Bellarine Ti Times mes
Tuesday 13 September 2011
VOL 4. No 37
www.bellarinetimes.com.au
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Queenscliffe Mayor Bob Merriman has hit back at claims by the DSE that he and the shire council agreed to DSE plans to demolish three houses in Point Lonsdale. Full story page three.
PUT TO BED B&Bs across the Bellarine are struggling to break even under prohibitive, council-imposed costs
BY DAVID FINLAYSON
THE BELLARINE’S once-thriving ‘bed and breakfast’ tourist accommodation businesses are being crippled by rate hikes, bureaucratic red tape and a slowing economy. A 2010 City of Greater Geelong drive to identify small B&B businesses for rate reclassifications, resulting in 38 percent rate hikes, has been a major factor in the closure of B&Bs across the Bellarine. The council considers B&Bs to be ‘mixed use’ businesses, rather than the lower-rated ‘residential’. Norm Hite and Carol Fitton closed their one-bedroom ‘Green Anchor B&B Cottage’ in Scotchmans Road and sold the property. “We decided we didn’t want to work for charity, so we gave it away,” Mr Hite said.
Su rf Forecast
“The council sent us an amended rate notice… it was about an extra $800 for us in rates.” In addition to rates, Mr Hite said his insurance was an extra $800 and other registration costs meant an outlay of $2000 a year before food, electricity, linen, furniture upgrades and other costs where totalled. “People think that if you are charging $140 a night that’s what you are making. You are not. You ask yourself, why are we doing this? We know of at least three other people who have closed.” A north Bellarine B&B operator, who declined to be named, said the single-bed operators were hardest hit. “Several of us have appealed (the rate assessment) but it hasn’t got anywhere,” she said. “People who have just one room, and not getting
a year-round income to absorb the rates and other overhead costs, are unviable. I know of a number who have closed or are closing.” A central Bellarine B&B operator who also declined to be named for fear of retaliation from council is considering closing her business. “They (CoGG) looked at possible revenue streams. One (stream) was B&Bs operating alongside many other home businesses, but the others were harder to target. B&Bs are registered with council under, say, health regulations and are therefore easy targets. Other businesses are harder to track down,” she said. All operators said the economic downturn had hit hard in the last 12-months, with fewer people willing to holiday on credit. Geelong Otway Tourism deputy director Terry
Hickey said the organisation was concerned about losing B&B ‘room stock’ in the Bellarine. “When this first raised itself as an issue we approached council but there has been no will to change,” he said. “There seems to be an over concentration (by council) on tourism, which brings in new money from outside the region and which we should be encouraging.” Council’s acting general manager corporate services Mike Kelly said most councils didn’t offer a middle-ground ‘mixed use’ rate category, instead placing B&Bs directly on the full ‘commercial’ rate. He acknowledged the council “conducted a widespread review” in 2010 to ensure the “correct rate” was being applied to home-based businesses, such as B&Bs.
WED 2-4ft Inconsistent WSW 18º THU 3-6ft Easing WNW 18º FRI 3-4ft+ Clean W 18º SAT 2-3ft Easing N 23º
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