Resort News - July 2022

Registered by Australia Post Print Post No. 100023799

Issue 311 | July 2022 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

Profile Coco Mooloolaba: Star service key to hot Coco Person of Interest Peter Turner flies high on the Gold Coast management rights • hotels • motels • resorts • holiday parks • time share • hosted SPECIALISTS IN ACCOMMODATION FURNITURE FF&E AND JOINERY Custom made furniture including packages

CEO, Dennis Clark

www.hotelinteriors.com.au info@hotelinteriors.com.au | 1300 876 055

OVER 1,000

LISTINGS FROM ALL THE LEADING BROKERS ON THE ONE WEBSITE

Ward Commercial

“A website for buyers/sellers such as Accom Properties has been well overdue for years.

Buyers don’t want to view multiple websites to see what is for sale in a particular region or town, they want all properties on the market with relevant criteria at their fingertips now and you’ve been able to provide a platform which is fantastic. Well done.”

– Brett Salter, National Accommodation Manager, ALH Group Limited

www.accomproperties.com.au

The legal stuff...

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

Advertising Conditions The publisher reserves the right to refuse to publish or to republish without any explanation for such action. The publisher, it’s employees and agents will endeavour to place and reproduce advertisements as requested but takes no responsibility for omission, delay, error in transmission, production deficiency, alteration of misplacement.

The advertiser must notify the publisher of any errors as soon as they appear, otherwise the publisher accepts no responsibility for republishing such advertisements. If advertising copy does not arrive by the copy deadline the publisher reserves the right to repeat existing material.

Disclaimer Any mention of a product, service or supplier in editorial is not indicative of any endorsement by the author, editor or publisher. Although the publisher, editor and authors do all they can to ensure accuracy in all editorial content, readers are advised to fact check for themselves, any opinion or statement made by a reporter, editor, columnist, contributor, interviewee, supplier or any other entity involved before making judgements or decisions based on the materials contained herein.

Resort News, its publisher, editor and staff, is not responsible for and does not accept liability for any damages, defamation or other consequences (including but not limited to revenue and/or profit loss) claimed to have occurred as the result of anything contained within this publication, to the extent permitted by law.

Inside our July issue FRONT DESK Editor’s Note: Three pints, a wedding and a reconnect! ........................05

INDUSTRY News .............................................................................................. 06 State Report ................................................................................07 ARAMA Report ...........................................................................08 BCCM Report .............................................................................. 10 SCA Report .................................................................................. 13

14

Person of Interest - Peter Turner: Flying high on the Gold Coast .............................................. 14

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

Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes.

Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties.

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

© 2022 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.

Software Solutions....................................................................24

Motel Market ............................................................................... 19 Thinking MR.................................................................................20 Building Relationships ............................................................ 21 Good Governance .....................................................................22 Q&A .................................................................................................24

28

TOURISM Tourism News .............................................................................26

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

Queensland’s Loggerhead Turtle paradise achieves 95 percent occupancy ............................................................28 Sunshine Coast a feast for the senses .............................29

EDITOR

Mandy Clarke editor@accomnews.com.au

INDUSTRY REPORTERS DESIGN & PRODUCTION ADVERTISING SUBSCRIPTIONS

Grantlee Kieza Richard McGill

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

CONTRIBUTORS Andrew Morgan, BCCM Commissioner, Chris Irons, Col Myers, James Giesecke, Jason Nassios, Jonathan Hanaghan, Kelley Rigby, Kristi Kinast, Lynda Kypriadakis, Mike Phipps, Sylvia Johnston, Trevor Rawnsley and Will Kenny.

Olympic boost for Indigenous tourism .............................30

EVENTS & APPOINTMENTS Events.............................................................................................32

29

DEVELOPMENTS Development News ..................................................................36

PROPERTY AccomProperties Sales Report ...........................................38

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

PROFILE Coco Mooloolaba: Star service key to hot Coco ..........42

PREFERRED SUPPLIERS Preferred Supplied Directory ................................................46 FRONT DESK

33 ResortNews | July 2022

Welcome to the July edition of Resort News.

Is it just me or has June zipped by in a flash?

June has always been my favourite month of the year, for many reasons but mainly because I was born near the dreary ‘Peaky Blinders’ locale in the UK, and I consider June to be the ‘real’ start of summer. June triggers sweet memories of long bright evenings spent drinking pints in my local pub beer garden (not a tropical beach for miles) and yes, I am a cheap date.

From a work (and words) point of view, June 2022 had an ‘R’ theme, ‘Reconnect’, ‘Restart’ and ‘Rebuild’, all well used words at every event I’ve attended, and in every recent report I’ve read. But after writing so much about the ‘C’ word for over two years now, I consider ‘R’ words to be well… ‘Refreshing’.

openings across the region. In many ways, it also felt like the ‘Restart” of Gold Coast tourism, with a vibe of unadulterated excitement at the ribbon cutting opening ceremony of the Langham, Gold Coast and Jewel Residences. The buzz continued to reverberate throughout the GC as another hotel officially opened, The Star Residences, Tower 1.

Mandy Clarke, Editor editor@accomnews.com.au

This month our industry began to really ‘Reconnect’ at face-toface events. We had a series of ARAMA social gatherings and the first two 80 TWENTY Hotel Conferences, and were privy to many inspiring ‘Rebuild’ stories, just like the one from Amy Dash that I write about on page 28.

We also celebrated a sector ‘Restart’ with many new property

However, these events were only the beginning of a ‘Rebuild’. We can look forward to the 2022 ARAMA TOP Awards Presentation & Dinner, which will be held in Brisbane on July 26. Plus, the inaugural Black-Tie Gala and Awards night, to be held in the Gold Coast on August 5.

I am particularly excited to attend the Hotel Investment Conference Asia Pacific, HICAP ANZ, which will be held from August 31 to September 2, 2022, at the Sofitel Sydney Darling Harbour.

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Remember to register and I will see you there!

But, what about ‘Refresh’? Well on Jul 8, I fly to my hometown, Coventry in the UK to reconnect with loved ones at a very special family wedding, and of course I will be heading for a few ‘Refreshing’ pints in the local pub beer garden!

EDITOR'S NOTE

Three pints, a wedding and a reconnect!

However, I will be working remote, so don’t worry the August edition of Resort News is already in the works.

Back to July’s Resort News, get to know our ‘Person of interest’, Peter Turner and learn about his interesting journey through life. Read this month’s onsite manager’s story from Kylie and Gavin Bartholomew from their apartment complex, Coco Mooloolaba, Enjoy this issue of Resort News!

Cheers, Mandy.

OUR SERVICES Furniture FF&E design concepts

IN HOTEL FIT OUTS

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Project Management Inhouse quality control Freight and logistics management Full installation Commercial warranties Servicing Australia and Internationally

www.hotelinteriors.com.au Dennis Clark MDIA

ResortNews | July 2022

info@Hotelinteriors.com.au

1300 876 055

FRONT DESK

0420 257 022

05

NEWS

NSW switching from stamp duty to land tax

By Jason Nassios, Associate Professor, Centre of Policy Studies,Victoria University and James Giesecke, Professor, Centre of Policy Studies and the Impact Project, Victoria University

It will become the second Australian jurisdiction to do so, with the ACT halfway through a 20-year switchover.

Homebuyers who accept the offer will be taxed annually on the value of their land, instead of hit with an upfront fee (that averaged $50,000 for Sydney in 2018) when they buy.

Once they have accepted, their property will be out of the stamp duty system and subject only to land tax for future owners.

It’s become conventional wisdom to say that such a revenue-neutral switch would boost productivity.

Why? Moving house sets in motion a chain of transactions: residents engage lawyers to transfer titles, real estate agents to manage the property sale, removalists to transport possessions, and so on.

Stamp duties compound these costs, by adding a significant, additional layer of taxation, which in some states makes up 80 percent of the total cost of moving house.

Land tax, in contrast, is one of the least-damaging taxes. It encourages land owners to put land to its highest-value use.

In a landmark modelling exercise completed this month, my team at the Victoria University Centre of Policy Studies finds that the productivity gains are large by the standards of tax swaps.

06

© Adobe Stock - stock.adobe.com

NSW announces a switch from stamp duty to land tax.

This swap would push down house prices but push up apartment prices, new modelling finds.

After 20 years, replacing stamp duty with a land tax would boost national income by A$0.30 for each dollar of revenue swapped, or up to $720 per household if implemented Australia-wide, about 0.34 percent of annual gross domestic product.

Of greater interest for homeowners and buyers is what it would do to prices.

Houses versus apartments Broadly, we find that the switch would put downward pressure on prices, but not for every type of home.

Apartments are different.

Across the market as a whole, we expect downward pressure on the price paid by buyers of about 4.7 percent, and downward pressure on the price received by sellers of about 0.1 percent.

But for houses, we expect much stronger downward pressure than the average suggests.

We expect the price paid by house buyers to fall by about 7.6 percent, and the price received by sellers to fall 3 percent.

Interestingly, for apartments we expect movements in the other direction, pushing up the price paid by buyers by 2 percent, and pushing up the price received by sellers by 6.4 percent.

What’s so different about apartments?

Why would the switch put downward pressure on the price of houses but upward pressure on the price of apartments?

It is because of how two offsetting effects play out.

One is that higher land taxes depress land prices.

Buyers who know they will be lumbered with future bills find their purchases less valuable.

This effect is much bigger on house prices than apartment prices, because houses occupy more land on average.

The other effect is that removing stamp duty not only removes an impost on the current buyer, but also removes an impost that will have to be paid when the current buyer sells, and when the subsequent buyer sells, and so on, making resale more valuable to the current buyer than it would have been.

For properties that aren’t turned over often this effect isn’t very important, but for properties that are turned over frequently, it becomes significant.

Apartments are turned over twice as frequently as houses, meaning that for apartments the upward effect on prices from removing stamp duty overwhelms the downward effect from imposing land tax.

INDUSTRY

Much depends on exactly what’s proposed It would be possible to lessen this upward pressure on apartment prices by imposing higher land taxes on higher density housing, an idea canvassed by the Henry Tax Review in 2010.

Planning and zoning rules could also play a role.

Other policy design decisions could have other effects on prices.

Our modelling is based on an immediate swap of stamp duty for land tax.

This is not the same as the NSW government’s opt-in proposal, which could have different price consequences to the policy we modelled.

The NSW government is also reported to be considering excluding the most expensive 20 percent of properties from the switchover, so it can continue to collect stamp duties on high-value transfers.

In future work we plan to extend our modelling beyond a simple swap of stamp duty and land tax.

This article is republished from The Conversation under a Creative Commons license.

ResortNews | July 2022

The NSW Department of Planning and Environment has recently clarified its views in relation to the application of the State, Wide Short-Term Rental Accommodation (STRA) planning laws.

You may recall that from November 1, 2021, new rules commenced in NSW in relation to STRA, including: •

•

•

•

A state-wide planning instrument permitting the use of dwellings for STRA under certain conditions, including limits on the days the activity can take place; and a mandatory Code of Conduct that applies to online booking platforms, letting agents, hosts, and guests; and allowing strata schemes to adopt a by-law that prohibits STRA where a lot is not a host’s principal place of residence. (Any such by-law has to be adopted by special resolution, with 75 percent of votes supporting the proposal at a general meeting), and STRA properties upgraded where necessary to meet certain minimum safety requirements.

The Department’s interpretation of these new STRA laws have not been tested yet in a Court of Law

STATE REPORT

NSW short term rental update

Col Myers, Small Myers Hughes

After some delays and staggered starts, all these policies have now been put into effect.

except where a council varies this to no lower than 180 days (although Byron Bay is possibly looking to varying this to 90 days in some parts of the shire and 365 days in other parts).

Day limits on STRA The planning laws now include new ‘exempt’ and ‘complying’ approval pathways that enable STRA within certain day limits: •

•

Where the host is present, STRA is ‘exempt development’ for 365 days per calendar year.

This allows hosts to use an existing approved dwelling for the purposes of STRA, without requiring any further approval from the local council.

Where the host is not present, and the site is not on bushfire prone land or a flood control lot, STRA is ‘exempt development’ for:

•

180 days in Greater Sydney;

•

365 days in regional areas;

Note that where the host is not present, and the booking is for 21 or more consecutive days, the booking will not count towards the above day thresholds

What does this mean for management rights operators?

Prior to the commencement of the STRA laws, only a limited number of councils in NSW had local environmental plans that specifically regulated the use of properties for short-term rental accommodation. Many operators conducted short-term letting from complexes that were zoned (or had a DA) for “residential accommodation”.

Following the introduction of the STRA laws, management rights operators now need to make enquiries with their local council to ascertain if the development approval (DA) for their building specifically allows short-term letting in the complex. If a valid DA for STRA exists, the day caps set under the STRA planning policy do not apply to that building.

However, if the DA for the building was only for residential use (notwithstanding that it may have been used for STRA in preceding years without any council intervention), the day caps will apply, which this obviously could have a detrimental effect on management rights operations.

It should be noted however that the Department’s interpretation of these new STRA laws have not been tested yet in a Court of Law… So, watch this space!

Accountants to the accommodation industry.

Call 07 5430 7600 or visit holmans.com.au

ResortNews | July 2022

INDUSTRY

07

ARAMA REPORT

United we stand, divided we fight!

For everyone involved in the business of Management and Letting Rights (MLR) an important maxim is to concentrate on the things that unite us, rather than those that divide us.

Because most ARAMA members work and live on-site in close proximity, they are often the target of people’s frustrations, and it can be a very stressful environment.

Resident managers are there to create harmony, and not disharmony, but neighbourhood battles can be so toxic that Queensland had to introduce the Neighbourhood Disputes (Dividing Fences and Trees) Act 2011. This was designed to overcome the increasing prevalence of neighbours in the suburbs bickering across their side of the fence. When residents are living cheek by jowl and on top of each other like they do in strata, problems and disputes are amplified.

Advocacy is a slow process, not a sledgehammer solution Trevor Rawnsley, CEO, ARAMA

some of them feel under so much pressure that they simply cannot cope anymore. Often this is a result of dealing with neighbourhood disputes inflicted by people with an undiagnosed condition who are also affected by the pressures of modernday life in and around strata.

A harmonious working relationship is the goal for most people in business especially the resident manager but even more so when some of our managers are available 24/7 and surrounded by conflict. The art of diplomacy is a crucial skill

that resident managers must develop, and it’s part of the advocacy work that ARAMA performs every single day on behalf of its members.

Advocacy is a slow process, not a sledgehammer solution.

ARAMA is not a highly politicised association, and our members support candidates across the political spectrum. But politicians are lawmakers and if we want laws to change then we need to include politicians in our advocacy work. A good example of that was at the ARAMA 30th Anniversary Celebration Dinner which was held on the Gold Coast in May

Stresses are further magnified by those who would do harm to the business model of management rights, whether they be outside real estate agents trying to poach from the letting pool, lawyers trying to create disputes with an aim to resolving them at a high price, or hostile committee members opposed to longterm management agreements and not understanding the benefits that they bring.

ARAMA provides the A-MAP mental health assistance program for members because

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ARAMA 30th Anniversary Celebration Dinner

INDUSTRY

to celebrate ARAMA’S 30th birthday. We had politicians from the Queensland Opposition there, and we invited people from the Queensland Government though they declined to attend.

It doesn’t’ really matter who is in government because our advocacy work is undertaken right across the political spectrum. The process is all about making connections and using logical argument, and it doesn’t matter if the team in power is red or blue, green or teal, advocacy remains the same and the good governments are the ones who understand that good governance comes from consulting with industry even if the conversations are uncomfortable.

My experience in the decade and more that I've been advocating for ARAMA is that we achieve good outcomes because we are responsible, we are trusted, and we are listened to. We don’t have to win every argument and we don't threaten. There are other groups that pressure politicians in an effort to obtain their desired outcome. They threaten to run media campaigns against the government, and they warn politicians that they will get their members ResortNews | July 2022

out on the street protesting if they do not get their way.

We’ve had members from ARAMA wanting to take part in protests, especially during the darkest days of the COVID pandemic when it was illegal to have a holiday in Queensland.

I had members ringing me in tears saying that we should rally the membership and march on Parliament House in Brisbane and protest the border closures. While I fully understand their feelings, ARAMA is not a protest movement. The kind of thing we do that can make a difference is talk regularly to governments and bureaucrats.

And we do that every day.

I learned a long time ago to succeed at advocacy you really must work effectively and collaboratively with people that you may not always like and accept that you may not always get everything you want.

I recently undertook a series of roadshows with a prominent body corporate management company. The theme was how to create harmony in strata communities. Resident Managers can do that beautifully.

We encouraged members to attend these roadshows to see the reasoned and respectful arguments that ARAMA puts forward in favour of MLR, and how resident managers can contribute to harmony within a scheme. The roadshows also showcase how the process of advocacy can defuse the hostility of those people connected with the industry who may have a completely jaundiced view of the work done by our wonderful resident managers.

These shows can be a bit daunting. During the latest series, I was speaking on a panel between two high power lawyers who are both anti long-term agreements (one more so than the other) we continued the advocacy in an atmosphere that could be hostile if not managed correctly. It's a tricky dance. The hostility can come from angry owners who are usually fired up by someone looking to feather their own nest commercially.

At a recent roadshow that was examining ways to create harmony there were people there deliberately trying to create disharmony for their own benefit.

At one show, there was a plant in the crowd who was asking about what he called “unconscionable 25-year agreements”. He made a number of outlandish and inaccurate statements about the “evils” of management rights. I told him that what he had said did nothing to create harmony or goodwill in a scheme, and the comments were actually divisive. I explained that if a manager was doing a good job, what did it matter if they had a 10, 15, or a 25-year agreement?

He asserted that there were more disputes because of long-term agreements, but I was able to show that his claim was incorrect, and in fact there are less disputes in residential schemes in Queensland then in any other state. And there are more schemes under management rights in Queensland than in any other state. The facts don’t lie.

The attacks on long-term caretaking service agreements are counterproductive. When outside influences are constantly trying to reduce terms, or to damage the business of MLR it’s akin to being a good worker doing a really great job and

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The length of term of a caretaking service agreement is irrelevant, it is the quality of service and the behaviour and performance of the resident manager that matters.

This is a message that ARAMA promotes as just one aspect of our constant advocacy on behalf of our members. Advocacy is a process about relationships, and ARAMA is working all the time to paint the work that our wonderful members do in the best possible light. And to create harmony within our industry.

One day, soon I hope, the strata industry will unite so that we can avoid the need to fight!

For membership enquiries:

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

Damian Quinn (07) 5443 5266 www.simpsonquinn.com.au ResortNews | July 2022

How does that make sense? But that's what sometimes happens in our business when outside influences attack MLR. How would you react in a situation like this? Would you flight or fight?

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

Damian Quinn

• Commercial & Business Law • Litigation & Dispute Resolution • Wills & Estate Planning

then the boss comes to you and says “hey you're doing a really good job, but we now want to pay you less, and if you thought you had long-term job security here forget it. We don't want you here for that long.”

1300 ARAMA Q (1300 27 26 27)

INDUSTRY

09

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BCCM REPORT

Utility infrastructure maintenance &

who is responsible?

We often receive questions from owners, occupiers and committees about who is responsible for the maintenance of utility infrastructure within community titles schemes.

that all utility infrastructure in a community titles scheme is common property except for utility infrastructure that:

Working out this responsibility is not always simple as the circumstances of a specific scheme may change the answer.

This article highlights some common scenarios that bodies corporate experience in relation to the maintenance responsibilities of utility infrastructure.

It provides general information only. Lot owners or bodies corporate should seek their own advice from appropriately qualified people, as each situation is different.

What is utility infrastructure?

It is important to understand what utility infrastructure is, when making decisions about responsibility for maintenance.

Utility infrastructure can include the pipes, cables, wires, sewers,

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•

supplies a utility service to only one lot; and

•

is within the boundaries of the lot; and

•

is not within a boundary structure for the lot.

Note: All three of these points must be met for the utility infrastructure to be an owner’s responsibility, not just one of them.

drains, plant and equipment which supply a utility service to the lots or the common property in a community titles scheme. Utility infrastructure can also mean a device for measuring the reticulation or supply of a utility service.

How do you know if the utility infrastructure is common property or an owner’s responsibility?

There are exceptions to this general rule. If a utility infrastructure device has been installed on the common property by a lot owner for their benefit, and it services only their lot, that owner is usually responsible for the ongoing maintenance and/or replacement. These exceptions can be found in section 180(4) of the Body Corporate and Community Management (Standard Module) Regulation 2020 (the Standard Module) and would be considered the owner’s responsibility to maintain.

Section 20 of the Body Corporate and Community Management Act 1997 (BCCM Act) provides

Another exception involves water meters installed in bodies corporate established after

Adjudicators have stated that lifts are types of utility infrastructure.

INDUSTRY

January 1, 2008, which are not part of common property.

Meters that measure water supplied to a community titles scheme will usually remain the property of the provider supplying the water. You can read more on our website about utility infrastructure maintenance.

Some scenarios are set out below to help you understand what actions owners and committees can take to determine responsibility for, and resolve, maintenance issues.

Water damage inside a lot Water damage can come from various sources such as leaking roofs, leaking pipes, failure of a waterproofing membrane, drummy or old tiles.

The source of the water leak needs to be determined before responsibility for the leak, and any resultant damage, can be ascertained.

Scenario An owner or occupier of a lot has noticed water stains appearing on the ceiling of their bathroom. They suspect that there is a leaking pipe creating the damage.

ResortNews | July 2022

Not knowing where the leaking pipe is located creates some uncertainty about the responsibility of the repair.

Determining responsibility for the water leak

If an owner reasonably believes that the leak is coming from the lot above theirs, they can: •

Access the body corporate records to get a copy of the body corporate roll to determine the contact details of the lot owner above them; and

•

directly contact the lot owner above and ask them to fix the leak. The owner may wish to explain the damage occurring to their lot and provide a reasonable timeframe for the other owner to fix the leak and any resultant damage.

If the lot owner above does not cooperate, the owner may consider submitting a motion to the committee to authorise an inspection of the lot above. The body corporate has the power to enter a lot to investigate a maintenance issue such as a water leak, to ascertain if the leak could be a body corporate responsibility to fix (section 163, BCCM Act).

Alternatively, if the owner reasonably believes the leak is

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In the first instance, an owner may wish to get their own plumber’s report to check that there is nothing inside their lot causing the water damage. For example, there may be some form of utility infrastructure above a false ceiling that belongs to that owner and may influence where the responsibility falls.

the responsibility of the body corporate, they may submit a committee motion requesting that the body corporate repair the leak. This committee must act reasonably in considering any such request (sections 94 & 100, BCCM Act).

It is important that all parties act swiftly in relation to water leaks. A water leak that doesn’t get repaired could cause higher water bills for all owners, damage to common property or another owner’s lot, or issues with insurance cover.

If water damage also occurs to an owner’s contents, such as carpet or furniture, the owner may have to make a claim on their own contents insurance policy.

Insurance

Liability for damage

Once responsibility for the water leak is ascertained, the relevant parties can consider whether the resultant damage from the leak is covered by the body corporate or owner’s insurance policy.

If the water damage repair is not covered by an insurance policy, or costs less than the excess to repair, then it becomes a question of maintenance. An owner or occupier must maintain their lot in good condition, including utility infrastructure that is not common property or fixtures and fittings installed for the owner’s benefit. Likewise, the body corporate must maintain common property

While the body corporate’s building insurance will not cover the maintenance of utility infrastructure the policy may cover the water damage and repair. If it is found that the leak is from another owner’s

Brisbane Level 3, 345 Ann Street, Brisbane QLD 4000 07 3002 2699

utility infrastructure, the body corporate can vote to make that owner liable for the insurance excess, even if the damage is to another lot or common property. Alternatively, if the leak is from a body corporate pipe, the committee can vote for the body corporate to take on the liability for the excess (Section 203, Standard Module).

utility infrastructure in good condition. If there has been a contravention of the Act or the by-laws causing damage to property, the affected party with the damaged property can seek that the party responsible for the leaking utility infrastructure carry out the repairs or reimburse them for the repairs if they have already been completed (Section 281, BCCM Act).

Gutter maintenance in a standard format plan The responsibility for gutter maintenance in community titles schemes that are registered under a standard format plan of subdivision is not always straightforward.

Scenario An owner who lives in a group of two-storey townhouses joined with a common wall wants all the scheme’s gutters painted and maintained. The lower roofs have a shared gutter running across the front and back of the two townhouses.

Specialist Business Advisers to the Management Letting Rights Industry

Due Diligence Reports

Trust Account Audits

Structure Advice

Tax Compliance

Smiljan Jankovic: smiljanj@agredshaw.com.au | www.agredshaw.com.au

ResortNews | July 2022

INDUSTRY

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Body corporate actions

The upper roof has gutters front and back of the pitched roof.

These upper-level gutters are not shared and are located within the boundaries of the lot.

Responsibility for the gutters The shared guttering on the lower roofs is the responsibility of the body corporate because it services more than one lot.

Owners are responsible for the maintenance of utility infrastructure that is within the boundaries of their lots, services just them and is not located within a boundary structure. This means that the gutter on the upper levels in the scenario is the responsibility of each individual lot owner.

Owner actions The owner might ask the contractor providing them with a quote to separate it for the shared gutter and the gutter on their side of the boundary that is not shared. They can then submit a motion to the committee or annual general meeting (AGM) for the body corporate to maintain the shared gutters on their lot.

Body corporate actions The body corporate committee can also obtain a quote for the shared gutters of all lots that are common property and need maintaining.

Getting all the work done at once may be more cost effective for all the owners. If the cost is above the committee spending limit a motion would need to be considered at a general meeting.

The body corporate may consider obtaining further quotes for all the guttering that is the owners’ responsibility and offer the maintenance to each owner as

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a supply of services. If an owner agrees to use the service to have the gutters maintained, individual owners who agree to use the service can pay the body corporate the costs to carry out the work on their behalf (Section 210, Standard Module).

The body corporate can only supply a service to an owner or occupier if it has an agreement with the owner or occupier.

It is not enough for the body corporate to have passed a general meeting resolution agreeing to provide the service.

Maintenance of a tap located in an exclusive use yard

motion for the committee to approve the maintenance and expenditure. They can attach an explanation about section 177 and how it applies to their situation.

Body corporate actions If an owner requests that the body corporate maintain the tap within the exclusive use area, the body corporate may wish to check the improvements register to make sure the owner is not responsible.

If the owner did install the tap, they will be responsible for its maintenance unless the body corporate agreed to be responsible for it when the approval was given.

Installing extra storm water drains inside the boundaries of a lot

The maintenance of utility infrastructure located in an exclusive use area is relatively straightforward in comparison to other scenarios.

With the high level of storms that occur in Queensland there are many questions about inadequate drainage.

Scenario An owner with a courtyard, subject to an exclusive use by-law, reports to the body corporate that the tap in the courtyard is dripping and needs a new washer. The owner believes the body corporate is most likely responsible for replacing it.

Scenario An owner wants to install extra storm water drains inside the boundaries of their lot. The storm water mains, in this scenario, run through each of the owners’ lots and service all the lots, it is part of common property.

Owner actions

Owner actions

Section 177 of the BCCM Act states that an exclusive use by-law cannot give exclusive use rights over utility infrastructure that is common property. Therefore, the tap and washer are common property and remain the body corporate’s responsibility to maintain unless the current or previous owner has installed the tap as an improvement.

An owner can get a quote to add extra drainage within the boundaries of their lot that attaches to the stormwater mains.

Even though it is inside their lot, they are making an improvement to common property by attaching the new pipe to the common property pipe. Therefore, they must submit their drainage request to the body corporate committee or all owners at a general meeting, depending on the cost.

In this instance, the owner can obtain a quote and submit a

INDUSTRY

If the cost is under the minor improvement limit of $3000 installed value, the committee can authorise the improvement.

If the cost is more than $3000, the body corporate must authorise the improvement by ordinary resolution at a general meeting (Section 187, Standard Module). The scheme’s by-laws may also regulate what changes an owner can make within their lot. The body corporate cannot unreasonably refuse the request.

Installing extra storm water drains inside an exclusive use area Scenario An owner has a lot in a building format plan scheme with an exclusive use yard. The owner would like to install extra drainage in their exclusive use area. The owner is aware that the current drainage in their exclusive use area is the body corporate’s responsibility to maintain.

Any additional drainage would be an improvement to an exclusive use area by the owner. Before undertaking any of the work, the owner should first check the wording of their exclusive use by-law. The by-laws may give the owner authority to make stated improvements in the exclusive use area.

If the by-law is silent, and the cost of the improvement is less than $3000, the committee can authorise the improvement.

However, if the by-law is silent, and the cost of the improvement is more than $3000, it must be authorised by an ordinary resolution of the body corporate (Section 193, Standard Module).

In most cases, owners are responsible for future maintenance of their improvements to either the common property, their own lots or to an exclusive use area.

This article provides information about some of the common issues that seem to arise in relation to utility infrastructure. Having enough information to be able to understand responsibilities for maintenance and ownership of the utility infrastructure means that the owners and committees will be able to make decisions, rectify damage without too much delay and ensure that the repair of utility infrastructure occurs as required.

ResortNews | July 2022

After twelve months, an exhaustive search, some interim arrangements and deep and careful consideration by our board, SCA (Qld) has welcomed a new General Manager.

Ms Laura Bos brings with her, a broad and extensive experience across a wide array of member-based environments and a tremendous level of energy and enthusiasm.

that the professional body has a leader who understands community intimately.

Kristi Kinast, President, SCA (QLD)

Steps 4 Hannah Foundation.

She is committed to community service and positive, productive relationships.

Laura brings with her more than 30 years’ experience in communication, advocacy and member organisations. We were impressed with her proactive attitude to relationship building and member engagement and believe her diverse skillset will help deliver even greater member value. The depth of experience Laura has, is a win for all members of SCA (Qld).

Ms Laura Bos

Appointing Laura to the position after almost 12 months of searching was incredibly satisfying for a couple of reasons. First, filling the position after such a long period, but secondly and most importantly; the satisfaction of knowing we had waited for a perfect fit for SCA (Qld).

Laura has extensive experience across the public, private and not-for-profit sectors. Laura’s most recent engagement was as Manager of Communications and Engagement at Ipswich City Council. She has also been the Communications and Government Relations Manager for Clubs Queensland, General Manager of Brisbane Women’s Club and the Marketing Manager for Mercy Super.

Laura has also been involved extensively in the charitable sector too, currently serving as Board Director of the Small ResortNews | July 2022

During her time at Clubs Queensland, Laura had significant advocacy wins representing more than 2.2 million members of Queensland Clubs. It is important to understand that sooner, rather than later, Queensland strata will have this many stakeholders so having someone with such skills at the helm is helping to future proof SCA (Qld).

Having worked across a variety of different organisations, Laura, is well positioned to help SCA (Qld) collaborate with other stakeholders where we have common interests.

Amplifying our voice where appropriate through joining with other industry partners will help SCA (Qld) achieve more of our goals.

As President, I am proud to have played a role in helping manage the transition to Laura’s leadership over the past 12 months and excited about what the future holds for our members.

SCA REPORT

Welcome Laura Bos Having a leader of Laura’s calibre managing our day-today operations and taking direction from the industry leaders on our board can only mean a new era of growth and achievement for SCA (Qld).

We are an industry of the future and I believe the next twelve months will see significant achievements in terms of advocacy wins, media presence and quality education and member engagement events. The future of SCA (Qld) is in safe hands and we are very proud to have the staff, board, and members to help us achieve excellence now and into the future.

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

Laura is best positioned to help enhance our engagement with government, deliver high quality education programs and allow us to grow even further in our standing as a stakeholder in the wider Queensland community. Our sector has an enormous role to play in Queensland’s future economy and society and we needed to recruit someone with a big picture vision to help us deliver.

Laura is a leader who sees the big picture and understands that strata is the key to solving some of the biggest problems facing our state like housing affordability, congestion in our cities and the growing challenge of sustainability.

SCA (Qld) represents not just body corporate managers, but the estimated 1.2 million Queenslanders who live in, or work to service our state's more than 500,000 (and growing) body corporate lots. The future of our cities will be under the stewardship of SCA (Qld) members, so it is important

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

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

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

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

INDUSTRY

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Peter Turner

PERSON OF INTEREST

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Flying high on the Gold Coast

By Grantlee Kieza, Industry Reporter

Peter Turner is a senior management rights broker at the Gold Coast office of RAAS Property Group, and owning management rights has been part of his interesting journey through life.

“I’m originally from the south west of England near Exeter,” Peter told Resort News.

“I joined the military after graduating high school and spent eight years in the Royal Air Force. I specialised as an air traffic controller and was based at various places around the UK as well as in Cyprus, and what was then called West Germany.

“After leaving the air force, I went to university on the beautiful south coast of England and graduated with a law degree. Then I qualified as a solicitor in London and worked mainly in real estate and construction law.”

After a few years in London the law firm he worked for posted Peter to their Hong Kong office. He intended to stay in Hong Kong for only two years, but ended up staying for 18, during which he witnessed the British handover of Hong Kong back to China in 1997.

While his time in Hong Kong was fascinating, the siren call to the Gold Coast ultimately proved irresistible.

“I had travelled back and forth to Australia on holiday many times, to visit Australian friends.

I really liked the place, especially the Gold Coast, and decided to give living here a try.”

The future for management rights looks very strong Peter came to know about the management rights industry through Australian friends while still in Hong Kong.

He said: “The parents of one of my friends ran a holiday complex on the Gold Coast and I spent a couple of days with them to see how their business operated. It was prett y clear to me that management rights was a safe, stable and secure business. So, while still living in Hong Kong, I did a management rights course during one of my visits to Australia.

“I didn’t pursue management rights when I initially moved to Australia. I wanted to keep my options open and thought that after qualifying for my permanent residency, I might return to Hong Kong and continue practicing law for a couple more years.

But I quickly realised how much I enjoyed living on the Gold Coast and that I wanted to work at something other than law,” he said.

“I had been in Australia for a few months when I thought I'd get a job in real estate sales and marketing.”

“I’d always had a fascination with real estate and also thought it would be a good way to meet new people. I joined one

INDUSTRY

of Australia’s largest real estate agencies in their new projects division. My main sale focus was on developing relationships with Asian investor buyers; especially those from Singapore, Hong Kong and Mainland China.

Although I’d come to live on the God Coast, I found myself travelling around Asia quite a lot, marketing different Gold Coast and Brisbane projects.

“I really enjoyed selling real estate and in particular working through the financial details with investors to show them how and why a particular property would work well for them as an investment.”

The agency Peter worked for even recognised him as one of their ‘Top 10 Performers’.

At the same time as being involved in real estate sales, Peter was also continuing to look for a suitable management rights business.

He told us: “I’d been working in property investment sales for a few years when a permanent management rights complex here on the Gold Coast came up for sale. It was just what I’d been looking for with around 100 smallish units and in a strong rental demand area.

So, I bought it.

ResortNews | July 2022

“I am a very hands-on person and was fortunate during my early days of getting to grips with the business to have had a very supportive committee.

With my background in property investment sales, I also wanted to engage in selling units within my complex. I was very aware of the importance of protecting my rental pool and felt that selling units myself would be the best way to do that. So, I worked on communicating to the owners in my complex about my experience and highlighting to them the benefits of having the manager represent them in the sale of their unit.”

As a broker at RAAS, Peter wears “two hats”. The first, and most important, is working with managers who wish to sell their management rights businesses.

Peter is also frequently called upon by managers who are still operating their business and who need assistance with unit sales in their complexes.

In this respect, Peter feels that his experience in selling units as a former manager himself puts him in a unique position to obtain the best results for all involved.

So, what does Peter see as the future for management rights?

“I think that while there are global economic clouds due to rising interest rates and problems in Europe, the future for management rights looks very strong. It's an industry that has a solid grounding and continues to benefit from great support from ARAMA. “If someone is looking for a safe, steady, reliable business that can produce good financial returns, I’m still of the view after all these years that management rights ticks all the boxes.

“But if someone is thinking of buying a management rights business, especially those without any previous experience, they must do all their homework and research.

“And part of that means making sure they use suitable professionals, such as accountants, lawyers, and lenders, who have the right industry experience to guide them.”

ResortNews | July 2022

Peter Turner

INDUSTRY

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LEGAL EASE

What are your leave entitlements?

As any resident manager will tell you, operating a building complex can be very demanding. In larger buildings (particularly for holiday/short-term letting) managers often work seven days a week, leaving very little opportunity to take leave for any extended period of time.

Resident managers, by nature, are service contractors engaged by the body corporate. This means that by law, they are not recognised as employees and do not have the benefit of leave entitlements under the Fair Work Act. It is then a matter of understanding if there is provision for leave under your caretaking and letting agreements.

Will Kenny, Senior Lawyer, Mahoneys

Such a replacement must have the requisite skills and experience to perform the manager's duties, and more often than not must be approved by the committee.

It is important to understand whether your agreements require you to give notice to and or obtain approval from, the committee prior to taking leave, and if a shorter period of notice is permitted in the event of urgent or emergency circumstances.

If your agreements do not contain a leave provision, you need to look at whether your duties may be performed by any delegate of the manager with or without the need for consent. Other considerations

© Adobe Stock - stock.adobe.com

In most circumstances, caretaking and letting agreements will allow managers to take leave up to a period of four weeks per year. This is usually on the condition that the manager appoints a suitable replacement during their absence.

include whether there must be an approved nominee in place (which is important if the person taking leave is a nominee) and if your agreements require someone to reside on site. It is vitally important to be aware of what your obligations are where leave is taken, as any non-compliance could put you in breach of your agreements.

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On a practical level, if there is no requirement in your agreements for a replacement to be approved, or if the duties can be performed by any delegate, you should ensure that any staff or subcontractors are competent enough to perform the duties in your absence. Your committee should also be kept well informed of what your leave arrangements are, and if any replacements have been appointed in your absence. While it goes without saying, you should ensure regular contact with your staff or subcontractors while leave is taken.

From a letting perspective, the Property Occupations Act 2014 (Qld) (POA), contains provision for licensees to take leave. The Act provides that licensees may take leave for periods less than 30 days, and in excess of 30 days.

There are certain requirements for each type of leave which also differ if you are an individual or corporate licensee. If you are an individual licensee taking leave for a period up to 30 days you can appoint an unlicensed substitute, provided that the appointment of the substitute and the substitute's consent is in writing and states the period of appointment, the substitute is covered under the individual licensee's insurance (if it is a requirement of the licence to hold insurance) and all such information is kept in the licensee's registered office available for inspection.

For corporate licensees, a licensed director or person in charge can be replaced by an unlicensed person if there is no other licenced person in the company to replace. This is on the condition that the

MANAGEMENT

same requirements above are met, except for the insurance obligation. It is important to note that these provisions do not cover a situation where a licenced person is absent due to resignation or termination of employment. For leave in excess of 30 days, an application must be made to the chief executive of the Office of Fair Trading, with the substitute's signed consent to the appointment along with other supporting information.

There are severe penalties for failure to comply with the legislative provisions of the POA or to carry out the steps prescribed. The leave entitlements under the Act are also subject to any restrictions on leave in your agreements.

In summary, if you are contemplating taking leave it is important to make sure you consider the following before making any arrangements: •

What do your agreements permit (if anything) for taking leave?

•

If there is provision for leave, what are the notices requirements and conditions on appointing a replacement?

•

If there is no provision for leave, can your duties be performed by any delegate without consent?

•

In any event, it is prudent to give the committee as much notice as possible of your leave and details of any replacements irrespective of whether there is need for body corporate consent.

•

Consider any requirement under the POA depending on which license you hold and the length of leave you are taking.

Will Kenny is an experienced property lawyer at Mahoneys who specialises management rights, property development, commercial property and other general property matters.

ResortNews | July 2022

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BY ALL ACCOUNTS

Are you ready for the tax man?

Happy new financial year!

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

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

jobs for Australian accountants and I have grave concerns regarding the security of taxpayer’s highly confidential financial data being transmitted back and forth overseas.

Jonathan Hanaghan, Director, Jonathan Grant Accountants

customised and detailed list of the information required.

Step 3: Agree on timing and logistics Discuss how, when and where your work will be processed.

Your accountant should have a standard processing timeframe. You may also want to confirm that your work will be completed in your accountant’s office and not via an offshore processing office.

There is a growing industry trend for Australian accounting firms to outsource accounting and tax work to cheaper overseas countries.

Step 2: Obtain a checklist or information request

This is fine as long as you (the client) are aware that your accountant is doing this and are comfortable with it.

Contact your accountant for this. This may be a standard checklist, or a more

I personally do not agree with this new trend as I believe in protecting and creating local

QLD - NSW - VIC - WA

Agreeing on the time frame for completion is even more important if you require your tax returns for a finance application, an annual bank review or are part of a corporate agent partnership.

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

This is important as it provides the starting point for your accountant to begin processing your work.

Those that have their books kept internally by their accountant’s in-house bookkeeping services don’t need to worry about this step.

Step 5: Collate supporting information as per your checklist or information request This may require getting copies of bank and loan statements, purchase and sale contracts for assets bought and sold (including property, shares, motor vehicles and so on).

You may need to contact your bank, solicitor, stockbroker, or real estate agent. This can take time, so it is best to get onto this as soon as possible.

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

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MANAGEMENT

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

Step 8: Dealing with queries Make yourself available via phone or email to deal with any queries from your accountant.

Most taxation compliance jobs have transactions that require clarification. It is best to deal with them as quickly as possible.

Step 9: Debrief This can involve a meeting or a phone call to discuss the resultant financial statements and tax returns. It is important that each client understands the contents of the tax returns as each taxpayer is ultimately responsible for the contents of their own tax return. This is also a good opportunity to discuss any other issues or questions you may have i.e., changing software programs or even selling the business.

In summary the taxation system in Australia is based on selfassessment so each taxpayer needs to take care when preparing their tax returns. This all starts with the quality of the information supplied to your accountant and the planning that goes into the process.

A smooth engagement with minimal or no queries will always result in a much better outcome for client and accountant.

ResortNews | July 2022

Cash is something that most businesses receive at some point in time. Certain businesses such as cafes and takeaway food outlets are known to take more cash than other types of businesses.

Many years ago, motels would take higher levels of cash than today due to lower room rates, more customers carrying cash, less options with no or minimal electronic payment options.

Today less cash is taken over the counter particularly for the payment of the account.

More often, cash may be taken for small convenience items over the counter for drinks, chocolates, and so on...

The guest laundry is one area where cash will be taken via the coin operated machines or again over the counter for the purchase of small laundry detergents. This is not to say that all motels are this way.

There are still many motels that accept high levels of cash for a variety of different reasons. Corporate customers will predominantly pay on card or account. Other clienteles however are potentially more likely to pay by cash.

Andrew Morgan, Queensland Tourism and Hospitality Brokers

electronic payment methods were considered prone to losing business because people who had stopped using cash were unable to buy. With the increased use of mobile phone payment apps many people do not carry cash or even a wallet, and younger customers are particularly accustomed to using their phone to pay. Where it was once previously strange to think of paying for a coffee by card, now whipping out a card to pay for even the smallest amount is not even a consideration.

around March 2020, many businesses were not taking cash at all, and most people were not eager to use cash for fear of becoming ill. Not using cash was either a human self-preservation effort or was forced on them by businesses that would only accept electronic payment.

This largely forced a cashless society for a lengthy period of time until it was realised it was time to move on. At this point most people who still used cash became more comfortable using digital payment methods.

Nowadays, for many of us cash (particularly coin) is just too cumbersome.

Anyway, how does this all relate to motel businesses and the accommodation industry?

Well, aside from the potential problems of using cash that I’ve mentioned above, which relates to motels as a business, the bigger issue for me is the income not being banked. If it is not banked it’s not recorded in the financial statements and therefore it’s not able to be considered when determining the value of the business and property. Being asked to assess a motel business’ value means any cash component not being correctly recorded cannot be considered in the assessment.

During the period where COVID-19 became an issue

As an example, using nice round numbers, a motel achieves

Looking back to pre-2020, cash was increasingly giving way to other more convenient payment methods such as digital.

Those businesses not using ResortNews | July 2022

There are a number of other items that could be considered in such a discussion on cash, however the moral of this story is to maximise the income and profit from the business to maximise the value or sale price achievable for the business. If the income is not in the financial statements, telling a potential buyer “The profits would be higher” due to a cash component not being included, is just hot air.

No buyer can rely on this and will assess the business value based on what is in black and white.

© Adobe Stock - stock.adobe.com

A couple of issues with cash is that it is prone to theft or errors and from a taxation point of view can be an opportunity to avoid taxation. It is common knowledge that the ATO believes that businesses handling larger amounts of cash are more prone to poor record keeping which leads to mistakes being made. The avoidance of paying tax and employment obligations are commonly related to the receiving of larger amounts of cash.

revenue/sales of $25,000 cash from accommodation payments, $10,000 cash from laundry and $5,000 cash for over-the-counter items totalling an income of $40,000. If this is not showing up in the financial statements, then that is $40,000 less income and $40,000 less profit, as the expenses required to earn that income/cash have already been expensed and hopefully recorded. $40,000 profit to a motel business only, equates to a loss in value to that business of approximately $121,000 at a 33 percent ROI (return on investment). The loss in value to a freehold based motel business is approximately $285,000 at a 14 percent ROI.

MOTEL MARKET

A cashless position

MANAGEMENT

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© Adobe Stock - stock.adobe.com

THINKING MR

I told you so It's the end of the world as we know it (And I feel fine)" R.E.M., 1987.

It has come to my attention dear readers that my most popular missives involve tales of travel and preferably unfortunate events befalling me. So, at great personal sacrifice and to get the inspirational juices flowing I took myself off to Switzerland. Well, Switzerland, Italy and France to be precise. That my departure from Australia’s fair shores has coincided with our new prime minister realising he’s inherited one very poisonous chalice, brings me no joy. I guess I can take heart from the miracle of internet news which allows me to monitor Anthony and friends as the terrible truth sets in. Yes indeed, the world has turned to crap and what better place to watch the end of times as we know them, than on some magnificent lake in a far off land.

To be fair I have not travelled halfway ‘round the world to escape the political chaos at home. I’ve come here to access reliable power. No, just kidding, I’ve come to ride a push bike and hopefully catch a glimpse of the Tour De France.

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Plenty of shocks and not much delight Mike Phipps, Director, Mike Phipps Finance

The ‘managing director’ failed to accompany me, suggesting that my departure will bring joy, relief, and a significant drop in her stress levels. You see, this trip is a bit of a ‘spur of the moment’ thing, and I managed to have a near nervous breakdown trying to identify and mitigate every possible contingency.

Checking, rechecking, double guessing… You get the picture.

Those who know me will understand. Hell, some of my clients even like that obsessive part of my personality.

Anyway, if you’ve never organised flights, hire cars, itineraries, bicycle shipping, insurance, and accommodation for such an adventure it turns out there’s a

bit that could go wrong. To my infinite relief, so far nothing has!

Emirates was on time and great to travel with, the bike turned up with me in Geneva and to my surprise and delight fitted in the hire car. That was after the wonderful people at Europcar let me swap my booked vehicle for something a bit bigger, and at no cost… Legends!

First stop, a small village in the Swiss alps. I won’t name it as there are a few Aussies living there and I don’t want to offend anyone. I booked directly with the accommodation house and turned up mid-afternoon.

Sorry, check in at 4pm. Oh, and checkout between 8am and 10am. Okay, where do

MANAGEMENT

I park? Well, you can drop your gear here and then head down to the carpark.

Now, when one is any place with “Alps” in its title, “head down” is never good. Turned out the car park is half a km from the hotel and a 5 percent grade uphill, a walk in 32-degree heat back to the room. When I got all the stuff out of the car, I discovered the room is down at the bottom of the other side of the joint, with a 5 percent downhill walk on a very ordinary path. I’m not sure if any of you have had a large suitcase and a bike box on wheels gather momentum in an alpine environment but it’s quite the thing to witness. At the bottom of the path was a chairlift operating summer sightseeing.

ResortNews | July 2022

It was indeed a miracle that the suitcase, bike box and finance broker managed to avoid landing on one of the chairs to be whisked to the top of some god forsaken mountain.

I managed to steer my cargo to the door and stepped inside.

This is a $400 AUD per night room (that’s what you gotta’ pay in this part of the world) and I had been expecting something around four stars. Talk about basic! Nice view but basic.

Seems like some Australian locations are not the only places trading off the view and letting upgrades and guest focus slip.

I’m now in Isteltwald on the lake at Interlaken where my lodgings are greatly improved. In fact, the place is a Swiss version of strata titled management rights and it’s wonderful. In a bizarre twist that could only happen in these strange days a Korean Netflix reality show is based here. As such the place is full of Korean Instagram enthusiasts who queue up at a certain pier to have their photos taken. Most are very easy on the eye so no harm, no foul. However, today they were disrupted by a fat old Aussie guy diving off said pier, an event which seemed to bring shock and delight in equal measure.

By the way, for your money you get to turn the fridge on when you get there, sleep on a foam bed with no top sheet, enjoy zero fans or air conditioning, take out all rubbish before departure and enjoy the buzz of insects as the place is sans screens. Just to top things off the road up the valley to this little slice of heaven is a 10 percent grade and very challenging for an old bloke who had used the miracle of gravity to ride further than he should have!

Which leads me inevitably to the title of this month’s message.

Plenty of shocks and not much delight unfortunately. I’ve been accused of being negative by some and conservative by many.

I take the critique on the chin because it’s pretty accurate. We have suggested for some time that a perfect storm of uncosted environmental activism, minority side issue focus, lack of personal responsibility and fiscal illiteracy was brewing. We suggested

that worthless “assets” such as Bitcoin were no more than speculative Ponzi schemes and that some asset classes were overvalued. We’ve even suggested that it is economic suicide to place too much power in the hands of foreign suppliers while abandoning manufacturing and raw material value adding.

We’ve made it clear that low interest rates don’t last forever, and we’ve counselled our clients about paying down debt.

All the storm needed was a bit of turbo charging. We got that thanks to the inevitable outcome of printing so much money during COVID, falling out with our Chinese friends and the also sadly inevitable Russian aggression in Ukraine. Now we’ve got scarcity driven inflation, the collapse of digital currency values, the possibility of power outages and a reserve bank that’s not quite in panic mode, but it’s close. The one positive I see in all of this is the so-called great reset. It had to happen, bubbles can’t keep growing, they have to blow up at some point. Hopefully the reset will include better

economic management from governments, particularly when costing “feel good” projects.

I suspect once our new Labour government fully grasps the gravity of the situation, we may actually see responsible policy as the new agenda. It’s a hell of lot harder to be on the ground than to boo from the stands and so far it looks like the new team may be coming to that conclusion. No bad thing.

In closing, despite a world of fiscal and societal uncertainty I’m not fixing rates on any of my debt facilities and I’m pretty comfy with my management rights investments. My share portfolio is a train wreck, but they are good companies and will be valued as such in the future. Paper losses are just that, no need to crystallise them. Should things change my creditors can contact me in whatever foreign land I run to. The managing director has the details and if she says I’m dead, demand to see the body.

I think it’s called Doing a Skase.

If you get that reference, you’ve lived through all this before.

Last month on May 20, our industry celebrated the 30th Anniversary of ARAMA, and oh what a night it was.

Walking through the crowds I was delighted to see old relationships reunited and new ones formed. There were pioneers of the industry nestled next to and chatting with others that are only just beginning their journey. It got me thinking, these relationships with our industry specialist and other management rights owners are just as important to our business as those that are closer to home.

Management rights is certainly no walk in the park so having friends, colleagues’ acquaintances whatever you want to call them that you are able to phone in a time of crisis is crucial to surviving and thriving in this industry.

When a client picks up the phone and calls to ask for my assistance with a legal matter, tenancy issue, ResortNews | July 2022

I encourage you to go to that lunch, event or even start one of your own Kelley Rigby, Managing Director, Letts Rebuild

committee problems, caretaking duties (I could keep going with topics, but I have a word limit) if I don’t have the answer I will certainly know where to get it.

Yes the secret is out, I definitely 100 percent do not know it all, but I have built incredible relationships throughout my time in this magnificent industry that make me look extremely intelligent, thanks guys!

There are many social and educational events that occur for our industry throughout the year, some even happen monthly. Many managers

attend these events but also organise lunches or even dinners with other building owners to catch up, laugh, cry, and support each other.

Aren’t we lucky that we are in an industry where our colleagues and sometimes even our competitors are willing to sit across the table and give us their formula of successes?

I encourage you to go to that lunch, event or even start one of your own. Invite your nearby managers, your lawyer, accountant, finance broker, columnist (I am suggesting

MANAGEMENT

me in case you didn't get my subtle approach) and start building these relationships. The benefits these friendships will have during your management rights adventure are crucial to your sanity (for me anyway) and your success.

BUILDING RELATIONSHIPS

Professional relationships in business

The relationships we build in business and life, mould who we are and who we are as businessmen and women.

I will be forever grateful for the men and women in our industry that have moulded and will continue to mould me into the woman I am today.

21

GOOD GOVERNANCE

so dangerous that it is even used to develop chemical weapons. I nearly fell over when I learned that black mould (Stachybotrys), a very common mould that grows merrily in millions of dwellings all over the world produces mycotoxins which have been used to make biological weapons.

A mouldy topic:

Building defect or lifestyle issue?

Eeek!

So, what causes mould?

It’s odd to consider, but the fact is that housing construction in Australia is not exactly designed to withstand mould attack. For example, the extremes of temperatures can cause condensation and support mould infestation.

Consider when it’s cold outside and you have the heater on inside, condensation forms on the windows and can lead to mould. Similarly, on a hot summer’s day when we have the air-conditioner blaring inside and the windows are hot from the outside heat, this also can cause condensation and a breeding ground for mould.

If I had a dollar for every building I inspected with mould presenting, I’d be a retired millionaire…

Sad, but true.

It doesn’t matter if it’s the cold heart of winter or the sweaty heat of summer, mould is reproducing in millions of homes all year round. According to Professor Rebecca Bentley of Melbourne University, it is estimated that approximately 25 percent of homes in Australia have damp and mould issues that pose a risk to the health and safety of occupants.

Diverse FMX

should not be ignored or under-estimated. Details on respiratory and cardiovascular diseases arising out of exposure (even minimal exposure) to mould are well documented and can be investigated at any time on the internet, mould is

© Adobe Stock - stock.adobe.com

Mould is incredibly dangerous and a health hazard. Its dangers

Lynda Kypriadakis,

Moulds are part of the mildew or fungi family and require moisture, the ‘right’ temperature, a supportive type of substrate along with exposure to certain conditions over time to thrive.

They require water to grow and spread, which is why it is recommended to keep homes (especially walls and carpets) as dry as possible.

Water leaks, flooding, high humidity, and condensation all provide moisture that mould

22

MANAGEMENT

can use to grow and spread.

Any condition that causes warmth and moisture can set the occupants of the home up for mould infestation.

Less important factors for mould infestation include availability of mould spores, pH, light, oxygen, and surface roughness. Mould will thrive in damp, humid, and wet conditions almost anywhere in the world, so it is a very cunning creature!

Add to the moist/humid environment, the smorgasbord of cellulose-rich building materials that are routinely used in the building industry, including timber framing material, plasterboard walls and ceiling sheeting, carpeting, wallpaper, and insulation (when wet). All these types of building materials may serve as a wonderful nutrient source to mould. In fact, some new buildings already have mould in the timber framing arising during construction (for instance if the timber is left exposed to wet weather for extended periods of time) so sometimes the mould is handed over to the new homeowner from day one of ownership.

How depressing…

Is defective building work the cause of mould?

Many new homeowners believe that mould is indicative of defective building work and leaky buildings, however in our experience as building inspectors, the main causes of mould that we encounter every day are caused by: •

Lifestyle behaviours, lack of ventilation and use of heating appliances, such as clothes dryers without adequate ventilation; and

•

condensation, moisture occurring due to heat/ cold interface that occurs in most houses.

In my experience mould rarely arises out of defective building work. If there is a water leak occurring because of a building defect, usually the water leak and any ensuing damage is very obvious before any mould starts growing. Water leaks arising out of defective building work are usually obvious and should be dealt with quickly before mould can take hold.

ResortNews | July 2022

© Adobe Stock - stock.adobe.com

It is a rare occurrence to find a concealed leak that is left unresolved for an extended period of time that gives rise to mould. Usually, water leaks are obvious to inhabitants and dealt with quickly.

Note: If you have a water leak inside your home it is highly recommended that you fix it urgently!

So how do we get rid of mould?

Unfortunately, due to the extremely hardy and invasive nature of mould, it is very difficult to eradicate it fully once it takes hold, especially if you try to treat the surface mould instead of the deep ingrained mould.

Once mould is ingrained in building materials such as plasterboard, carpet, curtains and so on, it is almost impossible to launder or wipe the mould off permanently.

To avoid costly replacement of mould-infested materials, our experience recommends the use of natural mould eradication products that include an organic ‘fog’ treatment instead of

chemicals that wash surfaces. An organic fog treatment includes a specialist technician spraying an odourless and invisible fog of organisms that literally eat mould and its spores. These organisms are completely harmless to humans, pets and plants and are only interested in eating mould. They infiltrate all the nooks and crannies of your home to get to the mould in concealed and microscopic locations, so they really do get rid of all traces. Once the mould is eradicated the food source dries up and the invisible organisms

die. It really is a highly effective and non-invasive solution.

the size of an A4 piece of paper across the whole home.

In New Zealand, the rental housing Building Warrant of Fitness (BWoF) regime became mandatory for all landlords from 2018. A rental property in NZ now must conform to the stringent BWoF requirements for healthier homes, including (among other things) having effective ventilation and an absence of mould. In New Zealand, the BWoF inspector assesses each property on an annual basis to ensure it doesn’t have mould presenting that would exceed

Food for thought…

As with anything, prevention is better than cure, so the best recommendation I can provide is to keep your home well ventilated with natural light and ventilation via open windows and doors whenever possible.

Keep the windows open when using the clothes dryer and dry off any condensation as soon as it forms. If you believe you have a water leak, get it looked at immediately and fixed urgently.

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

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

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ResortNews | July 2022

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

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MANAGEMENT

23

Q&A

Chris Irons on building defects We have all heard about cladding and the danger it poses.

Building defects are also a big issue for owners, committees, and managers. Chris Irons, Director of Strata Solve, answers some of your common questions on these topics below.

Many of you may know Chris from his time as Commissioner for Body Corporate and Community Management. Now working in private practice, Chris delivers, through Strata Solve, solutions to clients that are focused on dispute prevention, dispute resolution and strategic advice to help resolve strata problems.

SOFTWARE SOLUTIONS

Disclaimer this is general information only and it is not legal advice.

How does BC know if a building’s cladding is safe?

Not every piece of cladding is necessarily dangerous, and it will depend on the individual nature of each building, including when it was constructed and how many storeys it is.

Chris Irons, Director of Strata Solve

The Grenfell Tower fire in the UK highlighted the danger of combustible cladding what did we learn from this in Australia?

All Australian State and Territories responded to Grenfell and the evident dangers of cladding, they did so in different ways.

In Australia, we also had the Lacrosse building in Melbourne

The best information is contained on the Queensland Government website.

If identified unsafe, what should be done? And who pays?

There is a checklist prescribed by government to go through which can be found on the Queensland Government website.

At this stage, the body corporate pays, which means that all owners pay through their levies.

Has there been any buildings in Queensland that have had a cladding issue?

We know that some buildings do have a cladding issue, these figures have been publicly announced, but we don’t know which buildings. That has deliberately been kept out of the public domain for fear of arson.

A survey conducted by Australian Apartment Advocacy showed 49 percent of Queensland respondents had experienced defects, with 36 per cent saying they had not been fixed, what are the most common problems faced?

That varies a lot, although water ingress is a very common defect issue.

What are the most common structural building defects in Queensland strata buildings?

The QBCC details what is a defect, it can be found on the website.

How is resort management evolving?

Clearly the front desk is here to stay!

The front desk of the future needs a far more personal interaction to create rapport

Despite predictions in the industry as far back as 2010 and 2011 (Amadeus) that the front desk would become a thing of the past, it is still going strong.

So why hasn’t it gone the way of airline counters and theatre box offices, you may ask?

Don’t underestimate the personal touch The simple answer is hoteliers have realised that face to face guest contact remains very important. A glance at a guest’s facial expression can go a long way in gauging their reaction to enable the receptionist to head any issues off at the pass.

The importance of being able to read a guest’s demeanour and respond accordingly shouldn’t be underestimated. Resort managers want their front desk host to, at the very least, create a

24

with a public cladding issue, although fortunately not fatal like Grenfell. The learning (which wasn’t so much a learning as it was a reinforcement) was that combustible cladding was a literal life and death issue.

By Mandy Clarke, Editor

Sylvia Johnston, Senior Executive, HiRUM Software Solutions

great first impression to pave the way for future communication.

That of course does not negate the need for automation and trimming costs where possible.

The industry has been through such a tumultuous period, and while well on the way to recovery, the economic pressures of recent times are still taking a toll. The ability to reduce labour costs and automate processes is vital for many businesses.

How can a hotelier maximise revenue?

Capturing and analysing data is of paramount importance in maximizing your revenue.

“Data-analytics” is somewhat of a buzz word for good reason.

Understanding your business properly by analysing past and present behaviours takes the guess work out of setting rates, increasing occupancy and engaging in targeted marketing campaigns. The ability to analyse your competitor’s data adds an extra layer of understanding

MANAGEMENT

that enables you to meet the market head on, to ensure that you are not leaving any opportunities on the table.

For instance, imagine if you could not only see the average daily rate of your property but also that of your competitors.

Imagine also that their vacancy rates were available to you.

With this information available to you, educated judgement can be made as to how you’re tracking, enabling you to perhaps adjust your rates accordingly.

ResortNews | July 2022

Water damage has been a common problem after the floods what can be done?

Water damage occurs in a variety of ways. While it can be a defect from construction, it can also occur because of poor maintenance of common property or poor maintenance by a lot owner. The first step is to ascertain the source of the water ingress, that will require some expert assistance, as it is not always obvious what the source is.

There are also simple things which can be done as preventative measures. For example, one of the more common causes of water ingress is from flexi hoses in lots failing. Maintaining those hoses would be a sound preventative measure.

What about mould? Who is responsible for removing mould and preventing any health dangers related to this?

Mould may indeed be a ‘hazard’ under strata legislation. Again, it is about the source of water ingress which leads to the mould.

The general rule of thumb is that if the source is in relation

to common property, it will be body corporate responsibility and if it is in relation to a lot, it will be the owner’s responsibility.

Any individual who considers that they have experienced a health issue due to mould should first seek medical attention and they may want to get a medical report to verify their concerns.

It’s one thing to think that mould is causing a health hazard but it’s another to have that objectively verified.

Can bodies corporate be proactive and identify faults in buildings before any major issues occur?

Not only can it, but it ideally should also be doing so. Proactive maintenance, such as a regular schedule of maintenance, can identify problems before they get much worse and enable the body corporate to plan for both works and the budget to address those works.

What happens if there is no builder’s warranty, or it is out of date?

See above.

What should purchasers look for in a structurally safe property?

The body corporate is meant to keep records and those records can provide useful information about things such as defects and efforts to address them.

So doing a check of relevant records (e.g., minutes) can assist a prospective purchaser.

Appropriate pre-purchase building inspections are another way of obtaining information.

What are bodies corporate responsibilities in relation to the structural integrity of their strata building?

Bodies corporate must (not may) maintain common property. If there are not sufficient funds to address maintenance, the money needs to be found.

Contact the QBCC for more information.

Likely, the problem will happen again, or another related problem will show up.

This will mean more money and more time. It is important to be clear at the start about what is being repaired, and how.

How often should a building defects review be completed?

From March 2021, a body corporate is required to consider a defect assessment motion on the agenda of the next AGM that is called after the first AGM.

There are various disclosure obligations that are in place, although that of course relies upon the vendor providing that information and making sure it is fulsome.

Otherwise, it is open to an owner or committee to put motions to an AGM or EGM to have a defects review and this can happen any time.

Bodies corporate considering a regular or proactive defects review should seek qualified advice about how that looks and how it might occur.

Each building is different and therefore each potential defects review will differ also.

maximise opportunities that give the best revenue outcome.

© Adobe Stock - stock.adobe.com

Consolidation and analysis of this data however can be time consuming and expensive, so finding the appropriate software to provide this information affords a huge benefit and reduces the manpower cost generally associated with collating this data.

Appropriate software plays an integral role in reducing costs and improving a hotel’s bottom line. However, the individual needs of each accommodation property mean that a varying array of software and potential integrations is often required to meet specific business needs.

The front desk of the future needs a far more personal interaction to create rapport.

to integrate seamlessly to whatever the future holds, without costly development.

Beware the “Headsdown effect”

The changing nature of software

This can create another issue for front desk staff and guests. We’ve probably all been subjected to the “heads-down effect” at some moment in time, where the receptionist is so busy flicking from screen to screen to capture the information they need, that they barely make eye contact, let alone create any kind of rapport. No-one leaves an interaction like this feeling good about the service provided.

Your software needs are constantly changing. Specialised software programs are constantly being developed that look after specific components of your business. The likes of housekeeping, reputation and review management, finance and marketing are just a few examples. The future may hold so many other possibilities.

The front desk of the future will need to have the capability

So, what does the future hold for the front desk?

ResortNews | July 2022

What happens if repairs to strata buildings are not up to Australian standards?

Can builders be held responsible and how?

The front desk of the future must enable reception staff to capture what they need quickly and easily, and for that information to be integrated to the various individual software programs that the property needs.

It must provide for easy access to date and analytics, to enable hotel staff to quickly determine how they are tracking, to

MANAGEMENT

It needs to empower front desk staff with the ability to focus on the guest, while still ensuring the property’s data and operational needs are met.

The front desk of the future will be a working integration platform, that brings everything your business needs together in one easy to use, visual desktop.

It will enable your host to perform all their common daily functions whilst they focus on building rapport with your guest.

If you are considering updating any of your software, it’s crucial that you consider what the future holds for the accommodation industry. Ensure that your choices won’t be quickly superseded and that they won’t hamper the growth and development of your business into the future. Look for solutions that have already demonstrated the capacity to integrate your analytics, data, and current and future software functionality into one easy to use platform.

Don’t you think it’s time that you embraced the future?

25

TOURISM NEWS

Australia’s newest tourism destination opens One of the world’s last untapped tourism destinations, the Torres Strait, is now accessible for the first time ever in a day trip flying from Cairns thanks to the launch of a new tour that packs six iconic Torres Strait experiences across two islands, into one big day out.

A Strait Day is a new tour developed by Torres Strait mates, Fraser Nai and John Palmer. The tour gives visitors the rare opportunity to experience a magical destination where ancient culture is still embedded into everyday life.

A maiden tour took place on June 04, 2022 and allowed visitors to seamlessly hop-scotch between Thursday and Horn Islands to learn about culture, food, history, and tradition, all in one convenient package that departs from Cairns.

A Strait Day, Fraser Nai and traveller – Photo: @phlipvids

living on their own country.

It’s full of unrivalled cultural experiences put together by really friendly locals,” Mr Nai said.

Mr Nai is passionate about platforming small Torres Strait Island businesses in order to empower their community, stimulate economic growth, and create pathways.

and has attracted hundreds of different marine life species in just a few short months. Mayor Tom Tate said the experience was out of this world and he can see why this project has divers from all corners of the globe excited.

“It is just an amazing experience; the marine life is as good as what you’ll see at any other dive site.

The coral is thriving, and the sculptures are just mesmerising.

Wonder Reef is officially open for business

“Renewing our tourism products and attractions is vital if we want to keep our title as Australia’s tourism capital – and believe me this is something special.

Co-founder of Strait Experience and a proud Traditional Owner on Masig Island, Fraser Nai says the tour provides a powerful platform to tell the story of his culture to a new audience.

The Gold Coast’s newest attraction Wonder Reef was officially opened with an underwater ribbon cutting by Mayor Tom Tate and Deputy Premier Steven Miles.

“This is the last frontier for tourism in Australia. It is the only part of Australia where you will see two Indigenous Peoples

The world-class $5 million dive attraction for experienced divers is an innovative fusion of art, science and engineering design

“This unique site is already attracting global publicity and Destination GC is leveraging that publicity with a campaign to draw in more tourists who will want to experience Wonder Reef.”

Member for Gaven and Environment Minister Meaghan Scanlon said Wonder Reef was a wonderful addition to Gold Coast tourism. “Wonder Reef builds on our trademark for innovative tourism experiences that make the Gold Coast Australia’s favourite holiday destination.

“This opens up an entirely new world of Gold Coast experiences that confirms our city’s place on Queensland’s global diving map.”

A Strait Day, Fraser Nai and traveller – Photo: @phlipvids

A Strait Day, Fraser Nai and traveller – Photo: @phlipvids

26

The project is a joint initiative between City of Gold Coast and the Queensland Government.

Deputy Premier and Minister for State Development, Infrastructure, Local Government and Planning Steven Miles said: “Queensland’s diving spots are up there with the best in the world.

I’ve seen this spectacular dive site firsthand, and the world is in for a treat when it officially opens.”

TOURISM

ResortNews | July 2022

“Hosting the ATEC Meeting Place in Cairns is a great opportunity to remind decision-makers of the amazing world-class tourism experiences in the Far North.

“We know there is pent-up demand for inbound international travel to Australia.”

Taking place from November 21-23, 2022, the ATEC Meeting Place conference event has been secured for Cairns in partnership with Tourism and Events Queensland (TEQ) and Tourism Tropical North Queensland (TTNQ).

Wonder Reef Gold Coast – Photo: @phlipvids

The reef consists of nine giant buoyant reef sculptures which have become home to hundreds of different marine life species in recent months including lobsters, octopus, tropical fish, turtles, and giant gropers.

Meeting Place in November.

Coral was planted at the site in late 2021 and has created a colourful experience on the reef where locals and tourists can dive to a depth of 30 metres, all within a 10-minute boat trip from the Gold Coast Seaway.

Announcing the news, Member for Cairns and Assistant Tourism Minister Michael Healy said the event offered an important opportunity to put Queensland visitor experiences at the top of international buyers’ lists.

ATEC event to generate $1.5 million for FNQ visitor economy

He said: “I can’t think of a better place than the tropical paradise of Cairns to bring together more than 300 tourism industry leaders and decision-makers.

“Backing the ATEC Meeting Place brings business visitors to FNQ who fill hotel rooms, restaurants and sample tour experiences you can only find in Queensland.

ATEC Managing Director, Peter Shelley said Meeting Place is a vital part of the industry supply chain.

“Meeting Place has a long and well-established history as the place for tourism suppliers to showcase their products to influential tourism distributors who promote their offering to the international markets,” he said.

“As we begin the road back to industry success, Meeting Place provides an important platform for tourism products to profile what’s new and what’s changed in the two years our borders were closed.

“It is important for all suppliers seeking to re-engage with the high value international market, to understand how markets have changed and importantly, work to establish relationships within

TTNQ Chief Executive Officer, Mark Olsen said hosting ATEC Meeting Place 2022 would be a great opportunity to showcase the destination to inbound tour operators.

“We have more than 30 new experiences in Cairns and the Great Barrier Reef including city walks, reef tours, Indigenous operators and rainforest experiences,” he said.

“The inbound tour operators will be wowed by the transformation of Cairns with the stunning Esplanade dining precinct, new city hotels and vibrant bar and food scene.

“Having them experience the region first-hand will be integral to rebuilding our key international markets and reclaiming our $1 billion a year export industry for this region.”

The ATEC Meeting Place will include business-to-business workshops, a full day conference, pre and post familiarisation programs for buyers and networking opportunities.

The Queensland Government has invested $7 million to assist Queensland exhibition spaces to attract more conferences to support jobs and economic recovery.

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Thrusting Tropical North Queensland firmly into inbound tourism operators’ line of sight, Cairns has been chosen to host more than 300 industry leaders who are attending the Australian Tourism Export Council’s (ATEC)

Seen as another win for the Cairns Convention and Exhibition Centre, the event is expected to generate a $1.5 million windfall for the Far North’s visitor economy.

the trade distribution partners to help drive future growth and to support the rebuild of our $45 billion export industry”.

ResortNews | July 2022

TOURISM

27

Queensland’s Loggerhead Turtle paradise achieves 95 percent occupancy

Images courtesy of The Lady Elliot Island Eco Resort

By Mandy Clarke, Editor

A post-COVID success story about the family run Lady Elliot Island Eco Resort.

In her keynote speech during the 80 TWENTY Hotel Conference in Brisbane on June 16, Amy Gash the custodian of The Lady Elliot Island Eco Resort moved delegates to tears with the incredible success story of her family’s business.

Amy announced that her family’s eco-resort has achieved a 95 percent occupancy for 2022, this amazing figure follows several months of complete closure of the Island during the pandemic.

This success, she said, has been driven by her family’s long-time passion and dedication to protecting the island, their commitment to sustainable tourism and their decision to invest in a refurbishment of the Island’s accommodation offerings.

Lady Elliot Island is a coral cay located at the southern tip of the World Heritage Listed Great Barrier Reef. It sits within a highly protected ‘Green Zone’, the coral cay is a sanctuary for over 1,200 species of marine life and is known for its abundance of manta rays, turtles, an amazing array of spectacular marine life, and unspoiled coral reef.

Amy Gash the custodian of The Lady Elliot Island Eco Resort

partners who hold the lease from the Great Barrier Reef Marine Park Authority.

Since this time, enormous strides have been made to introduce sustainable initiatives to convert the resort to renewable energy with the goal to be 100 percent renewable by 2020. Guests to the Island, are also asked to commit to a Sustainability Pledge to make a difference and protect the beautiful Island.

During COVID the resort had to be closed to all visitors for extended periods but instead of laying low the Gash family decided instead to invest. Amy told delegates that this was a prime opportunity alongside their dedicated staff team (retained with Jobkeeper) to refresh, repaint and refurbish the resort’s accommodation and facilities.

an increasing number of domestic visitors who seek sustainable travel and authentic nature-based experiences.

Lady Elliot Island Eco Resort offers a range of comfortable accommodation options, with each unit, tent and cabin designed to minimise the impact on the island while enriching the overall guest experience of the environment and seasonal wildlife. In keeping with the natural, ecofriendly practices there are no telephones, television, radios or wifi available in the rooms.

With a worldwide trend toward sustainable travel, and authentic local experiences guests wishing to visit the island may have to be patient because the resort is so heavily booked over the next twelve months.

Due to very limited availability and high demand, visitors are asked to contact the resort direct by phone or email.

The resort now looks better than ever and was ready for business when travel recommenced but even the family didn’t expect such an increase in bookings for this pristine nature-based destination. The resort has proven hugely popular with

The Gash family mission is: “To be custodians of this pristine environment. To enable it to exist and be preserved as nature intended, while giving visitors the opportunity to experience it in an economically and ecologically viable way, without interfering with or having any adverse impact upon the long-term sustainability of the island’s unique ecosystem”.

Lady Elliot Island Eco Resort has achieved Advanced Ecotourism Certification, Climate Action Leader Certification and Green Travel Leader status from Ecotourism Australia in recognition of our sustainability programs and low impact Resort operation. Lady Elliot Island Eco Resort also achieved GreenLeaders status with TripAdvisor in 2015.

For 17 years Lady Elliot Island Eco Resort has been a familyrun and operated eco-tourism business by custodians Peter Gash, his family, and several

28

Amy explained that the resort’s popularity led to a 95 percent occupancy rate through to the end of 2022 and bookings well into 2023 with increasing interest and bookings from international visitors.

TOURISM

ResortNews | July 2022

Sunshine Coast

By Grantlee Kieza, Industry Reporter

the furnaces used to make glass back home in Yorkshire.

The Sunshine Coast is one of the 10 biggest cities in Australia and it’s growing fast.

Almost 30 years later, another English sailor, Matthew Flinders, climbed Beerburrum, one of those strange Glass House Mountains.

Almost 400,000 people call it home and many more are flocking to the beaches, majestic hinterland and jobs that come with an expanding airport.

It is one of the youngest cities in Australia too, and one of the most popular for Australian holidaymakers.

The Coast’s famous produce and restaurants will be showcased across the region in The Curated (side) Plate from July 29 to August 7.

Local restaurants, farms, tourism and event operators are combining to present 85 events with a rich menu of options across the ten days.

There will be a vast array of wellpriced events from fine diners such as Harry’s on Buderim and Spicers Tamarind, to great local producers including Montville Coffee and Sunshine Coast Cider.

Leading local chefs such as Matt Golinski, Alejandro Cancino and Stuart Bell will host interactive events.

Visit Sunshine Coast CEO Matt Stoeckel

beer capital’ will be recognised with brewery tours, beer and food-matching masterclasses.

Visit Sunshine Coast CEO Matt Stoeckel said good food and drink were strong motivators for travel, and The Curated (side) Plate was the perfect opportunity for visitors to explore the region, plate in hand.

Good food has always been a feature of the Sunshine Coast.

The first inhabitants of the district were the Aboriginal people of the Gubbi Gubbi language group who hunted and fished around the waterways and travelled overland to the Blackall Range to feast on bunya nuts and perform initiation ceremonies and corroborees.

On May 17, 1770, English botanist Joseph Banks, aboard Lieutenant James Cook’s H. M. Bark Endeavour, observed what became known as Pumicestone Passage and Cook noted the unusual mountains that resembled the “Glass Houses”,

Davis was adopted by an Aboriginal group, whose leader believed the pasty Scot was his dead son resurrected as a white man. He became an honoured member of the tribe and travelled with them for hundreds of kilometres over the countryside.

bullock teams working around the clock in the construction of the new Gympie Road that improved crossings over the Pine, Caboolture and Mooloolah Rivers.

Cobb and Co coaches established a regular service, boasting that they could cover the BrisbaneGympie run in just two days.

Robert Bulcock, the State Member for Enoggera, purchased 110 hectares in Caloundra and Thomas Ballinger built a slab hut by the beach. His land, known as Ballinger’s Hill, was fortified during the Russian invasion scare of the 1880s and became known as Battery Hill. James Moffat, a chemist from Brisbane, built a cottage by the beach that now bears his name.

He maintained this new life for 13 years, learning different indigenous languages and rituals so well that when he was found by a party of Europeans at Wide Bay in 1842, he had to relearn English and reacquaint himself with European clothing and customs.

By 1934 the great tourism boom was underway around Maroochydore and Caloundra with the opening of the Great North Coast Road, later to be known as the Bruce Highway, after Henry Adam Bruce, the Queensland Minister for Public Works.

Davis worked as a blacksmith at Kangaroo Point before opening a profitable crockery shop in George Street in 1864. He died in 1889, leaving a small fortune to the Brisbane General Hospital.

At the time the new holiday destination was called the “Near North Coast” but in November 1966 Maroochydore, Noosa and Landsborough Shires all voted to adopt the name “Sunshine Coast”.

By then Queensland had been a colony for 30 years and the Gympie gold rush had seen

The name was officially gazetted on July 22, 1967 and took effect from August 1.

© Adobe Stock - stock.adobe.com

The Sunshine Coast’s newly minted status as Australia’s ‘craft

The first European to live in the area was the 21-year-old escaped convict James Davis, who in 1829, fled the harsh Moreton Bay penal settlement which was under the command of the brutal Captain Patrick Logan.

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a feast for the senses

ResortNews | July 2022

TOURISM

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Olympic boost for Indigenous tourism

By Grantlee Kieza, Industry Reporter

Premier Annastacia Palaszczuk said the $4 million First Nations Tourism Package would build on the state’s current Indigenous tourism sector to deliver even more unique experiences for tourists.

The Queensland Government will devote $4 million to boosting the Indigenous tourism sector ahead of the 2032 Olympic and Paralympic Games.

Accounting firm KPMG predicts that the Games could be worth up to $17.6 billion to Australia over 20 years, along with creating more than 120,000 full-time jobs.

The plan is to boost indigenous tourism experiences in the lead-up to the global event that will draw hundreds of thousands of international visitors.

30

“What we want to do in the lead up to the Olympics is to grow our First Nations tourism experience across the State,” the Premier said.

Premier Annastacia Palaszczuk

“Over recent months, the Cairns visitor economy has been showing good signs of recovery with overseas visitors also starting to return,” Mr Healy said.

And Far North Queensland, brutalised during the pandemic, is tipped to benefit greatly.

“Developing more high quality Aboriginal and Torres Strait Islander cultural experiences will benefit tourism across the region.

The State Member for Cairns and Assistant Tourism Minister Michael Healy said Far North Queensland’s tourism recovery was underway.

“The more unique and diverse our world-class tourism experiences, the more visitors will extend their stay and support local jobs.”

“If someone has a small company or a good idea, we are going to help build that capacity.

“They can grow and employ more people and be ready in 10 years when people come from all around the world, wanting to experience everything that Queensland has to offer.”

The Premier said that experiences such as the Ngadiku Dreamtime Walks conducted by the local Indigenous people at Mossman Gorge were “nation-leading”.

“With more First Nations tourism offerings throughout

TOURISM

our state, we know we can build on this industry into the future,” she said.

The Premier said the 2032 Olympic and Paralympic Games would create strong interest in Queensland over the next decade, especially among overseas travellers wanting to experience Indigenous cultures.

“It’s important that we take full advantage of the golden decade that will come with the 2032 Games,” the Premier said.

“This funding injection will help to grow the industry, boost the economy, create jobs for Indigenous Queenslanders and enrich Australian and international visitors with First Nations culture and country.”

The increased funding for that sector of Queensland tourism comes as experienced pilots and cabin crew from domestic and international airlines are lining up to join new start-up budget carrier Bonza, which will have a base on the Sunshine Coast.

ResortNews | July 2022

© Adobe Stock - stock.adobe.com

Bonza CEO and co-founder Tim Jordan told the Australian Aviation website that he was on the hunt for hundreds of staff ahead of its planned inaugural flights later this year and that demand for jobs at Bonza has exceeded expectations.

“We have applicants from all sorts of backgrounds,” Mr Jordan said.

“Some who lost their jobs during COVID, some existing team members from other airlines, and some who were stationed at airlines overseas and are now looking for an opportunity to take a role back home.”

In late March, Bonza began advertising for more than 200 pilots and cabin crew to man its initial fleet of five 737 MAX jets.

Roles were on offer at both of Bonza’s aircraft bases, on the Sunshine Coast and in Melbourne.

Rival airline Virgin also announced it will be the first Australian airline with a direct flight from the Gold Coast to Bali.

The new service will begin from March 29 next year.

ResortNews | July 2022

Meanwhile, Tourism and Events Queensland (TEQ) has begun a search for its next Chief Executive Officer.

PROGRAMME

The recruitment search follows a decision by current CEO Leanne Coddington to step down late this year after leading TEQ for nine years.

Premier Annastacia Palaszczuk thanked Ms Coddington for her contribution to Queensland’s tourism industry.

“Leanne Coddington has skilfully supported Queensland tourism operators through the once-in-a-lifetime challenges of the COVID-19 pandemic,” the Premier said.

“As CEO of Tourism and Events Queensland, Ms Coddington has overseen many innovative marketing campaigns to champion Queensland holiday destinations to Australia and the world.

“Ms Coddington’s decision follows the remarkable domestic recovery of Queensland tourism and the industry’s relaunch in key global markets.”

TOURISM

BEDS & BEDDING FINANCE FURNITURE - OUTDOOR INSURANCE PAINTERS & DECORATORS SWIMMING POOL SUPPLIES/REPAIRS

The Mattress Company Green Finance Group Kudos Universal Pty Ltd EBM Insurance & Risk Higgins Coatings Pty Ltd Noosa Pool & Spa Centre

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.

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

31

EVENTS

What about Women In Management?

Exciting news announced! The inaugural BlackTie Gala & Awards night for the Accommodation & Hospitality industry is being brought to you

by Resly & Women In. “The Best of Tourism Awards Gala 2022: A Night To Remember” It’s time to raise our glasses to toast the end of our biggest challenge and welcome back our great industry!

This is a well-deserved celebration acknowledging the struggles and hardships that rippled through our community due to COVID-19 and finally witnessing the bright light at the end of the tunnel. Bringing together all those who keep the wheels spinning and rewarding those who lead the way.

Date: Friday August 5, 2022 Where: The Star Gold Coast, includes 3 course meal & drinks package, entertainment & awards Cost: Tickets from $170.00 Please head to www.womenin. com.au or reach out to marisa@womenin.com.au.

The 2022 ARAMA TOP Awards Presentation & Dinner The Management Rights Industry`s night of nights!

Yes, it’s that time of year again, following on from the success of the TOP Awards Dinner last year the 2022 event will take place on July 26, at Brisbane City Hall, from 6PM. Contact national office for enquiries 1300 ARAMA Q or national@arama.com.au

Ticket prices are: •

$180 + GST each for members (up to 2 pax at this price i.e., ARAMA member plus partner - make sure you are logged in as a member)

•

$250 plus GST for non-members or

•

A table of 8 for $1,440 plus GST.

ARAMA TOP Awards Presentation & Dinner 2021

32

EVENTS & APPOINTMENTS

ResortNews | July 2022

80 TWENTY Hotel Conference Gold Coast & Brisbane

The first 80 TWENTY Hotel Conference of 2022, kicked off in June with a whole day event held at The Star Gold Coast, attracting over 150 delegates.

Resort News was there to hear from industry experts and leaders about how they view the “new normal” beyond COVID-19.

Organiser and host Jude Bolger, Co-Founder & Managing Director, Nuvho, said: “It was a fantastic turnout at our Gold Coast conference that had insightful speakers and panellists discussing some of the current issues facing the serviced accommodation sector.

“The speakers and panellists were of an exceptional calibre."

Throughout the day key issues such as managing the staffing crisis, revenue management, marketing, and sustainability were discussed by panels

ResortNews | July 2022

comprising of operators, and interesting leaders from across the accommodation sector, including hotels, caravan parks, and the wellness industry, who contributed their unique insights.

Jude thanked the event cohosts, sponsors, media partners, exhibitors and supporters.

Brisbane’s 80 TWENTY Hotel Conference on June 16, 2022, at The Emporium Hotel South Bank was attended by a sea of delegates from across the whole industry.

Nuvho Co-Founder & Director, and event host Sandra Swatton said: “The energy throughout the day was sensational, to see so many hotel general managers and management personnel in the room was a really positive sign of ‘getting back to normal’.

“The feedback so far on the new panel topics have been very well received and we look forward to announcing more news about new topics and keynote speakers in the future.

EVENTS & APPOINTMENTS

33

Langham, Gold Coast and Jewel Residences grand opening On June 23, Langham, Gold Coast and Jewel Residences confidently threw open its doors It has been a particularly longawaited hotel opening (held up by a pandemic no less) but no one seemed disappointed when the Gold Coast welcomed this "shimmering jewel" with Mayor Tom Tate announcing the "Gold Coast now has the best hotel in Australia!"

Patricia O Callaghan, CEO of Destination Gold Coast admitted she "could not be prouder" to be at the opening of the "three shimmering towers" of Gold

Coast luxury, which is also a celebration of confidence in Queensland tourism and showcases the "have a go Gold Coast spirit." She said the city has now been repositioned globally to welcome international holidaymakers looking for luxury.

Resort News was delighted to be invited along to the highly anticipated hotel opening and ribbon cutting ceremony alongside an array of industry professionals and Gold Coast tourism leaders.

Located between Surfers Paradise and Broadbeach, the 339-room luxury hotel stands in the central and tallest of three

eye-catching Jewel towers and is the first development with direct beachfront access to be built on the Gold Coast in more than 30 years. Boasting 17 different types of rooms and suites all with striking designs, breathtaking ocean and celebrated hinterland views, The Langham, Gold Coast has been positioned to offer what its owners say, is a new level of luxury accommodation to locals, interstate travellers and international tourists alike.

At the ribbon-cutting ceremony, The Langham Gold Coast General Manager, John O’Shea said The Langham is thrilled to finally welcome locals, interstate

and international travellers into its one-of-a-kind experience.

“Today marks an extraordinary day for luxury tourism. Following months of preparation and excitement, we’re absolutely thrilled to open the doors to Australia’s newest luxury destination,” Mr O’Shea said.

The Langham, Gold Coast will welcome a range of guests through its hotel doors and will also officially welcome locals to its wide range of dining options including the iconic Langham Afternoon Tea, Palm Court, Akoya, 26 & Sunny; and the perfect spot for wine and cocktails, the Lobby Bar.

The Langham Gold Coast, pool

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EVENTS & APPOINTMENTS

ResortNews | July 2022

Langham, Gold Coast and Jewel Residences

2022 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

EVENT TITLE

DATE

TIME

LOCATION

REGISTRATION

ALL ALL Gold Coast Sunshine Coast Brisbane Byron Bay ALL ALL

TOP Awards Dinner MRITP Trades & Services EXPO Trades & Services EXPO Trades & Services EXPO Training & Education CPD AGM and Members Forum MRITP

Tuesday, 26 July 2022 Thursday, 18 August 2022 Tuesday, 13 September 2022 Wednesday, 14 September 2022 Thursday, 15 September 2022 Wednesday, 12 October 2022 Thursday, 27 October 2022 Friday, 28 October 2022

6pm 8:30 am to 4:00 pm 6pm 6pm 6pm 6pm 10:30am 8:30 am to 4:00 pm

Brisbane City Hall Riverside Hotel, Brisbane Southport Sharks Maroochy Surf Club Brisbane Broncos Byron Bay Services Club Riverside Hotel, Brisbane Riverside Hotel, Brisbane

Open Open Open Open Open Open Open Open

ResortNews | July 2022

EVENTS & APPOINTMENTS

35

DEVELOPMENT NEWS

Gold Coast ramps up investment in infrastructure and developments At the recent 80 TWENTY Hotel conference in the Gold Coast, Nick McGuire, Manager City Economy, City of Gold Coast spoke passionately about the amount of investment and developments happening in the city. He declared, “it’s an exciting time for the accommodation sector.”

The council recently announced a $55 million boost to the city’s economy, in areas including marine, film, television, tourism, and small business. The sector is sure to benefit from the investment in the Gold Coast Light Rail and Gold Coast Wonder Reef, alongside the expansion of the arts centre and theatre, plus new works in Cavill Avenue.

Mayor Tom Tate said: “We know that money invested by council in these key sectors attracts significant returns through greater local employment, more tourists and greater marketing exposure as well as increased investment in key industries such as film, marine, health and sport. “Key programs and entities to be funded in 2022-23 include: Destination GC - $16.5 million; Major Events GC - $11.97 million; and Study Gold Coast - $3 million,” he said.

“The recent success of block-buster films for our city reinforces that we are on the right track when it comes to support for our film and television industry. This year (202223) we will invest $2.9 million towards both the film industry and sports sector, in a bid to attract more film productions as well as sporting events and sports training camps.’’

in infrastructure and of course the upcoming 2032 Olympics.

Iconic Surfers Paradise is overdue for renewal, but he says the destination encompasses all the fundamentals to be great once again. He added that having now lived on the Gold Coast for some time, he recognises what a great lifestyle it offers.

SPG Land’s Paradiso Place development This is a joint venture with Australian developer Gordon Corp, its innovative design aims to reshape the block in the heart of the tourism precinct by “creating an urban oasis with an upmarket neighbourhood village vibe designed to become a beacon for local, interstate, and international visitors”.

The three-tower development will include a new groundlevel retail and dining plaza, accompanied by extensive open public spaces, as the cornerstone of an inclusive residential lifestyle hub for the local community.

The plaza has been designed to activate the northern end of Surfers Paradise by offering a true destination experience featuring signature retailers and food and beverage operators.

The premium residential towers will each have their own identity while offering residents unparalleled bespoke amenities. The focal point for residents will be a unique circular infinity lagoon pool on the podium level which will host the signature communal space for the development.

More exciting news came from hotel data analyst experts STR, when Paul Hammond, Business Development Manager Pacific revealed the extent of investment in the Gold Coast accommodation sector with well over 600 hotel rooms expected to open in 2022.

Will Hoc Nhan, Chief S&M Officer from SPG Land also told 80 TWENTY delegates why the major Hong Kong-based developer chose the Gold Coast for the location of its planned $880-million, 800-apartment triple-tower, Paradiso Place which is being developed on Ferny Avenue in Surfers Paradise.

He revealed that the city attracted the attention of SPG Land because it is evolving at a remarkable rate in terms of population growth and popularity, with a high level of recent investment

Each tower will have its own podium level interconnected by walkways to create a unique elevated ‘seaside village’ for residents, with each tower podium offering separate resort amenities.

The towers also boast their own dedicated sky lounges occupying the entire 26th level, each with customised amenities.

Penthouse owners will have the added exclusivity of access to their own private rooftop gardens and recreation areas.

SPG Land chairman David Wang described the proposed Surfers Paradise development as a flagship project for the company that will create a sought-after destination in the city’s traditional tourism heart. Tower 1 will be the first to be built, offering 258 well-appointed one, two and three-bedroom apartments, all with ocean views, forecast for late 2024 completion.

The Star Residences – Pool

36

The Star Residences – Casual Dining Space

DEVELOPMENTS

ResortNews | July 2022

The Star Gold Coast

Tower 1 The heart of the proposed project, has been designed with a dynamic, social and youthful theme offering all residents access to the tower’s main pool and a separate lounge pool complete with a pool bar and all-day dining facilities, VIP dining area, a day-care centre, a barbecue area, a resident’s gym and a yoga garden with the sky lounge featuring co-working spaces, bar, indoor and outdoor seating lounge, and an interactive sky gym.

Tower 2 Will offer a more peaceful environment suited to families and will have its own indoor and outdoor kids’ zone, while the sky lounge will boast a sky gym, plus yoga and spa facilities.

Tower 3

Immaculately designed by acclaimed local architect Cottee Parker, the apartments have been created to meet the needs of independent travellers wanting the practical comforts of home with the convenience of a world-class resort.

Chief Operating Officer of The Star Gold Coast Jessica Mellor says of the launch, “the opening of The Star Residences marks a huge milestone in the expansion of The Star Gold Coast and introduces an entirely new world of possibilities for leisure and corporate travellers looking to make the most of our coastal lifestyle. “Whether you’re a family looking for a longer-term holiday destination or travelling to the Gold Coast for business, our new serviced apartments provide the best of both worlds – the convenience of home amenities, plus a full suite of bars, restaurants and entertainment on your doorstep.”

The Star Residences takes the current accommodation options at The Star Gold Coast, including those at The Star Grand, The Darling, and the Dorsett Gold Coast hotels, to over 1,100 rooms.

As part of its $2 billion masterplan and continued investment into the local tourism industry, the resort is also expecting to open a second $400 million 63-storey tower featuring 457 one, two- and three-bedroom apartments in 2024.

Will deliver a level of luxury and sophistication sought by the mature lifestyle buyer with the podium encompassing its own café, breakfast and dining terraces, a library and meeting rooms while the sky lounge will feature the city’s first suspended lap pool, a cigar lounge and wine bar.

Holiday living becomes a permanent reality in Broadbeach at The Star Gold Coast In one of the strongest signs of a tourism fightback since the global pandemic, The Star Gold Coast is introducing stunning new apartment-style accommodation to its iconic Broadbeach property for the very first time with the opening of The Star Residences, Tower 1. Located in the upper floors of the precinct’s new $400 million 53-storey tower, The Star Residences comprise of 422 modern one and two-bedroom apartments available for short-term stays, long-term rentals, and permanent residency.

Meanwhile a Sydney developer has lodged plans for a slender 40-storey tower at Broadbeach The proposal comprises of 113 mostly two and three-bedroom apartments and is topped with a three-level, five-bedroom penthouse.

All apartments have been designed to be able to operate as multiple dwelling or short-term accommodation.

The building is earmarked for a vacant corner on the Gold Coast Highway at the northern end of Broadbeach.

The Star Residences

ResortNews | July 2022

DEVELOPMENTS

37

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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 | July 2022

MR

Sales

Recent Sales

Working together, working for you.

Sunshine Coast Listings...

Santorini on Mudjimba

Maroochydore QLD

ID: 8963

Maroochydore QLD

ID: 9037

Rare Four Bedroom Residence

Central Beach Location

Price: $3,737,000 Nett: $433,000

Price: $1,950,000 Nett: $233,000

Caloundra QLD

ID: 9041

Caloundra QLD

Fairway View

Under Contract

ID: 9042

In the Heart of Caloundra

Perfect Beachside Location

Price: $1,250,000 Nett: $168,305

Price: $1,195,566 Nett: $123,833

Maroochydore

Cotton Tree

Cotton Tree QLD

ID: 9035

Alexandra Headland

ID: 8115 Mooloolaba

Exquisite Beach Location

Established in Prime Location

Price: $1,961,785 Nett: $211,912

Price: $1,495,000 Nett: $199,875

Selling Management Rights on the Sunshine Coast?

Contact | Mark McKay 0428 865 120 | markmckay@mrsales.com.au

Maroochydore

www.mrsales.com.au | 1300 928 556 | info@mrsales.com.au

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Same expertise, just better As the longest serving and only dedicated management rights agency on the Sunshine Coast, we are proud to say the last 12 months have seen a new sales record for RMS, with many properties being sold most rewardingly for the second, third or fourth time around.

With more than 50-years combined experience in management rights sales, and over 450 sales between us, the team delivers a unique mix of knowledge, experience and ‘old fashioned values’ that ensure a personal approach to every transaction.

We believe we have the vision (and local knowledge) to match sellers, buyers and properties in an open and honest way.

While we’re showing off, here are some things you may not know: •

At RMS, every seller benefits from having three agents working for them as a team - dealing with one means access to the expertise of all!

•

Our brand has extensive reach with effective advertising and SEO

•

RMS have extensive contractual experience and a thorough understanding of what is required by all parties, effectively ensuring the best possible result for everyone.

•

•

RMS have developed long-term, trusted business relationships with specialist industry professionals over the years and therefore the ability to keep the contract ‘on the go’.

RMS have been involved in the sales of some properties three or four times, and hold the record on the Sunshine Coast for the highest volume of management rights sales over the past four years.

•

We also hold the best conversion rate of “under contract” to “Sold” of any agency due to our experience in preparing a management rights business for sale and our extensive knowledge of the contractual process.

•

RMS have sold 18 properties worth over $35,000,000 in the last 12 months.

The ‘old fashioned’ approach of honesty, professionalism and integrity in the RMS operation is evidenced by the active friendship and support that exists between the partners across the client base – dealing with one means access to the expertise of all!

Barry and Matt welcome new team member, Adam Langer Adam arrived on the Sunshine Coast from the U.K in 2011 with his wife Jay and their son Darius. With a solid background in hospitality management under his belt, he initially explored this sector for business opportunities.

Soon after settling in Coolum he met John Hellyer, co-founder of RMS, who sold him into a 65 unit permanent complex in Alexandra Headland which he ran while Jay joined the Ramada Marcoola as a GSA and subsequently the Sebel in Hastings Street.

Upon selling this MR some 4 years later, Adam moved back into the hospitality industry buying into a health food franchise on Gympie Terrace in Noosaville during which time they welcomed 2nd son Kai into the family. Adam and Jay operated the restaurant for 4 years until 2020.

At this time Adam took on a role in strata management before finally happily accepting the opportunity of joining Barry and Matt at Resort Management Sales in early 2022.

His positive and upbeat demeanour easily facilitates the transition into sales and his genuine interest in helping people find their ideal business makes him a great fit in RMS.

FOR ALL THINGS MANAGEMENT RIGHTS, PLEASE CONTACT:

Matt Campbell - 0410 343 219 matt@managementrights.com

Barry Davies - 0438 554 995 barry@managementrights.com

Adam Langer - 0468 317 321 adam@managementrights.com

Star service key to hot Coco

By Grantlee Kieza, Industry Reporter

Kylie and Gavin Bartholomew have spent most of their working lives involved in travel and tourism and they are proof that going the extra mile pays big dividends.

This month Kylie talks to Resort News about how they’ve brought their ethos of hard work and great service to their apartment complex Coco Mooloolaba.

How did you get your start in management rights?

Gavin and I have always been involved in hospitality and travel; we were travel agents for 12 years. After living and working overseas for two years we started within the retail sector of Flight Centre and Harvey World Travel. We then transitioned into corporate travel, and after working hard for other people we decided to get our own business, which was a café in Ashgrove, a suburb of Brisbane called Home Café. We then took the opportunity to open Home Store, a retail store in the space beside our café.

Gavin and Kylie Bartholomew

When we sold that business, we opened a restaurant in a liquidated space in Yeronga that we called Seven South, as its location was seven kilometres south of the city. It went very well from the opening day and after working seven days a week and four nights a week building a great and very profitable business, someone wanted to buy it from us after only five months. The sale of that business was what allowed us to get into management rights.

You started at the Peninsula Boutique Hotel in Port Douglas.

Why that property?

With our travel background, we were always looking to get into accommodation and management rights, but we just weren't in the financial position to do so. That changed when we sold Seven South.

We went into a syndicate partnership at the Peninsula, with Gavin and I as the dayto-day managers and major shareholders. It was a 4½star adults only fully serviced hotel with 35 rooms. We had a restaurant attached that was also open to the public.

42

PROFILE

The restaurant probably scared off a lot of other potential buyers just looking to get into management rights. But given our work in restaurants it wasn't a concern. It was a seven day a week 7am until 9pm business, but we loved it. We were there from April 2017 until November 2019.

How did you know the ins and outs of management rights and how to run that type of business?

Prior to taking over at Peninsula we had gone to a lot of seminars to get a greater understanding of how management rights operated.

We always knew that we wanted to work hard for ourselves, and when it came to getting into an accommodation business with some level of control over what we were doing, management rights was the next best thing to buying a property freehold which we were not in a position to do.

We really lifted standards there and were awarded the number 4 hotel in Australia by Trip Advisor.

We were able to sell for a good profit and that allowed us to get into another property on our own without having to take partners.

ResortNews | July 2022

Strong partnerships deliver great results.

We appreciate the opportunity to partner with Kylie and Gavin Bartholomew at Coco Mooloolaba.

Trust Accounting So, what made you choose Coco at Mooloolaba?

with the international market, so we knew we would be one of very few properties on that stage.

For family reasons we wanted to get back to the Sunshine Coast.

We looked at this property at the very start of COVID, but we thought that we probably needed to sit it out for a while to see what would happen to the industry. We work very closely with a marketing company which we had done in Port Douglas, and we knew whatever property we went into we were also going to use them again to give us global exposure. Luckily, they had advised us that a lot of properties in Mooloolaba weren’t engaging

We felt Mooloolaba would always be popular with the drive market from Brisbane and the Gold Coast. Moreover, with the Sunshine Coast Airport located only 15 minutes away from us, we knew there would be the opportunity to work with Visit Sunshine Coast and the relevant government bodies to ensure constant exposure for Coco.

Property Management System

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One software solution for all your property management needs.

It’s been 12 months since we took over and the property has performed very well throughout that time.

Contact us at sales@hirum.com.au today!

We are proud of our association with Kylie and Gavin and wish them every success in their business at Coco Mooloolaba.

Call Barry, Matt or Adam today or email contact@managementrights.com

Proud to assist Kylie & Gavin Bartholomew at Coco Mooloolaba Accounting Solutions for the Management Rights Industry Accounting & Taxation Trust Account Audits P&L for Sale Tax Planning & Structures Suite 16, 1 Newspaper Place Maroochydore QLD 4558 E: renee@rcbaccounting.com.au | P: 5456 4018 ResortNews | July 2022

Adam 0468 317 321

Barry 0438 554 995

Matt 0410 343 219

Your Sunshine Coast Specialists

www.managementrights.com PROFILE

43

COVID was still raging when you purchased.

What made you enter the business again during the pandemic?

We could see light at the end of the tunnel. We are very hardworking people and being out of the business for 12 months was getting very boring. We were confident we could put some measures in place that would still help us through what we expected to be challenging times for 12 months.

This property was developed by Aria, and they just seem to have a way of selecting finishings that stand the test of time. The apartments have been well maintained and still look modern.

They're lovely and spacious, we’ve got a fantastic outdoor area and pool and the location is outstanding. We’re not right on the Esplanade but we're close enough without being challenged by road noise. We manage 36 apartments. There are 46 in the building with some owner occupiers and lockups.

You say you lifted the standards at the Peninsula. What is your secret?

strive to go above and beyond.

It’s just a matter of working hard, putting the guest first and then going that extra mile.

Guests appreciate it and will always remember you for that.

We are very customer serviceoriented, and detail focused.

A lot of good service is about the little things, we like to add complimentary touches and offer small inclusions. We try to say never no and will always

If you love what you're doing, it’s not hard to achieve. It's rewarding for us to provide guests with a positive experience, not only personally but also because it makes great business sense. I wouldn't have a business if I didn't have happy guests, and I also wouldn't have a business if I didn't have great owners who entrusted me with the management of their apartments.

You have been involved in management rights for five years? Is it a tough job?

I certainly wouldn't go into management rights looking for a lifestyle where you sit back and do nothing. In saying that, it's only as hard as you want to work.

It depends on how successful

you want your business to be.

We are constantly looking to grow our business and we’re always thinking about what we can do next to have ‘bums in beds’. I can't sit back and wait for potential guests to find our property; I’m always working to put Coco in front of them so that they want to stay here.

What do you see as the future of management rights?

I think it will continue to grow.

One of the big challenges management rights has faced recently with the rising real estate prices, has been the constant threat of losing units from letting pools. It's been a real seller’s market, but people are still looking to invest in property and while they are getting good returns, I think management rights will continue to grow. International travel is starting to come back. I've just popped some Canadian guests who have been here for five nights onto the shuttle bus down to Brisbane, and

Industry finance specialists with over 80 years combined experience.

Congratulations Kylie and Gavin, we were delighted to assist with your finance for Coco Mooloolaba

Mike Phipps |

Director

0448 813 090

Paul Grant |

Broker

0448 417 754

Cameron Wicking |

0477 776 859

www.mikephippsfinance.com.au Head Office 4/31 Mary Street NOOSAVILLE QLD 4566

44

Broker

ACL (364 314)

PROFILE

ResortNews | July 2022

the knowledge and experience in the same industry and can assist us if required. We try and find people who work the same way we do and who can add value to what we do.

with more international guests, management rights businesses will continue to get stronger.

Is management rights a good business for couples?

Yes. Normally you have what might be termed stereotypical roles which is probably what we've taken on.

But in saying that I still know everything about the rooms and Gavin knows everything about reception.

We had an extended break after selling Peninsula but didn’t expect it to last more than 12 months. We’ve only been here for a year, and we need to learn the business here thoroughly before we can leave it in the hands of someone else. We do take short breaks of only a few days, the area is so beautiful around here it’s a great place to relax.

Finally, it was also a pleasure to work with Renee and her team at RCB Accounting. She too has extensive knowledge in the industry and has always been available to us if we need clarification or advice with anything to do with the financials of operating a management rights business. We know we are in good hands with her.

How important is it to work with professionals who have experience in management rights?

We have always tried to surround ourselves with the right people in business, people that have

Y STR DU

27 YEARS E ER

27

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OV

We can offer different points of view across the entire business.

It also helps to understand what each person is getting done every day, as well as the stresses that they deal with.

Are you able to take holidays yourself?

We relied heavily on the team at Mike Phipps Finance during the purchase process, they were always available for us, offering support and guidance and helped us get to the settlement date easily. They came highly recommended, and I now know why. We wouldn’t hesitate to use them again or recommend them to anyone getting into management rights.

Matt and Barry from Resort Management Sales are also a wealth of knowledge and reason. This was the second time we worked with them, and their understanding of the industry and its current state is unmatched.

RA E ST TA IN TH

Providing professional, personable and quality services to Body Corporate Lot Owners and Developers of Strata Titles Schemes.

07 5450 5300

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www.sunstatestrata.com.au ResortNews | July 2022

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10% discount + bottle of wine on arrival for Resort News readers when booked direct

PROFILE

45

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

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46

Chartered Accountants & Business Advisors Specialist Advisors to the Accommodation Industry

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ResortNews | July August 2022 2021

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47

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Reservations and Trust Accounting Daily Reconciliation – Systematic Distribution Holiday

Year 1 $1,100

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0448 813 090

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Broker

0448 417 754

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Broker

0477 776 859

4/31 Mary Street NOOSAVILLE QLD 4566 www.mikephippsfinance.com.au

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Commercial Specialist Direct Importers Sales, Service & Repairs ¾LARGEST RANGE¾FURNITURE ¾UMBRELLAS¾SUN LOUNGES Cnr Main Drive & Nicklin Way, Warana, Qld 4575 | Ph 07 5493 4277 Acres Centre, 1/37 Gibson Rd Noosaville 4566 | Ph 07 5449 9336

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48

Specialising in furniture for hotels, motels, serviced apartments, resorts and refurbishments

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Look for the sign of an Industry Specialist ResortNews | July 2022

- SUNSHINE COAST MAIL BOXES

The Management Rights Specialists

Quality Aust Products to meet All Building & Government Standards

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P: (07) 5596 1440 E: info@sunni.com.au

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We’ve got you covered EBM is your Management Rights insurance specialist.

As industry partners and members of ARAMA, we are proud to support the Management Rights sector.

1300 755 112 | ebm.com.au

AFSLN 246986 ABN 31 009 179 640

www.managementrights.com

Property Bridge MANAGEMENT RIGHTS

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“Always passionate, committed and professional, you can trust the team at Property Bridge.”

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

www.rcabusinessbrokers.com.au Specialising in Motel & Resort Sales Qld wide

info@propertybridge.com.au propertybridge.com.au …When you need us most!

MGA was founded in 1975 and has since opened up 38 offices around Australia, offering Insurance products for:

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 Business  Strata  Landlord Protection With quick quote turnaround and hassle-free claims service Call us today on (07) 3720 6000 or email: quotes.brisbane@mga.com

SPECIALIST AGENTS COMMITTED TO MAKING EVERY DEAL A SUCCESS

1800 111 622

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Wayne & Linda Stoll 0452 181 505

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info@mainlinen.com ResortNews | July August 2022 2021

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Look for the sign of an Industry Specialist...

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

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PREFERRED SUPPLIER DIRECTORY

49

SOLICITORS

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50

Look for the sign of an Industry Specialist...

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51