queensland’s Sunshine Coast, the property has undergone a renovation of epic proportions, taking what was a conventional motel-style accommodation offering and transforming it into an ontrend chic boutique hotel. Loea offers double, twin and family rooms, the décor inspired by ‘warm breezy beach days’. Think a soft white colour palette, locally sourced rattan furniture, brass fixtures and luxury bed linen. But while Loea is fresh and modern, they have not forgotten their classic roots. Onsite guests are greeted with a vintage food truck van-comereception serving up locally sourced food supplied by Gather by Bonnie and a range of hot, cold and alcoholic drinks as well as a friendly welcome. There is also classic white cruiser bikes available for guests to use at their leisure, perfect for exploring the Maroochy River as you take the pathway to nearby Cotton Tree. Loea is owned by Andrew and Lucy Pink, who upon

relocating to the Sunshine Coast from the UK realised a gap in the market for boutique hotel-style accommodation. The result is a culmination of Andrew’ background in the hotel industry and their shared passion for travel and design. Features of the property include a luxe outdoor magnesium pool surrounded by a communal alfresco lounge area and garden, local organic skincare products in the room, a private outdoor deck for each suite and the vintage food van on site offering coffee, alcoholic beverages and delicious brunch, grazing and dessert platters available for pre-order. This is complemented by the little luxuries you come to expect at places like Loea, such as free wifi throughout, king size beds with luxury linen bedding, quality toiletries, free onsite parking, tea and coffee making facilities and air conditioning. Visit Sunshine Coast Interim CEO Craig Davidson said renovations such as the one at Loea gave travellers fresh new reason to visit the Sunshine Coast. “New products and experiences are an important part of keeping up with consumer demand,” he said. “They provide fresh incentive for visitors to stay longer and spend more, entice new visitors to the region and encourage return travellers to try something new.”

DEVELOPMENTS

ResortNews | September 2020

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Call Dennis Clark now on 0421 384 212 or email admin@hotelinteriors.com.au to discuss your requirements

MANAGEMENT RIGHTS RESORTS

MANLY WEST GREAT BUY! MULTIPLIER OF 4.6

ROBINA PREMIUM PACKAGE

• • • •

Modern, 7 year old permanent townhouse complex. 23 years remaining on agreements. Supportive Body Corp. Free standing 3 bedroom villa, 2.5 bathrooms, 2 car. Close to some of Brisbane’s finest private & schools.

Upmarket permanent in Robina CBD precinct. Superb 4 bed townhouse, dual living, double garage. Spacious office Low maintenance facilities & minimal grass. Pet friendly. No set hours. Accommodation Module 23 years to run.

NETT $170,000 PRICE $1,230,000

NETT $133,000 PRICE $1,251,000

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

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

WELLINGTON POINT SOLID BRISBANE BAYSIDE OPPORTUNITY

PACIFIC PINES PRICE REDUCED FOR QUICK SALE!

• • • •

Sought after Brisbane Bayside location at Wellington Point. Secure, family friendly area with excellent schools close by. 20 years to run, straight forward duties, positive Body Corp. Extra spacious 3-4 bedroom freestanding manager’s house.

Being topped up to the full 25 year agreement! 4 bedroom, 2.5 bathrooms, 2 car garage, standalone modern house. Low maintenance complex and easy to manage. No set office hours. Sought after location and easy to access M1.

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

NETT $245,000 PRICE $1,785,000 - $1,835,000

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

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

propertybridge.com.au | 1800 888 518

ResortNews | September 2020

Sales Report

Villa Samos | Gold Coast

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

MANAGEMENT RIGHTS Gold Coast Cambridge Heights

JS Ross Trust

Arundel

Villa Samos

Glenn & Andrea Bussell

Pacific Pines

RB MRS

Sunshine Coast / Wide Bay / Fraser Coast Azure on Double Bay

Glenda and Graeme Threlfall

Parrearra

MOTELS & OTHER New South Wales Yamba Sun Motel

Rob Salce

Yamba

Hi Way Motor Inn

Monovision Pty Ltd

Yass

RB Glenn & Andrea Bussell

Northern Territories Devils Marbles Hotel

Zed Motels Group P/L

Davenport

Note: Agent/Broker involved in the sale is listed last. Agent - KEY: RMS - Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RB - Resort Brokers Australia; RS - Resort Sales; TO - Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction

www.accomproperties.com.au

Congratulations to Glenn & Andrea Bussell, new managers of Villa Samos. Glenn & Andrea moved from New Zealand earlier this year to pursue a new life in Management Rights and after dealing with Warren Oliver from MR Sales, they were able to start their new chapter at Villa Samos in Pacific Pines on the Gold Coast. They have settled in extremely well.

Resort News Agent Profile:

Introducing... Mark Neale – Personal Profile Following a successful career in sales and marketing, Mark made the change to owning and operating management rights. Over the past 12 years he has had multiple townhouse complexes throughout Brisbane’s south and west, including the Logan area. After buying and selling several of his own townhouse complexes, he decided to apply those skills and knowledge in a career in management rights sales.

Currently Mark and his wife manage multiple townhouse complexes, keeping abreast of industry trends and changes. With his passion for the management rights industry and experience in getting the best out of business sales, he aims to achieve the optimal results for both sellers and buyers. Mark’s qualifications include: •

Licenced real estate agent Qld

•

Bach. of Business (Marketing)

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

Due to his experience in Brisbane, he is able to apply his local knowledge of these areas to optimise sales.

PROPERTY

Mark Neale 0439 022 929 MR Sales Queensland www.mrsales.com.au markneale@mrsales.com.au

ResortNews | September 2020

EXCLUSIVE AGENCY NEW OPPORTUNITIES

ID 7925 COVID PROOF BUSINESS - NSW

• Caretaking only opportunity • Well maintained permanent complex • Great location on the Tweed Coast

NET PROFIT:

$96,238

EX C AG LUSI EN VE CY

• No real estate licence required • Fantastic work / life balance • Buy yourself a job!

ASKING PRICE:

$898,000

EXCLUSIVE BROKER: Tony Johnson – 0433 335 679

ID 8790 BRISBANE SOUTHSIDE PERMANENTS

• Rare business only opportunity • 2 permanent complexes • 15 minutes apart

NET PROFIT:

ASKING PRICE:

EXCLUSIVE BROKER: Mark Neale – 0439 022 929

• Mixed letting management rights • Consistent performer • Strong tariff rates

NET PROFIT:

$79,000

EX C AG LUSI EN VE CY

• 11 units in the letting pool • 21 years remaining on agreements • Beachfront manager’s residence

ASKING PRICE:

$673,000

EXCLUSIVE BROKER: Antonio Curulli – 0488 030 853

EX C AG LUSI EN VE CY

• No real estate to purchase • No requirement to live onsite • Highly sought after for tenants

$307,000

ID 8595 YORKEYS KNOB BEACHFRONT

$1,660,000

ID 8468 ICONIC NOOSAVILLE COMPLEX

• 19 in the holiday letting pool • Well maintained • Great onsite facilities

NET PROFIT:

$285,000

• River activities across the road • Standalone manager’s residence • 22 years remaining on agreements

ASKING PRICE:

EXCLUSIVE BROKER: Matt Crimmins – 0409 816 635

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

EX C AG LUSI EN VE CY

$2,180,000

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

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

• • • • •

FORTITUDE VALLEY

• • • • •

LARGE REMUNERATION & 3% INCREASE!

Boutique building in Brisbane Inner City, close to everything Great remuneration $93K with 3% adjustment annually Very long 24 years left on BC agreements Very healthy relationship with BC committee Modern 2 beds/2 baths/2 carparks manager residence

NETT: $136,000

TOTAL: $1,195,000

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

One of Maroochydore’s finest

The Duporth Riverside By Mandy Clarke, Editor

“While you can create an oasis in your home, sometimes you need to regenerate in a fresh environment to feel free from the pressures of everyday life,” say the managers of Duporth Riverside Maroochydore Luxury Apartments. Visitors to Queensland’s Sunshine Coast quite simply seek paradise. They want an ocean or riverfront location; a luxurious resort full of worldclass leisure facilities and a sumptuous self-contained apartment complete with a spa bath... Oh and views, they want full, ocean views! The Duporth Riverside Maroochydore Luxury Apartments effortlessly fits the bill of what anyone could wish for in a Sunshine Coast holiday. This resort and its beautiful setting reflect the ambience of its desirable destination, situated on absolute riverfront with all apartments having spectacular river and ocean views. Resident managers Tony

Resident managers Tony Muller and Isabella Azzini-Muller

Muller and Isabella AzziniMuller describe their first visit to the The Duporth Riverside, where they say they were “absolutely stunned” at how stylish the resort was and how incredible the views were. Isabella said: “We could see instantly that the resort was a very ‘sellable product’ and, on top of that, the managers’ unit was everything we wanted, which was sizable with gorgeous views!”

Tony was born and raised in Mudgee, a town in the Central West of New South Wales. He met Isabella while playing professional rugby in Italy, they married and had two boys before returning to NSW to take over the family property. After 28 years on the land growing grapes and producing wine from the fertile valley region (Tony recommends trying the Mudgee red!), in 2018 they decided on a change of pace and set out to move near a beach.

PROFILES

Tony said: “Purchasing a management rights business was my idea as I knew about the business from my uncle, who had enjoyed his time in management rights and was successful. Management rights promised us a lifestyle change as well as a chance to be our own boss. “After many years on the land being ‘a jack of all trades’ I felt I could easily maintain and manage a resort building and facilities. Then to complement ResortNews | September 2020

What has been so sad is that most of our return guests have been forced to cancel this year

my skills, I knew Isabella’s exceptional administration abilities and expertise in the travel industry would help with managing bookings, and so on.” The busy resort has a mix of owner occupiers, renters, and holiday lets, with about 20 apartments on the holiday rental roll. These self-contained apartments are all modern and stylishly decorated, spotlessly clean, fully air-conditioned, with a private bathroom and spa bath, they have a fully equipped kitchen, laundry facilities, and the living area features a flatscreen cable TV, DVD player, free wi-fi, and all the mod-cons. Guests at The Duporth Riverside enjoy the heated swimming pool, hot tub, and the entire outdoor space was recently renovated.

ResortNews | September 2020

Isabella told us: “Our pool area was beautiful before but now the renovation work is complete, I admit it is absolutely gorgeous. We had plans from last year to renovate the pool area during May 2020, it went ahead and could not have worked out more perfectly because at this time we had closed, due to COVID restrictions, so the work did not disrupt guests or residents.” The resort location was also a big draw card for Tony and Isabella. Not only does the resort sit directly on the shore of the magnificent Maroochy River but it also has ocean views and is a two-minute walk from the recently refurbished and extended Sunshine Plaza, which is a shopping paradise on the Sunshine Coast.

PROFILES

TheManagement Rights Lawyers

Chartered Accountants & Business Advisors

BUYING/SELLING ASSISTANCE

OFF THE PLAN IMPLEMENTATION Peter Brewer

RENEWAL STRATEGY

We are widely recognised in the accommodation sector as specialist advisors. We work closely with industry lawyers and financiers to ensure our clients interests are protected and outcomes optimised.

DISPUTE RESOLUTION

Peter Brewer t: 07 5449 9992 e: peter@pbbconsult.com.au w: www.pbbconsult.com.au

Mahoneys are proud to be trusted advisors to Tony Muller & Isabella Azzini-Muller

www.mahoneys.com.au

www.pbbconsult.com.au 48

PROFILES

ResortNews | September 2020

The area around the resort has a variety of great restaurants, bars, boutiques, and cafes, with Maroochydore Beach and Cotton Tree Park just a short walk away and featuring BBQ facilities plus a children’s playground and great coffee spots. The famous Mooloolaba Beach is also a short drive along the picturesque coastal road. Tony and Isabella admit that although they had researched the management rights business model and had an idea of what was involved with managing a resort, they really did not imagine just how much work it would take in reality. They advise anyone else interested in the industry who does not have direct experience to do their homework thoroughly, and then do it again before they jump in. Isabella revealed: “Yes, it has been hard work. Much more than we realised but we are also very proud to have come through the last few years with such a great product. We will continue to work hard to achieve the best results and make the resort the best it

can possibly be so that when the time comes to sell, we will be happy to hand over a truly thriving business.” Tony said: “The last few years have been challenging and there has been so much more to learn about the industry than we predicted. We have so many more things to think about than just keeping the pool clean and greeting guests, with a very proactive body corporate, hands-on owners, a very busy holiday pool, and on top of that 2020 and COVID-19 threw us all an unexpected curve ball!”

In some ways, the COVID restrictions gave Tony and Isabella a chance to reflect on their business’s future and provided downtime for them to complete their outdoor renovations and refresh the apartments. These essential “catch up” jobs that would otherwise be on the backburner. As for a new COVID-19 normality, Tony and Isabella have introduced enhanced cleaning routines and strictly follow all the recommended precautions to prevent any spread of the virus and ensure guest and resident safety.

There is no hesitation from Tony and Isabella when I ask what they have enjoyed most about their last few years in management rights. “Definitely the people. We have had the pleasure of meeting some wonderful guests; some have even become lovely friends, but what has been so sad is that most of our return guests have been forced to cancel this year. “We just want to get back to having our guests return so we can share this magnificent resort with them once more.”

Fire Boar has been servicing the Sunshine Coast since 2008. tĞ dĞƐƚ͕ /ŶƐƚĂůů͕ DĂŝŶƚĂŝŶ Θ ĞƌƟĨǇ ĂŶ ĞǆƚĞŶƐŝǀĞ ƌĂŶŐĞ ŽĨ &ŝƌĞ /ŶƐƚĂůůĂƟŽŶƐ ŝŶĐůƵĚŝŶŐ &ŝƌĞ ^ƉƌŝŶŬůĞƌ ^ǇƐƚĞŵƐ &ŝƌĞ WƵŵƉ ^ĞƚƐ &ŝƌĞ ,ǇĚƌĂŶƚ ^ǇƐƚĞŵƐ &ŝƌĞ ĞƚĞĐƟŽŶ ĂŶĚ ůĂƌŵ ^ǇƐƚĞŵƐ ǀĂĐƵĂƟŽŶ ŝĂŐƌĂŵƐͬWůĂŶƐ

&ŝƌĞ ǆƟŶŐƵŝƐŚĞƌƐͬ,ŽƐĞ ZĞĞůƐ &ŝƌĞͬ^ŵŽŬĞͬhŶŝƚ ŽŽƌƐ Passive Fire ŵĞƌŐĞŶĐǇ ĂŶĚ ǆŝƚ >ŝŐŚƟŶŐ Fire Training

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07 5448 4890 ϭͬϯϱ ŶƚĞƌƉƌŝƐĞ ^ƚƌĞĞƚ͕ <ƵŶĚĂ WĂƌŬ ƐĐƐĞƌǀŝĐĞΛĮƌĞďŽĂƌ͘ĐŽŵ͘ĂƵ ǁǁǁ͘ĮƌĞďŽĂƌ͘ĐŽŵ͘ĂƵ

ResortNews | September 2020

PROFILES

THE PREFERRED SUPPLIER DIRECTORY THE ORIGINAL AND MOST TRUSTED BUSINESS TO BUSINESS GUIDE FOR THE ACCOMMODATION INDUSTRY ABSEILING SERVICES

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Smiljan Jankovic 0423 595 910 SmiljanJ@archergowland.com.au

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- GOLD COAST -

erika thomas & associates MANAGEMENT ACCOUNTANTS

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phone 07 5575 9649 | mobile 0411 841 868 erikathomas@bigpond.com

Paul Shannon

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07 5538 0999

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- SUNSHINE COAST “YOUR GUIDING LIGHT ON MANAGEMENT RIGHTS”

Your Sunshine Coast

Management Rights Specialists FOR OVER 20 YEARS

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07 5443 7789

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www.pmag.com.au

info@kampba.com.au

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P: 5456 4018

Phone 07 5534 4333

Eagle_Dad_Print.pdf 1 31/03/ E: renee@rcbaccounting.com.au W: rcbaccounting.com.au

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• Human Resources Y

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CMY

T: 07 5449 9992

Specialist Advisors to the Accommodation Industry

info@pbbconsult.com.au | www.pbbconsult.com.au

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ResortNews | September 2020

/15

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ResortNews | September 2020

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W I D E

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Suppliers of Quality Commercial Outdoor Furniture & Accessories • New Chairs • Tables • Sun Lounges • Umbrellas • Cushions & Accessories • Prompt Service Guaranteed REPAIRS - RESLINGS AND SUPPLY OF REPLACEMENT SLINGS TO P.V.C AND ALUMINIUM OUTDOOR FURNITURE

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ResortNews | September 2020

Look for the sign of an Industry Specialist

GYMNASIUM EQUIPMENT

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Specialists in management rights Off the plan sales qld & victoria Buying or selling best advice Rod Askew 0411 758 236 (QLD & VIC) Eric Brizuela 0413 060 683 (QLD) Nationwide: 07 3554 0040 Email: sales@rcabb.com.au

www.rcabusinessbrokers.com.au

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

Matt Campbell 0410 343 219 Barry Davies 0438 554 995

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www.managementrights.com Specialising in Motel & Resort Sales Qld wide Andrew Morgan m 0417 608 041 p 07 4953 1611 | w qthb.com.au

LINEN &/OR LINEN GOODS

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We get results. Pure & simple.

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Think Management Rights Wayne & Linda Stoll 0452 181 505

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Narelle Filmer 0459 229 744

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ResortNews | September 2020

PREFERRED SUPPLIER DIRECTORY

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

ResortNews | September 2020

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ResortNews | September 2020

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ResortNews, September 2020

Articles inside

PROFILES

DEVELOPMENTS

EVENTS & APPOINTMENTS

The Last Resort

Tourism Report

Good Governance

Tourism International

Intonet

Thinking MR

Motel Market

By All Accounts

Legal Ease

ARAMA Report

Person of Interest: Michael Song

Sunshine State COVID Report: How is your region faring?

BCCM Report

FRONT DESK

State Report

SCA Report