Resort News, June 2021

Registered by Australia Post Print Post No. 100023799

Issue 298 | June 2021 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Profiles Sea Point on Trinity Beach Aegean Apartments Person of Interest Erika Gibbs management rights • hotels • motels • resorts • holiday parks • time share • hosted SPECIALISTS IN ACCOMMODATION FURNITURE FF&E AND JOINERY Custom made furniture including packages & finance solutions.

Dennis Clark MDIA Hotel Interiors

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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. © 2021 Multimedia Pty Ltd. It is an infringement of copyright to reproduce in any way all or part of this publication without the written consent of the publisher.

Inside our June issue FRONT DESK Editors Note: Facing up to life with COVID .....................05

INDUSTRY News In Brief .............................................................................. 06 State Report ................................................................................08 ARAMA Report ........................................................................... 10 BCCM Report .............................................................................. 12 SCA Report .................................................................................. 14 Person of Interest: Erika Gibbs ............................................ 16

MANAGEMENT

16

Legal Ease..................................................................................... 18

By All Accounts .......................................................................... 19 Motel Market ...............................................................................20 Good Governance ..................................................................... 21 Thinking MR.................................................................................22 Building Relationships ............................................................23 Q&A with Jeffrey Su .................................................................24 Bad Reviews.................................................................................26 Intonet ...........................................................................................28

TOURISM

24

Tourism Report ...........................................................................32 Tourism International ..............................................................34 The Last Resort ..........................................................................35

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

Mandy Clarke editor@accomnews.com.au

INDUSTRY REPORTERS

Grantlee Kieza

DESIGN & PRODUCTION

Richard McGill

David Carroll ADVERTISING SUBSCRIPTIONS

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

Vale: David Ruxton ....................................................................36 ARAMA Industry Events Calendar .....................................36 Events............................................................................................. 37

DEVELOPMENTS Developement News ...............................................................40

34

PROPERTY

CONTRIBUTORS

New Manager Profile ...............................................................44

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

AccomProperties Sales Report ...........................................44

PROFILE Sea Point on Trinity Beach: Laughter is key to success

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

04

EVENTS & APPOINTMENTS

for new resort managers ........................................................46 Aegean Apartments: COVID-19: Unexpected results at Aegean Apartments .................................................................50

PREFERRED SUPPLIERS The Preferred Suppliers Directory ......................................54 FRONT DESK

50 ResortNews | June 2021

I have been out and about this month, excited to meet many of you and I am grateful that we can still do face to face meet-ups in our state.

My thoughts are with Victorians in lockdown (again) I know many are suffering both financially and mentally and I hope government assistance arrives urgently.

Last week, I ‘dropped in’ for drinks at the ARAMA event in Brisbane, if you have never ‘dropped in’ it is a great way to connect with other managers and it is always good to catch up with ARAMA’s Trevor Rawnsley.

This week I travelled to Sydney to cover the two-day NoVacancy Expo & Conference. Despite an absence of Victorians, it was well attended and a fantastic experience. Do not worry if you were unable to go, you can catch up with the main stories on our Accom News website.

A positive message from the

foreseeable. The experts warn that Aussie guests are not happy to just lay their head on a basic bed for a night, instead they want longer more luxurious stays. They want leisure and adventure and to compete you must create unique resort experiences, like those offered in the award-winning resorts our journo Grantlee Kieza spoke to for this issue’s tourism report.

Mandy Clarke, Editor editor@accomnews.com.au event was that Queensland’s industry is showing remarkable signs of recovery. On the other hand, Australian cities (except Brisbane) are in desperate need of tender loving care. Reading between the lines the message from many industry ‘bods’ and leaders, was to expect much more investment in regional Queensland and regional NSW. Another take away was confirmation that we will be living with COVID for many more years to come and our sector will be solely reliant on domestic travellers for the

On other matters Australia’s COVID vaccine rollout reached its next phase. Now people aged 50 and over are officially eligible to receive their shot (cough) this includes me, and I expect many of you. I am booked to have my jab next week.

I planned it meticulously around work deadlines and I had to sidestep two family Gemini birthdays. Due to a rare case of social butterflyness and optimism I have only figured in 24 hours for AstraZeneca side effects! Watch this space...

In May, our onsite managers at Accom Properties, were rewarded with a month of free membership to celebrate our newly refreshed website going live. This offer also went out to new members, so check out our website.

Accom Properties already outshines the other main provider of sales and rentals for onsite managers, but our new website exceeds even our own high expectations! Since it went live our stats show buyer engagement is up by over 42 percent and we received over 60 buyer email enquiries in the first weekend!

EDITOR'S NOTE

Facing up to life with COVID Our site now offers an enriched mobile user experience and much faster page load speeds.

We have streamlined the user experience, meaning it is not only easier and more responsive but also looks bloody fantastic.

As for Resort News this month we bring you two exclusive interviews, a Q&A with Jeffrey Su, Senior Associate at Short Punch & Greatorix (SPG) and an interview with Erika Gibbs, founder of Erika Thomas & Associates.

Finally, readers I hope you enjoy this edition of Resort News. As always, I welcome feedback and aim to publish more of what you would like to read, so please get in touch.

Cheers, Mandy

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ResortNews | June 2021

FRONT DESK

Dennis Clark MDIA Hotel Interiors

05

NEWS IN BRIEF

Images courtesy of Workplace Victoria

Stop hospitality workplace violence!

Work-related violence has a devastating impact on workers and can cause severe mental and physical injuries.

Sadly, many in the hospitality industry have experienced abuse.

WorkSafe Victoria has launched a new campaign calling on employers and the community to come together to stamp out violence in the workplace. Data shows while only 2.5 percent of claims relate to violent or aggressive incidents in the workplace, many incidents go unreported. Abuses range from verbal yelling, spitting and swearing to gendered violence and physical assault.

The new campaign has appeared across major television, radio, online and in print media with the simple message that violence in the workplace is never okay. It aims to remind all employers and the community that violence and abuse is

never ‘just part of the job’. It does not matter if it is a nurse, doctor, waiter, bar tender or bus driver, everyone has a right to a healthy and safe workplace.

WorkSafe Chief Executive Colin Radford said the campaign would send a clear message to

the community that everyone deserves to be treated with respect while at work.

Mr Radford said: “Violence in the workplace is never okay, no matter if you are another worker, customer or member of the public.”

Queensland leads tourism recovery “Hotels are not in distress” a confident Accor Pacific CEO Simon McGrath told Grantlee Kieza earlier this month.

Queensland is leading tourism recovery for Australia says the largest hotel operator in the Pacific. The hotel group’s statistics show the state has recorded the fastest and most sustained rate of tourism recovery over the past year compared to all other states in Australia.

Accor operates 101 hotels in Queensland and Mr McGrath reveals the overall level of occupancy for the group’s

06

hotels had increased from an average of 23 percent in April 2020 to 74 percent in April 2021.

Queensland’s average occupancy of 70 percent for the year to date significantly exceeded the national figure of 50 percent.

Mr McGrath said the recovery rate had intensified since the reopening and re-establishment of state borders, with year-onyear occupancies in Queensland growing 21 percent against the national occupancy demand declining at six percent. The best performing regions in Queensland for Accor were the Sunshine Coast, Cairns, the Gold Coast, and Tropical North Queensland.

INDUSTRY

Image by Chelsea Pridham on Unsplash

ResortNews | June 2021

Is the Sunshine Coast to become the priciest place to live in Queensland?

The Australian property market has been on the boil over the last few months, with house prices smashing records amid renewed investor confidence and strong buyers’ demand.

Finance expert, Kunal Sawhney founder and CEO of Kalkine revealed to us that the Sunshine Coast is at the cusp of a multi-decade property upswing, emerging as a shining star of the housing boom.

As per Domain House Price Report for March 2021 Quarter, median house prices in the Sunshine Coast surged by 6.9 percent over the quarter to A$770,000, marking a staggering year-on-year rise of 19.4 percent. It represents one of the sharpest rates of annual house price growth across Australia.

A similar trend was reflected in property consultant CoreLogic’s report, which showed the Sunshine Coast dwelling values recorded a 12-month gain of over 11 percent in February 2021.

Speculations are rife that the Sunshine Coast could soon become the priciest place in

Queensland to buy a house if property prices continue to grow at the current pace.

Changed lifestyle preferences post COVID-19 seem to be fuelling interstate buyers’ interest in South-East Queensland’s housing market, accelerating an exodus of Aussies from larger cities towards more peaceful regions.

The compelling pull of lifestyle precincts appears to be spurred by the option of remote and flexible working arrangements post lockdown, along with a growing demand for holiday homes and lifestyle-oriented properties.

This news impacts investment in lifestyle businesses such as management rights, where enquiries and sales are reportedly exceeding expectations. Of course, we are also seeing an increase of buyers interested in both permanent and holiday units.

“Couldn’t have asked for a better place.

Lovely beachfront view, weather was beautiful. The building could’ve done with a high pressure wash though and was very slippery near the stairs.”

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Student Visa holder changes to ease hotel shortages The Australian tourism and accommodation sector have united in welcoming a timely government move to ease the staff shortage crisis affecting many businesses in the hotel and hospitality industry.

hospitality sector. The fact that 78 percent of Australian hotels have a serious skilled labour shortage has been a significant barrier to recovery.

The sector has been demanding urgent support for vulnerable tourism and accommodation businesses and these federal government measures aim to somewhat address the crisis.

Earlier this month, Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs, the Hon Alex Hawke announced the removal of existing work hour caps for Student Visa holders employed in the tourism and

It is a step in the right direction to reduce staff shortages.

It means visa holders can work more than 40 hours a fortnight allowing understaffed hotels to reopen more rooms and match the increasing domestic tourism demand.

ResortNews | June 2021

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07

STATE REPORT

The pros and cons of pooled letting When an owner lets out their unit through an onsite letting agent, there are two ways that the owner’s letting income is typically calculated. These can be described as the “direct income” method or the “pooled income” method.

The method to be used is set out in the letting appointment (i.e., the agreement between the letting agent and the owner of the investment unit).

The majority of letting appointments pay an income to owners using the direct income method, where the income collected from the unit bookings is paid directly to the owner, after deductions of all expenses.

The pooled income method is used predominantly for short term lettings in a hotel style business. When using pooled income, the combined income and expenses for all units in the letting pool are aggregated and then a share of the profit is paid to all the owners in the letting pool.

In a perfect world, the pooling of income would seem the fairest way for managers to operate their letting businesses. By pooling the income, owners can’t accuse the manager of favouring certain owners over others when allocating bookings, and all owners rise and fall together with the success of the letting business. However, as we all know, we don’t live in a perfect world!

owner leaves the pool or has only just joined the pool? Should part of the retained maintenance funds be returned to the leaving owner? What if an owner leaves the pool after the general maintenance fund has just paid out for a new hot water system or installed new carpet in their unit?

Col Myers,

•

How to adjust income when the owner uses their unit?

Do you make no adjustment, or do you pro rata adjust for the days used?

•

How to change the terms of the letting appointment?

What do you do if not all owners agree to your proposed change?

Small Myers Hughes

•

•

•

•

How to share expenses?

Do you share any or all expenses across the letting pool? Do you share expenses only up to a certain cost?

Do you use the same ratio for sharing income to also sharing expenses?

How to determine who authorises significant expenditure? Do you ask a committee or one or two owner representatives, or should you be asking all owners - as all owners are sharing the costs?

How to operate a maintenance fund? Do you deduct a maintenance levy each month or just withdraw expenses as and when incurred?

What happens when an

If you elect to go with the pooled income route with your letting business, all of the above questions need to be thoroughly considered and appropriately addressed in your letting appointments with your owners. Unfortunately, we see a lot of letting appointments providing for pooled income where the issues raised above are not sufficiently answered.

When these issues are not suitably addressed, we see unfair scenarios arise where owners are

not receiving an income that truly reflects their unit’s contribution to the letting pool income.

For example, if two-bedroom units are in demand far more often than three-bedroom units, the owners of the two-bedroom units are effectively supplementing the income of the owners of three-bedroom units. To add insult to injury, if the distribution of the pooled income is based on unit entitlements (i.e., the value of the units), the threebedroom units will also receive a higher return from the pool than the two-bedroom units.

When you look at the questions and examples above, you can see there are many situations where a disgruntled owner could easily start asking some difficult questions. Questions that will be uncomfortable to answer if the terms of your letting appointment are either vague or silent on the issue.

If you operate a letting business that pools the income given to owners and your letting appointment doesn’t have the answers to these questions, it’s definitely recommended that you prioritise a revision of your letting appointments, as it only takes an issue with one owner to be an issue with all owners.

There are a number of common issues that can arise when operating a pooled letting business. The types of questions you will encounter include:

08

How to fairly determine the income ratio? Do you allocate based on the number of beds, unit entitlements (which are designed to reflect value), quality of the unit, sea views or some other unique quality?

Or do you divide everything equally regardless?

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•

INDUSTRY

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As reported by the Australian Bureau of Statistics, Queensland has seen approximately 14,000 Australians migrate from interstate in the 2nd & 3rd quarter of 2020 and there is no sign of a slowdown in interstate migration to Queensland.

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ARAMA REPORT

How the property market has disrupted the management and letting rights market

The growth in Queensland residents has created a high demand for homes. Either by owner occupiers or by long-term residential tenants. This has driven average weekly rentals and property prices sky high.

Low interest rates and the desire for interstate migrants to work from home in Queensland has fuelled emotive buying tactics which put further pressure on the tight rental market.

At the height of the pandemic, many management and letting rights operators wisely converted some of their apartments under management from short-term letting to long-term letting.

This was intended to provide a short-term fix to ensure that rental revenue was continuing to be generated for the unit owner investor, albeit at a reduced rate of return during a tough trading period.

Readers may recall that at several stages during the height of the pandemic taking a holiday was banned. These disruptions to normal trading patterns for short term accommodation providers occurred virtually overnight.

These former short-term rental apartments posed a new challenge for onsite letting agents. Property owners who previously experienced high returns are now asking to return their properties from the longterm market as the demand for leisure accommodation returns.

This currently presents an issue to the property owner as many of their long-term residential arrangements are still locked away for an intervening period via a residential rental arrangement and as such would need to await the expiry of the lease,

10

prove difficult to reverse and result in lower returns when it was inevitable that at some point holiday travel would boom.The other problem was that once the apartment was identified as more suitable for long term occupation the owner occupiers wanted to stay there forever!

Trevor Rawnsley, CEO, ARAMA

thus reducing the flexibility of the arrangement for both the resident manager and the unit owner investor client.

Lately and much to our collective relief, operators throughout North Queensland and parts of the Gold Coast have been enjoying a surge in demand for holiday accommodation, after the release of the government’s subsidised flight and travel voucher initiatives. Other areas such as the Sunshine Coast and the Whitsundays have been going gangbusters for a while.

Now there is such a high level of pent-up demand for leisure accommodation across all areas that there is a severe staff shortage... What a dilemma!

ARAMA took time throughout COVID to remind members that the downturn in travel and tourism would be temporary.

Cycles often are. The temptation to offer long term rental agreements would ultimately

The increase in Queensland’s population has not only led to the shift away from short-term letting towards long-term letting, but also to the more recent trend of many investor owners selling up to owner occupiers.

In some cases selling at a significant premium, drastically reducing the size of the letting pool for onsite letting agents.

The big winners have been those resident managers who have seen the trends emerging and flexibly adapted their operations to the everchanging role, which involves short stay accommodation converting to long stay accommodation and then back to short stay. At the same time being actively involved in the real estate buying and selling frenzy by working collaboratively with their unit owner clients and potential clients to satisfy their need to sell or buy or obtain a steady rental return. These are the operators who have had the foresight to obtain a full real estate sales license and work collaboratively with others, including outside sales agents to ensure that as many properties as possible are

INDUSTRY

sold to investors and therefore remain in the letting pool.

Resident managers face new challenges in the recovery from COVID-19. ARAMA constantly urges operators to seek expert specialised advice, support and guidance. There is plenty out there and this is where ARAMA can really help you find the right connection to help you and your business make the adjustment necessary to succeed.

The business of management and letting rights provides resident managers and their unit owner clients with flexibility to manage their rentals on a short or a longterm basis, or with a mixture of both. This all helps to provide a continuation of cash flow and a sustainable operational profit.

This business also provides an ideal opportunity to ride the real estate boom and get involved in the sales process to increase profits or to help defend and protect your letting pool.

The key to success for modern resident managers is to realise that they are not just onsite caretaking service providers or holiday complex operators but that they are also real estate agents. Agents who have an ideal opportunity to grow sustainable profit by riding the real estate boom and bending and flexing to the changing trends as they occur.

By limiting your options, you may be limiting your success.

ResortNews | June 2021

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BCCM REPORT

Smoking in community

Smoking in community titles schemes (CTS) is the subject of many enquiries received by our information and community education unit. This article aims to provide information to an owner/occupier who may be having a dispute with someone else in their scheme about second-hand tobacco smoke drifting from a neighbouring property.

titles schemes

There are a number of things you might want to consider when dealing with this issue in your CTS.

It is generally the case that a by-law cannot completely prohibit smoking inside a unit, including on a balcony.

Nuisance The Body Corporate and Community Management Act 1997 states, in part, that owners and occupiers who live in a community titles scheme must ensure their behaviour does not cause a nuisance or hazard. Although some people may consider second-hand smoke exposure a nuisance, it must be able to be proved a nuisance. Based on the case of Norbury v Hogan (2010) QCATA 27, the following points should be considered: Smoking is a lawful and an ‘ordinary and accustomed’ use of a lot and will not be considered a nuisance simply because there is some inconvenience to a neighbour.

Nuisance cannot be established because a resident has what is termed an ‘abnormal’ sensitivity to second-hand smoke, for example asthma or a respiratory condition.

Each case will be considered on its merits. That said, a nuisance has to be something that materially interferes with the use and enjoyment of a reasonable and rational person.

©Thomas - stock.adobe.com

By-laws

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By-laws are the legally enforceable rules that regulate how owners and occupiers conduct themselves in relation to a body corporate. Bodies corporate must enforce their by-laws. Generally speaking, a by-law cannot completely prohibit something that is usually a lawful activity, and a by-law must also be consistent with provisions of section 180 of the Act. An adjudicator in our Office has the power to determine whether a by-law is invalid.

INDUSTRY

Michelle Scott Commissioner, Body Corporate & Community Management

With that in mind, it is generally the case that a by-law cannot completely prohibit smoking inside a unit, including on a balcony, as a balcony would usually be part of the owner’s lot.

If you live in a CTS and you are exposed to second-hand smoke, you should speak with your neighbour in the first instance to try and resolve this dispute on your own. If there is a by-law that regulates smoking within your scheme and you believe that another owner or occupier is in breach of it, you could consider giving your body corporate a notice advising of the breach BCCM Form 1.

Lodging a dispute application If you have an issue with someone smoking in your scheme or with smoke drift, it may be possible to lodge a dispute resolution application with our office. Our office has exclusive jurisdiction to resolve body corporate disputes in Queensland.

Before you lodge an application, there are several steps you should try to address the issue, which are outlined below.

Self-resolution The best way to address the issue of smoke drift is to try and resolve the problem directly with the smoker.

Sometimes a smoker may not be aware of the issues they are causing. It might also be possible to come to an arrangement about smoking, e.g., smoking in a certain place or at a certain time, which might reduce its impacts.

Not only has this approach been beneficial for many people, but it is also a mandatory requirement that you exhaust all attempts at what is known as self-resolution before a dispute application can be lodged with us.

ResortNews | June 2021

Self-resolution may involve the following:

•

•

•

as noted above, having a conversation with the smoker is a good first step in attempting to resolve the issue. The conversation may include discussing specifically when the smoking is an issue, frequency and location. describing the specific health impacts the smoke is having on you as a way of conveying to the smoker the harm that the smoke is causing. if the problem is not resolved, writing to the person using non-confrontational language and offering suggestions for mutually beneficial solutions; and as noted above, if you consider the smoking is in breach of smoking by-laws, such as a bylaw about smoking on common property, and your conversation and correspondence has not resolved the issue, your next step is to issue a notice to the body corporate

Conciliation If attempts at self-resolution have been unsuccessful, and a dispute application is lodged, conciliation is usually the next step. Conciliation is a process where parties to the dispute come together to try and reach an agreement. Our conciliators are also trained in body corporate legislation. They help educate the parties in an attempt to resolve their dispute.

Some successful examples of conciliation outcomes involving smoke drift have included: •

a smoker moving to the other side of the backyard to smoke;

•

a smoker shutting the door when smoking to prevent smoke drift; and

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the use of a fan to blow the smoke away from the other lots.

©Кирилл Рыжов - stock.adobe.com

•

advising them of the breach using the BCCM Form 1.

and conciliation have been unsuccessful. Adjudication is a more formal process than conciliation. An adjudicator makes a decision after considering the application and written submissions from all those affected by the dispute.

Considerations •

If a dispute application is lodged with us, objective evidence of how a nuisance or hazard is being caused will be required. This evidence will need to demonstrate the volume and frequency of the smoke drift. Some examples of how this could be proved may include:

•

CCTV footage visually displaying plumes of smoke;

Adjudication In some cases, adjudication for a dispute about smoking may be possible, if self-resolution

•

witness statements from other owner/occupiers;

•

air quality tests; and

•

a diary of exposure times.

•

If you suspect an owner or occupier from a neighbouring lot is smoking an illegal substance, this is a matter best referred to the Queensland Police Service.

While the Tobacco and Other Smoking Products Act 1998 (Qld) prohibits smoking in enclosed places, such as an enclosed part of common property, smoking in a residential unit or lot is not subject to this ban and remains a lawful activity at this point in time.

There are fees associated with conciliation and adjudication applications.

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

ResortNews | June 2021

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1300 ARAMA Q (1300 27 26 27)

INDUSTRY

13

SCA REPORT

The North Remembers:

What the federal reinsurance pool will mean for thousands living in strata Insurance is not a glamorous topic; however it is one which has a real impact on lives, particularly when the worst happens and disaster strikes.

Over the last ten years, premiums have increased in Northern Australia 178 percent compared to 52 percent in other regions and non-insurance rates have increased by almost ten percent.

The average premium for Northern Australians is approximately $1,000 more expensive than the national average, and strata premiums have increased an outrageous 300 percent between 2007 and 2012.

In simple terms, insurance in the North has been a huge

James Nickless, President, SCA, Qld

and worrying issue for over a decade now and we have been actively working with government stakeholders to ensure a reasonable outcome.

Our industry was pleased to hear the announcement that there has been significant action from the Federal Government on the ongoing issue of insurance in

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Northern Australia. The ongoing advocacy of SCA (Qld) alongside thousands of strata residents, managers, state and federal MPs and councils has seen the Federal Government announce the establishment of a $10 billion reinsurance pool in flood and cyclone prone regions of Northern Australia. The pressures have been acute for a long time, and we are confident this is a milestone that will make a difference in the lives of the thousands of Australians who have faced issues of availability and affordability for many years.

strategic planning. A combination of these concepts should also help ensure that schemes are proactively protected to minimise damage or disaster before they happen. The Strata Title Resilience Pilot Program which has been announced is designed to help strata schemes bring down costs in the long term. Cyclones and floods are an inevitable reality in Northern Australia, however, preparing for them appropriately gives the region the best chance to ensure they do not have catastrophic impacts.

The lack of insurance availability in the North prior to this announcement was close to snowballing out of control.

Premiums for strata owners have become increasingly unaffordable and put enormous pressure on owners. Current legislation has not provided enough support and flexibility in the processes of obtaining alternative insurance.

Whilst the investment by the Federal Government in insurance measures is welcome, the state government has an opportunity to take the savings even further by adjusting the taxation regime on premiums. This is the moment for the state government to support the initiative and make it stronger, by for example reducing stamp duty, which makes up about 10 percent of the premium on insurance, so taking an axe to them could have an immediate impact on affordability and provide relief for consumers.

I am hopeful that the establishment of this reinsurance pool will provide more widespread availability of insurance for a large percentage of Australia.

Non-insurance of the common property of a scheme is technically non-compliant with the Act. The backing of the Federal Government of a reinsurance scheme sends a signal to the insurance industry about the national importance of this matter and ensures that substantial losses for insurers are highly unlikely. SCA (Qld) is optimistic that insurers who have exited the market previously will re-enter and create greater availability in the region.

A full plan has yet to be released, however we will continue to advocate and liaise with the government and stakeholders to ensure that the reinsurance pool model provides the best possible support for the industry and is practical once claims are made.

We know that rebuilding from disaster is incredibly important, but so is disaster resilience, mitigation, and clever and

INDUSTRY

Stamp duty revenue in the North is proven to be marginal for the Queensland Government and whilst it is no silver bullet to the issue of affordability, abolishing stamp duty on insurance premiums would help struggling consumers. Overall, we at SCA (Qld) are pleased by these developments and the renewed focus on this critical issue. We will continue to monitor for any further details of the policy and will continue to seek feedback from stakeholders and advocate to government about the best outcomes for the reinsurance pool for strata owners. We want to ensure government provides the best possible support for our members and all Australians living in these regions.

SCA (Qld) will continue to be at the forefront of ensuring that the best possible model for our industry is ready and operational come July 1, 2022.

ResortNews | June 2021

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PERSON OF INTEREST

Erika Gibbs: Numbers add up with right management

By Grantlee Kieza, Industry Reporter

Santo Tomas (which is the oldest extant university charter in the Philippines and Asia) for high school, and the University of the East for my accounting degree.

This month Grantlee caught up with one of the most respected individuals in our industry, Erika Gibbs…

Did you always want to be an accountant?

I originally wanted to take up law.

Being the first female president of our student council, I was full of ideals, campaigning for social justice. Of course, in the real world, it is not as black and white.

Erika in her youth, was an active student leader in the Philippines sitting in both University of Santo Tomas’ High School and Central Student Council as President and PRO respectively. She has spent almost thirty years in the field of management rights starting from when she migrated to Australia in 1992, helping clients build successful businesses.

Her Gold Coast-based firm, Erika Thomas & Associates, specialises in compliance audits, and her vast knowledge of the industry makes Erika and her team effective as management consultants and asset managers to various buildings as well.

What is your advice to someone wanting to get into the management rights industry?

You need to do a lot of research and you need to get good advice.

Don’t hire advisers just because they’re cheap. You also need to be ready for a hard slog. Make sure your personal relationships are secure. If it’s a husband-and-wife team going into management rights, they’ll be working 24/7.

It can be a very lucrative industry, though?

Yes. If you find the right property and a good body corporate, and if you don’t overpay for it. I have a number of clients who have become financially independent to buy their own business after starting as employees or partners

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You’ve been involved in management rights for a long time?

in other businesses. Some are clients I met in the 1990s and are still my clients today.

Your company Erika Thomas & Associates has a great reputation in the management rights business. What attracted you to the field. Was it crunching the numbers?

You know what, I hate numbers, but I love the analysis of it. It’s a unique industry and it allows me to meet people and help them build a business. When I started, managers were mainly “Mom and Pop” or retired couples entering the business thinking that it was a retirement job, and it’s not. I help a lot of newcomers build their businesses as I hold their hand and guide them through.

I’ve been very fortunate having clients whose parents were my clients first and I ended up having their kids and other family members as my clients too.

Yes. I arrived in Australia in 1992 from the Philippines aged 21.

I’d just finished my degree in accounting, and within two weeks on the Gold Coast, I started work with a company which specialised in body corporate management and management rights accounting. You could say that this is the only industry I know and grew up in. I stayed there for eight years and then went on my own.

What was your background in the Philippines?

My father was a university professor teaching business and management, and my family were involved in heavy equipment machinery and parts sales. I attended Our Lady of Grace Academy in Manila for my primary schooling, University of

INDUSTRY

My main focus were poverty alleviation and access to quality education for those who were less fortunate than I was. My concern was for talented and deserving students to receive an education as a way of improving their lives. I am glad to know that now people have access to free education in state colleges and universities in the Philippines, so many deserving students can get their chance.

You’ve done a lot of tertiary education?

I studied accounting and marketing in the Philippines but when I came to Australia the tax laws were very different, so I went to Griffith University.

I also took up refresher courses at the University of South Australia and the University of New England as part of my continuing professional education.

What prompted the move to Australia?

My mother’s side of the family are in Australia and my father’s are in the United States. It was basically a case of if I didn’t like it here, I could try the US, but I found a job two weeks after I arrived here and that’s when I got introduced to management rights.

ResortNews | June 2021

How did you come to start your own business?

for those who have lost their jobs. In Australia, it’s support for the drought-stricken farmers via the Lions’ Need for Feed. The management rights industry has a lot of organisations they could collaborate with like Rosie’s, Baby Give Back, etc. - I haven’t sent Christmas cards for almost 10 years now as I have been making donations in lieu of it and have told clients that it’s our contribution to these well deserving organisations.

In 2000 I decided to go on my own and Erika Thomas & Associates was established. I remarried in 2003, hence, my name change.

My husband Stephen is a retired Chief Petty Officer with the US Navy with his own IT business. He retired in 2006 after a 20-year career.

You’ve built up the business significantly over 20 years?

You love to travel, too, but COVID has cut that back?

The company I first worked for would have had around 10 clients involved in management rights.

Specialising in management rights meant that I was able to ensure that my knowledge base is up to date, and that my reputation is someone who could be relied on to do the job right. I am very big on ensuring that I operate with integrity.

So when I left the firm, and it was a pretty amicable separation, a few of those clients moved with me and referred me to others. In my second or third year I actively stopped seeking clients because I didn’t want to take on people that I couldn’t service properly.

I have about 150 clients now, stretching from Victoria to Cairns.

Yes. We used to travel a lot be it Asia, the US or Europe. For now, we would like to just spend time and see Australia. Theatre is one of my guilty pleasures, so we will be doing just that.

I try to keep it at a restricted level because I like to continue that personalised service.

What are your other passions in life?

I believe in supporting projects that allow me to help those who are in need in my own little way. I am a member of a Lions

Club International Branch in the Philippines, Marikina East Lions Club, MJF, for which I am one of its board directors. We assist poverty-stricken citizens especially during this pandemic by providing food, PPEs, laptop/ tablets for deserving students who are now studying remotely, as well as equipment that can be used as a means to earn a living

We saw Hamilton in Sydney this April, West Side Story is coming to Brisbane soon, and Phantom of the Opera in Sydney in a few months. Apart from these, I am just a homebody spending time with Steve.

I read, cook, bake, and I am a mum to a soon-to-fly-the-coop son, Brandon who just finished university, and a cute little Malshi puppy called Chance.

Erika Gibbs with husband Stephen

ResortNews | June 2021

INDUSTRY

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LEGAL EASE

Certainty in the law

- reasonableness and responsibility?

Lawyers always turn to legislation, to be clear and concise in the meanings to be applied to words or statements used, and to use specific definitions to produce that result.

Whenever I am queried by a client or interested party in what something means whenever my firm is handling a matter, I always turn to the source, be it the legislation or the wording and definitions in the document, to determine the precise meaning and its application.

Wherever that cannot be properly determined, then you have a doubtful situation with a doubtful outcome.

This particularly comes to mind when I see two words consistently popping up in regard to the Management Rights Agreements or laws for a scheme, and the obligations of the body corporate, its lot owning members, the committee, the body corporate manager, and the onsite building manager.

If we cannot have certainty then the opposite applies, which is chaos. The two words are “reasonable” and “responsibility”.

As to reasonable and reasonableness, the Body Corporate and Community Management Act and its Modules of Regulation do require every decision/action of a body corporate to be “reasonable”.

How do you determine that? For instance, what is reasonable to a pedestrian utilising a roadway might be totally unreasonable in the mind of a motorist using a roadway. One might want slow moving traffic and the other fast! It becomes a very subjective test to apply.

We often see in a body corporate some very heated situations between owners enjoying “community living” with close quarters contact, and the differing needs of those involved.

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If we cannot have certainty then the opposite applies, which is chaos.

John Punch, Partner, Short Punch & Greatorix Lawyers Because the legislation also designates that the party to be determining disputes between the various parties in a body corporate is the commissioner, it means that the commissioner’s adjudicators have to determine what would be “a reasonable decision by the body corporate”, or any of its representatives, to be made. Therefore, the commissioner will always look to see if there has been conciliation between the parties before a dispute goes forward for an adjudication by the legally trained officers involved.

Of course, conciliation ends up meaning the two differing parties are pressed to give ground and meet in the middle.

Again, there is uncertainty when that is faced by lawyers and other advisors looking after the interests of their clients or the body corporate members.

It very much intrigues me that we have got to that situation of uncertainty in the application of the law, concerning property and other rights in a community title scheme, where the parties entitled to make a majority decision as property owners – having invested in the scheme and particularly the heavier investment in the management rights, can be overridden in their decision making by an adjudicator in the commissioner’s office deciding on what is or is not, reasonable. I would much prefer certainty when it comes to the government of bodies corporate.

However, it might pan out in

the management of building, clearly there is no room for unreasonableness and managers should always bear that in mind to remind committees and owners in any scheme where there are difficulties.

As to the word, “responsibility”, we see in management rights that it is applied particularly in specifying the duties, so as to give the manager a very strong responsibility to perform the duties in the caretaking or letting agreement. This is covered by contract law. However, on the body corporate side of things, in its government of the assets of the scheme, particularly the structures and land comprising of the common property, there are strict rules at law for deciding who has a responsibility for decisions on matters.

Firstly, a body corporate cannot delegate its decision making, or responsibility for decisions, to any other person or party. This particularly means that certain matters have to be decided by a majority vote, of all the owners having a right to vote to be exercised at a general meeting.

Secondly, the committee is given the right to decide some lesser matters by its majority vote. No one committee member, not even the chairperson, can decide any matter as to the common property or other assets of the body corporate, on their own.

That occurs by stating that there are what is known as “restricted issue” matters, in the Act and

MANAGEMENT

Modules of Regulation. The reading of the Act is confusing, because while it says that “a decision of the committee is a decision of the body corporate”, it proceeds to then state that “this does not apply to a decision that, made under the Regulation Module, is a decision on a restricted issue.” Restricted Issues include any decisions that “changes the rights, privileges or obligations of the owners of lots in the scheme”. Confusing and convoluted? I would suggest so.

How often do we hear, “the chairperson does not allow this, or that” as though that person has some authority in decision making or control, beyond that of an involvement similar to every other owner, except for chairing meetings? People often accept those actions, falsely believing an authority for responsibility resides in that person.

So, remember, when any issues are in a body corporate, always determine if any particular party or parties are responsible to produce a result or decide on an issue, correctly, and if all parties are acting as would a reasonable person, and take it from there.

I feel that it is important to be discussing these items and explaining the law, so that management rights operators and lot owners, who come to a lawyer and ask for certainty of advice, will know the difficulty of being certain on certain points of interest in the Community Title Schemes.

ResortNews | June 2021

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BY ALL ACCOUNTS

Get ready for a new year The 2021 financial year end is fast approaching!

If I’ve said it once… planning is key. And there are a few changes coming from July 1, 2021 so best be prepared to take any actions required to get compliant and to enact any tax minimisation measures prior to June 30. You will then be set for the new financial year.

Superannuation Concessional Contributions - what needs to happen prior to June 30, 2021 The current year maximum tax deductible ‘concessional’ superannuation contribution per working individual is $25k.

This contribution ‘cap’ is for any amounts that will be claimed as a tax deduction either contributions made by your employer or yourself personally.

If you do intend to make additional superannuation contributions to claim as a tax deduction in your 2021 tax return you must ensure you do not exceed your cap and that your super fund(s) receives the contribution prior to June 30, 2021. Allow enough time for the payment to be processed and that you are eligible to make the contribution.

Additionally, you may be able to make a ‘catch-up’ contribution, being the ‘unused’ portion of the 2019 and 2020 concessional limits of $25,000 each year where you have a total member balance of less than $500k across all your super funds.

ResortNews | June 2021

Employer Superannuation Guarantee - 10 percent from July 1, 2021

Lel Parnis, Principal, Holmans This means a much larger tax deduction this year, provided you meet all the requisite criteria something to discuss with your accountant without delay.

For any contribution you plan to make to your superannuation fund(s), please verify the amount you are entitled to contribute with your superannuation fund PRIOR to making any contributions to avoid adverse tax consequences and potential penalties.

For any employer superannuation, due 28 days after the end of each quarter, remember that unlike other expenses superannuation is only tax deductible when paid and receipted by the fund(s).

Which means, even though any employer superannuation you are due to pay for the quarter ending June 30, 2021, isn’t due until July 28, 2021, you won’t get a tax deduction for that superannuation until the 2022 tax year.

If you would like to bring forward the tax deduction, ensure all employer superannuation is paid before June 30, 2021.

From July 1, 2021, all employer’s superannuation obligations on wages increases from 9.50 percent to 10 percent. If you have any employees paid salary inclusive of super, you should let them know their net take home pay will be impacted unless you intend to increase pay to compensate.

For all employees you need to ensure your payroll system is updated and ready for the change to ensure you are set to meet your employer obligations in the new year.

Further, the May 2021 budget announced the removal of the superannuation guarantee threshold, meaning that no longer will wages be exempt from super where an employee is paid less than $450 in a month.

This has not yet been legislated and may or may not eventuate but something to bear in mind when considering your ongoing labour costs.

As always, please ensure you are reviewing how you are paying workers to ensure you are meeting any deemed employer obligations. We are seeing so much focus on employee entitlements and ATO reviews of employer obligations, it is critical that you understand what is required of you. Head to the ATO website and work through the ‘Employee/contractor decision tool’ if you are uncertain, it’s handy to save the results of that process for any future ATO review

MANAGEMENT

if you have bona fide contractors rather than employees.

Single Touch Payroll (STP) - mandatory for all employers from July 1, 2021 There are no more extensions to be had, if you report any wages for unrelated employees or owner operators/family members, your business must be STP ready for payroll reporting from July 1, 2021.

Single Touch Payroll replaces the old PAYG Summary (and older Group Certificate) system and reports payroll information such as wages, PAYG Withholding, superannuation etc. live to the ATO for each pay period.

In order to comply you must have STP-enabled payroll software, so the information is reported or ‘filed’ every time you pay your employees. It can sound daunting, but I believe the new software programmes are very user friendly and if you need any assistance in setting things up or managing your payroll reporting going forward, contact your accountant or bookkeeper without delay. Importantly, setting this up on July 1, 2021, is too late, you need to be ready beforehand to ensure you meet your reporting obligations.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions, or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Whether buying or selling a business of any kind, the most important matter that takes precedence over all else, is the financial data.

Yes, physical presentation and everything else play a role, but the first consideration is always, how the financial data looks.

Historical data is what first comes to mind and many love to look at it on a ‘trending’ basis.

Considering that we are discussing buying a business, emotion generally plays little to no role, as opposed to buying a house, where it is more about buying a ‘home’ (not a house).

A place for a family to live, grow, and be secure, and so on…

Sure, the physical presentation of a motel is important, the size of the residence and location, but the buck stops with the financial status of any business when determining a value.

Financial data that legitimately confirms the income, gross profit, expenses and profitability performance of any business.

Without this in an acceptable format, there is no reason to worry about anything else. “XYZ Motel is the best performing motel in town, the carpark is always full” commented a longterm local resident. This may be the case, but if the financial data cannot confirm it, then is it really the best, or even worth the value it should be in the market?

Perception is reality, until the financial data comes under the microscope.

Andrew Morgan, Queensland Tourism and Hospitality Brokers

The presentation of financial data is really two-fold. Firstly, how do the numbers physically present? Not what the numbers are, but how they are presented on hard or soft copy. Do the totals add up? It seems impossible but I have seen many addition errors over the years.

The total expense amount is less than what the individual expenses total, thereby inflating the profit. Are the seller’s accountant’s supporting documents also attached to the profit and loss statements? Is the spelling of each entry correct? I have the same issue with spelling mistakes on a profit and loss statement as I do with an email.

If I see an email and there are spelling mistakes in the subject line or text, I immediately think the email is spam and discredit it. The same goes for financial statements. I start to wonder who prepared this profit and loss statement, surely it was not the seller’s accountant. Again, I start to question the validity of the statements, and the credibility of who prepared them.

QLD - NSW - VIC - WA

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MOTEL MARKET

Where the “Buck” stops

Perception is reality, until the financial data comes under the microscope.

Secondly, is the all-important actual dollar amounts. The income and net profit must be as high as they can to achieve the highest possible sale value in the market. Therefore, I always suggest every seller has their accountant prepare an Abridged Profit and Loss Statement for the business. This will present the profit of the business as it should, for sale purposes, not for taxation purposes. It will have removed all income and expense items that are particular to the current owner, and not a part of the business. By example, an owner choosing to pay themselves a wage of $80,000 per annum, compared to another paying themselves $8,000 per annum, has nothing to do with the business, this is generally a taxation-based decision.

Profit and loss statements are generally prepared for taxation return purposes and to that end, include expenses and tax deductions which inevitably present the lowest profit possible, or preferably a loss depending on each party’s individual tax position.

Adjustments will then be completed so the Abridged Profit and Loss Statement can be utilised for sale, refinancing or other purposes. If not, a true

MANAGEMENT

representation of the profitability of the motel business compared to other motel businesses would not be possible. Conversely it is also important to make sure that no legitimate operational income and expenses of the business have been removed. Even the most basic due diligence of the financial statements will determine this. The best result from this would be that the end sale price of the business will be affected negatively if the profit has been overstated. The worst is that the sale transaction will be terminated altogether. A waste of everyone’s time and money.

Aside from the Profit and Loss Statements being required by a potential buyer, other financial data will be requested. Providing monthly income statistic reports that include GST, will not match the Profit and Loss Statement.

As long as the consistency of the difference of the GST is there, the issue can be cleared up quickly however if this is not the case, this will create questions about the accuracy and legitimacy of the data.

If there are anomalies for a particular reason, be upfront and explain why this is the case. Never try to sweep it under the carpet and hope that the issue goes away.

ResortNews | June 2021

Keeping abreast of evolving legislation

This legislative reform is aimed at reducing the potential of harm to occupants caused by a house fires and imposes new obligations on lot owners in residential strata complexes.

Legislative reform is ever-evolving This update to smoke detector requirements is just one in a long line of legislative and Australian Standards reforms that oblige caretakers and strata property owners to undertake more duties and/or compliance tasks.

In the past 15-20 years, the ABMA Building Management Code in each state and territory of Australia has reported that there have been more than a dozen changes that have directly affected residential strata properties and their caretaker managers, strata managers and committees.

Snapshot of legislative reform over more than 15 years Since 2005 there have been a dozen or more examples of Australian standards, building codes and/or legislative reform that has directly affected residential strata properties and, we (as building managers, caretakers, strata managers and/or committees) have had to get our heads around, including the following: ResortNews | June 2021

Queensland Fire & Emergency Services on an annual basis 2012 - National harmonisation of the WHS legislation now defines a residential strata property who have workers on the common property as a person conducting a business or undertaking, requiring a documented safe system of work to be applied to the common property workplace Lynda Kypriadakis, Diverse FMX

2005 - Update to Australian Standard 1851 (AS1851) routine service of fire protection systems and equipment.

This update made changes to fire door testing regimes and introduced mandatory inspections of fire separation systems on an annual basis 2008 - The Building Fire Safety Regulation of Queensland introduced the evacuation plan requirements into residential strata properties, and required defects in the fire protection system to be rectified within 28 days 2009 - Queensland Health introduced guidelines that imposed daily water testing records on owners of shared pools (i.e., residential strata complexes that have swimming pools for occupants to use) 2009 - QBCC occupational licensing legislation mandates that project management works (building works over $3,300) must be undertaken by a QBCC licensee (e.g., open licensed builder, project manager, or engineer/architect) 2009 - Queensland Development Code Mandatory Practice 6.1 (MP6.1) now requires the primary occupier (i.e., the body corporate) to lodge an occupier’s statement with the

2014 - Introduction of slip resistance requirements for floor in the National Construction Code The 2014 version of the BCC / NCC prescribed slip resistance requirements for stair nosing’s, stair landings (at least the edge of the landing) and for pedestrian ramps, including in residential strata properties.

This change to the NCC was in part to remove the ambiguity as to the terms non-slip and non-skid within the Building Code of Australia. Slip resistance factors for tiles on common property now need to achieve compliance for pedestrian safety.

2015 - Update to Australian Standard 1851 (AS1851) routine service of fire protection systems and equipment.

This update made changes introducing the mandatory requirement for interface testing of all fire safety installations that interface in fire mode.

2016 - Fire and Emergency Services (Domestic Smoke Alarms) Amendment Bill requires additional smoke detectors to be installed in apartment complexes 2018 - Building and Other Legislation (Cladding) Amendment Regulation introduced the requirement for bodies corporate of Class 2-9, Type A or B construction to register their building with the safer buildings and QBCC cladding register, and in some

MANAGEMENT

instances, undertake engineering investigations into enhanced fire risk around combustible cladding installed on the building 2018 - Queensland Plumbing & Drainage Act - State Government legislation requires property owners who have an installed, testable backflow prevention device to annually register the device with the local government and have the device tested by a person who is licensed to do the work at least once each year 2020 - Body Corporate and Community Management (Standard Module) Regulation 2020 replaces the 2008 version and introduces (among other things) a requirement that all new buildings must put forward quotes for undertaking a Building Defect Assessment under the statutory builders warranty against defective building work All of these reforms add extra work to those that have influence over and duties relating to the common property of a strata scheme, including the caretaker, facilities manager, strata manager and committee.

Keeping up with legislative reform relating to residential strata property So how does a committee or caretaker or strata manager keep up with the ever-evolving legislative framework?

The simplest answer is to subscribe to the ABMA Building Management Code in your state or territory.

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The Queensland Government passed the Fire and Emergency Services (Domestic Smoke Alarms) Amendment Bill 2016 (Qld) following a devastating house fire at a Slacks Creek property on the southside of Brisbane in August 2011.

GOOD GOVERNANCE

Smoke detectors:

A new edition is released annually to inform subscribers of all changes embedded since the prior year, in simple language relevant to our residential strata and mixeduse properties sector.

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Benefits of risk management & planning Edward Murphy was a major in the US air force in the 1940s.

His particular gig was developmental engineering testing experimental designs.

As you can imagine the outcome of many of these experiments was unknown and given military applications the consequences of something going wrong could be catastrophic.

I’d simply forgotten Murphy and suffered the consequences.

Mike Phipps, Director, Mike Phipps Finance

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THINKING MR

Murphy was an optimist:

History is a little hazy on the exact phrase that Murphy coined but it’s generally agreed to be “If anything can go wrong it will”. It’s also thought that Murphy added “at the worst possible time”, presumedly after a particularly unexpected turn of events.

In any event Murphy was the last thing on my mind when I recently decided to take my newly acquired dirt bike trailer, said bike and roof top tent on a two-day shakedown mission. I chose Kenilworth in the Noosa hinterland. Like many small communities the town has seen an influx of day trippers, campers and tourists as Aussies rediscover country living. The show society runs the campground, complete with powered sites and an amenities block.

My plan was to set up camp and do a couple of days trail bike riding in the adjacent forestry. The area is renowned for challenging tracks and spectacular vistas. What could possibly go wrong?

It’s true there was a severe weather warning current and ominous clouds overhead but who trusts forecasts anyway. It is also true that the managing director declined my invitation to take part in the adventure.

The romantic prospects presented by a roof top tent offered little appeal and she

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At this stage, a bit of mild precipitation ensued albeit the sun continued to shine. I unloaded the bike and headed into the forestry. The plan was to ride in areas I knew and hopefully not crash and become trapped under the thing in the middle of nowhere. As tends to be the way I ended up a fair way further than planned, at which stage the proverbial bottom fell out of the sky. The tracks turned to mud, and it got bloody cold.

I’m not sure what’s worse, being drenched or trying to ride at a speed that manages the twin challenges of impending hypothermia and the sting of heavy rain.

trusts the BOM more than I. Given the effort I had gone to affixing a “if its rockin’, don’t bother knockin’” sticker I set off somewhat deflated, so to speak.

Upon arriving at the campground, I was greeted by a volunteer who seemed surprised that I didn’t have a reservation.

After some discussion regarding the merits of booking in advance it became clear that there were plenty of sites available and I was directed accordingly.

Now, I don’t know how many of you have any experience with roof top tents but let’s

be clear, the marketing that suggests the setup is all plain sailing is just plain misleading.

In any event I got the thing about half erected (story of my life) when my new friend the volunteer saw fit to advise me that I was on the wrong site. While the notion of a specific position in an empty paddock seemed odd my friend was not for turning. As luck would have it a fellow camper gave me a hand and we soon had the trailer and attached penthouse repositioned.

MANAGEMENT

Happily, I made it back to camp although it soon became clear that my awning provided a less than weatherproof cover for chairs and cooking gear. No matter, a hot shower, and a walk up to the pub for lunch. The Thai chicken curry sounds good and it’s just what is needed when inflicted with severe cold.

Now, I’m not blaming the chef.

Maybe the events of the day had predisposed me to intestinal challenges. What I do know is that there are times when no matter how close the amenities block is, it’s not close enough!

Oh, and now it’s raining heavily.

Within a few hours things had settled down and I decided to crack a beer. Like minded campers joined in and despite the ongoing deluge and events of the day spirits were high. Of ResortNews | June 2021

Know when to unplug Image by The Digital Marketing Collaboration on Unsplash

course, things were about to take a turn for the worse.

The concept of the roof top tent involves a traditional tent like structure mounted many feet from the ground and accessed via a near vertical ladder. The climb in is a breeze while the climb out involves reversing out of a zippered door, finding an available ladder rung and carefully descending.

This is all well and good in broad daylight with clear weather and a clear head. The whole process gets a bit more challenging in pitch darkest with rain falling, slippery ladder rungs and judgement impaired by the demon drink. Throw in an old bloke’s bladder and the risk of personal injury through numerous nocturnal ladder climbs rises accordingly.

I’d like to say I dodged that bullet but... a twisted knee, bruised ankle and a range of cuts and abrasions stand testimony to a misjudged descent.

Of course, at the time of the injuries a combination of alcohol and exhaustion effectively anesthetized the experience. Sadly, in the cold hard light of day the extent of my folly was clear to all.

I’d simply forgotten Murphy and suffered the consequences.

On the drive home with a wet half folded up roof tent flapping in the breeze I had cause to reflect on what went wrong. I reckon pretty much ResortNews | June 2021

everything. The sad part is that a bit of preplanning could have saved me a lot of grief.

So, what have I learnt and can any of this be applied to business?

Let’s reflect. I started by ignoring expert advice, in this case the BOM and the MD. Then, I failed to clearly understand and clarify an instruction, in this case the location of the camp site. Having set up I was determined to go for a ride.

Having invested effort in getting to that point I ignored my own better judgement and failed to abort an activity that turned out to be dangerous.

Not sure what I learnt from the Thai chicken curry, other than a riff on an old proverb... ‘keep your friends close and amenities closer’.

The decision to mix booze with roof tent camping, in the rain, was just plain dumb.

However, research suggests that human decision making is sometimes impaired and overly optimistic when the person involved has endured some sort of challenge from which they have emerged largely unscathed.

That’s my excuse and I’m sticking to it!

Disciples of the Murphy philosophy plan for the best but are ready for the worst.

Sounds like a perfect mind set for today’s world.

This article may come across as more of a ‘Kelley’s Life Lesson’ but please be assured that in no way do I feel qualified to advise on ‘life’.

I simply enjoy sharing what I observe in our extraordinary industry.

Balance is a great aspect of life to have perfected but speaking for myself, I will be reading this article back several times ensuring I start to practice what I preach. These days and especially after the year of 2020, balance has become such an important part of our day-to-day living, unfortunately in our industry I feel it is not spoken or promoted enough.

Have you ever noticed after doing something that ‘fills up your cup’ (all the trendy people use this saying) you return to work a happier and a more patient human? By doing something you enjoy, the things you may have snapped at previously you now handle with care and events that may have rattled you, you can now calmly manage. This is the positive affect of having balance in your life.

Management rights is a career path where you literally live and work within the same four walls, day in day out. This is a wonderful facet of our industry but also an all-consuming one.

Some of you will be sitting there thinking, “oh yes and when am I going to have the time to go out to lunch with my girlfriends or play golf with my buddies”?

The answer... you make the time because in the end balance is going to lead to a happier you, and a more successful business.

A very experienced management rights owner and now a consultant tells a story about a time when he and his wife used to work in a holiday building and the difficulties they faced when taking

MANAGEMENT

BUILDING RELATIONSHIPS

Work/life balance:

Kelley Rigby, Managing Director, Letts Rebuild

a break. Always making excuses and thinking that the building would fall to the ground if they were not there to keep it up.

Finally, they decided that it was time to have a night away, so they booked a room across the road... quite literally the resort across the road! They asked to be facing the other direction so they could not see their building but were close enough if anything were to happen, and it did not.

They continued to do this as well as take longer breaks after they realised that the building was still standing on their return.

Owners, committees, strata managers, tenants, holiday makers and possibly employees are all the different groups a manager must attend to (I wanted to say ‘deal with’ but I restrained) daily. If you are not looking after yourself and filling up your cup, how can you expect to tackle six different groups with a thousand personalities with all various problems?

When did working ourselves into the ground or being busy become the quota of our success?

My advice. Go see that movie or have that holiday because although the building may not run exactly the same while you are away, I promise you it will still be standing when you return.

“Kelley’s Life Lessons” ... Just kidding.

23

Q&A

Jeffrey Su on Chinese Australians embracing management rights

By Mandy Clarke, Editor

and after the purchase of management rights. We also offer help with litigation and dispute matters, which are often very simple solutions to basic miscommunications that escalate.

Resort News talks to Jeffrey Su a Senior Associate at Short Punch & Greatorix (SPG) who has a special interest in management rights.

You are very passionate about your work…

Jeffrey advises on the sale of real estate residential property and financier due diligence investigations, community title and body corporate law.

He gained experience in international business law in Shanghai and has knowledge of corporate law in Australia and China and speaks Mandarin.

I really enjoy helping clients understand more about management rights.

Approximately 80 percent of my clients are Chinese Australian and many of those are new to the industry.

My aim is not only to offer good legal and practical advice, but also to help them get past that insecure stage and build their confidence. I am very passionate about helping my clients and their whole family settle in Australia.

Jeffrey’s expertise also includes acting for sophisticated clients/ purchasers and joint venturers to negotiate and prepare contracts for the acquisition of commercial sites. He graduated with a Bachelor of Law degree from Bond University in 2014, was admitted to the Supreme Court as a solicitor, and joined SPG as a commercial lawyer.

What obstacles have you come across for Chinese Australians in the industry?

What first brought you to Australia?

I came from China to attend Brisbane Boys College from year 8 to 10. I made many friends and to this day I have a large network of great mates that I made at the school. I also attended Bond University on the Gold Coast and made this City my home. Australia is a very welcoming country with many opportunities and the Gold Coast offers a fantastic lifestyle. I left to work in Shanghai but after one year, he returned to the Gold Coast and SPG.

Have you settled in the Gold Coast now?

Absolutely, I enjoy living and working here and our small family is very happy living in a city that offers us such an amazing lifestyle.

My wife Eva and I had a baby last year, so 2020 has all been about the baby – our beautiful Elise.

Being first-time parents has dramatically changed our lives

24

Mainly, the same obstacles that Australian managers come across. However, since law changes in 2014, many legal hurdles have eased and they will continue to ease over time.

Jeffrey Su

in the greatest of ways. After the birth of the baby, we would normally expect Grandparents and extended family to fly in from China to help but, sadly, COVID prevented this. However, for our little family of three, the ‘COVID bubble’ helped create a very special bond between us and we are now very keen to have another baby.

We love living on the coast and enjoy the weather and beautiful beaches, but we also share a farm in the rural town of Beaudesert. We have part ownership of a cattle farm alongside a group of friends and when we take a break, we travel there to help raise cattle. This completely different lifestyle is a fantastic way to relax. I also enjoy target shooting.

Tell us about your work at SPG… Very early in my career, I had the opportunity to work at SPG alongside Mr Punch, who taught me so much about the law and the management rights industry. At the same time, we were getting a lot of interest from Chinese buyers in the market, and it was a huge advantage that I could speak Mandarin.

SPG had the foresight to set up a department that specialised in both management rights and migration with a lawyer that could speak Mandarin. This helped and supported Chinese buyers, and also the whole Chinese/Australian community.

SPG offers clients the whole package before during

MANAGEMENT

There are specific obstacles that Chinese Australians encounter; the most obvious being language and cultural differences. Most of my clients have a very good understanding of English but, at first, Aussie small talk, banter, and jokes can be difficult to comprehend. Simple misunderstandings can cause barriers between the Chinese Australian managers and body corporate members and owners.

Minor issues can quickly escalate into huge problems but can be easily cleared up with help. If the manager is doing his caretaking job well, most other problems can easily be solved, and Chinese Australians tend to be very hardworking. Purchasing a management rights business is a huge financial undertaking and it is in the best interest of everyone to make it work.

ResortNews | June 2021

When everyone works together and communicates well, big issues become minor ones.

Of course, I also tell my clients to subscribe to Resort News as it is a great source of information.

Managers work very hard to protect their business investment and it is very rare for a situation to become irreparable.

What about you – what does your future hold?

On a personal level, it is all about our growing family and our new baby girl.

But have you known it to go very wrong?

Professionally, I am dedicated to developing the management rights services at SPG and in time I would like to manage the management rights team. I will continue to do my best to keep up with the changing times and hurdles in the industry and continue to move in the right direction. Management rights is thriving and will continue to shine for the foreseeable future.

The future is ours to grab.

I can only recall hearing of one situation where a manager got himself into serious trouble and was removed. This situation began with a language miscommunication that escalated out of proportion and because intervention was too late, it could not be repaired.

What has been the biggest Chinese Australian success story you have heard about?

I am in awe of a certain Chinese syndicate, which began with one management rights business but quickly increased to nine complexes over QLD, NSW and VIC as more families became involved. In a short time, the business expanded to include more families from China who sought good business opportunities and the syndicate now has nine families.

This business structure worked well because Chinese Australians love the security that a management rights business offers, and they thrive with support from other Chinese Australian families. The model of owning your own business with a wonderful lifestyle and living onsite ticks every business and visa box for Chinese Australians.

The success of this syndicate highlights how much the management rights industry can be embraced, developed, and welcomed

by Chinese Australians.

What trends do you see in the purchase of management rights?

More recently, (especially since COVID lockdowns) I have seen an influx of Chinese Australians from Melbourne and Sydney to Queensland looking for business opportunities.

Brisbane is very popular with Chinese Australians because they prefer the stable income of the large choice of permanent ResortNews | June 2021

Who inspires you most?

I have the utmost respect for the legal giants in the industry, especially my mentor Mr Punch.

Do you have any words of advice for Chinese Australians thinking about venturing into this industry?

Jeffrey Su with wife Eva Su

buildings in the city. They also tend to move to locations where other Chinese Australians have already purchased.

Permanent buildings are a good starting point, and they are preferred because there is less involvement with the general public than holiday properties, therefore less communication skills are required.

I have also seen an increase in Chinese Australians buying the caretaking rights to shopping centres, this business is similar to management rights and finance can be easily secured if there is a supermarket onsite.

Post Office businesses are also popular with Chinese Australians because post offices in China are owned by the government/ state owned enterprises.

Chinese Australians are driven to become business owners and purchase land as they are unable to do this in China.

Farms and wineries are also very desirable business purchases.

For me, I consider it to be a

great achievement when I help a client buy a commercial business. It is very rewarding to help them meet their family’s visa requirements and secure their future, setting them up to fully enjoy the Australian lifestyle.

What does the future hold for the Chinese Australian community in management rights?

All the incredible opportunities in management rights available to Aussies are also open to Chinese Australians.

I have found that this is a very inclusive industry. It is friendly, protected by strong legislation, and surrounded by passionate and supportive professionals.

At SPG, we are confident that the future is more positive than ever before, not just for Chinese Australians but for everyone. There is a network of great support in place, especially ARAMA, a wonderful industry body that offers training and help to all.

MANAGEMENT

My best advice is to continue to showcase their naturally hardworking and modest characteristics, but also work on being more confident and approachable.

It is also very important that they put themselves in other people’s shoes.

Australia is a wonderful country full of opportunities and ‘mateship’; it has all the ingredients for success if Chinese Australians are willing to embrace cultural differences.

On my father’s first visit to Australia, he was busy gardening when he was surprised by an Aussie stranger who stopped to say g’day and have a chat with him. He was very taken aback because Chinese people are very reserved and would never approach a stranger.

To ease his concern, I explained about Aussie ‘mateship’ and after a few days he embraced it and began to say g’day to everyone he met!

So you see, in Australia you must give yourself up to Aussie cultural ways and once you relax you can easily fit in.

25

When a nightmare guest gives you

a bad review:

Tripadvisor explains what to do

Share the rest of the story: A review only covers the visitor’s side of the experience, but the full story doesn’t stop there. Complete it by providing context on what was happening behind the scenes or sharing what was unique about the situation. Be sure to talk about what you’ve done since you received the review, including any changes you’ve made or conversations you’ve had. This shows potential guests that you care about that feedback and use it to improve your operations.

TripAdvisor also encourages managers to submit a concern when necessary.

Sometimes reviewers simply get the wrong property.

By Grantlee Kieza, Industry Reporter

©blacksalmon - stock.adobe.com

So, the guests who smoked in the no-smoking areas, partied all night and left your room like a disaster zone have now given your property one star as a reward.

What do you do now?

Hospitality providers are passionate about their businesses and their guests so a bad review after all your hard work and politeness can be discouraging.

Don’t take it personally.

More than 455 million unique monthly visitors come to Tripadvisor each month and the site now has more than 570 million reviews and opinions. Almost 300 reviews are posted every minute, and with so much activity, even the highest rated properties get bad reviews occasionally.

Krystal Heng, Tripadvisor’s Communications Manager, Asia Pacific, said her company has resources to guide business owners on addressing negative reviews.

There are four basic steps: Review what’s happened. Incorporate the feedback. Complete a Management Response. If necessary, submit a concern.

Brian Payea, Head of Tripadvisor Industry Relations, says even when top-rated properties receive a negative review, “what makes those properties great is how

26

they incorporate the feedback to make the experience for the next guest even better.”

The first thing a property manager should do after reading a negative review is take a deep breath and walk away for five minutes, so you don’t succumb to temptation and fire back in anger.

TripAdvisor says managers and their teams should then consider the review impersonally.

What was the core problem that your guest experienced?

Is this the first time you’ve seen this feedback, or is a trend developing? Getting the background can help you identify the root cause of any problem.

If there is any validity to the complaint – and let’s face it some are just malicious – talk with your staff on specific improvements that need to be made. Come up with an action

plan for what your property will do and which team member will take the lead. If the issue is something you can’t fix, consider how to better set expectations for guests, perhaps with updates to your website. Either way, be sure to monitor future reviews to make sure the same problems don’t come up again.

Managers should write “Management Responses” to bad reviews as soon as possible. Don’t let them hang there unexplained. Your polite, measured response explains the review to other potential guests on your property page. Be sure to share details of the action plan you’ve developed in your response. Don’t underestimate the power of a full explanation or even a sincere apology. The most important thing your response should do is to answer unknown questions for future guests that the original review implied.

MANAGEMENT

Tripadvisor won’t arbitrate or referee factual disputes between parties but sometimes negative reviews violate Tripadvisor review guidelines as the reviewer may be affiliated with a rival property or could even be making an attempt to blackmail a listing.

If a manager has any concerns, you should hit the “Report Problem with Review” feature located at the bottom of each review.

While a reviewer starts the feedback cycle, registered owners can have the last word by adding a Tripadvisor Management Response. The Management Response feature allows owners to provide direct feedback and add your perspective on each review. Since only one review per experience can be submitted – and no additional comments can be added to the thread – your Management Response becomes the final word on that review.

Not only is it the final word to the reviewer, but it also allows other potential guests on your page to see the resolution.

It’s important to choose your words wisely because a well-written Management Response can help sway decisions in your favour.

Research shows that a weIlcrafted management response can actually help neutralise the impact of a negative review, with 85 percent of survey respondents agreeing that a thoughtful response to a bad review improved their impression of the property.

ResortNews | June 2021

Affordable high speed internet for property managers “Enabling internet for the new Foxtel services ; Business IQ over existing coax” As a Telecommunications Carrier in 2021 we can at last see Queensland’s regions better connected than ever with thousands of kilometres of world class optic fibre ready to connect.

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The critical value of uptime for Eftpos, e-commerce, VoiP

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Using Cloud computing

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Enabling internet for the new Foxtel services ; Business IQ over existing coax

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Connecting 5G base stations

The connectivity of Fibre can meet businesses, apartments, resorts and commercial estates without having to use the old copper or wireless, at last.

•

Supporting the massive uptake of 4K TVs, media streaming, gaming and telemedicine

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Feeding the power of the new WIFI 6 modems, designed to deliver gigabit internet around building

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Meeting the expectations of the tsunami of urbanites migrating to the regions and holiday makers expecting proper internet.

We are not referring to NBN here. We are talking about real Gigabit performance without dropouts and congestion that are responsible for holding our regional economy back. We are talking about reliability, high availability, zero congestion, competitive advantage, and world class standards.

These high performing values are about half the price since preCOVID, and they are enabling the region to address many challenges such as : •

The migration of working from Offices to regions

•

The importance of performing a video conference call

•

Dealing with the higher volume of devices in use concurrently in dwellings and workplaces.

•

Enabling Apple updates and gaming

Now that the future is here, how do you go about upgrading higher value high speed internet?

HIGHLY RECOMMENDED “…with the flick of a switch our internet services moved to world class Gigabit capable internet. Resident and guest satisfaction has skyrocketed with the availability of fast, reliable industry leading internet, which allows our resort to include phone, video and streaming services never before offered. Absolutely Brilliant!”

– Eric van Meurs Manager Atlantis Marcoola Beachfront Resort and past ARAMA President (Australian Resident Accommodation Managers

Association.)

A free Audit is a good start. Coverage is now huge and there are plenty of technologies to get “fibre speeds to the room”. Contact Annie Mecklem on 0410 607 846, annie.mecklem@sunriseinternet.com.au

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ResortNews | June 2021

1300 GIGABYTE

MANAGEMENT

27

INTONET

To FA or not?

“If I Ruled the World” is a popular song, composed

by Leslie Bricusse and Cyril Ornadel, which was originally from the 1963 West End musical Pickwick (based on Charles Dickens’s The Pickwick Papers). That is my highbrow contribution for the month.

The high-tech content is to warn you, if you were not aware of it, that Google is also humming this great tune. This time for our collective good!

No, Google does not want to become the master of the internet (and please don’t argue) but is trying to enforce one of the simpler technical protocols to protect us and our data from the bad guys; and their number and skills are growing at a pace.

Very soon we will be forced to use “two factor authentication” (2FA) whenever we log on via any Google managed routes. They want to instigate that method of security in a global sense rather than the ad hoc smatterings we are already experiencing with banks, PayPal, credit cards and so on. Google accounts have been using the idea of verifying access by sending you an SMS or push notification for you to confirm whatever action is indeed instigated by you.

Arvo Elias, Cybercons

one or more additional checks to a login process beyond just a username and password.

Your second factor could be an ephemeral, randomly generated code from an authentication app, the presence of a physical authentication key like a Yubikey, or even a digital token built into your smartphone. And adding at least one of these extra layers makes it much harder for phishers, scammers, or other malicious hackers to penetrate your digital accounts.

At the same time, Google recognises that today’s twostep verification options aren’t suitable for every user, so they are actively working on technologies that provide a secure, equitable authentication experience and eliminate the reliance on passwords.

Google users will still be able to opt out of two-factor authentication if they change their mind. The goal, though, is to push both users and the

wider tech industry toward twofactor as a baseline standard.

As an aside, the highly regarded password manager MYKI incorporates automatic 2FA management while accessing a security configured website; well worth a look if you are after a feature rich and leading-edge manager which resides on your device and not in the cloud.

Their reasoning has been dramatically illustrated by the most recent cyber-attack on the US petroleum pipeline which, had it been fully successful would have had chaotic consequences for the Americans. Of course, ransomware attacks are more dramatic than some of the other common ploys but fundamentally it still means that a system barrier has been circumvented by stealth without that step being verified by the owner or operator of that system.

For years, the cyber security industry has warned that statesponsored hackers could shut down large swathes of US energy infrastructure in a geopolitically motivated act of cyberwar. But now apparently profit-focused cybercriminal hackers have inflicted a disruption that military and intelligence agency hackers have never dared to, shutting down a pipeline that carries nearly half the fuel consumed on the East Coast of the United States.

The Colonial Pipeline company, which operates a pipeline that carries gasoline, diesel fuel, and natural gas along a 5,500-mile path from Texas to New Jersey, released a statement confirming reports that ransomware hackers had hit its network.

In response, Colonial Pipeline says it shut down parts of the pipeline’s operation in an attempt to contain the threat. ©Andrey Popov - stock.adobe.com

Multifactor authentication adds

Very soon we will be forced to use “two factor authentication” (2FA) whenever we log on via any Google managed routes.

28

MANAGEMENT

ResortNews | June 2021

©igor_kell - stock.adobe.com

The incident represents one of the largest disruptions of American critical infrastructure by hackers in history. It also provides yet another demonstration of how severe the global epidemic of ransomware has become.

Cyber-attacks are almost mundane. American statistics show that in 2020 alone there have been 1001 cases of data breaches in the United States.

Over the course of that period over 155.8 million individuals were affected by data exposure; that is, accidental revelation of sensitive information due to less than adequate information security. In perspective, that is close to half their population.

Still an ongoing issue as I write is the attack on the Irish Health System which has had serious repercussions on healthcare services and jeopardised the wellbeing of hospital patients.

Despite secure data backup the authority estimates that it will cost many tens of millions of Euros to establish a clean version of all the underlying software.

The new barb in ransomware is that even if you pay the crooks’ demand two-layer encryption is now in use. That simply means that after you pay up and get the key your data is unlocked in part only. The demand is then for a second payment to get the key to the remainder of what they hacked.

Please remember that you and your business are not immune just because you think you are ResortNews | June 2021

a little fish. When the big boys start making huge profits from this game, as they did with the five million dollars from Colonial Pipeline, the smaller baddies will certainly try to get a piece of the action. And of course, we have not been ignored as some of our hospitals will attest.

Were I of the same ilk as H.G. Wells, famed author of The War Of The Worlds, I would be very tempted to develop this kind of activity further. Clever software experts are plentiful and very cheap in comparison to complex weaponry and fully equipped armed forces. Cripple water supplies, power and sewage systems, add fuel refineries, chemical works and financial systems and almost immediately you have taken a whole nation captive. All without a shot being fired! There would be no prizes for guessing what the ransom would be. Such a plot would not require an Orson Wells’ 1938 broadcast to panic the whole globe.

The solution could be sustainable if governments of all persuasions were prepared to co-operate but in the words of the bard: “Therein lies the rub”.

Once again, we are left with remaining vigilant and ensuring all our software is up-to-date. So at least this time I am very much on the side of Google and until this system is wholly adopted, I will continue to log into web resources using their 2FA. Perhaps you will care to join me and some 1.8 billion other such users.

MANAGEMENT

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29

TOURISM REPORT

Power of love leads Sunshine Coast recovery

Element on Coolum Beach

Narrows Escape Rainforest Retreat

By Grantlee Kieza, Industry Reporter

accommodation in the world – not just Australia – while The Falls Cottages and Bli Bli House were also named as premier romantic stays.

Love is in the air as Queensland’s Sunshine Coast leads the way in the recovery of Australia’s accommodation sector.

“I think this ‘home of romance’ tag will be vital in building our weddings market even further.”

While the loss of international visitors and conferences still leaves a hole, the Sunshine Coast is finding new ways to attract domestic visitors, with its hinterland becoming the nation’s “romance capital”.

Matt Stoeckel, the CEO of Visit Sunshine Coast, told us that major events “have been particularly successful” for the Sunshine Coast in the past five months and that it had been able to host a wide range this year, including the “Aussies” – the Surf Life Saving Championships, which attracted more than 6000 visitors.

32

Mr Stoeckel said a full recovery would still take time for the Coast, as there were many operators struggling without both international travellers and conference markets.

“However, fortunately we have been able to capitalise on our drive market to mitigate some of the impact of the pandemic during this period.

Matt Stoeckel, the CEO of Visit Sunshine Coast

“We have over 50 large-scale events across the region, and across the spectrum, scheduled for 2021,” he said.

to ‘escape’ to somewhere environmentally sensitive, welcoming and indulgent has worked well for our operators.

“The most recent TripAdvisor Travellers Awards showed very clearly that the Sunshine Coast’s strength lies in the distinctiveness of its boutique accommodation. The Sunshine Coast was the star performer in categories such as Romance Hotels and B&Bs. The trend towards travellers wanting

“Element at Coolum Beach was voted ‘Best Hotel in Australia’ in the Travellers Choice Awards, not because it offers 5-star city facilities, but because it offers 5-star hospitality.

That’s what really counts with discerning travellers.

“The Hinterland – places like

Maleny, Montville and Mapleton – have been the star performers of the Sunshine Coast in the past year. When borders were closed last winter, Brisbane residents flocked to the Hinterland in search of rejuvenation.

“That popularity has translated into the Hinterland becoming known as a haven for romance in the most recent Travellers Choice awards, with Narrows Escape Rainforest Retreat being named the most romantic

TOURISM

“We have also launched a new brand, For Real, which is resonating with our visitors, and we have implemented a solid marketing program to attract visitors from our feeder markets.”

Mr Stoeckel said the latest Tourism Research Australia figures for the 2020 December quarter highlighted the effectiveness of Visit Sunshine Coast’s strategy of targeting the drive market when international and many interstate borders were closed.

VSC also continued with a strong media and marketing presence in interstate markets so that when border certainty and interstate flights returned, it was in a strong ResortNews | June 2021

But with the Federal Government supports in place they took advantage of the time to do property upgrades, redesign their website, produce new imagery, and focus on their strategic marketing plan, centred around creating something that was appealing to people coming out of the pandemic.

Element on Coolum Beach

position to attract travellers who wanted a destination that was uncrowded and rich in authentic experiences.

The National Visitor Survey, conducted by TRA, showed that in the October – December quarter for 2020 the Sunshine Coast registered a rise of 11.4 percent in intrastate travellers (to 904,000) compared with the same period in 2019 at a time when closed borders caused a major reduction in interstate visitor numbers.

However, domestic visitor arrivals for the Sunshine Coast

in the December quarter were 987,000, down 13.3 percent compared with 2019, and for the year to 31 December 2020, the National Visitor Survey recorded a drop of more than 25 percent in domestic visitation and an even steeper decline of 28.9 percent in overnight visitor expenditure.

When the COVID-19 lockdowns forced the award-winning Narrows Escape Rainforest Retreat to close its doors for three months from March 2020, owners Ali and Xochi Khan were worried that their business might not survive.

“The strengths of Narrows Escape Rainforest Retreat are that we have six boutique villas nestled in rainforest, that offer that incredible feeling of wilderness and tranquillity, yet all of life’s most desired luxuries,” Xochi said.

“Since we reopened, we have been operating at virtually 100 percent occupancy. There has been a shift in what people desire in accommodation. There is a greater demand for boutique accommodation, that offers a chance to immerse yourself in nature and provides authentic interactions with locals. As a family owned and operated business the fact that we love where we live and what we do really resonates with our guests.

“The Sunshine Coast Hinterland is a destination that has it all.

Narrows Escape Rainforest Retreat

The natural offerings of the area are breathtaking - rainforest, bush, creeks, rivers, mountains, beaches, and ocean all within a 30-minute radius of each other. Then there are beautiful towns with boutique shopping, exquisite dining, cafes, microbreweries, and the Sunshine Coast’s incredible local produce, dairies, and seafood. On top of that it is a friendly and accessible destination that caters to people of all ages. We are blessed with almost year-round sunshine and that is reflected in the local’s lifestyle and attitude.”

Tourism Tropical North Queensland partners with PEPR Agency

By Mandy Clarke, Editor

“Over the years, PEPR has worked in Tropical North Queensland with a range of partners, so we are thrilled to have been appointed by TTNQ to manage domestic communications for the region.

Tourism Tropical North Queensland (TTNQ) has appointed PEPR Agency as their preferred communications partner to drive visitation to Cairns and Great Barrier Reef.

Under the destination’s tagline “See Great, Leave Greater”, PEPR will work with the TTNQ public relations and marketing teams across publicity and brand campaigns, and consumer and trade communications to position the region as the country’s most vibrant nature-based destination.

TTNQ Chief Executive Officer Mark Olsen said: “After a competitive pitch, we’re delighted to have PEPR Agency

ResortNews | June 2021

“Given how tough the last year has been, our joint efforts will inspire more Australians to visit this incredible destination and aid in its tourism recovery.”

PEPR Agency from left Nicole Tapster, Philip Engelberts and Chloe Curtis. Photo: David Li

on board. We especially welcome PEPR’s destination marketing experience and extensive industry contacts.”

“It’s a crucial time for the domestic travel market, and we’re ready to welcome travellers to Tropical North Queensland inviting them to see great and leave greater.

“In addition to our much-loved reef and rainforest product, our region’s Indigenous culture, and adventure and outback experiences are plentiful. We truly are a one-of-a-kind Australian tourism destination.”

PEPR Agency’s director Philip Engelberts said:

TOURISM

The TTNQ account will be overseen by Philip Engelberts and managed by Senior Account Manager Chloe Curtis, with the support of Senior Account Executive Nicole Tapster.

The appointment is one of several TTNQ initiatives through the $7.7 million Recovery for Regional Tourism Program.

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TOURISM INTERNATIONAL

Global tourism recovery:

By Mandy Clarke, Editor

With destinations in some parts of the world looking to restart tourism, the new partnership will focus on harnessing the power of innovation, education, data and market intelligence to drive sustainable and inclusive recovery.

The two organisations will host training for Destination Management Organisations, using a new curriculum developed

by Google. These sessions will empower destinations to switch to digital, with the training adapted to reflect their specific circumstances and the unique challenges every destination currently faces. Alongside this, the Tourism Accelerator Program, designed by Google in partnership with UNWTO, will also be scaled up globally.

UNWTO Secretary-General Zurab Pololikashvili said: “The strong partnership between UNWTO and Google will help put innovation and digital at the centre of tourism’s recovery. By working together, UNWTO and Google will

34

©Sundry Photography - stock.adobe.com

The World Tourism Organization (UNWTO) and Google have signed a new agreement to work together and lead global tourism’s recovery through innovation, education, and market intelligence.

empower destinations, businesses and tourism workers to realise the power of data and market intelligence, both increasingly important as global tourism looks to restart and recover.”

Google’s Managing Director for Travel Partnerships Gianni Marostica said: “We’re honoured to be working alongside UNWTO in this vital effort to support the global tourism sector on its path toward broader economic recovery. It’s critical that both policymakers and businesses have the tools and insights they need to reconnect with travellers in a digital environment.”

Looking ahead, UNWTO and Google will also collaborate on joint research projects related to tourism. The results will further establish both parties

as thought leaders and provide governments, destinations and businesses with the trusted data and insights they need to guide tourism towards recovery.

In another initiative UNWTO is searching for the world’s ‘Best Tourism Villages’.

©Junchen - stock.adobe.com

UNWTO and GOOGLE partnership and initiatives be recognised. The process will identify villages that are taking innovative and transformative approaches to tourism in rural areas in line with the Sustainable Development Goals. The vision is to make tourism a positive force for transformation, for rural development and community wellbeing.

The ‘Best Tourism Villages by UNWTO’ aims to maximise the contribution of the sector to reducing regional inequalities and fighting against rural depopulation.

It also seeks to advance the role of tourism in valuing and safeguarding rural villages along with their associated landscapes, knowledge systems, biological and cultural diversity, local values and activities, including gastronomy.

UNWTO will recognise villages across the world that are committed to the promotion and preservation of their cultural heritage and sustainable development through tourism.

The launch of this new initiative was announced at the opening of UNWTO Middle East regional office in Riyadh, Saudi Arabia.

UNWTO Secretary-General Zurab Pololikashvili said: “Tourism can be a driver of positive change for rural communities all around the world. We want to recognise the uniqueness of each village and showcase the best initiatives to make tourism a means for a better future in rural areas.

As we restart tourism, we work to ensure that we leave no one - and no village- behind.”

The best examples of rural villages harnessing the power of tourism to provide opportunity and safeguard their communities, local traditions and heritage will

UNWTO Members States can present up to three villages to be assessed by the Initiative. Applications will close on July 31, 2021.

TOURISM

ResortNews | June 2021

to luxury Ballarat accommodation

By Mandy Clarke, Editor

and era. We not only retained and restored the building’s striking Roman columns but have also incorporated the original Baptism pit as a feature of the main living area.”

A Victorian church restoration was a labour of love documented on the popular TV show, ABC’s Restoration Australia.

Boutique property manager Flairbnb was appointed to run the apartment, and it is listed on Airbnb and HomeAway.

Manager Eve Fisher admits it is one of the most exciting properties she has come across.

One man restored the soul of one of Ballarat’s most beautiful and distinctive churches by completing the multimillion-dollar restoration project. The refurbishment transformed the building from a decade of dereliction to a unique luxury accommodation offering called Battista.

She said: “It’s very rare that a building of such stunning heritage is transformed into accommodation of this calibre. This is what puts it firmly amongst the nation’s most sought after property destinations, and a treasure that will no doubt bring more and more visitors to Ballarat.

Battista owner Dr Michael Whitehead invested over $2 million to make sure his vision came to life when he restored the 150-year-old former Baptist church into one of the city’s most desirable accommodations.

The property now boasts a three-bedroom home for Dr Whitehead, as well as a stunning one-bedroom apartment now available to rent for short stays.

Dr Whitehead told us: “Our focus was to honour the architecture of the building while also creating a liveable, modern residence. It was a huge undertaking and, at times, seemed an impossibility, but was worth every cent to bring such a significant heritage building back to life.”

Battista, which means Baptist in Italian, now boasts

ResortNews | June 2021

THE LAST RESORT

From derelict church

“Battista opened on March 1, with our first guests coming in for the long weekend. We have had every weekend booked since then.

We have had first time visitors to Ballarat, honeymooners and even a proposal. spacious king-sized comfort for two with huge windows, stunningly modern and stylish bathroom, and kitchen and two living areas as well as a reading nook with views over the ground floor. Breathtaking vaulted ceilings and glass walls provide an uninterrupted view of the fabric of the

building’s original character – an important element Dr Whitehead strived to maintain.

He explained: “Patches of ornate plaster finials and moulds were painstakingly copied and restored along the ceiling lines of the walls of the church to honour its history

TOURISM

“Some of our guests have seen the Restoration Australia episode and would like to experience the property. Others haven’t seen it and are just looking for somewhere unique and luxurious to treat themselves.

“We have steady bookings into the future, which is heartening, while so much uncertainty still exists.”

35

Vale David Ruxton It is with deep sadness that we advise of the recent passing of long time ARAMA Life Member David (Dave) Ruxton.

Dave could be best described as humble and polite and a real gentle man in every sense of the word.

His zest for life and a good laugh, coupled with the desire to chase his dreams, continued well into his 80`s. His passion for building design and construction remained with him until recent ill health took hold and became (in his words) “a bloody inconvenience”. He continued to look for the next big deal especially in relation to the business of management rights.

Dave commenced his working life as a builder, and he maintained his builders’ licence to this day. He was a pioneer of the accommodation industry and especially in the tourism accommodation industry on the Gold Coast stretching way back to the 1960`s.

Dave commenced cobbling together the essential elements

of what we now know as the business of management & letting rights before the industry even had a name. He was a founder of Accommodation Owners Association (AOA) which was a forerunner to QRAMA which eventually became ARAMA. He has been a member of ARAMA (formally QRAMA) since its inception back in the 90`s and was inducted as a Life Member of ARAMA in 2012. He was a founder of Dreamtime Resorts, and it seems that there are very few management rights buildings that he has not operated or had an interest in, having over 40 years in the accommodation business.

Dave succumbed to an aggressive and invasive form of cancer and after a short and at times painful illness, he died peacefully at Gold Coast Private Hospital on Wednesday evening the 19th of May. Dave loved a good fight and those who knew him will be pleased to know that he kept fighting until the final bell.

Our sympathies are extended to Dave`s wife Jo, his children, his grandchildren, his great grandchildren, his extended family and his 4 or 5 dogs (he was a collector of mangey mutts as well as pedigree pooches). Dave`s wish was not to hold a funeral, however we will advise if there

is some type of service planned as soon as the family decides.

Dave was a pioneer and a good bloke, and they just don’t make men like him anymore. He will be sadly missed and irreplaceable.

May he rest in eternal peace.

RIP Dave Ruxton.

2021 ARAMA INDUSTRY EVENTS CALENDAR For registration and/or event information please contact us on 1300 ARAMA Q (1300 27 26 27), email national@arama.com.au or visit: https://www.arama.com.au/ BRANCH

All All All All Gold Coast Online All Brisbane Byron Bay Online All Sunshine Coast Gold Coast Mackay Airlie Beach Port Douglas Carins Brisbane All Online Gold Coast

36

EVENT TITLE

TOP Awards Dinner Brisbane Expo Gold Coast Expo Sunshine Coast Expo Members Social Lunch Educational Webinar Management Rights Industry Training Program Drop in for Drinks Roadshow Educational Webinar Management Rights Industry Training Program Sunshine Coast Roadshow Gold Coast Roadshow Mackay Roadshow Airlie Beach Roadshow Port Douglas Roadshow Cairns Roadshow Brisbane Roadshow Management Rights Industry Training Program Educational Webinar Members Social Lunch

DATE

Tuesday, 27th July 2021 Tuesday, 17th August 2021 Wednesday, 18th August 2021 Thursday, 19th August 2021 Tuesday, 7 September 2021 Wednesday, 15 September 2021 Tuesday, 28 September 2021 Tuesday, 28 September 2021 Thursday, 7 October 2021 Wednesday, 20 October 2021 Wednesday, 27 October 2021 Wednesday, 3 November 2021 Thursday, 4 November 2021 Tuesday, 9 November 2021 Wednesday, 10 November 2021 Tuesday, 16 November 2021 Wednesday, 17 November 2021 Tuesday, 23 November 2021 Monday, 29 November 2021 Wednesday, 1 December 2021 Tuesday, 7 December 2021

TIME

6:00pm - 11:00pm 6:00pm - 9pm 6:00pm - 9pm 6:00pm - 9pm 11:30am - 2pm 11am - 12pm 8:30am - 4pm 4:30pm - 6:30pm 6:00pm - 9:00pm 11am - 12pm 8:30am - 4pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 6:00pm - 9:00pm 8:30am - 4pm 11am - 12pm 11:30am - 2pm

EVENTS & APPOINTMENTS

LOCATION

REGISTRATION

Victoria Park Events Centre Kedron Wavell Southport Sharks Maroochy RSL TBC Register Online Riverside Hotel Riverside Hotel Byron Bay Services Club Register Online Riverside Hotel Kawana Surf Club Surfers Paradise SLSC Lanai Riverside Apartments Toscana Village Resort Oaks Port Douglas Brothers Leagues Club Colmslie Hotel Riverside Hotel Register Online TBC

Open Open Open Open Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon Opening Soon

ResortNews | June 2021

ResortBrokers’ Movers & Shakers are back!

More than 30 of the top management rights operators from across the Sunshine Coast turned out for ResortBrokers’ latest ‘Movers and Shakers’ event which was held for the first time in almost a year.

this was even better than we thought,” Glenn Millar said.

The event at the always popular Alexandra Headland Surf Club, was held in partnership with the crew from Mike Phipps Finance, Tony Rossiter and Lel Parnis from Holman’s Accountants, Trent Pevy from Pevy Lawyers and Gemma McCourt from Nuvho Hotels.

Chenoa Daniel said: “The key point of holding these events is to get up to speed on the rapid changes going on in the industry, but just as important is the social element. It was really great to see all the operators in our network simply catching up and swapping stories about what they’ve been up to.”

ResortBrokers’ Sunshine Coast specialists Glenn Millar and Chenoa Daniel organised the Movers and Shakers event and they said it was well received after undergoing a hiatus due to COVID-19.

“It was the first real time we could have this get together with restrictions in almost a year and the feedback was outstanding from everyone who turned up. We were expecting a good turn out, but

ResortNews | June 2021

EVENTS & APPOINTMENTS

Much of the discussion centred on what’s happening in the industry across the finance, accounting, legal and sales fields, although the key part of the day was to catch up and socialise in an informal environment after a challenging 2020.

ResortBrokers Managing Director Trudy Crooks and Chairman Ian Crooks also made it up from Brisbane to attend and they were able to provide an overview of the accommodation sales environment across the whole country.

Trevor Rawnsley, CEO of the Australian Resident Managers Accommodation Association, also made the trip up from the Gold Coast to join the event.

37

What about Women in Management Rights?

A reminder: What the Women in Management Rights Luncheons are all about...

The Women in Management Rights group has evolved over time to match the rapidly changing landscape of the industry, the platform is a shared space for all women working within the strata, management rights and property manager industries.

Organiser Marisa Millane offers Women in Management Rights Luncheon attendees a safe, supportive and fun space to eat, drink, share and learn from one another.

Marisa also invites guest speakers to provide insight into products, services or an issue relevant to the members.

However, the main aim of the luncheon is to empower women in the industry, to develop connections and provide support for each other. And of course, it is always a friendly and enjoyable event!

Marisa’s May update: “The luncheon was held in the wonderful open space provided at The Backyard in Mermaid Beach. We were very fortunate to have Kelley Rigby from Letts Rebuild share her hot tips for onsite managers on how to win back those outside rentals.

“We also had Kim and Naomi from Koncept Konnect speak about some marketing strategies moving into the winter months.

The crowds are all gone...

The material is all spent...

Now get some added exposure for that fantastic event!

To have your event featured in Resort News, please send your event information and images for consideration via email to events@multimediapublishing.com.au.

You just may be in the next Resort News!

38

EVENTS & APPOINTMENTS

ResortNews | June 2021

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Australia wide development update Hotel operators all around Australia are defying the COVID pandemic to open a raft of new properties catering to the pent-up demand in domestic tourism and the introduction of new international travel bubbles.

Every capital city is undergoing either the construction of new luxury hotels or the refurbishment of existing properties as business prepares for an unprecedented boom when COVID comes under control.

The recent opening of Brisbane’s new five-star Hotel X comes as Queensland’s capital prepares to see the unveiling of at least five more top-of-therange properties next year.

Melbourne has 23 luxury hotels recently opened or coming onto the market, with 4775 new hotel rooms on offer.

Construction is now underway to convert Adelaide’s former General Post Office building into a new luxury hotel, which will be operated by Marriott International.

In Sydney, a new 47-storey hotel and apartment complex, complete with a rooftop infinity pool overlooking the harbour, is set to be built above a

Mövenpick Hotel Melbourne on Spencer

heritage sandstone building at the northern end of Sydney’s central business district.

the time to certainly be building because the industry will have the product ready for when we are in that bounce-back mode.”

the new 47-storey, six-star Sydney hotel and apartment tower, which is estimated to cost up to $800 million.

The tower will be constructed above the joint venture partners’ sandstone building at 52 Phillip Street and will overlook the Botanic Gardens and Sydney Harbour.

“It’s always a good thing for any city to get some more high-end product.

Dean Long, the CEO of the Accommodation Association of Australia, said while COVID has been the hand brake on the hotel business, especially in the Sydney and Melbourne CBDs for more than a year, “when we do get the borders open for international travellers there’s going to be a lot of new product to attract them.”

“It shows that investors are still prepared to invest heavily in the tourism industry and now is

Private developer Built, and joint venture partner Irongate, have submitted plans for

Michael Johnson, the CEO of Tourism Accommodation Australia, says that while Australia still faces challenging times, “there’s going to be a fair bit of pent-up international demand for Australia.

The Sydney Morning Herald reports the hotel will comprise 240 hotel rooms and 16 upmarket apartments, a block from Circular Quay.

Under the plans, the developers are seeking to lease the state government-owned 50 Phillip Street for 99 years and combine it with their neighbouring 14-storey building known as Kusu House to create the new complex.

The developers said there had been strong interest from a number of luxury international hotel brands to operate the sixstar hotel and the apartments.

Built already has a presence in the precinct with the nearby redevelopment of the former Department of Education and Lands buildings on Bridge Street and the significant refurbishment works at the Sydney InterContinental Hotel, including restoring the heritage facade.

Mövenpick Hotel Melbourne on Spencer

40

DEVELOPMENTS

Announcement of the new hotel tower proposal comes as ResortNews | June 2021

Sydney is undergoing a hotel development boom, including a new IHG-operated Hotel Indigo slated on top of the City Tattersalls Club in Pitt Street and an A by Adina hotel in George Street by TFE Hotels.

Pacific for IHG Hotels & Resorts, told the Herald that while there was still a long way to go on the way to recovery, it was “an absolute certainty that the hotel industry will bounce back better than ever in the coming years.”

In the depths of the COVID-19 lockdowns Sydney’s CBD hotels were close to 10 per cent occupancy.

Accor Pacific: slew of Melbourne developments

Leanne Harwood, Managing Director, Japan, Australasia &

In Melbourne, Accor’s new Mövenpick Hotel will open in

Quest Apartment Hotels: two hotel developments planned for Collingwood

June, part of the $700 million hotel investment planned to revive Melbourne’s tourism industry. The opening of Mövenpick Hotel follows the addition in 2019 of Accor’s lifestyle-focused Hotel Chadstone, part of the MGallery collection. The development of its lifestyle and luxury hotel portfolio has been at the heart of Accor’s expansion strategy in recent years.

This is Accor’s proposed hotel opening schedule: Mövenpick Melbourne on Spencer, June 2021 (172 rooms), Mercure Doncaster, 2022 (181 rooms), Novotel & ibis Styles, Melbourne Airport 2022/23 (464 rooms), SO/ Melbourne, 2023 (288 rooms), 25hours Melbourne, 2023 (203 rooms), Peppers Richmond, 2023 (83), Mercure La Trobe, 2023 (192 rooms).

Artist Impression – SO Melbourne

Brisbane’s newest residential development is about to commence Quest Collingwood

Quest will gain a strong foothold in Melbourne’s northeast after signing an agreement to lease an 83-room apartment hotel in Collingwood, with construction to commence July 1, 2021.

This follows an announcement by its parent company The Ascott Limited introducing the millennial brand ‘Lyf’ to the Australian market in Collingwood.

Quest Hotel’ Collingwood is scheduled to open in November 2022. The property is a mixed-use commercial project by Melbourne high-end residential developer Centreland Group, comprising ten floors, eight of which will be

ResortNews | June 2021

occupied by Quest who will offer a mix of studio, one, two and three-bedroom apartments, guest front of house, conferencing facility for up to 80 people, business lounge and gymnasium.

Quest Hotel’s parent company, The Ascott Limited, also revealed plans to bring its millennialfocused co-living brand ‘Lyf’ to Collingwood, with a 105-room hotel situated at 42 Oxford Street within Urban’s C&L development.

Together the two hotels will cater to a wide crosssection of guests across an accumulative 188 rooms.

A controversial $350 million luxury riverfront development in Brisbane’s Kangaroo Point has been given the go-ahead and work could start as early as June.

In Australia, Quest has nine agreements for lease signed totalling 715 rooms, primarily in regional and suburban areas with many due for construction set to commence this year.

Developer, Pikos Property Group recently revealed that Queensland Planning and Environment Court issued approval for it to build three, 15-storey towers at 108 Lambert St, Kangaroo

Photo by Brisbane Local Marketing on Unsplash

DEVELOPMENTS

Point. The developer is not stalling with this development and says it is excited to commence construction as soon as possible.

It was reported that the green light for this the project was granted at appeal after Brisbane City Council rejected the original application.

Refinements to the proposal included a reduction the height of the buildings and the number of apartments because it did not meet with community wishes.

41

MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND Consider the advantages - better multipliers, better yields & better choices

COVID & INFLATION PROOF BUSINESS INVESTMENTS BRISBANE SPRING HILL – RARE OPPORTUNITY

•

Modern inner city medium rise complex. Great location. Corporate/Leisure.

•

Reluctant sale due to partners passing.

•

Option to retain existing brand if required.

•

Figures largely depressed due to Covid 19. Priced accordingly.

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (3 lots): Total Price:

106/51 25/18 Years $160,187 $399,183 $730,000

$2,925,000

CAIRNS CBD – CARETAKING ONLY

•

Medium rise in delightful Cairns CBD location

•

Easy Caretaking role only

•

Lifestyle with Income.

•

Sited next to Cairns Central

•

Perfect for Retirement

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (3 brm): Total Price:

$939,000

CONTACT CALVIN - 0414 889 593

CONTACT ALEX - 0414 835 128

CAIRNS – GREAT STARTER

TRINITY BEACH – WALK TO BEACH

•

Permanent Letting. Ideal starter or add on property

•

Secure gated community close to shopping centre

•

Good mix of quality 2 & 3brm apartments

•

Easy one person management

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (2 brm): Total Price:

34/20 25/19 Years $65,975 $109,537 $255,000

•

Upmarket permanent complex. Spacious 2 & 3-bedroom Aparments

•

Great salary $80,000 incl.GST. standard module agreements

•

Excellent 3 bedroom manager’s townhouse

$750,000

•

Lifestyle and business set within a tropical

CONTACT CALVIN - 0414 889 593

Contact: Mobile: Email:

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

Total Units/Pool: Agreements: Salary: Net Income: Real Estate (3 brm): Total Price:

CONTACT ALEX - 0414 835 128

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

Contact: Mobile: Email:

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

Australian Resident Accommodation Managers’ Association Member

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

35/0 25/11 Years $58,000 $58,000 $729,000

48/13 10/4 Years $80,000 $85,000 $320,000

$620,000

New Opportunities – Call Today ID 8744 MIXED LETTING – CABARITA BEACH

ID 9015 CARETAKING ONLY - MACKAY EXCLUSIVE AGENCY

• • • • • •

Mixed letting, mostly permanent No set hours in agreement Low maintenance grounds Beautiful 3 bed residence Opportunity for growth Cabarita Beach – the place to be!

NET PROFIT: $187,727 ASKING PRICE: $1,495,000 EXCLUSIVE BROKER: Tony Johnson - 0433 335 679

EXCLUSIVE AGENCY

• • • • • •

ID 9016 CAPRICORN COAST MANAGEMENT RIGHTS

Beachfront caretaking opportunity 4 bed residence + granny flat Large office on title No set hours Pet permitted with BC approval Supportive committee and owners

NET PROFIT: $58,600 ASKING PRICE: $675,000 EXCLUSIVE BROKER: Antonio Curulli - 0488 030 853

ID 9020 HIGH NET PROFIT – MOOLOOLABA

EXCLUSIVE AGENCY

• • • • • •

Located in seaside Emu Park 20kms south of Yeppoon 20 high standard apartments Stroll to beaches & amenities Quality lifestyle business 3 bed, 2 bath manager’s residence

NET PROFIT: $150,000 ASKING PRICE: $875,000 EXCLUSIVE BROKER: Michael Philpott - 0433 137 927

• • • • • •

Riverfront holiday complex 23 apartments in the letting pool Easy to maintain gardens No requirement to live onsite No set office hours 3 bedroom manager’s residence

NET PROFIT: $400,000 ASKING PRICE: $P.O.A LISTING BROKER: Brigid Clarke - 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

CRYSTAL BEACH APARTMENTS | TUGUN, QLD

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

MANAGEMENT RIGHTS Gold Coast Crystal Beach

Evolve Crystal Beach Trust

Tugun

CRE

Ouguo Family Trust

Slacks Creek

CRE

Brisbane Brookfield Estate

Jim Prentice from CRE Brokers with Sue Baradel & Tim Falloon

After several months looking for a suitable complex to purchase, brother and sister duo Sue Baradel and Tim Falloon were introduced to Crystal Beach Apartments at Tugun by CRE Brokers Management Rights Agent Jim Prentice.

Both Sue and Tim had previous experience in the short term stay properties with Sue gaining experience in a local office and Tim at a large accommodation building in Canada. Attending the ARAMA one day Introduction Course prior to settlement allowed them to hit the ground running and take on the challenge of operating their own business with confidence. CRE Brokers wish Sue and Tim a successful future in their new venture.

Centenary Approach

Takahashi

Darra

CRE

Rangeview Park

CKW Investment Group

Algester

CRE

Hemmant Village

Song Trust

Hemmant

CRE

Greentrees Capalaba

Logan Hospitality

Capalaba

CRE

Oxley Outlook

Takahashi

Oxley

CRE

Terraces on Sandi

Lelang Chen

Oxley

RB

Vave Scarborough

Alexey and Liubov Chekhunov

Scarborough

RB

Bathers Beachside Residences

Alexey and Liubov Chekhunov

Scarborough

RB

Oxy Stones Corner

Jason Kozionas

Stones Corner

RB

Bellaire Apartments

Rosemary Stay

Michelton

RB

Sunshine Coast / Wide Bay / Fraser Coast Koola Beach

Miracole P/L

Bargara

CRE

Windward Apartments

Joe Frendo & Sandra Ludekens

Mooloolaba

RMS

Wayne Musson & Ling Sun

Cairns

North Queensland Focus on Spence

CBMR

MOTELS & OTHER Queensland PROGRAMME

Atherton Holiday Park

Anderson P/L

Atherton

CRE

Aspley Pioneer Motel

Dendab P/L

Aspley

CRE

This months suppliers to the programme

Royal Hotel

PTZ Australia P/L

Gympie

CRE

Bundaberg Park Lodge

Radius RE P/L

Bundaberg

CRE

BEDS & BEDDING

Sunshine Coast Motor Lodge

Luftschloss P/L

Woombye

CRE

Kalua Motel

Ming Liu & Jiaxuan Li

Bundaberg

TB

ELECTRICAL APPLIANCES FURNITURE - OUTDOOR GYMNASIUM EQUIPMENT INTERNET SERVICES SIGNS SOLICITORS TENNIS COURT CONSTRUCTION &/OR REPAIRS TRAINING & DEVELOPMENT TV & VIDEO HIRE/REPAIRS

L & M Goldstar Sleepmaker L & M Goldstar Pride Casual Furniture GymWorks Australia Pty Ltd Sunrise Internet SignXtreme Hynes Legal Cook & Co. Sports Surfaces Property Training Australia L & M Goldstar

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.

Malanda Lodge Motel

PEBTL P/L

Malanda

TB

Arcadia Village Motel

Adam Ueberrygang

Arcadia

RB

Oilman Coffs Harbour

Rutledge Investments P/L

Coffs Harbour

Alstonville Leisure Village

Alstonville Village Management P/L Alstonville

New South Wales

44

CRE

Bali Hi Motel

Nguyen

Tuncurry

CRE

Tiona Palms

Jeffress

Tiona

CRE

Ballina Comfort Inn

RAG P/L

Ballina

CRE

Lismore City Motor Inn

Fang Investments

Lismore

CRE

Roydon’s Motor Inn

E&S De Ferranti

Tamworth

TB

Idlewilde Town

Mohammad Sharif Amin

Pambula

RB

Country Motor Inn - Investment

Mohammad Sharif Amin

Pambula

RB

Bathurst Heritage Motor Inn

Chris Inzitari

Bathurst

RB

Blue Waters Motel

Ryan Bowman

Kingscliff

RB

North Coast

RB

Byron Lakeside Holiday Apartments Elke van Haandel

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

CRE

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 - ResortBrokers; RS - Resort Sales; TO Tom Offermann; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp; WCH - Ward Commercial Hotels. * In conjunction

PROPERTY

ResortNews | June 2021

ACCOMPROPERTIES

for buying Management Rights, Motels, Hotels and Caravan Parks in Australia Categories

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ACCOMPROPERTIES - MAKE YOURSELF AT HOME IN THE ACCOMMODATION INDUSTRY

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RECEIVE PROPERTY ALERTS

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OVER 900 LISTINGS TO CHOOSE FROM ALL THE LEADING BROKERS www.accomproperties.com.au

Laughter is key to success for new resort managers

By Mandy Clarke, Editor

Ashim and Brigette Kaula are the new management rights owners of Sea Point on Trinity Beach.

In April 2020 they finalised the purchase of these very pretty boutique, beachside apartments in North Queensland. This month they talk to Resort News about an interesting first year in the industry.

Brigette and Ashim Kaula

With a remarkably positive outlook and a great sense of humour Ashim and Brigette unexpectedly declare that they

consider the last 12 months to have been a fantastic success!

In truth although the pandemic has been a disaster for many other managers in the industry, for Ashim and Brigette it has been a steady and gradual introduction into managing a resort. In many ways, Ashim explains it has been an almost perfect first year. He says: “We bought this business just as the COVID pandemic hit. Rather than complain, we decided to look at our involvement from a positive angle. We learnt the ropes, as it were, in slow motion for the first several months.

It was interesting.

Accounting | Financial Due Diligence | Purchase & Sale Advice | Auditing

North Queensland’s Management Rights Specialist We are one of the leading full service accounting firms in North Queensland. Bringing together the knowledge and experience of nine partners and around 70 staff. We have the advantage of local relationships, expertise and knowledge combined with the benefits and resources of the BDO national and global networks.

We work together with our clients to provide personalised advice and integrated accounting and business solutions.

Contact our Management Rights Specialist Robert.Cuda@bdo.com.au 07 4046 0000 | www.bdo.com.au

46

AUDIT • TAX • ADVISORY PROFILES

ResortNews | June 2021

“We quickly learnt that we were not eligible for any grants as we were new to the business and that was just par for the course. We are primarily a holiday letting business so there is always much to be done.

“We went from a lowly 20 - 30 percent occupancy to our first busy period during December 2020, it meant that overnight we went from 40 percent to 100 percent occupancy.

We returned to lower levels due to various travel stoppages and seasonal slowdowns but had a busy Easter period.

“We are now running at a healthy occupancy rate and are pleased we went through the different phases because it helped us understand and deal with situations as they presented” he admits.

“Due to the small nature of the business our team mainly consists of myself, and sometimes Brigette when she is not working in her day job. We do have professional cleaners and a team of trade people that we can call when needed.

“In our first year we had time to spend understanding and improving our systems. We

aim to make our property a ‘go-to’ destination for guests.”

across Papua New Guinea as a mining logistic expert.

Ashim’s career began in agriculture, as a manager in the Tea Plantations of South India, and then he moved to Papua New Guinea to run a successful coffee processing company for many years. When he moved on from tea and coffee it was to very remote locations

He says: “We ran a camp where the only way in and out was by a light aircraft on a grass runway, or helicopters and canoes. It was challenging.”

He jokes: “With hindsight this was my first foray into

the accommodation industry but with tents and thatched sheds instead of glass, tiles and swimming pools!”

Then Ashim moved to Australia, where he lived in Brisbane and the Gold Coast. He continued his work flying in and out of mining camps.

YOUR PARTNERS IN SUCCESS BUYERS / SELLERS / DEVELOPERS SPECIALISTS IN MANAGEMENT RIGHTS IN NORTH QUEENSLAND

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

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ResortNews | June 2021

PROFILES

47

Brigette reveals that she has had a long career in social and emotional wellbeing and has worked for the Royal Flying Doctor Service and other organisations providing assistance and support to indigenous communities in the Cape York region. Brigette continues with this work in an independent capacity today.

When Brigette moved to Cairns for work Ashim followed and the move to the tropics eventually led them to consider purchasing a management rights business.

starting point we chose a small management rights business to give us the experience we need to decide if we want to go bigger in time.”

Ashim said: “Management rights was a lifestyle choice that we made. Living on a beach is the Australian dream and was the main drawcard. As a

They chose the delightfully presented and very tranquil Sea Point on Trinity Beach resort, which consists of two blocks with a barbeque and pool

between them. The front building offers a four-bedroom penthouse alongside six two-bedroom beachfront apartments that all have a wow factor due to being so well designed and spacious.

The second building consists of well-appointed one- and twobedroom classic apartments for the discerning traveller who

WOULD YOU LIKE YOUR PROPERTY FEATURED? Profiles are a fantastic opportunity to:

PROFILE FEEDBACK:

• •

Thanks very much to you and your team for your assistance and support in creating a professional resort profile, for Oscar on Main, in your wonderful publication.

• • •

Impress your unit owners Receive recognition for your hard work (and that of your staff) Lift the awareness of your property within the industry Help build relationships with other managers Lift the profile of your property for when you are ready to sell

resortnews Issue Iss ssue ue 235 2 | Mar March rch 201 2016 2 6 | $1 $13.75 $13.7 3.75 3.7 5 Inc. Inc. GS GST T

The Monthly

Magazine for Accommodation Industry Profe ssionals

www.accom news.com.a u

Who writes the article?

The article will be written by one of our qualified journalists.

Print Post No. Australia Post Registered by

It doesn’t cost anything to have a profile in Resort News apart from a little of your time when helping to coordinate the profile material.

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The profile read well and told our personal story as well as that of our business and the building. It was surprising how many people saw it and commented back to us.

Special Repo rt

Regional airpo rts from internatio benefit nal links

Profiles

Le Cher Du Monde Raine & Horn e Onsite Righ ts management rights •

hotels • mote ls •

Interview Steve Daws on on Airbn b, corporate buyers and why WA is the place to invest from international links resorts • holid ay

parks • time share

I was a little concerned that it would take a lot of time and effort on my part – something building managers are always stretched on – but your team made it very easy and took the hard work out. We were very proud our wonderful resort was featured in such a professional way.

• hosted

Many thanks for the extra copies of the magazine.

We have given them to some of

the owners and the body corporate committee members. They were really proud to see their building highlighted in the industry magazine.

Thanks for helping us to raise our profile with the Oscar on Main feature and for making it a quick and easy, professional process.

– Angela, David & Sonya Oscar on Main, Main Beach Thanks to the team at Resort News for profiling our property. We are really happy with the results, and the feedback from owners has been fantastic.

The article was great, and accurately reflected both our property and everything we are trying to achieve.

Very much appreciated!

– Eric & Tanya Sealey, Aqua Vista, Maroochydore

CONTACT OUR PROFILE COORDINATOR GAVIN BILL ON 07 5440 5322 OR SERVICE@RESORTPUBLISHING.COM.AU TO BOOK YOUR PROFILE

48

PROFILES

ResortNews | June 2021

wants to be near the beach without being on it. The building looks and feels contemporary.

Sea Point on Trinity Beach has been very well maintained over the years and besides putting in CCTV Ashim has been doing his upmost to ensure all the ongoing maintenance works remain at the highest standard.

Ashim further reflects on the last 12 months...

He says: “We have maintained a good review rating on Booking. com and other travel sites. The beachfront location will always be a major drawcard, but we also go above and beyond and offer guests a wonderful experience at a very fair price. On top of that I always try to make sure each guest feels special. I have provided surprise birthday cakes and sparkling wine for birthdays and romantic weekends.”

What do Ashim and Brigette enjoy most?

“Of course, it’s the interesting people we meet,” Ashim instantly replies. “However, we also love the flexibility of work hours, the independence to

work at our own pace and of course the commute to work is pretty good too,” he jokes.

But Ashim gets serious when he reveals his advice for anyone

Ashim and Bridgette joke around and laugh a lot. I wonder if it is their natural banter and ability to look at the funny side of life that will be key to their success in the industry?

He says: “Do not take yourself too seriously. Make the job enjoyable. One does not have to be in house 24/7. Nothing terrible will happen when you step out for a short time.”

getting into this business.

As for the future, although it is still early days Ashim and Brigette quietly admit they can see themselves going further in management rights and would think about adding to their portfolio.

“Now” Ashim exclaims “that would be getting ahead of ourselves!”

Sea Point on Trinity Beach Boutique Beachside Apartments

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ResortNews | June 2021

PROFILES

49

COVID-19: Unexpected results

at Aegean Apartments

Andrew and Anna Charlton

By David Carroll, Industry Reporter

Andrew and Anna Charlton have spent more than three decades in the tourism industry but as relative newcomers to the management rights sector there have been some major adjustments that have had to be made.

“For 15 years I was a resort general manager with hundreds of staff,” Andrew says. “Now … I only have my wife to boss around and she doesn’t listen!”

Andrew has been coming to terms with that particular change since he and Anna purchased the management rights to the Aegean Apartments resort at Mooloolaba on Queensland’s Sunshine Coast in 2019.

The five-story beach resort marks the couple’s first foray into management rights but they are both veterans of the tourism industry.

50

been the general manager of a number of large hotels and resorts around the country including Coffs Harbour, Darwin, Kings Canyon and Uluru. We also owned a freehold holiday park for nine years before purchasing the management rights to the Aegean Mooloolaba.”

The couple took control of the Aegean mere months before the tourism industry was rocked by the outbreak of the COVID-19 pandemic.

The pandemic severely impacted almost every aspect of the tourism market, bringing a sudden halt to international travel and triggering major restrictions on domestic trade.

Accommodation providers were forced to scramble to minimise the damage as occupancy rates fell sharply.

“We only took over in December 2019, three months before COVID hit so it was an interesting time,” Andrew says.

“Both of us have been in the industry for over 30 years,” Andrew says.

“We certainly had to think quick and outside of the box in order to achieve some level of business and make a return for our owners.”

“Anna has a front office, sales and HR background. I have

With travel restrictions in place, the couple shifted their focus

PROFILES

ResortNews | June 2021

from short-term accommodation.

“We quickly put out monthly rates into the market to cater for stranded overseas travellers and had great success,” Andrew says.

“We were actually full for most of the time and our owners actually got reasonable returns which they were not expecting so that was great for us.”

In the aftermath of the severe travel restrictions, the couple found positives in what was a challenging period.

“When COVID happened, we were forced to evaluate every part of our operation and offering. We quickly managed to adapt and thrive in very difficult times,” Andrew says.

“As we were only very new, it was actually good for us to build

ResortNews | June 2021

rapport with our owners as it was a great test and opportunity to show them that we do and know what we are doing.”

Andrew explains COVID delivered a shake-up for the industry and provided an opportunity to explore new approaches.

“Everyone has been forced, or maybe allowed to be far more dynamic,” he says.

“Everything is off the table now and owners, managers and guests are all far more receptive to new and different ways of doing things.

“Now is a fantastic time to change your operation and offering to suit how you want to run your business. Be dynamic and try new things, stale and uninteresting won’t cut it.”

The Aegean is located in the heart

of Mooloolaba, just 60 metres from the beach. The architecture is reminiscent of the Greek region after which the complex is named and since assuming the management rights, Andrew and Anna have repainted the building, replacing the yellow-and-blue colour scheme with crisp white and deep-sea blue seen on many of the buildings found on the shores of the Aegean Sea. The complex comprises 24 one, two and three-bedroom apartments, 20 of which are in the letting pool. Facilities include pool, hot tub and a poolside barbecue area.

Andrew says the location and size of the complex were ideal but admits the building was a little dated and in need of some tender loving care when they first inspected it.

PROFILES

“We saw it as a great opportunity to put our mark on the place and breathe new life into the building,” he says.

“The Aegean has good bones, a little quirky in some areas but this gives it character.

We see it as a boutique, friendly, warm and inviting place to stay.

“It has all of the creature comforts but is relaxed enough that our guests feel comfortable walking to the beach in their togs, bringing fish and chips back and relaxing on the balcony with a cold one and watch all of the activity going on around them.”

The couple say after a career spent in the tourism industry, providing the best possible experience for their guests remains a key driver for them.

51

“We genuinely love seeing guests having a great holiday and knowing that we contributed to that experience,” Andrew says.

The couple admit the transition into the management rights sector has meant making some adjustments, but they are pleased to have made the move.

“If you don’t feel that way you really shouldn’t be in hospitality.

“It’s tough, you have to be everything to everyone, and you have to be thickskinned,” Andrew says.

“We also both enjoy projects, so this recent renovation has been very rewarding, and we have plenty of other improvements in the pipeline.”

Andrew and Anna are actively involved with the day-to-day operations of the resort, but both acknowledge resident caretaker Deb Sommerville provides crucial support.

representative in the evenings

“Deb lives on site as our

“She allows us to have a life

and does all of the cleaning and public areas,” Andrew says.

and get away from the place which keeps us sane and motivated. We are truly grateful that we have such a great person working with us.”

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