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Message from Martin Ferguson AM Chairman, Tourism Accommodation Australia
AHA & TAA NATIONAL
MARTIN
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FERGUSON AM
IN JUNE 2015, THE AHA PROUDLY ANNOUNCED THE APPOINTMENT OF FORMER FEDERAL TOURISM MINISTER, MARTIN FERGUSON, AS THE NEW CHAIR OF TOURISM ACCOMMODATION AUSTRALIA (TAA).
The appointment of Mr Ferguson, who played a key role in establishing Australia’s 2020 tourism targets while in charge of the tourism portfolio, will give the accommodation sector its most powerful voice in Canberra at a time when the industry faces challenges on a number of fronts.
“Tourism and hospitality have been elevated to a Tier One industry in Australia’s economic future and need a powerful and influential voice at all levels of Government as well as in the media and with decision-makers if we are to convert potential into results,” said Mr Ferguson.
“We are fortunate to have been able to attract an eminent Board representing the most influential Australian and international hotel groups. The Board also includes senior executives from AHA, which provides TAA with strong representation and advocacy nationwide through its branches in each State and Territory.”
Mr Ferguson outlined that the Board’s initial priorities, which included addressing: • workplace conditions inclusive of employment-inhibiting penalty rates; • barriers to sustainable accommodation growth and investment, including the
proliferation of unregulated shortterm accommodation; and • labour and skills shortages, with visa relaxation a high priority.
After a few months in the role as TAA Chair, Mr. Ferguson has said that while the hotel industry was performing strongly in a number of city locations – in particular Sydney and Melbourne – and that inbound and domestic tourism was growing,
there was no room for complacency.
He said it was vital for the industry to maintain pressure on Government to continue investment in demanddrivers such as major events, tourism promotion and infrastructure to support tourism growth to justify the largest expansion of new-build hotels in over two decades.
Industry analysts have forecast that there could be anywhere between 80 to over 100 hotels constructed in the next five years, as opposed to just one new-build hotel developed in Sydney’s CBD between 2000 and 2010.
“This massive expansion is very positive for the Australian hotel and tourism sector because our hotel product needs to compete with hotel product in Asia and elsewhere,” said Mr Ferguson.
“We have finally created an environment where investors feel comfortable funding new hotel development. This is allied to Governments investing in tourism infrastructure such as the new International Convention Centre in Sydney.
“What is now required are the appropriate conditions to both drive demand and ensure that costs are kept under control.
“This means that we need to ensure that the industrial relations environment reflects the demands of the current economy and that migration barriers are reduced in order for skilled labour to be easily accessible when the hospitality industry expands.
“TAA and AHA will be working assiduously in the coming months to convince the Fair Work Commission to review the awards structure to make it more relevant to the 24/7 nature of the service industry today. We are not talking about scrapping penalty rates, but rather have them amended so that hotel businesses can open more readily on weekends and during public holidays.
“We also need to persuade State Governments to understand that by arbitrarily declaring public holidays for frivolous reasons without having any regard for the commercial impact will be counter-productive. Not only will workers miss out because businesses will shut, but visitors and residents alike will have fewer venues available to enjoy their day off.
“The latest research reports conclude that a less punitive penalty rates environment will lead to increased employment, and tourism and hospitality is one of few industries in Australia that offers sustainable employment opportunities for the future.
“Equally, governments at all levels need to understand that there has to be a level playing field for participants. There has been a vast amount of talk about the ‘sharing’ economy, with a massive explosion of rooms and apartments for shortterm rent, but it is important that it doesn’t become a ‘taking’ economy, where unregulated commercial operators just take money without meeting any of the obligations imposed on legitimate operators.
“These accommodation providers often don’t comply with safety standards, don’t pay taxes and don’t meet basic building and consent requirements. They don’t create employment and could well provide a disincentive for investment in the legitimate hotel sector.
“In contrast, the imminent hotel development boom has the potential to provide a vast range of opportunities for a new generation of hospitality workers, including Indigenous Australians and it will be essential that we provide the highest level of training for them to ensure that these jobs are sustainable.”
Mr. Ferguson brings to his position as Chair of TAA a vast range of experience both as a Federal Minister for Tourism and as President of the ACTU for six years.
Reflecting on his previous Government experience and considering his future with TAA, Mr. Ferguson said: “Tourism has obviously been a major part of my recent past, and I was fortunate that my time as Australian Tourism Minister saw a growing recognition from government of the importance of the industry, and the continued confidence is evidenced in the current hotel building boom. There is enormous potential for the industry in Australia and it has been rightfully identified as one of the five primary growth industries for the country’s economic future.
“To fulfil its promise the industry must ensure not only that new hotel stock is introduced to the market at all levels, but also that existing hotels continue to upgrade in order to effectively meet consumer wants and needs.
“It is essential for the industry to be able to offer the highest quality accommodation as it contributes to the attractiveness of a destination and its ability to market itself both locally and overseas”, Mr. Ferguson concluded.
