ResortNews - November, 2018

Issue 267 | November 2018 | $13.75 inc. GST

The Monthly Magazine for Accommodation Industry Professionals

www.accomnews.com.au

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LOOK INSIDE

Profiles Noosa Entrance Waterfront Resort Swell Resort Burleigh Beach management rights • hotels • motels • resorts • holiday parks • time share • hosted

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MANAGEMENT RIGHTS MOTELS REAL ESTATE SPECIAL PROJECTS PROJECT MARKETING

BRISBANE

LOCATION LOCATION LOCATION. MANAGEMENT RIGHTS FOR SALE A compact and modern complex surrounded by residential homes offering peaceful occupation of the area. With one of the nicest free standing 4 bedroom house for the Manager, the first to see will buy. The business consists of a mix of three and four bedroom townhouses. 90% are in the Managers rental pool. The caretaking can be handled successfully by a single operator with the rentals only taking a few hours per week. There are NO SET office hours in the Agreements.

Jim Prentice 0412 984 684 – jimp@raas.com.au

Nett: $115,000

Total Price: $1,073,000

GOLD COAST

A MULTIPLER OF LESS THAN 2.5 MAKES THIS AN IDEAL OPPORTUNITY ON CHERVON ISLAND! Here is your chance to live on Chevron Island in a beautiful 3-bedroom apartment while operating a solid business with 9 permanent lettings in an easy to maintain building. There are no set office hours in the agreement, care taking takes only a couple of hours a day and the tenants tend to be long-term. There are 17 years remaining on the agreement and the multiplier is only 2.46! The unit is very attractively priced and includes a large lockup workshop.

Jonathan Shorter 0405 537 600 – jonathans@raas.com.au

Nett: $40,541

Total Price: $545,000 BRISBANE

STUDENT ACCOMMODATION AS ITS BEST A once in a lifetime opportunity. Location is “plumb” and student accommodation. Plenty of inquiry. Good long agreements and. Easy to run and maintain. Almost no gardens. Ample opportunity to improve bottom line. This place is a winner.

Robert Collins 0404 678 792 – robertc@raas.com.au

Nett: $416,302

Total Price: $2,550,000

GOLD COAST

OCEAN VIEWS TO SURFERS PARADISE Fantastic Location, great views of the water, make a good income! This resort has it all with a 3 bedroom air-conditioned managers unit surrounded by a balcony which allows you to enjoy an uninterrupted view of the beach and water. Only a short walk to schools & public transport routes.

Kerrie Lush 0416 084 693 – kerrie@raas.com.au

Nett: $226,000

GROW YOUR BUSINESS

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Total Price: $1,761,000

PROTECT YOUR INVESTMENT

Phone 07 5593 0007 www.raasrights.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.

Inside the November issue

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.

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

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DESIGN & PRODUCTION Richard McGill, production@accomnews.com.au ADVERTISING Stewart Shimmin, advertising@accomnews.com.au CONTRIBUTORS Simon Barnard, Arvo Elias, Jonathan Hanaghan, Chris Irons, John Mahoney, Grant Mifsud, Andrew Morgan, Col Myers, Mike Phipps and Trevor Rawnsley.

Commercially funded supplier profile or supplier case study 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!

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05

Industry

06

He ain’t heavy, he’s my (elderly) neighbour…

09

Queensland leading the way in tourism growth

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Drop dead dates

15

Not in my back yard

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We need to talk about cladding

17

Management

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And still they have not learnt!

Selling your business: the tax concessions

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A friend in need…

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Location , location , location

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Your smartphone can kill you!

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Are the curtains causing discord?

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Do your guests know what they really want?

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Energy efficiency: more than just a bright idea

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Tourism

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The Great Barrier Reef: Be the solution, not the problem

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Tourism International

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Events & Appointments

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Vale: Bernard ‘Bernie’ Sullivan and Garry Maynard Ladies in Management luncheon: lending a hand to sick kids

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What's On

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ARAMA Industry Events Calendar

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Maximum Occupancy conference fills every seat!

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News

40

The Last Resort

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Alkira: a convergence of design and mother nature Property

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New Managers Resort News Sales Report Accomproperties

KEY Supplier information or content

It’s a continual improvement process

Developments

EDITOR Trish Riley, editor@accomnews.com.au STAFF WRITERS Mandy Clarke

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News In Brief

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

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

Advertisers and Advertising Agents warrant to the publisher that any advertising material placed is in no way an infringement of any copyright or other right and does not breach confidence, is not defamatory, libellous or unlawful, does not slander title, does not contain anything obscene or indecent and does not infringe the Consumer Guarantees Act or other laws, regulations or statutes. Moreover, advertisers or advertising agents agree to indemnify the publisher and its’ agents against any claims, demands, proceedings, damages, costs including legal costs or other costs or expenses properly incurred, penalties, judgements, occasioned to the publisher in consequence of any breach of the above warranties. © 2018 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.

Front Desk

61 FRONT DESK

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Northern Queensland: primed to be the next boom zone?

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Profiles

62

Noosa Entrance: Luxury townhouses meet waterfront living Swell Resort Burleigh Beach: a jewel in the making

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The Preferred Supplier Directory

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ResortNews | November, 2018

It’s a continual improvement process As multi-billion-dollar industries encompassing everything from restaurants to hotels, motels, resorts and strata buildings, there is no "one size fits all" method of finding success. So, what makes this sector tick?

Irrespective of your background or how successful you were as a banker or school principal, or even if you decided straight out of university, many of those thinking about entering this sector are still unprepared when the ink has dried and they’re left holding the keys. The first lesson therefore (as evidenced by our managers profiled on page 66) is to be thorough in your research, attend all available training and garner as much experience as possible before committing.

And as with the continual improvement process of "plan,

November, 2018 | ResortNews

and the experiences they seek, the better you can tailor your products and offerings to serve them.

Trish Riley, Editor t.riley@multimediapublishing.com.au do, check, act" employed for effective energy management (see page 25), focusing on the customer – whether that be an owner, tenant, guest or patron, will give you the best chance at success.

Know your customer base Today’s travel market is diverse, encompassing everything from baby boomers to sociallyminded millennials to wealthy leisure travellers. The more you understand your target market

Listen to your guests - ‘The customer is always right’ has never been truer than in our age – the age of the internet.

With the ability of a single tweet, post or review from an unhappy customer to reach thousands, it’s your responsibility to listen to customers and over-deliver.

Statistics show that accom that exceed their customer experience scores by 10 percent exceed in aggregate revenue.

Measure customer satisfaction and engagement - Do you know how your guests really feel about you? Technology has made it easier than ever to get real-time feedback with website, smart phone surveys and social media to actively monitor what people are saying about your brand online. Alternatively, just ask.

Solve problems quickly - As

FRONT DESK

more customers turn to social media channels to voice their complaints, properties must offer fast, courteous and transparent responses across all channels.

By learning the art of great social services you can turn guests into true ambassadors.

Customers are at the heart of the hospitality industry and the ‘product’ you are offering is integral to seeing customers come back. By continuing to cycle through these steps, improvement is always being worked on and elevated.

Accommodation isn't an easy industry to crack. People already know what they like and what they want but with a great product, a solid and affable team, and research and experience in the market, you can provide a product and service that has its place in the economy.

As always, happy reading and I hope you enjoy this issue of Resort News.

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Plan amid fears Renting in of property Queensland market crash overview: have your say Australia’s largest super fund, AustralianSuper, has developed a crisis plan amid fears the property market is headed for a crash.

The Australian reported that the fund has told members it will not allow them to invest more than 70 percent of their savings in its property portfolio option from mid-November. It also warned it would freeze property funds for up to two years in “exceptional circumstances in response to a market stress event”. The policy changes take effect on November 19.

Many Queenslanders will have experienced renting, either as a tenant, property owner or property manager.

Queensland has one of the highest proportions of people renting in Australia, and many people will rent for part or all their lives.

We know that more people are renting as they enter their retirement years and families are the biggest growth area in the rental market.

The Queensland government is opening the door to renting reform to make sure the rental needs of Queenslanders are met now and into the future. The Open Doors to Renting Reform consultation and engagement program provides an opportunity for property owners, tenants, property managers and the broader community to share their rental experiences and ideas on how renting in Queensland can be improved.

Community feedback will inform a reform program, including the review of the Residential Tenancies and Rooming Accommodation Act 2008 (RTRA Act) and

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development of minimum housing standards for rental accommodation. The reform program will also create a more contemporary regulatory framework that better protects tenants and property owners, and improves housing stability in the rental market. These laws need to accommodate the varied tenant and property owner interests that reflect the great diversity across our state.

AustralianSuper group executive Paul Schroder said the changes were designed in the members’ best interest.

“This is a prudent step designed to ensure all members can continue to exercise investment choice over the long term and in all market conditions,” Mr Schroder said.

It was revealed last month the prices of Australian homes had fallen for 11 consecutive months, with forecasters predicting a major crash is imminent.

House prices in the five capital cities have also fallen an average of 3.5 percent in the past 12 months, with Sydney and Melbourne the worst affected.

The Open Doors to Renting Reform consultation and engagement program provides all key stakeholder groups with extensive opportunities to have their say, including through submissions, surveys, social media channels or one of the many face-to-face consultation activities.

The federal government and

the Labor Party have been debating changes to negative gearing, which is likely to be a key argument heading into the next election.

Earlier this week, Treasurer Josh Frydenberg said two-thirds of people with negatively geared properties had a taxable income lower than $80,000, arguing a crackdown would hurt everyone with equity in their home.

“Labor’s policy couldn’t come at a worse time and be more ill-judged.

Speaking to ABC Radio, Shadow Treasurer Chris Bowen urged a reform with negative gearing.

“You make these reforms for generations. You know the market will go up and down over the next 20 or 30 years but you don’t change negative gearing very often,” Mr Bowen said.

“A number of economists have pointed out that actually this is probably a good time to reform negative gearing because the work by APRA has already taken some of the heat out of the market, some of it has already been factored in, so therefore with less people negative gearing our changes would come as less of a shock to the system.”

He said Labor’s policies were necessary to help with housing affordability and the health of the federal budget.

It is vitally important that as many property owners and managers participate in this survey to ensure that the current operating environment is understood clearly and that the reforms introduced are equitable and fair.

Submissions for Open Doors to Renting Reform closes November 30 and the Open Doors to Renting Reform Consultation Report will be released in December.

INDUSTRY

ResortNews | November, 2018

Industry condemns decision on casual workers’ pay Two major industry bodies have criticised a federal court ruling that could see Australian businesses forced to pay billions in extra payments to cover casual workers’ holidays.

The Australian Hotels Association (AHA) and Tourism Accommodation Australia (TAA) have denounced the outcome of an August test case which ruled a casually-employed worker was entitled to paid leave following termination of his employment.

AHA CEO Stephen Ferguson and TAA chair Martin Ferguson argue casual workers already receive a significant pay loading in return for not receiving permanent employment benefits such as annual leave.

It is feared the case could open the floodgates to a series of retrospective claims, with an opinion piece in the Australian Financial Review arguing the ruling “suggests that many such casual workers were really permanent and so should be

entitled to backdated holiday pay – even if they have already pocketed and spent the casual loading”.

at a Rio Tinto mine, meaning he was still worse off even after leave was paid on top of his 25 percent casual loading.

It goes on to say: “The scope for double-dipping threatens to impose an $8 billion bill on business, enforced by unions such as the CFMEU and class action ambulance chasers.”

President Michele O’Neil said there was “a long history of case law” establishing that workers who have fixed and continuous employment were entitled to accrued leave, and that only employers who were breaking the law should be worried about the decision.

Stephen Ferguson said the rules should be clear.

“An employee should not be unjustly better off by receiving the benefits of both casual employment loadings and fulltime or part-time employment entitlements,” he said.

The Australian Council of Trade Unions say the ‘double-dipping’ argument is misleading, as plaintiff Paul Skene was paid 30 percent less than the full-time employees he worked alongside

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“The end result could be less flexibility for many workers and workplaces trapped in a system less able to adapt to the new work patterns of the modern world.”

Welcome to this month’s

“The AHA supports the principle all employees should be properly categorised as to the basis of their employment, whether it be full-time, part-time or casual – and paid accordingly.

QUEENSLAND WIDE

Critics argue the case redefines casual employment as intermittent and irregular work, and say it could be detrimental to those who prefer to take a higher rate of pay and forego the perks of permanent work.

The Sign of an Industry Professional you can trust!

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INDUSTRY

07

Airbnb is launching an initiative to help people with special needs The bookings platform, which prides itself on the mantra of being ‘for everyone’, has introduced 27 new accessibility filters to make it easier for people to find homes that fit their needs.

The initiative also allows hosts to better market their home’s accessible features to incoming guests.

Airbnb has always offered the ability to search whether a property is wheelchair accessible, but the company acknowledges its information for those with disabilities was inadequate.

“Guests weren’t getting the information they needed to find the right homes, nor the confidence that the home they

physical, sensory, learning, mental health or other disability.

Accomable was founded in 2015 by friends Srin Madipalli and Martyn Sibley, both avid travellers who found it hard to organise trips as spinal muscular atrophy sufferers and wheelchair users.

selected would actually be accessible for them,” it noted in a blog post.

Now, the company has updated listings to say, for example, whether there is step-free entry to rooms, and if entryways are wide enough to accommodate a wheelchair.

The move follows Airbnb’s acquisition of Accomable, a

London-based a travel startup, which links travellers with disabilities with appropriate listings.

According to Tourism Research Australia, an estimated 20 percent of Australian adults have a disability or long-term health condition and Statistics New Zealand found as many as one in four New Zealanders have a

The start-up’s existing hosts will be offered first listings on Airbnb. It currently lists 1100 properties in 60 countries with details about stepfree access, other accessibility adaptations and with photos to show facilities to would-be visitors.

Over time, the platform will look to create communities for travellers with accessibility needs, and potentially move into areas aligned with Airbnb’s experiences branch – an area of travel in which, Madipalli says, those needing special accessibility have been under served.

Google pursuing '24/7 OTA' model Since its acquisition of ITA Matrix Software eight years ago, Google has been quietly rolling out new tools for travellers.

Its progress has been even more notable over the past months and weeks as it began unveiling tools to help predict flight delays, plan trips, and manage itineraries, among other things. These changes have some wondering whether Google is making a run at total domination in the travel space. If it is, there’s a strong case to be made for its potential to disrupt the travel and hospitality sector with a similar approach to Amazon’s run at retail, and more recently grocery.

Consider how Amazon grew to become the retail gargantuan it is today. Step one: see an opportunity to provide a better service by removing friction points. Step two: incremental growth through adoption and retention of loyal customers.

Step three: data, data, and more data. Step four: harness data into action – innovate, enhance, and repeat.With an already loyal

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representatives on the front line to go above and beyond to make the customer feel special).

band of customers and data stores that rival those of Amazon, Google is perfectly positioned to take a dominant position in the marketplace as it dives into travel.

Its platform has the largely unrivalled ability to see when consumers are searching; it knows when they’re away from home. It even has flight and hotel reservations pouring in through Gmail.

Leveraging its vast data network and app integrations, Google is uniquely poised to give consumers a seamless and tailored travel experience from the moment they decide to take a trip (and really, even before that), to the moment they return (and really, even after that). Google’s disruption to travel could be on the same magnitude as Amazon’s disruption of retail – which has played a

major role in today’s so-called “retail apocalypse”. So, disruption is coming. How can airlines and hospitality companies stay relevant without the massive data stores of a tech giant?

It all comes back to mastering data orchestration to create meaningful experiences for consumers across all channels.

Even smaller data sets can have an outsized impact if leveraged properly across the organisation and in real-time. Travel companies can’t afford to miss crucial decision points and interactions along the customer journey.

This includes instances where they may be able to upsell (offer upgraded seats and rooms), improve service (provide bag tracking or easy access to concierge services) and personalise (empower service

INDUSTRY

The accommodation sector is similarly beginning to embrace AI, enhancing the customer experience with chatbots, AI-based customer service and better understanding of customer behaviours, but advancing along this path will be even more vital with Google in the mix.

But there is one advantage travel companies have over Google – their physical location touch points (check-in desks, POS systems, planes and hotels, etc.).

These face-to-face interactions give them a unique opportunity to make above-and-beyond experiences a reality for their customers. Until Google starts buying up physical airlines and hotels, paralleling what Amazon started doing with its acquisition of Whole Foods, there is still time and room for travel and hospitality companies to get an edge and stay on top of the game. The important thing is to master turbulent data streams now to keep from missing the boat.

ResortNews | November, 2018

He ain’t heavy,

he’s my (elderly) neighbour…

“Nothing is more important than empathy for another human being’s suffering.

Nothing, not career, not wealth, not intelligence, certainly not status. We have to feel for one another if we’re going to survive with dignity.”

– Audrey Hepburn

By Trish Riley, Editor

Few of us are immune from the anxiety that sets in when we contemplate our own ageing.

With families scattered across the country, and in many cases, even the world, it’s natural for our thoughts to turn to how we will achieve the kind of retirement we planned for if we age alone? Who will be there for us when we can no longer physically take care of ourselves?

And for those who don’t have children, these questions take on a particular significance. I had mixed feelings after watching Still Alice, an Oscar-winning depiction

November, 2018 | ResortNews

of early-onset dementia. It made for grim viewing. But it was easy to imagine the ways it could have been even grimmer: what if the protagonist, Alice, had no children, a partner long departed or divorced, or friends who had drifted away?

It’s been estimated that by 2030, there will be more than a million adults aged 65 to 74 without children, almost double the number in 2012.

Increasing life expectancy is one of the great markers of human progress. But the flipside of our stretched lifespans is that we are more likely to experience longer periods of significant physical and mental decline at the end of our lives. And there’s a strong, unwritten assumption about how we as a society accommodate this shift.

The system relies heavily on the informal caring done by family

members or ‘others’ but there are signs of a growing disjunction between what we implicitly assume families will do, and what actually happens. And then there are those without family.

So, what has this all got to do with hospitality accommodation, you ask yourself?

Well the number of older people living in apartments, resorts and strata-based communities is increasing, and if there is no family to monitor the day-to day well-being of residents then by default the role first falls to the onsite manager or neighbours within the complex.

Experts on geriatrics call them ‘elder orphans’ – baby boomers without adult children, spouse, relatives or other support groups to rely on for assistance, company and help during senior years.

And as more baby boomers continue to enter their ‘golden years’ and retirement, an increasing number of these individuals are living alone and ‘aging in place’.

INDUSTRY

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Contractually, there is no requirement for the resident manager to get involved at all, but technically, they are the only person on the property with a fiduciary duty of care for the health and safety of all occupants meaning that there is an obligation to avoid acts or omissions, which could be reasonably foreseen to injure of harm other people. It also means that they must anticipate risks for their clients and take care to prevent them coming to harm.

And even if there is family around, due to sheer proximity, the onsite manager is the obvious first port of call in an emergency.

Happily, every single person I spoke to regarding this report responded in the same way: you assist and take care of the vulnerable, not because there is a law or contract in place, but because it’s the right thing to do.

Doug Kennedy, president of the Kennedy Training Network, Inc and author of HospitalityNet sums it up: “Hospitality means caring about, as well as caring for others.

Essentially, when we only care for guests and not about them, we act like a human service delivery machine, and quite frankly, if that’s all we do in this industry, most of jobs will be able to be replaced by automation, robotics, self-service kiosks and various forms of artificial intelligence.

“When we really care about guests and/or residents... we remember that they are our fellow human beings.”

Lee Baitong, manager of Limetree Waters West on the Gold Coast agrees: “Management rights is not just a job or a business, it’s a commitment to the community we live and work in.”

Despite only being in the role for six months, Lee said: “We have one particular resident that we check on regularly. We’ve even started taking her the occasional meal. It’s not a burden, it comes with the territory.”

Rick Whitlock, manager of Main Beach Tower agrees: “One’s involvement obviously depends on the situation of the person.

I’ve had several very elderly residents live in the property during my term – both owners and tenants – and some have needed more ‘help’ than others.

“What often happens is you get self-funded, retiring couples with disposable money that buy into a building or resort for the lifestyle. Retirees experience numerous changes, sometimes

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in rapid succession: incomes fall from pre-retirement levels, children leave home, health costs escalate while general health declines and activity limitations emerge, a spouse requires institutionalisation or dies and after a while the accommodation that was ideal is not as suitable as it was, and they end up stuck.

“Pensions, although usually low, are especially low for many widowed women. However, this does not prevent them from seeking self-sufficiency. It is something that they achieve through a thorough control of spending, which often entails austerity in the consumption of even basic goods and services.”

At the same time, there is a general resistance to moving into an aged-care home unless all other options have been tried or assessed. A survey of retired persons found that 87 percent of individuals 65 years and older want to remain in their present home and community as they age.

“As a resident manager, one has to view it as all care and no responsibility; it’s simply part of the role,” adds Rick. He is quick to point out however, that even

while the manager may be the “first on the scene”, one must make sure that if there is family, that they are kept involved and that you have current emergency contact details for all residents.

Many people prefer to stay in their home and maintain their independence as they age.

They have a strong emotional attachment to their homes, even when living conditions aren't the best. They regard moving house as an unnecessary personal sacrifice that would also, isolate them from their social environment, where they can socialise with family, neighbours and friends.

Not surprisingly, research has shown that this makes sense from a financial standpoint as well since it is often cheaper to live and receive care in one’s own home as needed rather than move into some form of long-term health care.

If you've spent the majority of your adult life living independently, why uproot your life to live in an unfamiliar place with unfamiliar faces? Independence, whether you're a senior or not, is an important part of living with a high quality of life.

The survey also reports the manner in which the participants explain what their lives would be like if they chose to live with their families. They understand that if they shared the household with relatives, they'd be a burden for them, which is something they want to avoid at all costs. They also reject this so as not to meddle in their private lives, or disturb their privacy. And they fear that daily cohabitation would eventually and inevitably generate discomfort, arguments and conflicts.

That said, humans are a social species. Even the most introverted of us need some human interaction. We're social creatures out of necessity, and not just for our emotional and psychological wellbeing, but for our physical wellbeing. If you've ever had a long-term partner, you understand how important it is to have another person in your life that is intrinsically interested in your wellbeing, and vice versa. When you're concerned about another's happiness and health, you're also more likely to take care of yourself.

Social isolation doesn't just affect your mental health, it increases

It’s been estimated that by 2030, there will be more than a million adults aged 65 to 74 without children, almost double the number in 2012

INDUSTRY

ResortNews | November, 2018

your risk of heart disease, infectious illness, cognitive deterioration and high blood pressure. The long and short of it is this: Living alone affects you in physical ways that you may not correlate to your situation.

It's important to note that the study makes a distinction between social isolation and loneliness, though loneliness is a serious symptom of social isolation. You can still suffer from the mental and physical health risks of social isolation even if you don't feel lonely. If you're not actively interacting with family, friends and people in general, if you don't feel like an active part of a community of people, then you're socially isolated.

Connection on the other hand is the social lubricant that magically converts strangers into potentially good neighbours, and by definition a neighbour is someone who lives close to you, but ‘close’ is a relative term. In management rights, the neighbour could be anyone in the building or complex.

“Being a good neighbour plays an important role in community living and our lives,” says Peter Nguyen, manager of Bayview Shores on the Gold Coast. “We are extremely fortunate to be managing a property where everyone looks out for each other.

“It’s normal practice to help those needing it, and more particularly our elderly residents.

If we see them in the parking lot with groceries, we ask them if they need help carrying them inside the building or hold any doors open. If we haven’t seen them around for some time, we knock on their door and see if they're doing okay.”

If you have an elderly neighbour, you too can play a key role in making their lives a little easier, just by making yourself available and looking out for them. In doing this, you could be providing some valuable help where it is needed and you might also make a new friend.

Ask If your neighbour is elderly, there may be relatively simple tasks that they are no longer able to do on their own. Don't be shy.

Approach them and ask if there's anything they need help with.

Many older people are fit, healthy and independent, so don’t be patronising, but mention that you are available to help out should they need it. Jobs like changing a light bulb, taking out the November, 2018 | ResortNews

garbage or some basic DIY may be things that you can help with.

Offer to run errands if you're able When you are next going shopping or into town, mention it to your neighbour and ask if there's anything they'd like you to fetch while you're there. If you know they find it difficult to leave the house, you might offer to run a few errands for them. Having someone to help with the weekly grocery run may be highly appreciated.

Provide some company Notice whether or not your neighbour has any regular visitors. If their family lives far away and they don't leave the house much, they may appreciate someone popping round once every so often for some company.

You might offer to cook them dinner once a week, or simply pop in for a cup of tea.

Read the signs If you have not seen your neighbour for a while, pay particular attention to some simple signs. Do the lights come on at night? Do the curtains get drawn. If you have any reason to suspect that your neighbour might need help, knock on the door to check that they are all right.

Follow up if you are concerned If you are seriously concerned for your neighbour's well-being, or suspect that they may not be able to look after themselves, ask them if they are all right.

If you suspect that they need help but they are unresponsive to your offers, then seek advice from your local council.

The circumstances may vary, but the fundamentals are common.

Community living is not so much about setting up the sorts of transactional relationships more associated with professional care; they explicitly seek to build mutually-beneficial relationships that create bonds of love, care and commitment.

They offer a glimpse of what a kinder society might look like; a kernel of transformative potential. And this takes us to the fundamental truth that all questions about ageing eventually point towards: if we want to create a better world in which to grow old, it’s down to us…

INDUSTRY

11

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leading the way in tourism growth With much of our attention focused on law reforms, day-to-day operations and protecting ones’ business financially, it is important to stop every now and again and pay attention to the good news stories that are out there; and it seems for now that Queensland is grabbing the lion’s share.

In the last couple of months media reports have revealed that Queensland continues to excel in the tourism arena, welcoming a record number of international visitors - nearly three million tourists spending $5.5 billion, and breaking records in the domestic tourism market. The report shows that our share of the domestic visitor market has grown to more than 25 percent, with 22.5 million

Much of this was driven by the holiday market with interstate travellers continuing to spend big when they travel, and while they make up less than a third of the state’s domestic visitors they spent more than $7.5 billion, which is equivalent to almost half of the total expenditure in Queensland 46.6 percent.

Trevor Rawnsley, CEO, ARAMA

domestic overnight visitors injecting $16.2 billion into the state’s economy over the past year.

Better still, the data shows that Australians spent more money in Queensland over the last 12 months than ever before with visitor expenditure surpassing the national average and contributing significantly to Australia’s strong growth in domestic tourism.

It is gratifying to note that Queensland remains a favourite destination for Australians, and while Brisbane and the Gold Coast have had the benefit of the Commonwealth Games, many of the regional areas also performed well, with expenditure in the Fraser Coast, the Outback, as well as tropical North Queensland and the Southern Great Barrier Reef growing strongly.

The new “Find Your Perfect Next…” tourism campaign recorded impressive early success with data revealing the campaign has reached more than 12.7 million Australians since April and Nielsen research conducted in Sydney and Melbourne after the launch, showed nearly 75 percent of respondents intended to visit Queensland in the next 12 months.

While we intrinsically know of the importance of this, tourism has solidified its position as a pillar of Queensland’s economy now employing almost 220,000 people and generating more than $25 billion for the state. This goes to show that the strategy to

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

grow Queensland’s billion-dollar tourism industry is working: what a motivator to get your management rights operation in shape. Take advantage of the investment being made and when marketing, remember it’s not enough to just attract visitors to your region and property, you need to be thinking about targeting the kind of visitors that will contribute to your growth.

Of import, is the extra $180 million committed by the Palaszczuk government in the 2018 State Budget for events and tourism infrastructure to lure more visitors to Queensland. This has been allocated as follows: •

$36 million for the growing tourism infrastructure fund to deliver new attractions

•

$48 million for the attracting tourism fund to lure more direct flights and cruise ships

•

$10 million for outback tourism infrastructure

•

$36 million for major events

•

$50 million to rejuvenate Great Barrier Reef island resorts

These figures really hammer home the importance of tourism to Queensland and the role this industry plays as a driving force of the economy. We, in the management rights sector need to tap into the momentum being created to ensure we remain ahead of the curve in decades to come.

QLD - NSW - VIC - WA

For membership enquiries: www.arama.com.au

national@arama.com.au (07) 3257 3927

14

INDUSTRY

ResortNews | November, 2018

drop dead

It is critical that you exercise any option in your caretaking and letting agreements strictly in accordance with the terms of the agreements.

In recent years I have seen a husband and wife, in the later stages of their working life, walk away from what was a good business with next to nothing as a consequence of missing the first option exercise date by two days.

It was distressing!

The courts have held, on numerous occasions, that option exercise dates are ‘drop dead dates’. In other words, if you miss the exercise period even by a single day, you lose your right to extend the agreements. If you have more than one option and miss the exercise date under the first option, the agreements come to an end at the conclusion of the then current term and all subsequent options are lost.

Types of options There are three types of options that we regularly see in agreements: 1.

2.

Open options: Where you must exercise the option by written notice to the owners corporation at least three months prior to expiry of the current term. If you have an open option, it is a good idea to exercise the option now, rather than risk forgetting later; Window options: Where you must exercise the option by written notice to the owners

Col Myers, Small Myers Hughes

corporation not more than six months and not less than three months prior to expiry of the current term. Window options are a bit trickier and you must have a fail-safe reminder system to ensure you exercise the option within the window allowed under your agreements; 3.

Automatic options: The agreements are automatically extended for the option period, unless you advise the owners corporation in writing of your intention not to extend the agreements. These are foolproof!

Bullet-proofing yourself When deciding how to remind yourself of your ‘drop dead dates’, always have a backup plan. You may not be sitting in the office at your computer when the date comes up, due to holidays, sickness or other commitments.

Also ensure your reminders come up well beforehand so you have plenty of time to exercise your option.

Whichever type of option you have in your agreements, it is important that you comply strictly with the wording contained in the agreement in relation to the form of notice and its delivery. Your solicitor can assist you to exercise the option validly if you are in any doubt of what is required. It is also advisable to document the extension of the term of your agreements by way of a Deed of Extension, so down the track there cannot be any dispute that it was validly exercised. This is particularly important when the time comes to sell your management rights business.

Check your agreements now!

Take a moment now to look at your agreements and check what kind of options you have and when the last date is for exercising the option. Then put in place a system to ensure you do not miss this ‘drop dead’ date.

Liability limited by a scheme approved under Professional Standards Legislation.

Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

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November, 2018 | ResortNews

INDUSTRY

15

Not in my back yard “What is the situation with Airbnb?” is a question my office is increasingly asked, and a question I get asked often at seminars and other events.

The question is probably better expressed as, “Where does a lot owner or a body corporate stand in relation to short-term letting under the legislation?”

For the purposes of this article, I will refer to ’Airbnb‘ when I talk about short-term letting.

Of course, there are many different short-term letting platforms apart from Airbnb.

It is probably worth reminding ourselves and anyone who is not familiar with it, what Airbnb is and how it operates. In a nutshell, Airbnb is a platform where people can provide part or all of their home to be available for letting for whatever period of time they choose.

People who want to stay in an Airbnb property create a profile and then they and the provider liaise directly to finalise the arrangements.

How Airbnb is treated in other jurisdictions has been in the news quite often of late. For example, in Berlin, owners who rent out more than half of their properties without city council permission face fines of up to $100,000, while in New York City, fines apply to landlords letting out their properties for less than 30 days. Recently, in New South Wales, new laws were announced that will give bodies corporate the ability to pass a by-law prohibiting short-term letting in certain circumstances.

In Macleay Tower & Villas [2017] QBCCMCmr 12 (17 January 2017), the adjudicator considered a dispute brought by a lot owner against the body corporate in relation to a by-law that stated that the owner would “be responsible for ensuring that any residential tenancy shall be permitted only for a minimum of three months”.

Chris Irons, Commissioner, Body Corporate & Community Management

zoning requirements and tax implications. My office cannot provide information about these issues and advice should be sought from the relevant government agency, or independent legal advice obtained.

Generally, concerns and disputes about Airbnb are by-law issues and the relevant section of the Body Corporate and Community Management Act 1997 (the Act) is section 180(3), which provides that:

The committee argued that short-term tenancy is not a ‘residential use’ in relation to section 180(3) of the Act because, among other things, “the defined meaning of ‘residential’ implies living in a place over a period of time, a sense of permanency and a sense of belonging to a community.

Short-term tenancies do not have these characteristics”.

Other owners made submissions along similar lines.

“If a lot may lawfully be used for residential purposes, the by-laws cannot restrict the type of residential use.”

The adjudicator found that they had “no reason to depart from a number of other previous decisions in which by-laws prohibiting short-term letting have been found to contravene section 180(3) of the Act.

This section has been consistently interpreted in adjudicators’ orders as making clear that the body corporate is not empowered to prohibit shortterm letting, such as Airbnb, through a prohibitive by-law.

Remember, by-laws are meant to regulate, rather than prohibit.

The short-term occupation of a residential unit for holiday purposes would still be a type of residential use for the purposes of section 180(3) regardless of the separate question of whether short-term letting is allowable according to the building classification.”

While these are interesting developments, my focus is on the situation in Queensland only as it stands and only in relation to the body corporate context. For any lot owner who is thinking about or engaged in offering their lot on Airbnb, there are several other considerations including planning and

16

In another adjudication, Lynkim Lodge [2016] QBCCMCmr 419 (14 September 2016), where a similar dispute was brought by an owner against the body corporate, the adjudicator stated that, “It would be contrary to the Act for the Body Corporate for Lynkim Lodge to record a by-law that prevented owners from leasing their lot for less than three months, regardless of whether the rental was arranged directly or via a traditional property manager or via a rental service such as Airbnb”.

Given that these cases appear to make the situation with Airbnb clear, a body corporate or a lot owner with concerns about Airbnb in their scheme needs to turn their mind to what practical steps they can take.

I would suggest that if a body corporate or owner has concerns, they should try to narrow their focus to what precisely is their issue? Is it noise? Nuisance? Parking?

Security? It is important to narrow the focus this way because, as we have seen, simply disliking Airbnb on principle will not achieve much.

Once the focus has been narrowed, devote attention to that. If, for example, the concern is about the noise Airbnb residents are making, the body corporate could consider addressing those concerns with the owner who is letting out their lot, making them aware of the noise issues, and also making them aware of any by-laws about noise that are applicable.

Sometimes, a reminder about by-laws may have a positive impact on reducing noise concerns. This may also be a prompt for the body corporate to consider reviewing its bylaws to ensure they remain relevant and responsive to such cases of short-term letting.

All adjudicators’ orders, including the ones cited in this article, can be found at www.austlii.edu.au.

INDUSTRY

ResortNews | November, 2018

We need to talk about cladding Queensland’s new cladding regulations came into effect on October 1st, meaning that the countdown to the first compliance deadline has well and truly begun.

Designed to increase the safety of strata residents by imposing a mandatory auditing process, it’s fair to say that no one is quibbling with the amendment’s aim. However, the laws governing the cladding issue aren’t federal, meaning that each state is able to pursue their own version of best practice, leading to some inevitable grass-is-greener style observations. Victoria is offering low-interest loans and New South Wales has a requirement for complete cladding replacement, but Queensland has gone a different route again. Only time will tell which method is the fairest and most effective, but I thought I’d spend this month outlining some of the differences and focussing on some positives of the Queensland government’s regulation.

First off the rank was Victoria.

Their cladding rectification agreements have drawn praise from many as a practical method of ensuring the safety of strata residents. Regardless of fault and who will eventually bear the cost, there are low-interest loans guaranteed by the council to be re-paid by unit owners via their council rates. This method will allow dangerous cladding to be removed in a reasonable timeframe and without excessive initial outlays from the body corporate. It offers a viable alternative to private sector loans being made available and is an effective solution that benefits many.

New South Wales, on the other hand, has placed the onus squarely on the building owners to audit their own properties and, as of last month, they are November, 2018 | ResortNews

intend to use to fight for the strata community’s interests.

Simon Barnard, President, SCA, Qld

required to register any cladding found on their building with the government. The authorities will then use the database to assist the emergency services and look to issue rectification orders.

However, the building owners may still be held responsible for any banned composite materials that are permitted to remain regardless of whether they have received a rectification notice.

Bodies corporate that don’t comply face a maximum fine of $1.1 million with an additional $110,000 per day that dangerous cladding remains present. For individuals, the penalties stand at $220,000 or potentially two years in jail. These are heavy punishments considering owners had nothing to do with the construction of the building.

The regulation itself is also full of positives for Queensland strata residents and owners. By mandating schemes to remove all non-conforming cladding the fire danger may be mitigated, but in some cases, this would make the cost astronomical and be entirely unnecessary. Hence why I was pleased to see that the Queensland amendment allowed for a rectification process in consultation with the appropriate experts. Instead of a large body corporate being forced to pay several million dollars to have all their flammable cladding removed, a fire-engineer overseeing the rectification process may complete the job for a fraction of the cost. Not

In Queensland, the regulation has been in the pipeline for over twelve months, resulting in a reporting and assessment requirement that leaves strata owners with peace of mind about their building’s exterior.

I’m pleased to say that SCA (Qld) has been involved since the first QBCC non-conforming building products summit in July last year.

I won’t say that the regulation is perfect, and it may not address the issue of who eventually foots the bill for the rectifications, but it does reduce the risk of future catastrophic and life-threatening building fires without tarring all schemes with the same brush.

For this reason, I’m applauding the housing department’s efforts and look forward to working alongside them as we slowly phase out the issue of cladding in strata communities.

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Our advice has led to a number of alterations to the original draft regulation and to the planned process, including doubling the stage 1 compliance time-frame from three months to six.

The government’s continued consultation demonstrates an increased level of respect for our reputation and one that we

only may this risk mitigation lower the dangers posed by any flammable cladding, but by adding extra fire monitoring equipment, the scheme may also be made safer from noncladding related emergencies.

1300 55 77 54 ▪ sales@timeoutinternet.com www.timeoutinternet.com INDUSTRY

17

And still they have not learnt!

In contemplating the topic for my regular Resort News article, at the forefront of my mind was a podcast in which I took part a few days ago that focussed on dealing with disputes between resident managers and bodies corporate.

Fresh from my firm’s two recent victories for managers in QCAT I was reminded of an article I wrote some four years ago about the futility and waste of owners’ money of the ill-considered actions of bodies corporate in taking on battles against managers that they cannot win.

While it remains a source of amazement, perhaps the bodies corporate can be excused for knowing no better but the advice and actions of their lawyers can hardly be excused.

Perhaps our policy of not acting for a body corporate in a dispute with a manager means that we have a much better understanding than other firms of how to protect managers in such disputes. Cynics might also suggest that lawyers acting for bodies corporate have an interest in prolonging disputes rather than trying to arrive at an early resolution. Regrettably my personal observations in recent times tell me that the cynics are right.

Our policy of not acting for a body corporate in a dispute with a manager is supported by our policy of engaging in litigation with a body corporate only as a last resort and only where all other avenues have failed leaving no other alternative. If bodies corporate and their lawyers

18

dispute arising.” Of course, the final amount of legal fees the body corporate spent was several hundreds of thousands of dollars.

As I commented in the podcast I expect there would be few, if any, bodies corporate that would not regret taking legal action to terminate a caretaking agreement.

John Mahoney, Mahoneys

adopted the same approach they would save their owners significant money and also save the reputation of their building.

Our recent victory after a 10-day trial in QCAT against a body corporate controlled by a dictatorial chairperson determined to destroy our client’s business reinforces all that we have been saying for years about avoiding litigation and instead finding a way to resolve differences through consultation and mediation.

The QCAT member in that case began his decision with the following: ”In his notes for a law lecture dated 1 July 1850, Abraham Lincoln wrote: Discourage litigation. Persuade your neighbours to compromise whenever you can. Point out to them how the nominal winner is often a real loser - in fees, expenses, and waste of time.”

After then noting the legal fees the parties had incurred including approximately $130,000 which the body corporate had spent initially, solely on obtaining legal advice about terminating the caretaking agreement, commented that: “The effect of this decision, in short, is to leave the parties in the same contractual position as they were in prior to this

There are many ways of resolving rather than escalating disputes.

We regularly recommend and utilise the services of an experienced third-party mediator or facilitator to resolve differences. Such a person may be able to demonstrate to the manager where the manager is not performing the duties to the requisite standard or may be able to demonstrate to the committee that its expectations are too high.

Such an approach might also lead to a genuinely poor manager improving or agreeing to move on or to the body corporate accepting that the manager is complying with the specified duties.

So, the first lesson for bodies corporate is to settle their differences by conciliation rather than confrontation.

Regrettably many committees – and seemingly many lawyers - still prefer to just issue a remedial action notice in the false expectation that they will somehow be able to terminate the management rights agreement. More often than not these notices, even those drafted by lawyers with supposed expertise, do not comply with the strict requirements of the legislation. We have succeeded on numerous occasions to have such notices ruled invalid.

Of course, even if a remedial

MANAGEMENT

action notice is validly issued and the manager fails to comply, contrary to what many committee members seem to believe or be advised, that does not lead to a termination. There still needs to be a resolution to terminate passed at a general meeting.

The manager will no doubt do all that can be done to prevent that and it is rare that such a motion is passed and even if it is there can be no termination for two reasons.

Firstly, most managers would seek an injunction restraining the body corporate from terminating the agreements on the basis that the remedial action notices were invalid or had been complied with.

Secondly, where (as in almost all cases) a bank has a charge over the management rights, the body corporate must notify the bank of the proposed termination and give the bank the opportunity (which it invariably takes) to step in and take over the business. If the bank does so it then sells the business to a new manager.

So, the best the body corporate can hope for – after spending many tens or even hundreds of thousands of dollars – is to replace one manager with another, an outcome which, where the real problem was the manager’s poor performance, could have been achieved without spending anything like that.

When I wrote my first article about this topic those four years ago I had a genuine expectation that bodies corporate and their lawyers would learn from their and others’ past mistakes. It seems not. I wonder how many defeats they have to suffer before they will learn.

ResortNews | November, 2018

Selling your business: the tax concessions Today I will be discussing what most of you will be wondering when contemplating selling your small business.

Will I have to pay Capital Gains Tax? Well, this depends on how you paid for the business and how much you end up selling the business for. The potential Capital Gain (or loss if you're unlucky) will also be reduced (or increased with a loss) by your associated purchase and sale costs eg. stamp duty, sales agents commission, legal fees and accounting fees. If after taking these calculations into account you have made a capital gain then capital gains tax may apply.

On selling a business, small and medium sized business owners may be able to access one or more of six tax breaks to reduce or eliminate the taxable capital gain that otherwise arises.

Outlined below is a summary of the concessions and some of the important conditions that must be met to access them.

Pre or post CGT business?

The first question to consider is whether the business commenced before 20 September 1985. If it did and essentially the same business has been carried on since inception, there is no capital gain on the sale of business goodwill.

Jonathan Hanaghan, Director, JGA Jonathan Grant Accountants

have held the relevant assets for more than 12 months.

Although a company selling its business cannot access this 50 percent discount, an individual shareholder selling shares in the company may be able to.

Regardless of whether or not the above concessions apply, the remaining capital gain might be further decreased by the CGT Small Business Concessions.

November, 2018 | ResortNews

capital gain. This means that if the general 50 percent discount also applies, the taxable capital gain can be reduced to 25 percent.

•

The CGT Small Business Concessions (SBC) To qualify for the “SBC” the small business owner/s must have turnover of less than $2 million or have a net worth of less than $6 million. The asset sold must also be an active asset as opposed to a passive asset eg. goodwill.

The four CGT small business concessions are: •

The general 50 percent CGT discount Whilst not available to companies, a general 50 percent CGT discount is effectively available to all other business (and non-business) owners who

On selling a business, small and medium sized business owners may be able to access one or more of six tax breaks

•

15 Year exemption – a full CGT exemption on the disposal of a business held for 15 years. If this concession is not applied one or all of the remaining three CGT concessions can be applied.

50 Percent active asset discount – a further 50 percent discount on any

•

Retirement concession – to the extent any capital gain remains (say, 50 percent or 25 percent, as noted above), it is not subject to tax if it is paid into a superannuation fund, as a non-concessional contribution. This payment does not attract the 15 percent superannuation fund “contributions tax” but has a lifetime limit of $500,000. If the recipient of the remaining capital gain is over 55 at the time his/her tax return needs to be lodged, there is no requirement to cash flow any amount into superannuation to get this exemption. Though strict timing conditions apply, and care must be applied.

Replacement Asset Rollover – Finally, where the remaining capital gain (say, 50 percent or 25 percent, as noted above) is reinvested in a replacement active business asset/s, tax on the remaining capital gain

MANAGEMENT

can be deferred until the replacement active asset/s are sold. Beware though, as with the retirement concession strict timing conditions apply.

Summary The interaction of the small business CGT concessions, other than the 15-year exemption, means that a small business owner could make a capital gain of $2,000,000 on the sale of the business and pay no tax in the year the gain is made.

This is achieved by claiming the 50 percent general discount, the 50 percent active asset discount and the retirement exemption of $500,000. It may also be possible to access additional rollover deferrals.

Whilst these concessions offer generous access to opportunities to eliminate capital gains on the sale of small and medium sized business, correct structuring, especially on establishment, remains critical.

Business owners should always consult with their professional accountant prior to signing any purchase contract as getting it wrong initially can be infinitely more expensive than your initial consultation.

19

A friend in need…

Irony. noun. the expression of one's meaning by using language that normally signifies the opposite, typically for humorous or emphatic effect.

I’ve got this mate, well, more a long-term acquaintance really. Known her since I was in my teens. Purely platonic relationship over the past 40 years and we still catch up regularly to this day. She was pretty popular back in the day and had most of the local boys tied in knots. Even after 40 years she’s still a very attractive lady, super intelligent and very professional, at least to the casual observer.

She’s had an interesting life and recently called me to see if we could sort some finance for her. She’s looking to grow her current business and potentially acquire other complementary businesses.

So, we caught up for a chat.

I explained that in order to present her case in the best possible light we would need to document her history and her business acumen. She gave an embarrassed look that suggested some skeletons in the cupboard. I reassured her that one of the benefits of using a broker is being able to put everything on the table and decide how best to present the facts in the most positive light.

Turns out she had been in various businesses for many years and had done pretty well.

Unfortunately, while she had made some serious money, her business practices had not always met the highest standards of professional conduct. I explained that character is a really important thing for lenders and we really needed to explore her history and ensure that any transgressions could be explained and hopefully justified.

She started by confessing to me that she’d fallen foul of a government regulator in the 80s. She’d been involved in a currency hedging scheme aimed

20

Mike Phipps, Director, Mike Phipps Finance

at farmers and it hadn’t gone well. She been sued and had to pay compensation. Ok, not the end of the world, that was years ago and she had made good.

Then, in 2008, she got into a bit of strife with some of her creditors and had to seek assistance from wealthy friends who guaranteed her obligations. She didn’t default thank goodness, but it was a close call.

So, no recent dramas? Well... there are a couple of things she tells me. Years ago, she diversified into a number of complementary businesses in order to open up cross sell opportunities across her client base. Employed a whole heap of sales people and put them on pretty juicy commissions.

Made the commissions extra juicy if these sales people sold products she had an interest in.

The sales people were promoted as independent, but they really weren’t. All was going fine until some pesky regulator noticed that not all the products being sold really benefited the buyer.

The regulator took a closer look and discovered something interesting. Some of the clients were bereft of life which, according to the regulator, made the products less than suitable for the late purchaser.

She tells me she is under investigation for a raft of indiscretions and is facing hefty penalties and possible punitive punishments She had no sooner got through that debacle than she purchased another business to bolt on to her existing interests. She did a deal to pay some now and some later once she had time to work in the new business and be sure it was performing. The deal meant that she didn’t pay for any part of the business that was not performing. She then confessed, with some pride, that she deliberately made things difficult for some clients, so they would not be able to meet their obligations and she would pay less for the business. Years later the whole sorry mess came to public attention and while nothing was proved it left a bad taste among many consumers.

So far, not great, but ok. Nothing we can’t explain and, let’s face it, it happened years ago.

I suggested to my friend that this business practice was a seriously bad reflection on her character and I couldn’t readily see an explanation that might satisfy a lender.

However, all was not lost... or so I thought.

If we could convince a lender that these matters were aberrations and my friend was in fact an entrepreneurial genius, there might still be a chance.

My friend then confessed that she had a really hard time sticking with business strategies. She described a chaotic business career in which she would constantly change direction and didn’t seem to be able to stick to one plan for more than a few years. Sadly, the by-

MANAGEMENT

product was a trail of destruction in terms of her customers and staff, many of whom had left on bitter terms after not being able to cope with the continual changes in direction. A bit of digging soon revealed that her companies did not enjoy strong staff engagement with high levels of stress and resultant low efficiency. A number of valuable staff and clients had departed as a result. Obviously, a lender would need to be convinced that my friend could retain key staff and implement strategies that could be of benefit to the business over the medium term.

She acknowledged her weakness in this area and I suggested that the formal support of a business coach might add strength to her application.

Then the proverbial straw and broken camel moment. She tells me she is under investigation for a raft of indiscretions and is facing hefty penalties and possible punitive punishments.

She tells me she’s been accused of price fixing, collusion and other unsavoury business practices. She and her staff have been grilled by barristers and by all accounts the proverbial has hit the spinning blades.

She’ll be lucky if her businesses survive, and even if they do they’ll need to change and radically.

I tell her I can’t help her; the banks will not touch her with a barge pole. Her history of questionable practices, poor client and staff engagement and an apparent inability to implement reliable change strategies and long-term consistent business plans is just too hard to mitigate. She loses her cool and, with some passion, tells me anyone can make money in her game, it’s a licence to print the stuff. She grabs my notes, shakes them at me and says something really interesting.

“I’ve spent my whole adult life modelling my businesses on the Australian financial services industry, and you tell me they don’t want to know me! Surely not.”

I had no reply.

ResortNews | November, 2018

Question: What is the best location for a motel? Inland, coastal, north, south?

Answer: All of the above.

Question: What is the best position for a motel?

Highway, CBD, suburbs, beachfront, riverfront?

Answer: All of the above.

The right location depends on numerous variables and on each individual property and business. Of course, there is no “best” location for a motel. All the things that go into making that business or property what it is, such as location, presentation, the operator, the standard of beds, the local economy, the services provided, marketing, etc, etc, all play a role.

, n o i t a Loc , n o i t a loc location November, 2018 | ResortNews

There may be locations where the economy is performing stronger than others at one time or another. Certain positions within a locality may also be performing better for specific reasons. I have been asked the question many times in the past, as to where the best place is to buy a motel. There is no one answer to this question. I guess timing also plays a part here, as mentioned, with fluctuating local economies and how they are performing. An excellent example of this is Mackay. It performed extremely well until the resources sector had a downturn.

Now the local economy there is improving significantly and many experienced motel investors are now taking their opportunity to buy back into Mackay.

I often have enquiries from people wanting to buy their first motel and invariably they want to limit their search to one town or location. This is fine when buying a house as the decision is largely based on where they need to live for employment, family or retirement purposes. When buying a business however, limiting one’s search to where they want to live disadvantages them considerably. It is the best way to buy an unsuitable business as it is based on the wrong reasons.

One should always be looking for the best business that suits their requirements. Therefore, if return is the driving force so be it. If the type of business is, great.

But limiting a search for a motel MANAGEMENT

Andrew Morgan, Motel Broker, Qld Tourism & Hospitality Brokers

for example to one area, means the best business opportunity for them may end up being written off as an opportunity lost.

Obviously, this does not mean going and buying a business that is, location wise, completely unsuitable for family reasons or another. It simply means don’t limit one’s self. Keep the options and possibilities open.

Explore different areas of the state that may not have been considered suitable. A lot of the time people end up finding that the perfect motel for them was not what or where they had considered going at all when they first started out looking.

A common objection we hear a lot is that someone years ago in their infinite wisdom told them that “any town” was not a good motel town or that they should steer clear of a particular town for some “wonderfully incorrect” reason. I say, have a look at all the details and facts about the locality and the business, then make your own mind up.

As a young man in a hurry 20 years ago, I was told by a very experienced and successful man I worked for and respected greatly, that when making decisions in business and life I should “listen to the advice given to you by your trusted people (accountant, solicitor, financier, parents, etc). Take that advice on board, go with it, go against it, but be your own man and make your own decisions”.

That advice has stayed me, and I have continued to use that advice, and I suspect even used it subconsciously each day since.

This is relevant in that only the person making the decision to buy the business is the one who can truly make the right decision for their own reasons, and in their best interests.

21

e n o h p t r a Your sm ! u o y l l i k can Let me tell you a frightening tale that highlights the integration of the internet and our communications system, and the now ubiquitous smartphone and how they can become a lethal combination.

A close personal friend has a number of huge health issues. He has limited mobility but still enjoys walking his dog several times a day.

His concern has always been how to call for assistance should an emergency arise whilst away from his home phone.

He was delighted to discover that the new-fangled technology called smartphones solved his problem.

He discovered that they all have the ability to dial an emergency number even if the phone is locked, and that was just what he needed. So naturally he went and bought one. He did not advertise his number. That way he could be confident that he only had to push two buttons to get help should the need ever arise, and not be tied up with aunty Maud who loved to prattle endlessly.

All was well for several years and he was diligent enough to ensure that his phone was always upto-date with the latest software.

He always followed my advice to check all the settings and important features of his phone after every software update.

Then came the morning when he realised that he had to selfadminister an opioid to control one of his health issues and did that.

This was an infrequent prescribed requirement but one that usually did not create any problems for him. This time however, he decided that his condition was deteriorating to a degree where an ambulance was needed. So he picked up his phone and tapped the emergency call button but

22

Arvo Elias, Cybercons

instead of finding triple zero to dial the screen was blank.

His next option was to enter his PIN to access the phone. The stress of the situation however, and his condition had his hands shaking so much that he could not enter the code. As we all know, get your access code wrong and these devices start to lock you out for ever increasing time periods.

To him, that left him with two options: do nothing and probably not survive or take more of the opioid in the hope that it would steady his hands long enough to access the phone and call for help.

He chose the second option at a fair risk of possibly being overcome by the drug and suffering the worst fate.

He succeeded, dialled his wife because by this stage he could not speak and 000 would be of no help.

His wife realised that something was wrong, called the ambulance and after a week in intensive care he is back home almost as good as new.

But this is where the story really starts. His mistake was not to have checked the emergency call feature on his phone after a software update. Somehow that data had been lost in the process.

But there is far more dangerous and unrealised issue.

If one dials 000 from a land line the operator has access to the

address the call is being made from. Not so with mobiles. When I heard that story I checked with our communications minister.

His website proudly displays the statistics for mobile phone usage; you guessed it, It's around 70 percent. But where my corner store and most customer base businesses know my location when I make contact, the most critical service does not have GPS tracking facilities. The government can spend millions on advertising and circulars telling you very little but they don’t have enough money to facilitate this feature.

developed by Laurent Pellegrino and has all the possible features you could ask for and yes, it does work straight from the lock screen.

To make matters worse, they recommend that you install a particular app that sets out individual calling facilities for all our emergency services. It even detects your geo-location, but guess what? There is no way the user can transmit that location information except by reading out aloud twelve digits representing the map co-ordinates. And that presupposes that the caller is able to speak, never mind whether he or she can see the miniscule numbers on the screen in the first place.

The app includes several features:

I wonder how many people who are under extreme duress would be able to do all that without any errors. I will wager and say none, zilch nada! Make one tiny error with that string of numbers and the ambulance or police will finish up kilometres away from the true location.

I confess I was aghast, and even more so when discussing this with a number of doctors who all expressed being unaware and disbelief that my tale was possible in this day and age. My self-imposed task was then to do a search for a solution and without too much difficulty a superb answer came to light.

It is an app suitable for both iOS and Android and called "Medical ID : ICE". This software has been

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To quote from the Play Store page: Medical ID allows you to write a medical profile that is accessible from the lock screen of your device. In case of emergency, this profile enables quick access to vital information such as your allergies, blood type, medical contacts, etc. that are essential to the attending first responders, medics or medical staff taking action.

•

Quick access to medical information from the lock screen

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Emergency alert feature to send an SMS in one click (along with your location)

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Direct emergency contacts calls from the lock screen without having to unlock

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Number normalisation for enabling international calls with emergency contacts

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Emergency contacts autocompletion

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Body Mass Index (BMI) calculation

In emergency situations a Medical ID could prove to be invaluable to attending medics or other medical personnel providing treatment.

This app is now installed on both my friend’s phone and mine.

I can only express my disappointment in the government and I include ministerial staff who, combined, obviously do not subscribe to that worn out mantra “we take our responsibility and your needs seriously."

In keeping with some politicians practices I have sent my overnight stay at home claim to my editor.

ResortNews | November, 2018

Are the curtains causing discord?

Residents in strata-titled apartments or townhouses need to be aware of what they can and can’t do with their unit with even the wrong choice of curtains potentially creating costly consequences.

only council regulations applied and was not aware he could not make this type of alteration to his courtyard without first seeking approval as stipulated within the scheme by-laws.

As a tenant or owner within a strata property, it’s important to be aware of the things you can and can’t do in your strata scheme.

Strata schemes have by-laws which regulate common property to help maintain peace and harmony within the community and also to ensure residents can live safely and in an orderly fashion protecting the value of their properties.

As an owner or tenant in a strata property it’s essential to be familiar with the scheme’s by-laws, but,

Even changing the curtains or window coverings can be an issue that causes a breach in a strata scheme. There are in fact by-laws that specify light backed curtains should only be installed in particular windows and similarly, making unauthorised changes to blinds can be a problem, as can with window tinting.

Grant Mifsud, Partner, Archers the Strata Professionals

unfortunately, there are many instances of residents taking actions that are in breach of the by-laws.

In one instance, a unit owner concreted their courtyard then had to jack hammer it all up as they didn’t have approval for the works.

The resident in question, had previously lived in a house where

Shared swimming pools and spas are often a source of strata scheme tensions. Some residents treat the pool like it’s their own private resort when in fact it is a shared area that usually has strict rules such as ensuring children using the pool are supervised by an adult, for both safety and

harmony. There can also be problems with people using the pool and making a mess, with potential costs involved with the clean-up.

Other common sources of stratascheme disputes can involve pets, parking, parties, passive smoking, hanging unsightly laundry from the balcony as well as the behaviour of visitors.

Tenants and owners should brief their visitors about the accepted behaviour inside the strata property, particularly when holding any gatherings and be mindful of the other occupant’s peaceful enjoyment of their home.

To maintain a harmonious, friendly and comfortable atmosphere in a strata property, it’s always good to familiarise yourself with your strata scheme by-laws and play within the rules.

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MANAGEMENT

23

Do your guests know what they really want?

By Mandy Clarke, Industry Reporter

You choose your collection of bathroom amenities based on the presumption that guests want those products and will use them.

But what if they are left unopened and unused?

Does this mean your efforts have been wasted?

Not according to the results of the recent study by Cornell University School of Hotel Administration: What Do Hotel Guests Really Want? Anticipated Versus Actual Use of Amenities.

Because guests really do love their bathroom amenities and will use them more than they realise.

The study of in-room amenities details both the overpredictions and, in some cases, underpredictions of amenity use by 724 guests in 33 hotels operated by six hotel brands.

The use of some amenities was highly overpredicted such as a spa, or in-room dining but guests under-predicted how much they would use bathroom amenities.

The study helps managers determine which amenities make the most sense for their brand.

With hotel amenities being a multibillion-dollar business worldwide, having a good idea what the most valued amenities are is gold. The unexpected underpredictions

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Matching your guestroom amenities to your property can have a surprisingly profound impact on the quality of your guests’ stay tended to be the free amenities... including lobby seating, valet parking, and concierge service, for which the percentage of guests expecting to use the service was noticeably smaller than the percentage who did use them.

Packaged bathroom supplies are included in the list of amenities that’s use was woefully underpredicted by guests. The data suggests that both sexes underestimate how much they will use the bathroom amenities, and not only do they use them more than they expected, in higher end hotels they are also more inclined to purchase amenities.

Therefore, it makes perfect sense that providing amenities that guests predict they will use at a high rate will have a positive effect on their initial stay and may influence repeat visits. How can this study help you to tailor your amenities to your brand and your guests? It suggests that a “newly opened destination might

consider skewing its amenity offerings to those that their analysis shows tend to attract customers; while another brand that operates in a mature market, in which success depends on generating repeat visits through customer loyalty, would do well to focus on amenities that analyses show encourage such loyalty”.

Matching your guestroom amenities to your property can have a surprisingly profound impact on the quality of your guests’ stay.

And being able to choose the product match for your property is essential. To do this, know your property and your guests, know what makes them special.

Tips...

If your property is a small local business, choose simple amenity products that showcase your locale. You could lean towards soap bars and natural scents, taken from your unique environment.

If your property is a five-star

MANAGEMENT

business hotel with sleek and modern design, you could offer products that appeal to future-forward, busy business guests; dental kits and luxury well-known branded products.

For luxury accommodation, research trends that appeal to these discerning travellers.

Vegan products are a trending force right now, these popular products tend to double up as environmentally friendlier and cruelty-free. They are usually more expensive, which is why they are associated with luxury in 2018.

Do not forget your men! Male grooming is a hot trend right now in the amenity realm. Think beards, think beard oil, hair wax, facial exfoliators and travel razors.

Customise. Many suppliers offer customised packages for your property and brand. You can convert your guestroom amenities into a brilliant branding tool. This is particularly good if your guests like to take a few mini tubes of shampoo home with them, or if you find you have guests staying more than one night.

Instagram-able. Make your amenities “shareable”; get your custom brand known on social media and ask guests to review and take pictures using your amenities - there is nothing better than genuine word-of-mouth publicity.

ResortNews | November, 2018

Energy efficiency: more than just a bright idea

By Trish Riley, Editor

Energy management is the key to saving energy, whether it be in your business, residential property, hotel or home.

And controlling and reducing your energy consumption is important because it enables you to reduce costs, reduce carbon emissions and the environmental damage that they cause, and reduce risk – the more energy you consume, the greater the risk that energy price increases or supply shortages could seriously

affect your profitability, or even make it impossible for your business to continue.

Energy efficiency should be a key concern for all properties.

Spiralling electricity prices have started to cost the industry more and more over the years and as residential properties continue to find profit margins squeezed, looking for ways to reduce unnecessary wastage is paramount.

Magnified due to long operating hours, even small changes to improve energy efficiency in a residential property have the potential

to generate big savings and these savings can be used to reduce prices or invest in new facilities or equipment.

Energy used for climate control, lighting and appliances are an essential part of your guests’ comfort but on average, guest rooms account for 90 percent of wasted electricity usage.

Of this, the biggest drain by far comes from the heating, ventilation and air conditioning (HVAC) system, which typically uses between 70 percent to 90 percent of the energy consumption. If this system isn’t managed effectively, it can play a huge part in soaring energy

bills. Obviously, the scale of the operation combined with aging buildings and appliances pose the biggest energy challenges in this sector. Many buildings were built before energy efficiency was a major consideration in design, and alongside these older buildings are ineffective lighting systems and aging appliances, in particular boilers, refrigeration, pumps and motors.

With long operating hours and poor or no centralised control, the compounding effect of energy inefficiency is significant, and waste can be widespread.

While an energy management partner can help you improve energy efficiency and save money without compromising the comfort of your guests, there are a variety of ways that a property manager can improve energy efficiency and eliminate waste including: Hot water systems – Ensure water insulating jackets on hot water systems are kept full, regularly check for leaks and operate filler switches.

Deal promptly with any cracks or faulty parts to reduce electricity use Automation – Automating shut down procedures for climate control and lighting when not in use

November, 2018 | ResortNews

Monitoring – Improving management and control by centralising heating and cooling systems

Lighting – Upgrading lights with new technology compatible with legacy systems MANAGEMENT

Regular maintenance schedule – Implement a comprehensive maintenance schedule for the review and upkeep of motors, pumps and faulty appliances

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With such huge sums at stake, Resort News asked several property managers to submit their energy management and cost-saving tips:

they often leave one of the cards connected so the HVAC system remains in use while they’re out — needlessly using electricity and costing the property money.

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If your guests are heading out for a day of sightseeing, that’s a whole day’s worth of wasted energy. Consider how many guests are doing this and the annual costs quickly add up to thousands of dollars. Much of this wastage and expenditure is needless, but also preventable.

•

•

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Get the building management system that works best for you: “This enables you to take control of your major powerconsuming assets, such as heating, ventilation and air conditioning and lighting.

The concept is simple. It provides heating, cooling and lighting as and when it is needed and at the required level, and enables a consistent customer experience across the estate using only the energy that is actually required.”

systems are essential.

These need to be set up correctly and must be coordinated with regular reviews of operational procedures and schedules and even recommissioning of equipment. As with all activities, remember that guest satisfaction and safety always come first.”

Understand performance metrics: “This gives individual properties an energy measure as part of a balanced score card for business performance.

Energy is an overhead that comes about secondor third-highest after labour and laundry.”

Engage staff: “Even the smartest technology when not supported by human cooperation will not deliver the desired effect.

Employees are the biggest lever to preventing energy drift and to reduce base consumption, so it is vital to

•

give staff the understanding and tools to reduce utilities consumption.”

•

Employ meaningful control strategies and optimise existing processes: Technology solutions, from simple timed schedules for equipment, occupancy-driven controls and comprehensive BMS

Use what is naturally available in your location: “Space restrictions can be overcome with solar installations that are aesthetically integrated.”

The consensus however, is that electricity is most commonly wasted when the HVAC is left on when a guest isn’t in the room.

That’s why there is a key card system, right? Well, typically, most guests know how to cheat the key card system and either ask for or get offered two key cards when they check in. When they decide to leave their room,

MANAGEMENT

To save energy, resorts could remind guests to remove their key card every time they leave their room, but most people simply forget and, in any case, the burden of energy efficiency really rests with the management, not the guest.

The answer therefore, is a technological solution that’s built on intelligent automation and doesn’t rely on the guest having to do anything.

An automated solution can be programmed to “turn off” or “set back” the HVAC system when the room is unoccupied, effectively saving between 25 percent and 40 percent on their HVAC costs. Automated solutions also increase the HVAC lifespan by reducing its overall usage.

Crucially, none of this impacts the comfort of guests because the system only kicks in when they aren’t in their room.

ResortNews | November, 2018

it’s important to give a pool the same attention.

In fact, the system enhances the guest experience, because when they open the door the lights and the HVAC turn on automatically. Much more elegant than having to put a key card in the slot to enable power!

When the room is unoccupied, the system can also be programmed to turn on the HVAC for 15 minutes every two hours so the air is circulated. This keeps the room feeling fresh and well-ventilated for the guest, and it also prolongs the life of the room furniture by preventing the build-up of mildew.

Over the months and years, an automated solution can save thousands of dollars — as well as preserving the life of the HVAC. Reducing lighting usage also reduces heat output that in turn reduces air conditioning costs, so as lighting is the next highest energy cost in a business it is also one of the greatest opportunities for savings.

A review of energy saving platforms offer the following tips for lowering costs related to lighting: •

•

•

Replace incandescent globes with energy efficient alternatives that can use as little as 10 percent of the electricity of an incandescent, while lasting as much as ten times longer Because illuminated exit signs are constantly on, they are an ideal target for an energy efficiency upgrade. And because they’re often in hard-toreach places, replacing incandescent bulbs with longer-life alternatives helps make maintenance easier Light reflectors can be a good alternative to fluorescent lights.

Aluminium or silver reflectors in overhead light fixtures need just half the number of lights to maintain the same brightness

•

Replace your out-dated fluorescent tube lights with newer, more efficient models with electronic ballasts or LED fluorescent lights

•

Because the light output of a fluorescent light decreases as it ages, while using the same amount of electricity, consider replacing all the lights in an area at the same time, near the end of their useful life

•

Lighting systems that are

November, 2018 | ResortNews

•

more than 10 to 15 years old are ideal candidates for upgrading to a more energy efficient lighting model

isn’t used during the day and accessing this at night means the property will be less reliant on buying electricity from the grid.

For the best performance, remove dust from lights every 6-12 months, as this can reduce light output by up to 30 percent. Check for surface dents, scratches and burns that can lead to rust formation, which affects performance and decreases lighting longevity

An added benefit is that the process of converting sunlight into electricity using PV systems produces no greenhouse gas emissions and any excess electricity above your needs can be fed back into the mains power grid or into a battery storage system.

•

Paint rooms in light colours, as this aids reflection of available light

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Use desk or standard lamps where most light is needed, so less lighting is required in the rest of the room

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Light dimmers save money and can extend the life of incandescent lamps

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For security lighting, install time, motion or light sensing switches

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If you have skylights, ensure it has been installed properly with a diffuser at the bottom to ensure light is evenly spread

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Use outdoor solar lights for an inexpensive and easy way to light the garden or outdoor areas

Last but not least, swimming pools continue to be one of the most contentious amenities in community properties and it generally comes down to the fact that everyone loves them but very few people really understand what it takes to keep them running perfectly.

In smaller complexes it’s easier because the rules are a lot more relaxed but when you’re talking category three or four pools, there is a lot of work that goes into keeping them compliant.

A swimming pool is a lot like a car. It requires a regular regime of maintenance in order to function properly and just as you wouldn’t put off oil changes and tyre rotations,

Besides keeping the water clean and balanced, there are plenty of pieces of hardware and machinery that need more or less upkeep to ensure that they are working and last as long as possible.

Like any mechanical devices, pool equipment undergoes a variety of stresses and will eventually need to be repaired or replaced but one can extend the useful life of equipment just by performing regular maintenance, before it becomes a problem.

The pool filter is one of the most important pieces of pool equipment as it helps to keep the pool water clean and free of debris and small particles. When filters are clogged, they work harder and use more energy. A clogged filter is less efficient, and will increase your running costs. Also clean the strainer and filter baskets regularly.

You will be surprised by how much you save by following these tips. LED lights, a solar heater and other energy saving devices will reduce running costs even further.

There is no sense wasting money when with a little extra effort, you can save money on pool maintenance and running costs.

When energy management is integrated into the daily practice of the property, you create an instrument with which the energy efficiency can be improved continually. This in turn reduces energy costs.

Sources: EnergyLens, Environment.gov.au

Obviously the most effective way of saving money on energy is with the installation of solar.

While the upfront cost of a solar power system must be met, once installed they require little maintenance, can be expected to last at least 20 years, and the electricity they generate is free.

The cost of solar panels and storage batteries is also coming down quickly and systems are becoming more affordable.

New developments in lithiumion battery systems also enable properties to get more out their solar power system. Being able to store excess energy that MANAGEMENT

27

The New World of Strata Electricity Offers Since August 2017, when the Prime Minister summoned electricity retailers to Canberra to see what could be done to improve the consumer electricity price point, electricity offers have been a point of contention.

One of the only things to genuinely come of the meeting was reform by way of the Pricing Information that is published by retailers, and effectively ‘sold’ to consumers.

On August 31st, 2018, almost a year to the day, new Retail Pricing Guidelines for electricity retailers will come into effect. These guidelines were pushed through by the Australian Energy Regulator to provide clearer more user-friendly information for consumers about the electricity plans.

These new guidelines aim to improve the consumer understanding of the different products and services retailers are offering. Yet understanding an electricity price schedule is still a difficult thing. With so many variances, what do you need to look for to get the best deal?

Discounts The biggest cause of confusion in electricity offers is, of course, the infamous ‘discount’.

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The new changes are not going to fix this completely as they are now including Guaranteed Discounts and Conditional Discounts. Guaranteed Discounts are just a way of reducing the base rate without actually doing so, normally by a small amount of between 5-7%. A Conditional Discount is something that the consumer must do to qualify, this includes agreeing to a direct debit payment, paying on time or early or even ensuring your solar generation performs to a certain level.

There is a good reason the discounts are used, because energy retailers are exposed to market fluctuations on the wholesale purchase cost, locking in a ‘discount’ with a consumer means that it leaves the base rate flexible.

The key point is untangling the whole lot to get the effective rate of usage, which in simple terms is how much per kWh do you pay.

Incentives Next on the agenda are incentives. There has been a noticeable addition to the current electricity offers floating around which are leading towards including incentives.

The new guidelines require these incentives to be distinguishable on the offer with a differentiation of non-price i.e. one-off benefits such as gifts clearly listed with their true value. The value of these incentives needs to be

measured and usually, over the long run, these deals will cost more.

Bundle Deals We are also seeing the “add-on” or “partnering” becoming part of the scene with requirement for a consumer to bundle with partner product like solar/batteries or even a telco or TV package to obtain a certain electricity offer. The real value of these will become much clearer with the new disclosure requirements; with cross subsidisation now being visible to the consumer, the ‘deal’ might not be as good as it seems.

Dummy Offers One of the biggest reforms was to remove ‘dummy’ offers, offers that were ‘not generally available’.

MANAGEMENT

Now there is a requirement to publish only offers that are generally available. This should remove some of the confusion outright, if you like the look of a deal it should be available to you.

Although as a consumer you will be more informed, always remember you make a choice to agree to a retail electricity offer.

Certain options do cost more and as always, nothing is ever free, so when reviewing an electricity supplier’s offer, take your time and you will find an offer that best suits your needs.

If you are tired of sifting through the hoards of complicated discount and incentive driven offers, give LPE’s local customer service team a call and we will give you our best, flat rate upfront, 1800 040 168, Mon-Fri 8.30AM-5.30PM. ResortNews | November, 2018

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November, 2018 | ResortNews

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29

No vacancy: tourism boom driving demand growth for hotels The Australian tourism boom is driving growth for the Hotels and Resorts industry. However, increasing competition has forced hotels to innovate to stay profitable.

The Hotels and Resorts industry is booming as more and more people are travelling to and around Australia. Total visitor nights from domestic and international travellers have increased by an annualised 5.2 percent over the past five years. The weak Australian dollar has made it more affordable for overseas travellers to visit Australia and discouraged locals from travelling abroad.

The growing affluence of countries in Asia has also made this region the fastest growing source of new tourists to Australia. As a result of these factors, the Hotels and Resorts industry is expected to grow by an annualised 2.4 percent over the five years through 2018-2019 to $8.4 billion. Despite this revenue growth, industry operators have had a hard time increasing their profitability over the past five years. High labour costs, slow growth in occupancy rates, and growing competition within the industry and from Airbnb and serviced apartments have all threatened profit growth over the period.

Major hotel operators AAPC Limited and Event Hospitality & Entertainment Limited are focusing on delivering highquality service and luxury facilities to differentiate themselves from alternative accommodation services such as Airbnb. AAPC Limited, a subsidiary of the Accor hotel group, acquired the Mantra

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Group in May 2018 to consolidate its position as the largest hotel group in Australia. AAPC Limited’s revenue is expected to grow by an annualised 39.9 percent to $742.2 million in 2018 as a result of this acquisition. Event Hospitality & Entertainment Limited has opened new hotels in Brisbane, Adelaide and Darwin under the Rydges brand, while the company’s QT Hotels brand continues to open boutique hotels across Australia and New Zealand. The hotel group Marriott International, the largest hotel group in the world, is also planning to expand its Australian operations, opening several new luxury hotels in major cities. The addition of these new hotels and rooms are expected to keep occupancy rates rising in line with the tourism boom. However, many of these new projects are at the higher end of the market and average daily rates for rooms are expected to grow by 2.7 percent.

The federal government has reduced penalty rates for their full-time and part-time staff in the hospitality sector, reducing the rate from 175 percent to 150 percent on Sundays. Lobbyists have claimed that this could also help hotels extend service hours, offer better services and employ more staff. However, this seems unlikely as growth in new establishments is outpacing growth in new employment.

Hotels are also adopting new technology to reduce staff numbers, incorporating more streamlined booking and guest management systems to increase efficiency. Some hotels are going a step further by installing self-serve checkin, and food and beverage kiosks. In an increasingly competitive environment, hotels are succeeding by providing an enhanced experience while limiting costs.

Tourism Accommodation Australia welcomes the release of An India Economic Strategy to 2035 The report underscores the growing significance of the Indian economy to Australia’s future economic prosperity and identifies the tourism industry as a sector with significant potential to capitalise on India’s projected growth.

Tourism Accommodation Australia was involved in the consultations with Varghese providing industry insights into the role Indian travellers currently play in Australia’s tourism industry as well as identifying known challenges and inhibitors to future growth.

Varghese’s report clearly identifies the immense opportunity for Australia’s tourism industry, with the number of travellers coming from India expected to grow four-fold by 2015, meaning Indian tourism could be worth over $9 billion each year to the Australian economy.

Tourism Accommodation Australia CEO Carol Giuseppi said the report was a timely reminder to government and industry that Australia’s policy settings, marketing campaigns and relationships must be focused on ensuring we capitalise on this unique opportunity. “India and Australia currently enjoy a very warm relationship with significant cultural, social and economic ties, making us well positioned to take advantage of the huge potential growth in travellers from India,” Giuseppi said.

“The scale of opportunity for Australia’s tourism industry cannot be overstated – the report concludes that India is projected

TOURISM

to go from being Australia's eighth largest tourism market today to our fourth by 2035.”

“With today’s global tourism industry more competitive than ever, we need to ensure our policy settings are calibrated correctly so that Australia can make the most from India’s projected growth in the coming years.”

“The report identifies more direct flight paths as crucial to unlocking potential growth from India and more targeted marketing campaigns required to enhance awareness of Australia as a tourism destination.”

“We commend the federal government on the announcement of a new Australia-India air services agreement in June. This agreement enables Australian airlines to operate unlimited services between Australia and the six major metropolitan airports in India and Indian airlines to operate unlimited services between India and six airports in Australia.”

Tourism Accommodation Australia looks forward to future collaborative efforts such as the new research projects recommended in the report.

Gourmet Sunshine Coast: holidays on a plate Tourism industry development minister Kate Jones has announced that the Sunshine Coast will host a new food festival in August 2019, aimed at showcasing the region’s food experiences.

The Curated Plate is a fourday food, wine and produce festival, which will bring together the Sunshine Coast’s finest produce with the best chefs from Australia and abroad.

ResortNews | November, 2018

Ms Jones said the new festival would shine a light on the region’s rich culinary offering.

“The Curated Plate will help raise the profile of the Sunshine Coast as a ‘foodie’ destination,” she said.

“The Sunshine Coast is well-known for its beaches, rainforests and mountain ranges – but it also boasts high-quality produce and unique paddock to plate dining experiences.

“Tourism is vital for the Sunshine Coast, injecting $2.5 billion into the local economy and supporting 23,000 local jobs.

“The Culinary Plate is expected to generate more than 10,000 visitor nights.”

region for a celebration of everything it has to offer.

"This new event will be fantastic way to showcase our region and profile our local award-winning food producers and restaurateurs.

"We look forward to welcoming guests to our beautiful part of the world and invite them to discover what makes us such a great destination for fantastic food.”

New content partnership with The Telegraph in the UK

Visit Sunshine Coast CEO Simon Latchford said the event would allow the region to showcase its high-quality food offerings, alongside its wellknown natural attractions.

“The Sunshine Coast is one of Australia’s premier regions for quality produce - it has more than 740 restaurants, 400 food tourism experiences, six dining precincts, 13 new craft breweries, some of the best farmers markets in the country and provides much of Queensland’s fish, seafood, fruit, vegetables and poultry exports,” he said.

Sunshine Coast council mayor Mark Jamieson said he was looking forward to welcoming visitors to the

Tourism Australia has launched the next phase of its A$36 million Dundee campaign with a series of videos inviting Americans to book a trip down under and visit the ‘set’ of the movie.

Starring Aussie actor Luke Hemsworth, the videos will take US travellers on an exclusive behind the scenes tour of the Dundee movie backlot, showcasing the breadth of spectacular and unique experiences on offer across Australia.

This second phase of activity, Visit the Set of Dundee: Son of a Legend, builds on the momentum of the Dundee: The Son of a Legend Returns Home campaign, which was unveiled at the Super Bowl in February to over 100 million American TV viewers.

The announcement also provided a first glance of the international talent on the festival line-up.

Tokyo’s Zaiyu Hasegawa of two Michelin Star restaurant, Den, will join the festival in a special collaboration with Sunshine Coast chef Daniel Jarrett, at his one Chef Hat restaurant, The Tamarind.

Americans invited to explore the set of Dundee

Tourism Australia has kicked off a year-long content partnership with one of the UK's leading news outlets, The Telegraph.

The joint venture includes a dedicated hub of Australian content on the Telegraph website featuring destination-led long-read articles, suggested two-week itineraries, along with practical planning tools such as an interactive map.

Online content will be complimented by an eightpage supplement in the travel pages of the newspaper.

In collaboration with all of Australia's states and territories, the content partnership will provide high value British travellers with continual reminders of why 'There's Nothing Like Australia'.

What first appeared as a star-studded trailer for a new Dundee sequel featuring celebrities Chris and Liam Hemsworth, Hugh Jackman, Paul Hogan and Margot Robbie; was then cleverly revealed as a tourism ad for Australia.

The new A$8 million campaign offers a tongue in cheek spin on the campaign with Luke, the ‘original’ Hemsworth and older brother to Chris and Liam, taking Americans on a backlot tour of Australia which is cleverly portrayed as a giant set, purpose built for the Dundee movie.

Australia’s minister for trade, tourism and investment Simon Birmingham said that this next phase of Tourism Australia’s award-winning campaign would ensure that Australia remains front of mind for US travellers.

“The US is one of Australia’s largest and most valuable tourism markets with over 780,000 American visitors spending $3.8 billion per year in Australia,” minister Birmingham said.

“Whilst Americans love Australia the challenge for us is to convert interest into action and get potential visitors on a plane headed Down Under.

“With the traditional summer booking season just around the corner, coupled with a favourable exchange rate, increased aviation capacity and attractive airfares,

November, 2018 | ResortNews

TOURISM

now is the perfect time for this next phase of activity in the US.” Since its launch, the Dundee campaign has reached more than nine billion people and has generated nearly 14,500 news articles with an equivalent advertising value of over $85 million.

Luke Hemsworth said he was delighted to complete the Hemsworth hat-trick on Dundee.

“As an Aussie living in the United States, I got a huge kick out of watching the Dundee campaign unfold and the incredible reaction by Americans to the Super Bowl ad.

"I can't think of a more beautiful film set than Australia and it's pretty special to be selected as Tourism Australia's own tour guide to show Americans why they need to make the trip down under and make it right now," he said.

The second phase of the Dundee campaign features destinations from each of Australia’s states and territories; and is supported

by Qantas, Expedia, state and territory marketing organisations, and nine key distribution partners in the US market.

Activity will run from October to December to coincide with the peak travel booking season for the US market and is earmarked for roll out in additional international markets including the UK.

Luxury Lodges scoop top awards Four members of the Luxury Lodges of Australia have taken the top awards in the Conde Nast Traveller 2018 Readers’ Choice Awards.

Southern Ocean Lodge in Kangaroo Island, Longitude 131° in Uluru-Jata Tjuta and Hamilton Islands’ Qualia and SafireFreycinet rank among the best hotels in Australasia and South Pacific region. The recognition of the four remarkable lodges in their wildly beautiful destinations is a reflection of the compelling appeal and quality of the Luxury Lodges of Australia properties.

Condé Nast Traveller is one of the world’s best-recognised and respected titles in travel.

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The Great Barrier Reef:

Be the solution, not the problem Could your presence on our reef hold the key to preserving it for future generations? It sounds like science fiction, but you can actually help save the Great Barrier Reef.

Queensland’s Great Barrier Reef is home to 215 species of birds, 30 species of dolphins and whales and 133 types of sharks and rays.

Our not-so-humble backyard Mention the Great Barrier Reef to most Australians and they’ll more than likely tell you that it’s been on their bucket list for as long as they can remember.

Spanning 2300 kilometres along Queensland’s coastline, it’s home to some 2900 individual reefs, 300 coral cays, 600 continental islands, 1625 species of fish and over 600 types of coral, there’s a lot to love and a lot to lose. The thought of future generations not being able to appreciate the many wonders of the world’s largest coral reef (AKA our backyard) is real, but this is exactly why you should be visiting: your presence now can make a difference in the future.

One can’t help wanting to throw up a protective screen against the reef’s biggest threats – climate change, coastal development, coral-destroying pests and more but according to some environmentalists, the reef needs tourism now more than ever. “The only way to truly understand why the reef needs protecting is by experiencing

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it yourself,” says Brett Lakey, owner and operator of Lady Musgrave Experience: his “office” of 22 years. “And as long as you experience it with an ecofriendly operator who can guide and educate you, you can visit without impacting the reef.” And who knows, you just might be able to help by engaging in some quality citizen science.

What is citizen science?

On the Lady Musgrave Experience, divers and snorkelers have the opportunity to save coral from crown-of-thorns starfish by injecting them with vinegar, or by helping crew survey designated areas and report back to the Great Barrier Reef Marine Park Authority; just one way everyday travellers can become scientists under the guidance of trained reef staff. “Whether you’re interested in tagging turtles or photographing coral, there’s a project out there for everyone – you only need to put your hand up,” says Lakey.

Here are five suggestions to get you started: 1. Monitor the reef Snorkelers, divers and yep, even walkers, can help researchers collect valuable information about reef health, marine animals and incidents by taking part in a reef monitoring and assessment program such as Eye on the Reef or Reef Check Australia.

Volunteering options vary, but a great way to get involved is to

download the Eye on the Reef app, for instance, which allows you to submit GPS-tagged photos of wildlife, pests, marine pollution and coral bleaching to the aforementioned authority.

Encounters offers several expeditions where profound wildlife encounters go handin-hand with participation in research alongside marine scientists.

2. Clean our waterways

4. Get turtle-y awesome

Okay, no one dreams of heading to the Great Barrier Reef to clean up rubbish… until you consider the following facts: coming into contact with plastic makes corals more than 20 times more susceptible to disease, and it’s estimated there are now more than 11 billion pieces of plastic debris on coral reefs across the Asia-Pacific region. To help clean up those waters, you can sign up as an eco-warrior with Eco Barge Clean Seas, a service that requires volunteers for everything from marine debris removal trips to land-based litter clean-ups. You can also participate in a beach clean-up through Tangaroa Blue.

Home to six of the world’s seven species of marine turtle, there’s no better place to get involved with the research and monitoring of these gorgeous creatures than by putting your hand up to become a volunteer at Bundaberg’s Mon Repos Turtle Centre.

3. Document marine life For everyone who’s ever wanted to name their own manta comes Project Manta, a multidisciplinary study of the ecology and biology of these majestic creatures.

Researchers require plenty of photographs and videos in order to identify these creatures and to add to their understanding of the animals’ movements, distribution, sex ratio and growth rates. You can share photos with Project Manta through their Facebook page and if a new manta is identified from your shots, you even score naming rights.

Prefer to study dwarf minke whales, sharks and/or green turtles? Eye to Eye Marine

TOURISM

Other options include joining the TurtleCare Volunteer Program where summers will be spent protecting marine turtles nesting from Caloundra to Point Cartwright, or by helping look after injured and unwell marine turtles at the Cairns Turtle Rehabilitation Centre on Fitzroy Island.

5. Man a research station The Great Barrier Reef Marine Park is home to a network of internationally acclaimed research stations, including Lizard Island (which features in Great Barrier Reef with Sir David Attenborough), Heron Island and Orpheus Island Research Station – many of which require volunteers to assist with station duties and general maintenance.

Highly qualified divers can also register at Lizard Island Research Station as a research volunteer.

So when planning your next holiday, perhaps consider making it a working one!

ResortNews | November, 2018

Here are some things that don't: children shrieking gleefully as they chase each other, tantrums over toast, and chants of "But he started it!"

IATA predicts 8.2 billion air travellers in 2037 The International Air Transport Association (IATA) recently revealed the present trends in air transport. The latest update to IATA’s 20-year air passenger forecast, states that passenger numbers could double to 8.2 billion in 2037. Over the next two decades the forecast anticipates a 3.5 percent compound annual growth rate, leading to a doubling in passenger numbers from present levels.

The Association warned, however, that growth prospects for air transport, and the economic benefits driven by aviation, could be curtailed if protectionist measures are implemented by governments.

Trade wars and protectionism are key risk factors to airline profits already weakened by rising oil prices, the International Air Transport Association said.

"Aviation is growing, and that is generating huge benefits for the world. A doubling of air passengers in the next 20 years could support 100 million jobs globally. There are two important things that stand out about this year’s forecast. Firstly, we are seeing a geographical reshuffling of world air traffic to the East. And secondly, we foresee a significant negative impact on the growth and benefits of aviation if tough and restrictive protectionist measures are implemented," said Alexandre

November, 2018 | ResortNews

de Juniac, IATA’s Director General and CEO. "Generally, we think... that all these barriers to trade are bad news from an industry standpoint.”

Qantas chief executive Alan Joyce said the Australian carrier was keeping a "watchful eye" on global developments, adding that the travel sector had been supported by increased trade.

"We have a number of free trade agreements between Australia and a number of countries in the region and we've seen a significant boost in freight... and travel as a consequence of that," Joyce said.

IATA—which represents 280 airlines that make up 83 percent of global air traffic—said the sector had experienced nine years of gains, although operating profits have been trending slowly lower since early 2016 thanks to rising costs.

"2018 is a tougher year but the airlines have done a good job of managing the changing environment," de Juniac said. "This is a resilient industry that has been through almost two decades of significant and dramatic changes.

Let’s hope governments maintain cool heads."

Child-free holidays up by 30 percent Here are some things that make for a relaxing holiday: private villas, lazy late breakfasts, afternoons on the beach with a soundtrack of lapping waves and rustling palm fronds.

The ‘child-free’ accommodation market used to be the preserve of luxury couples’ resorts in destinations such as the Caribbean and Indian Ocean.

However, with the use of the search term ‘adults only’ up by 30 percent in the last year alone, more and more hoteliers are choosing to redefine their markets and develop enclaves for grown-ups across a wider range of accommodation including chic and cheap hotels, city guesthouses and rural retreats.

Adults-only resorts are growing in popularity, and it's not just DINKS (double income no kids) who are checking in. Plenty of parents occasionally choose to go on holiday without their kids, expressly to enjoy the kind of grown-up activities that children interfere with – reading books, for instance. The last thing they want is to be distracted by someone else's children while they're racing through the last pages of the latest best-seller.

In these adult zones, the emphasis is very much on pleasing yourself. Stylish stays in Provence and Crete, break-away pools and bars in Indonesia and Fiji, breakfast hoppers and bikes to borrow in Sri Lanka, or honesty bars and tips-on-tap at UK hotels are all part of the growing ‘Adults Only’ Collection.

Jake Hamilton, editor of i-escape, said: “We’ve noticed that it’s not just the ‘pre-kids’, ‘no-kids’ and ‘post kids’ guests who are searching for these properties; it’s also couples with kids who are just looking for a break away, shunning the more traditional

TOURISM

spa and honeymoon hotels which often come with a higher price tag.

“This market is looking for wellpriced hideaways that offer more low-key luxuries such as wild swimming spots, free bikes and anytime breakfasts. It’s all about the pared-down luxuries of a childfree environment.”

Options include idyllic islands in Asia, hedonistic city stays in Rio, slow living in a sleek studio in Crete or even rainforest stays in Costa Rica.

Fiji resort adds immersive volunteer experiences Guests at the Jean-Michel Cousteau Resort in Fiji now have more options to interact with the local community and work to preserve the local ecosystem.

The eco-resort, which already partners with community organizations in Fiji on a corporate basis, is now extending the opportunity for guests to volunteer some of their own time during their stay.

“We are committed to providing our guests with transformative experiences when they travel,” said Bartholomew Simpson, general manager of the resort.

“Through our volunteer opportunities, guests will not only have the opportunity to give back when they travel with us, but will be able to truly immerse themselves in the local Fijian culture and contribute to the betterment of the environment.”

One important volunteer option is the planting of mangrove seedlings in support of the resort's goal to plant 10,000 of the environmental "super plants" by November 2018.

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Vale It is with great sadness that we need to report on the recent passing of two highly influential and respected members of the resident accommodation and management rights industry.

May they rest in eternal peace.

Bernard ‘Bernie’ Sullivan Bernie Sullivan, manager of Newport Mooloolaba and formerly of Brookstead, passed away suddenly on Monday, October 15th, aged 62.

Garry Maynard

Beloved husband of Vicki and loved father of Bianca, Ben, Emma and Hannah, Bernie was affectionately known as ‘Mr Mooloolaba’.

It is with disbelief that we advise of the sudden passing of Garry Maynard on Wednesday, October 10th, aged 67.

Bernie was very sociable, and from the time he and Vicki arrived in Mooloolaba in 1999, he was active in the community, serving on various tourism boards and the Chamber of Commerce.

As the celebrated author of “The Laypersons Guide to Body Corporate Laws in Queensland”, Garry provided years of support and advice to unit owners and the strata industry in Queensland.

As a founding member of the Strata Industry Umbrella Group Garry gave his time freely and unselfishly to advance the cause on behalf of unit owners in Queensland.

Bernie was always there to offer his support to any newcomers to the accommodation industry and enjoyed being able to pass on his knowledge to help out where possible.

In 2007 Bernie took over the role as President for Mooloolaba Business and Tourism, a role that he put a huge amount of time into and was at the forefront of ensuring that Mooloolaba was recognised for the great destination that it is today.

After Bernie resigned from the Chair of Mooloolaba Business and Tourism he remained on the board but also took on the role as chair for the Mooloolaba Beach Accommodation Group, again showing his dedication to local tourism. Bernie was the longest standing onsite manager in Mooloolaba and achieved great respect from his owners and he will be sorely missed.

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Garry was also the face of the Owners Corporation Network in Queensland since 2010, and held the immediate past president’s position and life membership of the Unit Owners Association of Queensland. In addition to his consumer advocacy on behalf of unit owners Garry gave his time freely to help others as part of his Catholic mission to provode support and fellowship to vulnerable people, including the residents at The Park Centre for Mental Health in Brisbane.

Garry was fair and balanced in his advocacy and often put others needs before his own. He will be remembered as an affable character who enjoyed good food and fine wine.

EVENTS & APPOINTMENTS

ResortNews | November, 2018

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What’s On Adventure Tourism Awards Registration is open for the inaugural Adventure Tourism Awards and Youth Tourism Conference on the Gold Coast on November 14. The awards program recognises the outstanding achievements of tourism businesses that service the backpacker and youth travel sector across Australia and New Zealand.

Visit www.adventuretourismawards.com.au

International market briefings Registration is open for Tourism and Events Queensland's international market briefings in Cairns on November 12, Brisbane on November 13, and the Gold Coast on November 15. The events are aimed at providing tourism operators and stakeholders with insights and key trends from Queensland’s key international source markets.

Ladies in Management luncheon: lending a hand to sick kids

For more information contact Tourism & Events Queensland.

Queensland Tourism Awards The 2018 Queensland Tourism Awards gala ceremony is being held on November 16, on the Gold Coast.

Operating for 34 years, the Queensland Tourism Awards recognise the outstanding achievements of the state's tourism industry, including individuals, businesses (industry operators) and events.

‘It takes a village to raise a child’ is an African proverb, which means that it takes an entire community of different people interacting with children or on behalf of children, in order for a child to experience and grow in a safe environment.

The awards are a submission and inspection-based program and provide the opportunity to publicly acknowledge and showcase Queensland's finest tourism operators. The awards cover 30 categories ranging from attractions, events, tour and transport, accommodation, restaurants, culture, marketing and more.

Well that is exactly what transpired at the October ‘Ladies in Management’ luncheon held on the Gold Coast recently.

Dale Mansfield, partnerships coordinator with TLC for Kids introduced the leading Australian children’s charity helping sick kids and their families cope with the challenges of everyday life with illness.

Celebrating 20 years of service and working with over 400 hospitals, TLC for Kids provides tailored practical and emotional support both in and out of hospital, almost a million times each year whether it’s a one-off hospital visit or a prolonged struggle with illness, they are part of the extended

support network for sick children, aiming to reduce stress and help everyone face what’s ahead.

Lucky door prizes and a beautiful hamper were raffled raising $260 for the charity and the winners were Kerrie Lush from RAAS and Hannah McKenzie from Property Training Australia.

Should anyone be interested in coordinating and/or hosting Ladies in Management luncheons in any of the other regions please contact Kelley Falcke at the ARAMA national office.

For future participation visit www. queenslandtourismawards.com.au

Ladies in Management luncheon The next event has been scheduled for 12:30pm on November 21, at GLASS Dining and Lounge Bar, Marina Mirage Waterfront, Gold Coast. Be sure to book early.

For more information contact Marissa Millane on 0403 764 247.

Australian Event Symposium Registration is open for the Australian Event Symposium to be held on the Sunshine Coast from November 19 to 21. The symposium is held in conjunction with the Australian Event Awards to drive industry growth and development, and to ensure Australia remains on the leading edge of the events space worldwide.

Visit www.eventawards.com.au

Destination Australia Conference 2019 Industry are invited to register their interest for the Destination Australia Conference 2019 to be held on March 14, in Brisbane. Tailor-made for Australian tourism businesses serious about attracting high yield international travellers, an incredible line-up of experts from around the world were hand-picked by Tourism Australia to delve into the big issues and tackle today’s most important tourism marketing questions.

Visit www.tourism.australia.com

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EVENTS & APPOINTMENTS

ResortNews | November, 2018

Maximum Occupancy

conference fills every seat!

INDUSTRY EVENTS CALENDAR Melbourne

Maximum Occupancy, Australasia’s leading accommodation industry conference, wrapped up on a high at the end of October with a record number of attendees, new exhibitors, rousing content and engaging keynote speakers.

Now in its fifth year, the conference was held in Sydney and welcomed more than 250 delegates from across Australia, New Zealand and the Asia Pacific.

Maximum Occupancy featured keynotes and panellists from Google, Expedia, RevenYou, Triptease, Revinate, Hotelscombined, Ovolo Hotels, BIG4 Holiday Parks and other industry experts.

Speaking of the event, Adrian Caruso, event organiser and founder and managing director of Fastrack Group said: “Curated to address current industry issues, the conference featured a comprehensive two-day program covering a wide range of topics, making it a must-attend for any

hotelier and accommodation provider.”

Attendees said they were kept engaged throughout the day by the captivating content and interactive panels across 20 sessions lead by more than 40 expert speakers.

Delegates also gained a number of tools and a lot of actionable tactics that they can apply in order to make the most of their businesses.

Another highlight this year was the introduction of the Maximum Occupancy Trade Show exhibition that featured 20 dedicated suppliers showcasing some of the leading products available in the hotel marketplace.

The conference also provided the perfect professional networking environment of like-minded professionals from across the accommodation, travel and hospitality sectors.

The conference has continued to gain unprecedented support from hoteliers, accommodation providers of all types, suppliers and the wider industry community and preparations have already commenced for Maximum Occupancy 2019.

Property Law - How to adjust your fees and chargers

Thursday, 1-Nov-18 from 5:30pm-8:30pm Campari House Airlie Beach

Property Law - How to adjust your fees and chargers

Thursday, 8-NOV-18, from 6pm - 8pm.

Coral Sea Resort Gold Coast

Registrations Opening Soon

Property Law - How to adjust your fees and charges

Tuesday, 13-NOV-18, from 6:30pm - 9pm, Kurrawa Surf Life Saving Club Brisbane

Registrations Opening Soon

Registrations Opening Soon

Property Law - How to adjust your fees and charges

Wednesday, 14-NOV-18 from 6:30pm - 9pm, Arana Leagues Club

Registrations Opening Soon

Sunshine Coast Property Law - How to adjust your fees and charges Thursday, 15-NOV-18, from 6:30pm - 9pm, Maroochydore Surf Club Port Douglas

Property Law - How to adjust your fees and charges

Tuesday, 20-NOV-18, from 6pm - 8pm, Peppers Beach Club Cairns

Registrations Opening Soon

Management Rights Induction

Tuesday, 27-Nov-18, from 9am-5pm 20 Montague Rd South, Brisbane Sydney

Registrations Opening Soon

Ladies in Management Luncheons

Wednesday 21-Nov-18 from 12pm-3pm, TBA Brisbane

Registrations Opening Soon

Property Law - How to adjust your fees and charges

Wednesday, 21-NOV-18 from 6pm-8pm, Brothers RLFC Gold Coast

Registrations Opening Soon

Registrations Opening Soon

Licensing and short stay in strata

Wednesday, 28-Nov-18, from 4pm-6pm Cambridge Hotel Sydney

Registrations Opening Soon

N.B: Dates and other details correct at time of publishing, however, maybe subject to change according to the needs of ARAMA and its Members. More details will be added throughout the year as information becomes available.

November, 2018 | ResortNews

EVENTS & APPOINTMENTS

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Dust slowly settles after Jewel stoush Despite the apparent sense of normalcy on the $1.4 billion Jewel project in Surfers Paradise, a sense of bewilderment and disbelief still surrounds the upheaval and uncertainty that led to a recent ‘walkoff’ of more than 800 workers for three weeks and the loss of 150 jobs.

Tensions between Jewel developer Yuhu Group and construction partner Multiplex reached boiling point after Yuhu scrapped elements of the original design stating that the appointment of a hotel operator, and design changes to towers podium had altered the contract, as is “common practice”. This narrative was rejected by Multiplex.

Poor communication on what is happening with the project has been a recurring complaint since workers were recently told to finish what they were doing and to leave the site. The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) repeatedly said that it had been left in the dark about the future of the site.

In an address to hundreds of Jewel workers at the site, assistant state secretary Jade Ingham said the union was still looking for answers.

He questioned the reason Yuhu gave for work stopping on the site, which was that the developer was searching for a hotel operator for the central of the three towers.

However, he said workers were instructed to stop work on all three towers, two of which will be residential with 512 units.

Yuhu says once the hotel operator is found, which it predicted would be possibly this month or, if not, definitely November, subcontracts would be retendered.

work up to certain levels anyway and not to finish the residential aspects. Contractors were also left wondering who would be covering the cost of pre-ordered stock that could potentially be changed.

“The workers made the decision to withdraw their labour in response to the veil of secrecy,” he said.

There is no official word on whether an operating partner has been found yet but work has resumed on the biggest construction site on the coast, and word has it that the ‘sacked’ workers are being paid up until Christmas.

The Jewel will be Australia’s largest beachfront mixed-use development and the first absolute beach front development on the Gold Coast in more than 30 years.

The luxury development is located on Old Burleigh Road in Broadbeach, the three-tower development will include a three-level podium, a six-star hotel comprising 169 suites and 512 one, two and three-bedroom luxury apartments and premium residences. The development will feature three levels of basement parking to accommodate 816 cars. Yuhu took over the Gold Coast project in May from Chinese group Dalian Wanda.

Gold Coast Athletes’ Village gets new name, hits the market The former site of the Gold Coast Commonwealth Games Athletes’ Village looks set to become a thriving community "unlike anything the Gold Coast has seen".

In a first for the Gold Coast, all 1,251 apartments and townhouses in the $550 million Grocon-built athlete’s village will be offered solely for long-term rent.

The new residential and retail centre will include 18 apartment buildings, 82 double-storey townhouses and will be called "Smith Collective".

At the heart of the precinct will be a 6,280sq m retail and dining hub, with major supermarket chain Woolworths and retail giant BWS already securing tenancies.

The land is still formally owned by the state government and held under a lease agreement to a company jointly controlled by developer Grocon and global investment bank UBS. Michael Woodrow, executive director of Smith Collective project manager UBS Asset Management, said international trends showed people were increasingly willing to forgo home ownership in favour of the quality of lifestyle and location offered by precincts such as Smith Collective.

“Research shows that while an increasing number of people want to live where they work, shop and play, they also yearn for the security of long-term leases and ability to add personal touches to their homes,” Woodrow said.

“By maintaining ownership of Smith Collective’s residential offering, we are able to grant those wishes and help our residents and retailers build a sense of community often lost within large-scale urban developments.”

Woodrow highlighted that Smith Collective’s new name was relatable and reflective of the future community.

“As the most common surname in Australia and one of the 10 most common in the world, ‘Smith’ highlights that the community really is for everyone,” Woodrow

“The thing that isn’t stacking up, is that if it’s a hotel redesign, why have all three towers stopped?” Mr Ingham said.

“Something’s not right here.”

A spokeswoman for Yuhu said work on the residential towers had halted because workers decided to walk off the site. Mr Ingham said it was true workers walked off, but they were only told to

38

DEVELOPMENTS

said. The name was also chosen as a geographical link to the Smith Street Motorway, which the complex is situated on.

Set among seven hectares of parkland, the community is located within close proximity to Griffith University’s Gold Coast campus, Gold Coast University Hospital, Gold Coast Private Hospital and the Southport CBD. Global real estate services company JLL has been appointed to manage the site with dwellings set to be released in stages as the community grows.

A community of 2,500 academics, students, scientists, doctors and nurses is expected once complete.

Internal works, on the "bright and airy" self-contained apartments and townhouses, are set to be completed in December.

Housing diversity important Brisbane City Council is currently discussing amendments to their City Plan to implement the “Blueprint: Protect the Brisbane backyard and our unique character” policy guidelines.

This policy change could see the flexibility provided for townhouses removed on larger sites (more than 3,000m2) and in emerging community areas located in low density residential zone areas.

The Urban Development Institute’s (UDIA) key concern relates to the creation of a public perception that townhouses and infill development is banned or should be perceived as universally bad. The Institute has put forward our concerns on behalf of members including: •

Removing infill development that can fit with and renew the character of lowdensity residential zones

•

Halting the inevitable change that is occurring to the character of lowdensity residential zones

•

Removing the flexibility of density and use on large sites that is sound planning

•

Impacting the role of low density residential and emerging community zones ResortNews | November, 2018

in the city's accommodation of growth that requires further investigation •

•

Impacting meeting the needs of our ageing community and their desire to age in the suburbs they call home Negatively impacting council's ability to meet state government dwelling targets to accommodate population growth.

The UDIA considers an urgent comprehensive review of low density residential and emerging community zones is necessary to clarify and improve their use for infill development. The Institute made an early submission to council following the release of the Blueprint. While the Institute supports many elements, we continue to also seek further information and clarification on other actions and have also held an intensive workshop on the Blueprint with council recently. Source: UDIA

The arrival of branded residences Branded residences in Australia are anticipated to fetch a premium of 25 to 35 percent, according to new research.

While it was once a rare sight, properties with a ‘name’, or branding, can now be found in almost every major city and holiday destination and Australian cities are now no exception.

Hotel branded residences are now present in more than 180 locations and 64 countries globally and more recently luxury brands outside hospitality have lent their names to new developments.

Liam Bailey, global head of research at Knight Frank, pointed to one particular development setting a precedent.

He added, “Since a global residential benchmark was set at One Hyde Park, the London market has seen an increase in branded residences at the top end of the market.

“In New York, hotel-branded residences have been a key segment of the city’s luxury market since the original hotel-serviced residential apartments at The Sherry-Netherland and The Carlyle.

“In Dubai, the emergence of November, 2018 | ResortNews

branded residences has become increasingly common with the city’s transition from a holiday destination to a city in which to invest in a more permanent home.

“The Asian market for hotelbranded residences has seen strong growth, particularly in Thailand and Indonesia, with Asia now accounting for an estimated 30 percent of schemes.

This trend is set to continue."

In fact, in Asia, price differentials can vary up to 132 percent.

Erin van Tuil, director, One Barangaroo at Knight Frank said that the Crown Residences at One Barangaroo marked the introduction of hotel-branded residences in Australia.

She added, “The arrival of branded residences at this time into Sydney is no coincidence. Sydney continues to attract high net worth individuals (HNWIs) by taking up a significant proportion of the 10,000 HNWIs net inflow into Australia each year, the highest of any country, for three years running.

“One Barangaroo, Crown Residences, as the country’s first fully-integrated, six-star hotel branded residences, has received a very warm welcome from both Australian and offshore purchasers alike since sales commenced.

The driving force behind the ongoing interest is a combination of the lifestyle offering, as well as the design and location.

“The full suite of hotel-style concierge services, in-room dining, priority booking at the restaurants within the building and the private residents’ pool deck, means the Crown Residences have set the benchmark high for Australia and will compete on a global level to both investors and residents alike.

“While the branded concept in the Sydney market is still embryonic, all the evidence we have to date from marketing One Barangaroo is that a premium of 25 percent to 35 percent ahead of comparable non-branded product is where the market will sit. This price premium may however, provide cost efficiencies to residents when land tax or service costs such as gardeners, cleaners and other maintenance providers are absorbed by the hotel.”

Knight Frank’s Head of Residential, Australia Sarah Harding said, “There are many motivators from both providers and purchasers for the supply and demand of

branded residences globally and in Australia. For suppliers, these include market differentiation, brand enhancement and yearround income while for buyers, there are many benefits including service, amenities, security, quality and brand affiliation.

“In Australia, products such as One Barangaroo are putting Australia on the global map for branded residences and offering a new level of luxury, lifestyle and service that is in demand. We anticipate the branded residences sector in Australia to continue to grow.” Source: Broker News

Crystalbrook Collection welcomes Little Albion Guest House to the family One of Australia’s newest boutique hotels, Little Albion in Sydney’s Surry Hills will join the expanding and innovative hospitality group, Crystalbrook Collection Hotels and Resorts.

The unique and distinct personality of Little Albion is a perfect addition to the existing portfolio. The shared values of Little Albion and the Crystalbrook Collection group was a key driver in the decision to acquire the property; locally grounded, stylishly sophisticated, passionate about doing things differently and impassioned to deliver a unique and impeccable guest experience.

Little Albion joins Crystalbrook Collection at a time of great development for the group, as they are planning to expand with a number of new properties across key Australian destinations.

Crystalbrook Collection Chief Executive Mark Davie says “We are delighted to add Little Albion to our collection of hotels and resorts. Each of our properties has their own unique style and personality, much like siblings.

Little Albion, with its beautifullychic style and refreshingly unpretentious personality is a natural fit for our collection.”

“We’ve been looking to add a Sydney location for some time

DEVELOPMENTS

and we could not have asked for a better fit in such an exceptional location.” Little Albion Guest House was recently designed and developed by Paul Fischmann, Founder and CEO of 8Hotels, and is housed within a unique heritage building full of history, dating back to its original construction in 1903 as a former School Convent. The property was transformed into a modern guest house, seamlessly merging a heritage listed building with new construction and largely influenced by 1920s and 1970s styles of interiors.

The new 35-room guest house, which opened in July 2018, features a dedicated team of hosts who are all Surry Hills locals and on hand around the clock to offer individualised service, a rooftop garden oasis with views over Surry Hills and Sydney city and an honour bar featuring top shelf beverages and gourmet nibbles.

The hotel is located in the buzzing inner Sydney suburb of Surry Hills, which is fast becoming a popular alternative to the CBD and home to some of Sydney’s best food and beverage offerings including Chin Chin, Firedoor and Nomad. Little Albion is expected to commence trading under Crystalbrook Collection in early December 2018.

Brisbane welcomes new urban resort The TFE Hotel Collection has introduced Brisbane’s newest urban resort, The Calile Hotel.

The 175-room property features nine suites including two premier suites furnished with contemporary style designs and private balconies. A lobby bar and a flagship Greek restaurant opens to an outdoor pool terrace where guests can dine al fresco in one of the poolside cabanas.

Neighbouring the popular dining and retail precinct Ada Lane, the prime location enables Calile Hotel guests to conveniently enjoy the unique urban lifestyle of Brisbane’s CBD.

39

Alkira: Spectacularly positioned in the heart of the Daintree at Cape Tribulation and yet walking distance from a secluded yet dramatic ocean beach, Alkira Eco Retreat is an architectural masterpiece.

As though floating on the water that surrounds it, the home rises up out of the ground and displays an extraordinarily unique marriage between form and function.

Hidden within 75 acres of lush rainforest, Alkira is the only place on earth where two World Heritage listings converge: The Great Barrier Reef and The Wet Tropics World Heritage Area. It delivers luxury tropical accommodation for up to eight guests.

Winner of the Australian Institute of Architects Far North Queensland House of the Year 2014, Charles Wright’s Stamp House, which is now a resort open to the public, looks like something out of a futuristic movie.

The house is an extraordinary response to a very personal and adventurous brief for a new type of tropical house in a remnant paddock in the rainforest. The concrete material chosen for

40

a convergence of design and mother nature

permanence, robustness and thermal mass is placed on a man-made lake and shaped and patterned around its quirky personal spaces to somehow make its other worldly presence take its place in the world’s oldest and most pristine landscape.

Initially built for stamp collectors Rodney and Marider Perry, the home’s unusual swimming pool shape was inspired by the outline of the head on the “One Pound Jimmy” postage stamp issued in the 1950s. The architect chose the 2/6d stamp to acknowledge aboriginal heritage in the region where the house is sited, and the owners’ fondness for the stamp as collectors. The open roof of the house immediately above architecturally synchronises with the “One Pound Jimmy” pool shape. In addition, the structure’s six cantilevered arms have portholes which cast perforated light into the property, reminiscent of stamp edges.

Perfectly suited to the eternally mild climate that this region affords the central living areas connect seamlessly with nature.

A large open-air living area connects the five en-suited bedroom wings which protrude elegantly out over the lake

THE LAST RESORT

which envelopes the home and feature timber lined rooms and Chillagoe marble bathrooms.

The kitchen is subtly designed and yet thoughtfully appointed for serious entertaining.

Access to beach is a pleasant stroll along an exclusive track through the rainforest, much of it the rarest type found in The Wet Tropics World Heritage Area (mesophyll vine forest on beach sands – the most complex of any vegetation type found on the continent). The resort home has its own helipad and is accessed via helicopter.

Getting there Cape Tribulation by road is a scenic journey approximately 2 hrs 15 mins from Cairns International Airport, 1 hr 20 mins from Port Douglas. Charter helicopters are available from both origins to Alkira helipad, a picturesque flight north over The Great Barrier Reef: 40 mins ex Cairns, 25 mins ex Port Douglas.

Alkira is highly suited to groups of families and friends, corporate teams, or just for a couple intent upon well-deserved indulgence.

For further information visit www.luxico.com.au/rentals/ allrentals/alkira-eco-retreat.

ResortNews | November, 2018

BEST BUYS IN NORTH QUEENSLAND

ID 8864 PORT DOUGLAS HOLIDAY MANAGEMENT RIGHTS

ID 8533 ATTRACTIVE PORT DOUGLAS MANAGEMENT RIGHTS

Terrific Lifestyle In Terrific Location

Well Established Business With Great Tenant Demand

• Easily managed by a couple with room for growth • 18 units with 10 in the letting pool • Excellent guest facilities, strong tourism growth in this area • Comfortable 2 bedroom managers residence • Long agreements expiring 2040

• 68 lots in resort setting over 4.5 acres • Outstanding managers residence of 4 bedrooms + private pool • 20 years remain on agreements • Great Body Corporate salary of $104,000 • Well managed, good hours, a business with upside

Nett Profit: $93,423

Nett Profit: $192,610 Asking Price: $1,200,000

Asking Price: $625,000

EXCLUSIVE AGENCY

EXCLUSIVE AGENCY

ID 8508 AIRLIE BEACH HOLIDAY

ID 7886 CAIRNS CBD HOLIDAY MANAGEMENT RIGHTS

Price Reduced – Serious Seller

Vendor Says Sell!

• Great holiday letting business in ever popular Airlie Beach • 33 units with 29 in the letting pool • Function facilities boost patronage year round • 3 bedroom managers residence • Long agreements + $92,000 + salary

• Well established and easily managed business offering consistent profits • 20 units with 19 in letting pool • Spacious 3 bedroom managers residence • Long agreements, $45,550 salary • Attractive multiplier set by genuine and realistic Vendor

Nett Profit: $296,506 Asking Price: $1,650,000

Nett Profit: $160,000 Asking Price: $875,000 ID 8311 AWARD WINNING MANAGEMENT RIGHTS

Port Douglas • • • • • •

Boutique style holiday accommodation in sensational location Easily managed by a couple who understand their guests needs Winners of numerous tourism awards and accolades 16 of 17 units in the letting pool Long agreements, no set office hours Fully renovated 2 bedroom managers residence with attached office, also renovated

Nett Profit: $200,102 Asking Price: $1,180,000

Considering Buying or Selling in North Queensland?

Geoff Ellis is based in Cairns and covers North Queensland.

Feel free to call Geoff for a confidential meeting to discuss your requirements on 0432 790 959 Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au

www.mrsales.com.au

New Managers

www.accomproperties.com.au

Aura and Brooklyn Apartments Kevin and Denise Robertson are no strangers to the management rights industry following great success over many years across a number of buildings.

More recently they purchased two newly-developed buildings in Varsity Lakes as a permanent letting business.

Aura and Brooklyn sit within a stones-throw from each other making it a perfect combination to scale and run as a family operation with their son-in-law and daughter, Ben and Bianca Hynes. The combined team led by Ben and Bianca are running at full steam and loving the wonderful location in the modern, Gold Coast hot spot suburb.

"We love the area and being involved with two new exciting buildings and the challenge of getting the operation running

Sales Report MANAGEMENT RIGHTS Gold Coast

Ben & Bianca Hynes with Charles Nurse from Stratacorp

smoothly and efficiently," said Kevin. "Charles Nurse is to be commended for the way he persisted throughout the entire process and carefully ensured that both transactions got to the end, he did exceptionally well."

Kevin, Denise, Ben and Bianca would like to personally Charles Nurse and the team at Stratacorp for their tremendous efforts in putting both buildings and opportunity together.

Signature Waterfront Apartments Brian & Judith Rangott

Merrimac

Aura Apartments Kevin and Denise Robertson

Varsity Lakes

SC

Brooklyn Apartments Kevin and Denise Robertson

Varsity Lakes

SC

Surfers Plaza Resort Plaza Resort Management Pty Ltd

Surfers Paradise

MRS

The Cove Michael & Nancy Ma

Coomera

MRS

Castleglen Chateau Reegan Ellis & Darrel Nelson

Burleigh Waters

MRS

Coolmore Apartments Kuicheng Song

Greenslopes

RBA

Bayside Element Wei Xu

Deception Bay

RBA

Parc Apartments Koda Chen

Brisbane

MRS

TMR

Brisbane

New South Wales Northpoint Luxury Waterfront Apartments J.A.B Operations Port Macquarie

RBA

MOTELS & OTHER Queensland Orana Windmill Motel T. Singh

Gilgandra

TB

Signature Waterfront Apartments

River Country Inn D. Marks

Moama

TB

Barooga Golf View Motel Hannah & Phillip Whelan

Barooga

TB

With a background in the accommodation industry and many years spent in the police force and the motel sector, Brian and Judith Rangott decided to try their hand in the management rights industry and it appears to be perfectly suited to this outgoing couple.

Tocumwal Hotel Motel Geoffery Smith

Tocumwal

After initially looking for a MLR business on the Sunshine Coast they decided to relook in familiar territory on the Gold Coast - a place they had previously called home – and after viewing a number of businesses, Signature Waterfront

42

CRE

Victoria

L-R Wayne Stoll TMR, Brian Rangott, Narelle Filmer TMR

Apartments ticked all the boxes. Brian, in particular, recognised the benefits of the central location of the complex and the possibility of a golf course lifestyle.

The Think Management Rights team would like to wish Brian and Judith every success in their new business venture.

Glynlea Motel P & S Wale

Horsham

TB

Bandicoot Motor Inn Singh, Kaur, Brar

Hamilton

TB

Quest Geelong Xavier Wu

Geelong

RBA

The Alley Lounge & Night Club Michael Blawuciak

Sunbury

CRE

Less than Zero Steven Hiles

South Yarra

CRE

Counting House Arbel Sharafy

Mornington

CRE

Everton Hotel Murray King

Everton

CRE

Note: Agent/Broker involved in the sale is listed last.

Agent - KEY:  ARMS - Australian Resort Management Sales; CBMR - Calvin Bailey Management Rights; CRE - CRE Brokers; MRS - MR Sales; QTHB - Queensland Tourism & Hospitality Brokers; RAAS - RAAS Rights; RBA - Resort Brokers Australia; RS - Resort Sales; TB - Tourism Brokers; TMR - Think Management Rights; SC - Stratacorp.

* In conjunction

PROPERTY

ResortNews | November, 2018

AccomProperties reaches 69,369 listing views for October

The AccomProperties accommodation business opportunities listings portal continues to eclipse expectations delivering yet another solid month of growth for October 2018.

The portal delivered just under

5,500 accommodation buyers for their listing partners who viewed just under 70,000 listings in another record month.

With website metrics soaring to new levels including engagement, time onsite and session durations it’s no wonder AccomProperties is fast becoming the market leader in the industry.

The new record levels of traffic have additionally transposed into record volumes of qualified leads for partners and additional success for the team with management rights leads pivotal in driving this success.

It seems the formula behind the portal, which is based on a combination of high-quality content, cutting edge digital

marketing and listening to commercial partners and their needs, is paying dividends.

Moving forward AccomProperties will continue to innovate and lead the industry into the next phase of growth and success with our overall objective of market leader firmly in our sights.

Charles Nurse – Stratacorp

Introducing... Charles Nurse – Stratacorp Charles Nurse is breathing new life into the Management Rights industry with a new approach that will maximise every investment opportunity. He has developed a super-efficient tech-smart system to help sellers, buyers and developers earn millions in additional cash returns.

“Through many years of selling existing and implementing new Management Rights, we have made the process simple,” said Charles.

“The key to our success is outstanding communication, creating opportunities, and following every deal through to the end.”

Over the last six years, Charles has acted successfully for a large number of Management Rights operators and developers. Building on this success, Charles’ new company Stratacorp (established in 2016) is developing

November, 2018 | ResortNews

markets across Australia and New Zealand.

Stratacorp specialises in both established and new off-the-plan sales. They understand the challenges and obstacles involved in negotiating and establishing a Management Rights deal, and are committed to exceeding the expectations of everyone involved.

“Having the right team is vital to our success,” said Charles.

“When structuring Management Rights for sale, we always keep in mind the qualities that are attractive to prospective buyers.”

Stratacorp will help sell your Short or Long-Term Management Rights business.

Their specialised area of expertise is complexes greater than 80 units and a 50% letting pool.

“We are in regular touch with experienced operators looking for new opportunities,” said Charles.

PROPERTY

Name: Charles Nurse Mobile: 0477 826 666 Agency: Stratacorp Area of Service: Nationwide Web: www.stratacorp.com Email: charles@stratacorp.com

43

MANAGEMENT RIGHTS SANTALINA ON HERVEY BAY RECEIVERS AND MANAGERS APPOINTED

• Hervey Bay Esplanade location • 3 bedroom manager’s apartment • 14 apartments in the complex • Approx 20 years remaining on agreement term • Letting pool recently increased from 5 units to 7 units • Net Income $47,749 (based on 5 units) • Caretaker salary $19,062

OFFERS TO PURCHASE CLOSE 4PM THURSDAY 13 DECEMBER 2018 Further information available by contacting the exclusive agency Australian Resort Management Sales

LINDSAY PETTY Mobile: 0407 029 138 ■ Email: lindsay@managementrights.com ■ www.managementrights.com

EXCLUSIVE MANAGEMENT RIGHTS PURCHASE OPPORTUNITIES VARSITY LAKES • • • • •

.YLH[ MSL_PIPSP[` ^P[O 5V :L[ VMMPJL OV\YZ HUK THUHNLHISL NYV\UKZ :\IZ[HU[PHS )* YLT\ULYH[PVU VM R .:; 3VUN `LHY HNYLLTLU[ ^P[O `LHYZ [V Y\U VM ;V^UOVTLZ PU [OL SL[[PUN WVVS )LKYVVT IH[OYVVT [V^UOV\ZL

SURFERS PARADISE • • • • •

EXPRESSIONS OF INTEREST Nett: $ 386,486

EXPRESSIONS OF INTEREST Nett: $1,057,165

/PNOYPZL JVTWSL_ ^P[O RL`Z HUK \UP[Z PU 3L[[PUN 7VVS .YV^[O WV[LU[PHS 0KLHS MVY JVYWVYH[L VY Z`UKPJH[LK VWLYH[VY @LHY *HYL[HRPUN HUK 3L[[PUN (NYLLTLU[ ^P[O `LHYZ [V Y\U 3HYNL [V^LY Z[`SL JVTWSL_ ^P[O TPUPTHS 9LHS ,Z[H[L [V W\YJOHZL ,_JLSSLU[ I\PSKPUN MHJPSP[PLZ HUK H[[YHJ[PVUZ

SURFERS PARADISE • • • • •

$3,300,000

Nett: $420,000

:V\[OLYU :\YMLYZ 7HYHKPZL SVJH[PVU /PNOYPZL ^P[O TPUPTHS NYV\UKZ [V THPU[HPU )LKYVVT IH[OYVVT THUHNLYZ YLHS LZ[H[L JVUMLYLUJL YVVT 9VVT [V PUJYLHZL SL[[PUN WVVS VJJ\WHUJ` *SVZL [V ILHJO HUK HSS HTLUP[PLZ

DUSTIN ALLEN

CHARLES NURSE

4! ,! K\Z[PU'Z[YH[HJVYW JVT

4! ,! JOHYSLZ'Z[YH[HJVYW JVT

WWW.STRATACORP.COM

Nett: $317,260

/\NL WV[LU[PHS PUJVTL VM ZLSSPUN \UP[Z ^P[OPU [OL I\PSKPUN 4HZZP]L ILKYVVT IH[OYVVT S\_\Y` OVTL *VTWSL[LS` ZLWLYH[L VɉJL ^P[O HTHaPUN ILHJO ]PL^Z ,_JLSSLU[ I\PSKPUN HTLUP[PLZ HUK ZLY]PJLZ (IZVS\[L ILHJOMYVU[ SVJH[PVU

SURFERS PARADISE • • • • •

$2,850,000

If you are looking to buy or sell, contact us!

1800 111 622

Your Management Rights Financing Experts Management and Letting Rights Quarterly Pulse • September 18 • Fifth Series

Market Snapshot - August 2018

Data provided by The On-Site Manager website.

STOCK LEVELS…are STILL INCREASING Total Value of Listings June 2017

October 2017

January 2018

May 2018

Aug 2018

$950m 629 Properties on the market

$864m 673 Properties on the market

$835m 604 Properties on the market

$932m 677 Properties on the market

$1,040m 728 Properties on the market

As are the Number of Businesses listed for sale Number of Businesses for Sale June 2017 Holiday - 359 Permanent - 278

October 2017

January 2018

Holiday - 337 Permanent - 260

Holiday - 328 Permanent - 250

May 2018

Aug 2018

Holiday - 346 Permanent - 307

Holiday - 355 Permanent - 338

and Multipliers…are DECREASING BUSINESS MULTIPLIERS (ave) OVER $1m Purchase Price

BUSINESS MULTIPLIERS (ave) OVER $1m Purchase Price

BUSINESS MULTIPLIERS (ave) OVER $1m Purchase Price

BUSINESS MULTIPLIERS (ave) OVER $1m Purchase Price

BUSINESS MULTIPLIERS (ave) OVER $1m Purchase Price

5.1x

5.1x

5x

4.9x

4.4x

and Businesses are remaining on the market in the main categories around the same time DAYS LISTED October 2017

DAYS LISTED January 2018

DAYS LISTED January 2018

DAYS LISTED May 2018

DAYS LISTED Aug 2018

Has reduced by 7 days to 84 days

Has reduced by 4 days to 80 days

Has reduced by 4 days to 76 days

Has increased by 10 days to 86 days

Has reduced by 16 days to 71 days*

Market Movers The stock levels have increased in all types of Management and Letting Rights businesses with a particular uplift in permanents Corporate buildings which has impacted some of the averages particularly days on the market. To see the impact of seasonality during the middle of the year we will need to wait until the November results however it appears that the selling market continues to collect stock and listings. *Remained 79 days for Holiday and Permanent

‘On the Market Analysis’ - Market Pulse Comparison by Agreement Type - Aug18 Purchase Price

BUSINESS MULTIPLIERS (ave)

Ave Purchase Price

Standard Agreements

4.1x

$1.65m

Accommodation Agreements

4.3

$1.55m

P F E

(07) 5574 0500 (07) 5574 0333

info@fnx.com.au

www.fnx.com.au company/fnx-finance

Management and Letting Rights Monthly Pulse • May 18 • Fifth Series

Management Rights For Sale - Market Analysis - August 18 Letting Pool Coverage – proportion of the total units to those within the Pool. Agreement Coverage – refers to % of total agreement term available upon purchase.

Total stock

Total stock

Days listed

Average price

Multipliers

Gross return %

Letting pool coverage

Agreement coverage

Resort / Holiday

$550,959,664

355

82

$1,551,999

4.33

23%

56%

70%

Permanent

$378,006,577

338

75

$1,118,363

4.41

23%

43%

86%

Corporate

$59,137,864

20

51

$2,956,893

5.15

19%

60%

79%

Off The Plan

$8,905,900

9

81

$989,544

3.78

26%

50%

97%

Student Accommodation

$3,904,000

3

34

$1,301,333

3.81

26%

96%

40%

Retirement

$3,430,000

3

20

$1,143,333

4.10

24%

59%

75%

Grand Total or Average

$1,004,344,005

728

71

$1,379,593

4.4

23%

52%

73%

Historical Comparison of the Market Stock Numbers of Building…which have been in Permanents and less so Corporates…

NO. OF BULDINGS ON THE MARKET BY TYPE (Holiday & Permanent)

NUMBER ON THE MARKET 800

360

728

725

307.5

677

673 650

630

359 278

260

255

604

575 500

337

355 328

250

338

346 307

202.5

June-17

Oct-17

Jan-18

May-18

150

Aug-18

June-21

Oct-21

Number on the Market

Jan-22

Resort/Holiday

May-22

Aug-22

Permanent

As the total dollar value of properties on the market also increase…

NO. OF BULDINGS ON THE MARKET BY TYPE (other)

TOTAL $ VALUE OF PROPERTIES ON THE MARKET

20

16 15

$1,100,00,000

20

15 13

$1,004,344,005

$834,728,496

$550,000,000

5 0

$933,986,220

$864,037,223

$825,000,000

12

10

$956,296,140

$275,000,000

June-17

Corporate

Oct-17

Off the Plan

Jan-18

May-18

Student Accommodation

P F E

(07) 5574 0500 (07) 5574 0333

info@fnx.com.au

$0

Aug-18

June-17

Retirement

www.fnx.com.au company/fnx-finance

Grand Total

Oct-17

Jan-18

Resort/Holiday

May-18

Aug-18

Permanent

Corporate

Patrick Bell – Partner 0427 692 698 pat@fnx.com.au

Offers Over $1,800,000

12 Bay Terrace, Shute Harbour, Qld, 4802

BAYBLISS APARTMENTS

A true slice of tranquillity in Airlie Beach This is a rare find – a serene and intimate holiday apartment complex in a unique location. The beautiful Baybliss Apartments are elevated above Shute Harbour Marina (currently undergoing a $252 Million development).

A serene gem, hidden in “The Gateway to the 74 Whitsunday’s Islands”. Daydream Island, Long Island, and Hamilton Island, only a few minutes ferry ride away.

Baybliss presents three modern and well-appointed self-contained studio apartments, with their own private entrance, fully equipped to offer the perfect North Queensland holiday experience.

The apartments offer seaside luxury with expansive water views. Plus, a stunning “infinity” resort pool that separates the

apartments from the ocean. The apartments are very economical to run and ecofriendly with a comprehensive solar power system installed. It’s tranquil and tropical, you can get away from it all surrounded by the Conway National Park.

Blissfully quiet, yet only a 10-minute drive to the centre of Airlie beach.

North of Proserpine the apartments are serviced by two major airports Hamilton Island and the Whitsunday Coast Airport (which is currently undergoing a huge expansion).

Regular train services to Proserpine Station from Brisbane and Cairns. This is a wellestablished, beautifully maintained and very well-run boutique complex with a spacious manager’s residence.

The main residence features a large modern kitchen (Bosch appliances) with huge walkin pantry. Bespoke built-in cupboards also provide plenty of storage.

The very spacious lounge/dining room features a beautiful mango wood dining table with seating for 12 people.

And, to complete the picture, all furniture in the main residence will be included in the sale.

All the hard work has already been done, you can relax into this tropical paradise and reap all the rewards that it has to offer.

You will only be disturbed by the birdsong and the sound of the ocean.

Seize this opportunity - a lifestyle and business that most people can only dream of!

For more information contact Tess Kennedy on

M: + 61 400 659 222 W: + 61 7 4946 9661 E: tess@baybliss.com.au

MANAGEMENT RIGHTS RESORTS

WYNNUM

Main Beach

GREAT STARTER BUSINESS

Management agreements recently topped up to 22 years.

Ideal business for industry beginners or semi-retired.

Gated community in a sought after location backing onto park and Wynnum’s foreshore.

Large renovated Managers unit comprising large office and private rear yard Low maintenance common grounds.

No set office hours and supportive Body Corporate Committee Close to public transport, shopping centres and schools. Only 15 minutes to CBD.

NETT $100,000 PRICE $935,000

SENSATIONAL BUSINESS

Bobo Qi

0438 027 771

bobo@propertybridge.com.au

This upmarket iconic building is arguably the best location on famous Main Beach.

Nestled between beach frontage and riverside, enjoy the beach lifestyle in addition to fishing off your riverside pontoon beside your boat mooring.

Outstanding views all round make this complex a dream come true.

Freshly painted with renovated lifts and foyer this building is well maintained and in excellent condition.

A generous salary of $124,000 with a minimum of 3.5% annual increases coupled with long agreements is the icing on the cake.

NETT $302,000 PRICE $2,347,000

Biggera Waters

ROBINA

HUGE POTENTIAL

LIFESTYLE

Picturesque waterfront holiday resort showing great returns and huge potential for growth.

Ultra-modern waterfront permanent inner-city lifestyle.

Secure and commanding in tree lined boulevard.

Excellent facilities to attract longer stay guests.

Public transport, education and retail convenience.

Accommodation module and Gallery Vie compliant.

3 bedroom, 2 bathroom manager’s apartment with courtyards. Office on title.

You can bring the boat and the pooch. Do the sums, it’s priced to Sell!

NETT $245,000 PRICE $1,595,000

Long agreements in Accommodation Module.

Rhonda Perkins

Impressive 2 bedroom, 2 bath residence and office.

rhonda@propertybridge.com.au

NETT $133,000 PRICE $1,165,000

Love at first sight!

0418 767 115

FREE MARKET APPRAISALS QUALIFIED BUYERS DISCREET “SILENT” LISTINGS UNRIVALLED BUYER SUPPORT

propertybridge.com.au

Northern Queensland:

primed to be the next boom zone?

MANAGEMENT RIGHTS OPPORTUNITIES

TOP PORT DOUGLAS RESORT • Holiday Resort property in an excellent Port Douglas location providing top resort facilities and a very good mix of accommodation types.

• This property absolutely ticks all the boxes with a great $110,000 body corporate salary, 23 years to run on the agreements, no set office hours and the manager can reside offsite.

• Port Douglas is arguably the most fashionable destination in Tropical North Queensland.

• This property is new to the market and with both the location and business potential for astute management, will be in high demand.

Net Income: $621,700 Total Price: $3,415,000 Confidentiality conditions apply. Call Calvin today for full property details.

Contact: Mobile: Email:

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

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

Australian Resident Accommodation Managers’ Association Member

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

50

PROPERTY

ResortNews | November, 2018

By Trish Riley, Editor

In September 2015 the property spotlight on northern Queensland noted that “the Cairns area is a smouldering hotspot awaiting the catalyst that will fully ignite the area to its full potential.” Three years later there is still a sense of optimism about the region and they are just waiting for that elusive spark.

Growth across northern Queensland, both in tourism and the general economy, continue to be positive. Tourism arrivals are still rising and thankfully, as conditions contract in the southern states, there is a steady stream of people looking for a ‘sea change’ – a new start, warmer climes, and relaxed living.

Accommodation providers are experiencing strong trading despite the occasional ‘rogue’ month and overall year-on-year trading is better than ever. It

stands to reason therefore, that with the market moving ahead positively and a sustained growth in profits there would be a strong sales demand for property and management rights.

So what is everyone waiting for?

Geoff Ellis, of MR Sales, Cairns (serving north Queensland) believes the biggest issue facing the region is finance – or rather, the lack of it.

“Because the banks appear overcommitted to investor loans in over-cooked major cities, their lending policies in the regions are

not attractive. The vast majority of strata titled apartments, that constitute the backbone of the tourism accommodation industry in north Queensland were developed and sold to investors in pre-GFC times, and there was never any problem attracting investors back then.

“Those investors could even visit their investment properties occasionally and write off some, if not all, of the expense against their rental earnings.

The government closed that option off last year.

“So, with investment in north Queensland now adversely impacted by finance and

government policy constraints introduced primarily to dampen major city investment excesses, development in a region such as north Queensland appears to be on the back foot.

“On top of this, this area is not immune to the impact of the Banking Royal Commission,” said Ellis. “Financing on any property purchase and on the purchase of management rights is a lot more protracted than it was before. It appears the financiers have changed policies, processes and people in the wake of the Royal Commission and this has deterred, or at least delayed several deals in 2018.”

CENTRAL PLAZA

Port Douglas

Located within walking distance of Macrossan Street, Four Mile Beach and the Marina Central Plaza has become established as the family friendly resort to be at when visiting Port Douglas.

There are no owner occupiers or outside agents and the apartments are spacious two November, 2018 | ResortNews

and three bedroom units with the flexibility to lock down as required. Owners have responded positively to the managers requests to continually upgrade and are furnished to a four star standard that meets guest expectations.

The Body Corporate Agreements extend to 2042 and the BC salary of $75K underpins excellent and sustainable profits – currently at $381,000. With beautifully designed landscaping, grounds maintenance is kept to a minimum and there are excellent facilities for storage and

housekeeping.

The current managers have enjoyed living off-site for sometime however the three bedroom two bathroom managers apartment provides excellent on-site living with immediate access to the office which is also on title.

Port Douglas and Far North Queensland generally have been enjoying steady tourism growth for some years and little wonder as more international visitors find the attractions here as among the best. The Great Barrier Reef, the World Heritage

PROPERTY

listed Daintree Rainforest and the Atherton Tablelands provide visitors with a diverse part of Australia and the stable climate year round is hard to beat.

Our vendors have enjoyed managing Central Plaza for well over a decade and it will be with some reluctance that they step back to retire. However they are genuine about selling and have set a very attractive and realistic price for the business.

For more information contact Geoff Ellis from MR Sales on 0432 790 959

51

qthb.com.au

BEST LEASEHOLD MOTEL AVAILABLE • • • • • • • • • •

Fantastic 26 unit motel complex includes spacious units of different configurations to cater to wider market Function/Conference room (no restaurant) Trading over the last 3 years has been growing 10%+ each year Large family size 4 bedroom onsite residence Inground swimming pool, covered BBQ area with lovely landscaped gardens Solid brick construction Long term lease with low rental ratio paid by Lessee Offers a high return on investment - can be operated under management as a passive investment Full Accountant’s financial statements available to genuine enquiries The ideal motel business that will suit anyone wanting a quality motel that ticks all the boxes

Leasehold $1,450,000 - Ref ALB103

PRESTIGIOUS FREEHOLD MOTEL • • • • • • • • • • •

Freehold $2,295,000 - Ref AFS104

ABSOLUTE BEACHFRONT COMPLEX • • • • • • • • • • • •

36 unit accommodation complex - all 2 bedroom fully self contained units Idyllic oceanfront location in strong economic region Comfortable 2 bedroom fully renovated residence included - freehold tenure Tropical landscaped gardens, inground swimming pools, BBQ areas, tennis court, fire pit and beach viewing platform High quality presentation throughout complex Clientele is a mix of corporate, tourist and families Consistently strong level of units in the letti ng pool Approx 21 years remaining on agreements Excellent Body Corporate Salary in place of $87,158 pa Financial data for last 5 years is available to genuine enquiries Highly recommended for a great mix of business and lifestyle and is one of the most consistently strong performing businesses available anywhere Net Profit FY18 $185,088

Management Rights $895,000 - Ref AMP102

Extremely high quality 36 unit motel complex Beautiful restaurant and licensed bar Income has been growing 10%+ over the last 3 years and there are further opportunities available to the next operator to increase profit margins Spacious one bedroom apartment onsite residence Inground swimming pool with lovely landscaped lawns and gardens Solid brick construction under tile roof Located close to the CBD Strong performing motel for many years and is improving each year The motel is offered to the market at a very low $63,750/unit for such a quality property built to the highest standard construction Full Accountant’s financial statements available to genuine enquiries This is a quality motel asset with a real point of difference in a growing region

LONG ESTABLISHED FREEHOLD MOTEL • • • • • • • • • • • • •

14 large ground floor motel unit complex Licensed restaurant and bar servicing inhouse guests and local residents Reception and three bedroom residence Inground swimming pool and BBQ area Solid brick and block construction Coastal location with a main highway position, close to the centre of town Ample parking for large vehicles Consistently good performer over the long term Turnover FY18 $500,000 Net Profit FY18 $175,313 Huge 20% ROI makes this a fantastic buy to operate, run under management or lease out Spare land for expansion (on separate title} available for sale in addition This is a quality motel asset with a real point of difference in a growing region

Freehold $875,000 - Ref AFE99

Andrew Morgan - Specialist Resort & Motel Broker since 1995 m 0417 608 041 | p 07 4953 1611 | e andrew@qthb.com.au | www.qthb.com.au

JUST LISTED! New Exclusive Agency Listings

ID 8911 A JEWEL BY THE SEA

ID 8202 CENTRALLY LOCATED HOLIDAY COMPLEX

North Stradbroke Island

Byron Bay

• Beautifully presented holiday management rights with 16 in the letting pool • Long agreements expiring 2040, no set office hours • Lovely 2 bedroom, 2 bathroom managers residence with ocean views • Idyllic location, a whale watchers delight • Room to grow the business

• A short walk to CBD of Byron Bay,

Nett Profit: $181,500 Asking Price: $1,250,000

Nett Profit: $257,185 Asking Price: $1,850,000

EXCLUSIVE AGENT: Warren Oliver – 0416 216 625

EXCLUSIVE AGENT: Tony Johnson – 0433 335 679

ID 7925 CARETAKING ONLY BUSINESS PLUS A DELIGHTFUL HOME

ID 8712 SOUGHT AFTER SHORT-TERM LETTING

Northern NSW

Brisbane

• Unique opportunity to buy a caretaking only business in popular location • Permanent complex with wellmaintained grounds & gardens • 3 bedroom residence will suit house proud couple who like privacy & space • Central location only 5 mins to beaches and shopping centres • Supportive committee

• Rarely available Brisbane river management rights

Nett Profit: $88,000

Asking Price: $793,000

EXCLUSIVE AGENT: Tony Johnson – 0433 335 679

all units in the letting pool • Renovated 2 bedroom managers unit • Current occupancy of 60% allows for growth • A great business that has shown consistent results but has room to improve • Easily run by a couple with current cleaning staff keen to remain

• Huge upside still available for the savvy operator • Building recently painted internally and externally • 3 bedroom managers accommodation • Ideal family or partnership opportunity

Nett Profit: $555,788 Asking Price: $3,820,000 EXCLUSIVE AGENT: Jake Clarke – 0418 663 661 Warren Oliver – 0416 216 625 ID 8910 SMALL OFF THE PLAN MANAGEMENT RIGHTS

Maleny • • • • • •

Stage One due for completion Dec 2018 / early 2019 Stage Two due for completion April 2019 Live off-site and add your cabin to the letting pool Excellent managers office (no set hours) + small conference facility 13 x 2 bedroom + 1 x 3 bedroom designs Strong nightly tariffs achieved in this area

Nett Profit: $145,000 (projected) Asking Price: $985,000 EXCLUSIVE AGENT: Greg Jorgensen – 0407 721 335

MR Sales have an extensive range of listings Australia wide Visit www.mrsales.com.au to view them now or Phone: 1300 928 556 | Email: sales@mrsales.com.au

www.mrsales.com.au

Calvin Bailey, owner of Calvin Bailey Management Rights agrees and says the region is still waiting on a full return of developer confidence in apartment construction.

“The previous trend of northern Queensland following the boom and bust of southeast Queensland development has not eventuated and even though the southeast markets are now known to be overheated, our growth spurt has not started yet,” he said.

Housing supply has been quite tight in Cairns for several years.

Residential vacancy rates have been consistently below 1.5 percent for five years, easing even further over the last 18 months to about 1.3 percent.

“There is also a shortage of quality new listings coming onto the market,” adds Geoff Ellis. “Strange as it seems, were one to compare advertised listings for sale today it almost replicates what was for sale almost a decade ago. This is not to say these listings have been for sale for a long time but rather that the same properties keep coming back to market.

With less than 200 schemes

Beachside location offering the perfect start in a dynamic industry.

Trinity Beach Pacific Apartments offers affordable four star accommodation with a mixture of holiday and permanent letting. The current vendors have built a solid reputation with owners and guests to create a holiday experience with repeat business.

The new managers will be able to enjoy the benefits of a newly renovated property. With work completed on the pool area and manicured gardens, your focus can be on the business at hand.

in north Queensland, it may appear to the prospective buyer that the pickings are slim.”

Frank van der Heijden, of Resort Sales concurs: “We do not have, and haven’t had any off-theplan properties for a long time due to nothing getting built for a long time in the Cairns and Port Douglas area.

“The age-old scenario of supply and demand is in play. The market is very competitive and we see the high-quality properties getting good interest and selling quickly.”

“It’s hard to understand why

we are not building like crazy, and why almost nothing has been built for the last decade?” adds Calvin Bailey. “Median unit prices remain on average about $100,000 less than the southeast quarter, therefore returns on investment are far better. Why are investor buyers not flocking to town to snap up these bargains?

“Northern Queensland, and Cairns in particular, has been at the tipping point of going from ‘good’ to ‘great’ for some time, experiencing near record-low rental vacancies, increasing yields, tight supply in many areas and the added benefit of

Price: $730,000 Managers Apartment: $297,000 Management Rights: $433,000 Net Profit: $131,036 (using just over a 3.3 multiplier) Total Units: 40 (22 in letting pool) 24 years remaining on agreement. Pets allowed on application.

CBD, Trinity Beach is ideally situated for holiday guests. Trinity Beach is voted Cairns Best Beach and once you visit you will see why.

Investment Highlights; • • • •

Close proximity to Trinity Beach precinct restaurants, bars and cafes Great roadside presence on main road to Trinity Beach.

Large office / reception area and three bedroom managers apartment Guest NBN Wi-Fi installed in every apartment in holiday letting pool PBX and Foxtel systems recently upgraded Renovated pool area and manicured gardens

With a large three bedroom manager’s residence, newly renovated bathroom and private courtyard, this is the perfect entry level resort for Management Rights beginners.

• •

Trinity Beach Pacific offers the best balance of business and lifestyle for a family or management couple! Only 20 minutes away from Cairns

Unit Features: 3 bedrooms, built-in wardrobes, air-conditioning in every room, fully screened and exclusive use of private courtyard.

Frank van der Heijden Mobile: 0407 137 186 | frank@resortsales.com

Nicky van der Heijden Mobile: 0407 369 699 | nicky@resortsales.com

P 07 4056 6366 • info@resortsales.com • www.resortsales.com

54

PROPERTY

ResortNews | November, 2018

interest rates being at some of their most affordable levels.”

Simon Pressley, head of property market research, Propertyology said: “If we were to draw a line in the sand at the moment, I believe that the property markets of northern Queensland will perform better than most locations in Australia over the next three years, including that of Queensland’s capital city.

Recent economic data obtained from the Australian Bureau of Statistics shows a number of the towns in northern Queensland are showing signs of turning a corner.

According to analysts, Townsville and Cairns are areas to watch, where both markets are in a 'recovery' phase and on the verge of growth. Even Mackay house prices rebounded strongly over the last quarter, suggesting a sustained revival in prospect.

“We see every opportunity for the property markets to perform well as we move towards the end of the year, and look to increased development and construction to be the catalyst

that will make the difference between a mediocre finish and a fantastic year ahead.”

these projects are providing improved conditions for employment and the economy.

million port expansion, three new 5-star hotels, and a $650 million eco resort.

It is fair to say,” adds Calvin Bailey, “that the pipeline of major construction projects planned for the Cairns, Port Douglas and Tableland areas are being viewed as a confidence booster. It doesn’t need much to move forward and

“The projects mean that an additional 10,000 new jobs in the next 12 months, driving employment growth, local confidence, and property prices for a few years.”

The newly named Hotel Riley will be the first to open under the Crystalbrook Collection banner, providing high quality tourism accommodation and infrastructure and once operational, will employ more than 175 staff.

Among major projects underway are the $120

HUSTLE AND BUSTLE to a Slice of Paradise

A truly unique property located in paradise has new owners for the first time in 15 years.

Partner of Queensland Tourism & Hospitality Brokers (QTHB) Andrew Morgan recently negotiated the sale of the Broken River Mountain Resort that adjoins the Eungella National Park in North Queensland. Famously known around the world, the property

November, 2018 | ResortNews

is possibly the only freehold privately owned site where guests can view platypus in their own natural environment.

The resort was developed by Rob and Robyn Burns, local dairy farmers who sold to Denis & Judy Murray and Chris & Jenny Ayre from the Sunshine Coast in approximately 2003.

They operated the business until Andrew introduced the property to Wendy Zhang and Joe Zhu, long term residents of Melbourne.

“Wendy and Joe had been looking to escape the hustle and bustle of Melbourne and immediately fell in love with the property and region.

Having the beauty of Eungella National Park and Broken River right on their door step was an opportunity they could not miss,” Andrew said.

Broken River Mountain Resort consists of 18 units with log fire places and all enjoy access to the untouched beauty of the rainforest and Broken River from their front door.

PROPERTY

The restaurant is the ideal place for guests to mingle with a large log fire place as a centrepiece where they can enjoy a meal and drink and soak up the atmosphere.

Native wildlife including possums and birds gather on the restaurant deck in the early evening, giving guests a unique experience. There is also a purpose built conference centre and other amenities for guests to enjoy including swimming pool, BBQ areas and rainforest walking tracks. The property has expansion potential with a Development Approval in place for a further 11 dual key units.

“North Queensland is currently experiencing excellent demand for accommodation businesses and properties on the back of growing occupancy rates. There are some excellent accommodation business opportunities available and southern based buyers are demanding more,” Andrew said.

For more information contact Andrew Morgan from QTHB on 0417 608 041

55

Next in line is the Abbott Street project called Bailey, due to open in 2019.

events such as the Amway China Leadership seminar for 8,000 delegates in 2019.

And fuelled by the Crystalbrook Collection hotel bonanza, other local hotels have announced the roll out of significant renovations and refurbishments including a $13 million renovation of the Shangri-La, and while it’s been a long time coming, construction of the first two towers at the Nova City development in the Cairns CBD is expected to start soon.

The popular tourism mecca has also added important economic diversity over the last decade. Education, health, and the construction sectors have evolved. The navy is Cairns’ biggest employer and the federal government recently committed $120 million for new infrastructure and a major naval base expansion. Additional marine manufacturing and maintenance jobs are expected from the $200 billion fleet upgrade for Australia’s defence force.

Government have pledged $475 million to be invested on three major renewable energy projects (Mt Emerald wind farm, Lakeland solar farm, and MSF Sugar’s bagassefuelled power station and a $175 million expansion of the Cairns Convention Centre will increase capacity for major

56

James Cook University and, more recently, CQ University have expanded their infrastructure and are attracting more domestic and international students.

“Changes in job volumes at an individual city level – as opposed to just looking at an unemployment rate in isolation –provides more insight into future performance of property markets,” says Simon Pressley.

Mr Pressley says that employment trends are often a precursor to property market trends: “The relationship between the percentage of national job creation and percentage of total Australian population for all capital cities is remarkably consistent with how their respective property markets have performed over the last four years.”

There have already been 11,700 new jobs created in Cairns over the last two years, a 11.2 percent increase that is well above the national 3.7 percent and state 3.4 percent average.

PROPERTY

“The greater construction activity and welcome influx of economic activity (and greater local spending), are all factors that contribute positively to the property market,” adds Calvin Bailey, “and as these projects multiply, their impact on the region should begin to be more keenly felt.”

Echoing this sentiment, Troy McGuane, managing director of Elite Real Estate Services Cairns, said growth in the local property market is imminent.

“Traditionally northern Queensland takes a while to respond to changes in the market; I do however, believe that the commencement of construction work within the CBD will lift the property market in the coming months as confidence grows,” he said.

ResortNews | November, 2018

“In the meantime, tourism is flourishing in the north and hotel occupancies in the Cairns CBD are amongst the highest in the country. Room rates also continue to rise and we are seeing 7 percent year on year growth in the industry.

Accommodation in the Cairns region is now difficult to find at peak times with ‘No Vacancy’ often now being the norm.”

“There are several factors that underpin our confidence,” agrees Geoff Ellis. “Australia’s sixteenth largest city is home to the nation’s fifth busiest airport (approximately five million passengers per year) and more and more international visitors are recognising the advantage of using Cairns as a gateway into or out of Australia. North Queensland has overtaken the Gold Coast as the preferred destination for international tourist arrivals and more international airlines serving the growth markets of Asia and Europe are seeing Cairns as the logical destination given the savings in time and cost for tourists

wanting to see Australian icons such as the Great Barrier Reef and the rainforest.

“In addition to the airport, Cairns boasts a major sea port, a number of unique tourism attractions (on land and offshore), world-class facilities for hosting major events and business conferences, recent investment in universities, and an abundance of agricultural assets in the region.

“As tourism numbers rise, and as more young people move north for work, the demand for beds and apartments supports steady growth in tariffs and rentals. In turn that leads to better profitability for management rights operators.”

Andrew Morgan, motel broker of Queensland Tourism & Hospitality Brokers (QTHB) agrees: “The market for motel and caravan park sales throughout North Queensland

has been very strong over the past 12 months commencing November 2017. There has been a large number of successful transactions completed by QTHB alone, with in excess of $30m worth of sales by the firm during this time in north Queensland. This is a significant result which has been on the back of demand strengthening and business and property values have been increasing as a result.

MANGO HOUSE RESORT There is strong interest in Airlie Beach – not just from tourists who have been coming here for years from all over Australia and overseas.

It is canny investors who have identified Airlie Beach and the Whitsundays as one of the true unspoilt resort playgrounds of Australia. Well away from the big cities and the madding crowds, this region is there for tourism and that is the industry that is flourishing. In recent times smart investors have been November, 2018 | ResortNews

acquiring tourism assets in and around Airlie Beach and this is accompanied by increasing investment in marketing and promotion – the spin-offs of which are shared by all in the region.

Mango House Resort is pitched to the middle market and has long enjoyed excellent patronage from visitors from around the world. The current business owners have been here more than a decade and have seen the growth and enjoyed the fruits of their efforts. However the time has come to retire and consequently they are genuinely looking to sell.

The resort comprises 25 lots with 32 keys and is designed in a true tropical style with an inviting pool occupying the central courtyard. There are no owner occupiers and outside agents and all apartments are tastefully furnished to emphasise the tropical surrounds with guest parking adjacent. The grounds are generous and provide a relaxing and inviting environment for guest relaxation.

The managers apartment offers two bedroom, two bathroom accommodation with direct access to the office which is on title. Profitability has been consistent over the years and at the asking price, this business

PROPERTY

is a very attractive proposition.

Certainly the vendors are genuine about retiring and are ready to negotiate.

Airlie Beach is a wonderful place to live and work. There is a strong sense of community and the region offers every amenity including choice of schools, medical facilities and retail shopping. Combine this with the best sailing and waterways, beautiful beaches and recreational activities and it is hard to see why you wouldn’t want to be here.

For more information contact Geoff Ellis from MR Sales on 0432 790 959

57

“As with other sectors of the property market, buyers for motels and caravan parks have been predominantly based in Australia. Sydney and Melbourne have been hotspots with many looking to benefit from acquiring strategically located accommodation businesses in the greater north Queensland area.

When asked if financing is having as big an impact as the investor and MLR sectors,

58

Andrew said: “Yes and no. I believe lending criteria has tightened and more applicants who were marginal to gain approval are being declined.

The majority of our clients however, are experienced owners or operators who are cashed up and who have good relationships with their financiers. Those who are gaining approvals for finance are dealing with experienced finance brokers and bankers as opposed to walking into

a bank off the street and dealing with someone not skilled and experienced in the accommodation industry.

“2018 has seen the motel and parks market more competitive than it has been for a while,” adds Morgan. “Competitive bidding from the market is the best situation for the sale of any business or property and we are seeing more competitive tension now in the market than before. Once

PROPERTY

a property is under contract there is pressure on the buyer to complete. If conditions are not met on time we are seeing more under bidders waiting for the contract to fall.”

“The same appears true for management rights businesses,” adds Bailey. “With the general shortage of quality stock and vendors lengthening their time in existing businesses, we expect greater opportunities to be created.

ResortNews | November, 2018

MANAGEMENT RIGHTS OPPORTUNITIES IN NORTH QUEENSLAND CONSIDER THE ADVANTAGES - BETTER MULTIPLIERS, BETTER YIELDS & BETTER CHOICES

PALM COVE

BEACHFRONT PERFECT

TOTAL PRICE:

POPULAR HOLIDAY PROPERTY

Total Units/Pool: 33/29 Agreement: 25/20 years Salary: $56,501 Net Income: $176,422 Real Estate: $449,000

Total Units/Pool: 18/16 Agreement: 25/20 years Salary: $65,823 Net Income: $251,011 Real Estate: $360,000

• Beautifully presented in top location.

• Well-presented mix of holiday apartments.

• Exciting opportunity, suitable first time buyers.

• Well-located close to the heart of the Village.

• Charming complex and very well presented.

• Ticks all the boxes. Motivated vendors.

$1,199,000 - Contact Calvin

CAIRNS NORTH

PORT DOUGLAS

MIXED LETTING

TOTAL PRICE:

$1,390,000 - Contact Alex

CAIRNS

STARTER OPPORTUNITY

Total Units/Pool: 95/47 Agreement: 25/22 years Salary: $134,491 Net Income: $423,567 Real Estate: $380,000

Total Units/Pool: 17/14 Agreement: 25/21 years Salary: $35,000 Net Income: $93,000 Real Estate: $190,000 • Compact holiday property & good business.

• Easily managed & great lifestyle choice.

• Perfect business for the first time operator.

• Motivated vendor and 3.2 multiplier.

• Modern exclusive 4 star property.

• Adjacent to The Cairns Esplanade.

• Good mix of quality 2 & 3 brm apartments.

• Further growth assured in high demand area.

TOTAL PRICE:

CAIRNS CBD

$2,200,000 - Contact Calvin

SUPERB WATERFRONT VIEWS

TOTAL PRICE:

$485,000 - Contact Alex

CLIFTON BEACH

4 STAR BEACHFRONT

Total Units/Pool: 37/21 Agreement: 20/18 years Salary: $69,279 Net Income: $396,000 Real Estate: $550,000

Total Units/Pool: 45/32 Agreement: 10/9 standard module Salary: $66,000 Net Income: $190,000 Unit Price: $410,000

• Top location on The Esplanade.

• Holiday property, 4 star, spacious 2 brm apts.

• No set office hours, top manager’s apartment.

• Premier property with established business.

• Modern 4 star holiday property.

• Beachfront with quiet, delightful location.

• No set hours and manager can reside offsite.

• First time offered for sale in 15 years.

$2,350,000 - Contact Calvin

Contact: Mobile: Email:

TOTAL PRICE:

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

TOTAL PRICE:

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

Contact: Mobile: Email:

$1,100,000 - Contact Alex

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

Australian Resident Accommodation Managers’ Association Member

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

“Astute accommodation business buyers should be taking advantage of the current business selections available, the low multipliers in the 4-times range, the ever-increasing yields and the great lifestyle and climate available in this lovely part of Queensland. The pre-GFC days must eventually return, when sales of over 5-times multipliers were recorded and confident buyers were abundant. When it does, those who got in early will be smiling.”

When asked about the impact of OTA’s and ‘shared economy’ schemes in northern Queensland, Geoff Ellis said: “There has been a lot of debate on the impact of disrupters such as Airbnb but it is difficult to find credible research that can be relied upon as by and large Airbnb as an organisation dictate the narrative and lead the debate.

“A University of Sydney report in September 2018 claimed one in ten properties within the Douglas Shire (Port Douglas and surrounds) were listed as Airbnb properties. In Queensland there are supposedly 28,900 Airbnb properties earning $5,300 per annum. My anecdotal feedback around northern Queensland is that whereas several onsite managers have lost a

60

investment and sustainable growth opportunities in management rights.”

Cavin Bailey concurs: “During a nationally broadcast Sky News interview, Cairns was chosen as the nation’s real estate investment hot spot and named as “the place to invest in property in 2018”.

Recommendations don’t come much bigger than this.

couple to Airbnb, invariably the owners have the property back in the rental pool within twelve months. If there were no Airbnb properties a decade ago and there are now 28,900, where are all the guests coming from? And of course, $5,300 earnings per annum would not cover the average body corporate levy. Furthermore, as the vast majority of apartment owners in north Queensland are not resident, they are reliant on hiring someone else to manage the property. For most, it just doesn’t stack up.”

Frank van der Heijden agrees: “Resort Sales have noted a reverse in the trend of individual owners operating Airbnb or private lettings in their holiday properties as they cannot give

the same quality operation or holiday experience as an onsite manager. Unlike the consolidation we’re seeing from investors in the south, this shift bodes well for the industry.

“Overall, we think that the market for 2019 is looking very good. Cairns, the beaches and Port Douglas have seen good numbers over the last couple of years and they are still increasing.”

Looking ahead, Geoff Ellis is also positive. “Despite being a comparatively small market if compared to the Gold Coast and southeast Queensland generally, the tourism industry and the region continues to demonstrate good growth and the numbers are such that North Queensland still offers the best return on

PROPERTY

“Buying the right property in the right place is not just luck - it is also about timing and I believe that time is now.”

When asked how he sees the 2019/20 market for motels, Andrew Morgan agrees: “We see the market going forward continuing to strengthen. The appetite from the buying market is growing and finding suitable accommodation businesses and properties to satisfy the demand is a challenge. Experienced owners and operators advise they will continue adding to their accommodation property portfolio’s over the next 12 months which reaffirms our market predications.

And as Geoff Ellis is proud to say: “Most people spend their entire lives being good in the hope it will enable them to reach paradise; the smart ones simply move here.”

ResortNews | November, 2018

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

North Queensland Management Rights Opportunities CAIRNS

CAIRNS

Major Price Reduction!

Priced To Sell

Permanent And Holiday Complex With The Returns

• This impressive complex comprises 20 spacious apartments • Located on the fringe of the Cairns CBD, • Body Corporate Salary $45,550 • 3 bedroom managers residence

• Good located resort with permanent and holiday rentals in Cairns • Rental pool made up of 30 permanent rentals and 17 holiday rentals (includes 5 leasebacks) • Pets allowed with Body Corporate approval • Body Corporate Salary $122,265 • 25 year agreements with 22 years remaining • Total number of units in complex 95

Vendors are motivated to sell after ten years and are willing to look at trade. All the apartments have been in the holiday pool from the beginning. No apartments have changed hands in 10 years. (Good unit owners)

Price: $875,000

Price: $2,200,000

Nett Profit: $160,000

Nett Profit: $423,000

CAIRNS

TRINITY BEACH

Permanent Complex

New To Management Rights?

This Is The Business For You!

• Located in a natural setting in the Cairns area • This permanent letting complex offers 32 fully self-contained apartments • Body Corporate Salary $66,439 • 25 year agreements with 22 years remaining This complex is ideally suitable for the extended family due to the spacious fully refurbished double story 5 bedroom, 3 bathroom manager’s apartment.

Manager’s apartment has it’s own private pool and big courtyard on exclusive use.

• This luxurious 4 star property is only located several minutes walk from the extravagant Trinity Beach • Very spacious 3 bedroom manager apartment • Offering a high body Corporate salary of $74,000 • 25 year agreements with 21 years remaining 35 apartments ranging from one & two spacious bedroom apartments overlooking the stunning gardens and the large resort style pool located in heart of the complex with a Jacuzzi located right beside it with a gigantic undercover cabana which has BBQ facilities.

Price: $845,000

Price: $1,500,000

Nett Profit: $144,000

Nett Profit: $291,000

TRINITY BEACH

CLIFTON BEACH

A Superbly Appointed 4 Star Resort Set In Stylish And Elegant Surrounds

Absolute Beachfront Holiday Complex In Clifton Beach

• • • •

Body Corporate Salary $200,000 98 Units in the complex 44 Units in the letting pool 25 year agreements with 25 years remaining

The resort has extensive tropical gardens fringed by a rainforest corridor.

All apartments have either private balconies or patios many of which overlook the vast lagoon style swimming pool with its own palm fringed sandy Beach. Other resort facilities and services include a sauna, multiple BBQ areas, a second heated lap pool and a full size tennis court.

Price: $1,750,000

Nett Profit: 320,000

• Solid operating holiday complex with repeating clientele.

• Standard agreement module with new 10 year agreement • Pets allowed subject to Body Corporate approval • Body Corporate Salary $62,686 • 45 units in complex with 31 in letting pool • 2 bedroom managers unit

Price: $1,100,000 Nett Profit: $190,000

FOR MORE INFORMATION CONTACT: Frank van der Heijden Mobile: 0407 137 186 | frank@resortsales.com

Nicky van der Heijden Mobile: 0407 369 699 | nicky@resortsales.com

P 07 4056 6366 • info@resortsales.com • www.resortsales.com

Noosa Entrance:

Luxury townhouses meet waterfront living

Providing the Sunshine Coast with laundering and linen hire services for the past 22 years. $ QRW IRU SUR²W RUJDQLVDWLRQ EDVHG FHQWUDOO\ LQ .XQGD 3DUN WKH 6XQGDOH ³HHW GHOLYHUV IURP

L A U N D R Y S E R V I C E Six days a week | Premium Linen products for hire including generous-sized sheeting and plush optimum towels | Servicing hospitality industry and aged care | 24 hour laundering turnaround possible

C A L O U N D R A to N O O S A With a committed team of staff, we consistently deliver a high standard of cleanliness and reliability.

For a quote contact Jennie P: 5476 6172 E: manager.laundry@sundale.org.au

62

PROFILES

ResortNews | November, 2018

By Trish Riley, Editor

“We consider ourselves the lucky ones,” says Bruce Dunning, co-owner of Noosa Entrance Waterfront Resort.

“Chris and I had been holidaying on the Sunshine Coast from South Australia for 20-odd years when we made the decision to get into management rights and there really was only one place we wanted to be...”

And they chose well.

In December 2014, with two young grandchildren to raise and understanding that family time is precious, Bruce and Chris made the conscious decision to pack up their lives in South Australia and take on the sprawling 51-unit resort set out along the secluded banks of the Noosa Waters.

Developed in late 90s, Noosa Entrance Waterfront Resort provides the perfect environment for tranquil townhouse living or memorable Sunshine coast family holidays.

Their diverse but synergistic

backgrounds in banking and then owning a motel, establishing a bed and breakfast in Clare and running a small hotel in Pinnaroo serves the courageous couple well. The operation is mean and lean with only one other full-time employee and the occasional

extra during busy periods.

“They say the family that plays together stays together,” says Bruce, “and there is certainly an abundance of opportunities to play and relax in this resort.

We believe we have something for everyone – land and water.”

get on top

Set in four acres of lush, tropical gardens, the property features four swimming pools, including an idyllic lagoon pool, kids’ wading pool and outdoor heated pool. Poolside barbecues offer informal dining and a well-stocked kiosk caters for interim treats and essentials.

Manage your business with ease

HOLIDAY LETTING SOFTWARE VVVVVVVVVVVVVVVVVVVVVVVVVVV Fully functional Holiday Letting capabilities VVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVV Comprehensive 2 Way Connection with Document Channel Manager VVVVVVVVVVVVVVVVVVVVVVVVVVV Management built in VVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVV :PTWSPÄLK 3rd Party Form Processes Integration VVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVV >VYR (U`^OLYL (\[VTH[LK VVVVVVVVVVVVVVVVVVVVVVVVVVV (U`[PTL Communication VVVVVVVVVVVVVVVVVVVVVVVVVVV 2 Way Inspection Outlook Synchronisation VVVVVVVVVVVVVVVVVVVVVVVVVVV (WWSPJH[PVU VVVVVVVVVVVVVVVVVVVVVVVVVVV

Fully interactive bookings grid with drag and drop functionality, visual cues and custom views Easy to process bookings, deposits, refunds and alterations -\SS` ÅL_PISL ;HYPɈ 9H[L HUK (NLU[ JVUÄN\YH[PVU Easy to Bank, Balance and Disburse Connect to your choice of Channel Manager to increase bookings and revenue Streamline communication to key contacts Connect with 3rd Party providers Work (U`^OLYL (U`[PTL ^P[O ,HZL

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www.reimaster.com.au

November, 2018 | ResortNews

sales@reimaster.com.au PROFILES

63

We believe that we’re a big part of creating memories that will last forever

Secure boat moorings and private jetties mean that guests can bring their own boats and have them moored outside their townhouse, and there are kayaks, boats, paddle boards and fishing rods and tackle for hire.

And for those hankering after the hub-bub of society, the familyfriendly resort is just a casual stroll from the supermarket, cafes and restaurants of the vibey Noosaville riverfront, and a short drive from Noosa’s famous Hastings Street.

“For those who want it there is also a tour desk and free booking service for the multitude of Sunshine Coast attractions, but we find that most of our guests happily stay on site,” says Bruce. “I mean, imagine waking up in an idyllic tropical

oasis with the beautiful light of the Noosa waters reflecting off the walls, and then getting to explore it daily.”

The resort offers a choice of one, two or three-bedroom accommodation and guests have the choice of sensational water-facing views or being immersed in tropical garden-side luxury.

All of the townhouses are self-contained, with two bright and spacious living areas, a modern, fully-equipped kitchen, air-conditioning and private laundry facilities. Timber decking and a private garage complete the externals while free wifi, television, Foxtel and a DVD player keep guests connected and children occupied in the event of the occasional rainy day.

Whittles is proud to partner with Noosa Entrance.

To find out how we can help your Body Corporate, get in touch with the Sunshine Coast team today.

P: 07 5409 3400 W: whittles.com.au

64

PROFILES

ResortNews | November, 2018

Subscribing to their tagline, ‘You’ll never want to holiday anywhere else...’, Bruce and Chris have worked closely with the owners of the holiday units to ensure that all renovations are managed seamlessly and that fixtures and furnishings are upgraded regularly. They are justifiably proud of the end results.

“Right from the outset it’s been important for us to personalise our service to residents and guests as much as we can,” says Bruce.

“We are conscious of trying to balance the needs of holiday guests with those of owner occupiers; two very different things, but ultimately it all comes down to people being good to people. We try to stay one step ahead in terms of anticipating their needs and to deliver on those needs with a happy, helpful approach. We are also lucky to have a body corporate that is supportive.”

When asked if he has any advice to offer those considering a similar move, Bruce says: “Management rights is the

sort of business that lends itself to providing a good life balance, and that’s why we chose it. The operating model enables one to budget and grow or maintain the business to suit your particular needs.

Noosa Entrance each year and we’re able to make the experience as good if not better than the last time.”

“It’s hard work,” adds Bruce, “but worth it. I envisaged playing golf every day and haven’t touched my clubs in all the time I’ve been here. That said, Chris and I find it very rewarding.

“It’s especially gratifying when families return to

“If you’re a people person, enjoy what you do and maintain your sense of humour, it’s a great life,” says Bruce. “What other business allows you to spend your days in a holiday resort?”

“We believe that we’re a big part of creating memories that will last forever.

Noosa, meaning shade or

shadow, is surrounded and sheltered by the hinterland of Queensland’s Sunshine Coast. It is located only one and a half hours drive from Brisbane and two and a half hours from the Gold Coast.

Sunshine Coast Airport at Maroochydore is approximately 30 minutes’ drive from Noosa and has direct flights to and from most Australian capital cities. Brisbane airport is the domestic and international gateway to Queensland with over 200 flights daily.

15% discount for Resort News readers when booked direct*

Wifi your guests will love!

*Valid to 30 June 2019 Excludes School Holidays, Public Holidays and Events

p: (07) 5474 0366 e: info@noosaentrance.com 67 Gibson Road, Noosaville Qld 4566 www.noosaentrance.com November, 2018 | ResortNews

1300 55 77 54 ▪ sales@timeoutinternet.com www.timeoutinternet.com PROFILES

65

Swell Resort: a jewel in the making

Perched on the same land that housed the very humble Gold Coast Hotel, Swell Resort has evolved, sometimes irregularly, into the immense resort complex that now presides over the beautiful Burleigh Heads National Park and headland, golden sands of Burleigh beach and the vibrant community of Burleigh itself.

Sue Bary

And steering the behemoth are Shaun Cunnane and Sue Bary, onsite building managers and owners with six silent investors since the 11th May. Located on Ocean Street, only a short stroll from the fully patrolled golden sands of the beach, Swell Resort has two distinct sections; one of 82 residences and the other offering 159 holiday apartments worthy of a 4.5-star rating. Unlike most management rights, Swell also has three bodies corporate, one for each section and a principle committee that oversees the entire complex.

“We hit the ground running in May,” says Sue, “it’s been a massive learning curve but we’re fortunate to have like-minded people on the committees that are proactive about governance and the maintenance schedule, and quite simply making Swell the perfect place to live and visit.”

Despite having only been in the role for six months, Sue and Shaun have taken to management rights like ducks to water. Shaun’s background in construction and Sue’s previous experience with managing student accommodation and undertaking onsite relief work has been invaluable in righting the ship and gearing up for the future.

Shaun used to have to travel extensively with his business and we have a young son that was missing out on a lot.

When asked why they had chosen to get into management rights, Sue says: “Like most people getting into this industry, we were looking for a business opportunity that would allow us to spend more time together as a family.

“We spent three years looking for the right property and when Swell came up, it was the perfect fit; challenging in terms of its size and accommodation mix, but rewarding at the same time.

We live by our process.

Holmans. Accountants to the accommodation industry.

Valuable services we provide at Holmans include:

• Financial due diligence • Business structuring advice • Budgeting & business planning • Cash flow & profit and loss predictions • Settlement procedures & checklists • Asset protection advice • Accounting, taxation & trust audits • Sale of business statements Holmans are registered as one of the leading accommodation advisory firms in Queensland.

Holmans are proud of our relationship with Shaun & Sue and wish them every success for the future

Who have you entrusted to look after your financial future?

0414 228 697 | trossiter@holmans.com.au | holmans.com.au

66

PROFILES

ResortNews | November, 2018

10% discount

The location is beautiful and we all enjoy the community vibe that Burleigh offers.”

Ideal for couples, families, weddings, groups or anyone looking for that relaxing break, the destination that the locals call the "hidden gem" of the Gold Coast is the perfect choice for a getaway to remember.

The resort offers a selection of spacious one, two and threebedroom apartments, all fully self-contained and complete with all the comforts of home. Each of the units feature a full kitchen and laundry, modern décor, reverse cycle air conditioning, a separate lounge area from the bedrooms, as well as Foxtel, a DVD player and complimentary unlimited NBN

internet. All apartments also have their own balcony or courtyard, ideal for soaking up the famous local sun.

and complimentary bottle of wine for Resort News readers when booked direct* *subject to availability

Set within lush landscaped gardens, Swell Resort offers a superb range of amenities designed with resident’s and guests’ enjoyment and relaxation in mind. Both sections share access to two large, seasonallyheated swimming pools, a spa and barbecue facilities while those looking to burn off energy can use the full-sized tennis court or modern, fully equipped gym.

More recently a dedicated yoga and massage studio was opened that is available to guests, residents, tenants and members of the public.

ph: (07) 5586 0500 e: reservations@swellresort.com.au 1 Ocean St, Burleigh Heads, Qld 4220 www.swellresort.com.au

holiday Management RIGHTS

SEE WHY WE ARE

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sales@reimaster.com.au

www.reimaster.com.au November, 2018 | ResortNews

PROFILES

67

Located below the Swell Resort – and hankering back to its early days of the Swell Tavern, Club Burleigh offers a fresh approach to the club experience opening every day, from 7.30am for breakfast through to midnight.

There is also a tempting selection of cafes, restaurants and boutiques within a few minutes' walk from the resort, and if you're in the mood for a shopping spree, you can head to Burleigh's Stocklands Shopping Centre, Harbour Town or the huge, awardwinning Pacific Fair.

The Gold Coast ‘entertainment capital’ Surfers Paradise is just a short drive away – or tram ride from late 2019 - and for those needing help to discover the best local attractions there is a tour desk for assistance with show and tour bookings, reservations and more.

Despite their relatively short placement, when asked whether they have any advice for others considering management rights, Sue says: “We were in the very rare and fortunate position to be able to ‘try before buy’ as my brother owns management rights on the

Gold Coast and we worked with him for a while before finding Swell. That time was invaluable in showing us what we wanted and more importantly, what we didn’t want. “Not everyone is able to do that so I would say be as prepared as you possibly can. Be thorough in your due diligence and know that the first few months are going to be tough. Other than that, it’s a people business so learn how to multi-task and enjoy every interaction you have.”

While Shaun is working closely with the bodies corporate to coordinate new decking around the pools and the painting of the complex, Sue pays close attention to the details of exceptional customer service.

“We’re very aware of how much competition there is out there and that we have to be ahead of the game in terms of being hands-on or providing those little extras such as a bottle of wine or dinner vouchers when we’re aware of special occasions. All in all, it’s about providing the best accommodation experience for our residents and guests as possible.”

FNX are innovative providers of Management Rights Finance and experts in guiding you through the financing process for your Management and Letting Rights purchase.

Shaun Cunnane, Gerard Dixon from MR Sales and Sue Bary

Congratulations to Sue Bary and Shaun Cunnane on the purchase of the magnificent Swell Apartments management rights in Burleigh Heads. Swell was marketed and sold by Gerard Dixon of MR Sales and he would like to thank Pat Bell of FNX Finance for his invaluable assistance.

Sue and Shaun have accommodation experience going back to the 1990’s and were warmly welcomed by all three bodies corporate.

AUSTRALIA’S LEADING MANAGEMENT RIGHTS BROKER

Visit www.fnx.com.au to view our ‘On-Line Management Rights Purchase Calculator’

MR Sales had the pleasure of assisting Sue and Shaun with their quest to find the right management rights business and wishes them every success with their new venture, Swell Resort.

Thinking of Buying or Selling A Management Rights?

T. 1300 487 669 E. info@fnx.com.au

www.fnx.com.au

68

PROFILES

Contact us today Ph: 1300 928 556 | E: info@mrsales.com.au

ResortNews | November, 2018

ACCOUNTANTS & AUDITORS

The Preferred Supplier Programme assisting the industry

It allows managers to access industry specialists who are committed to the highest levels of service and dedicated to the accommodation and hospitality industries.

Brisbane: 07 3421 3421 shodgetts@mcadamsiemon.com.au

Listed below are the stages of the process that ensure only the best industry suppliers can participate in the Preferred Supplier Programme:

Noosa Heads: 07 5474 8955 Buderim: 07 5408 4622 porielley@mcadamsiemon.com.au

4.

Subject to the satisfaction of these processes and commitments suppliers then go on to the Preferred Supplier Database. Only Preferred Suppliers in this database have the opportunity to utilise the Preferred Supplier logo and make their contact details available to managers via the Preferred Supplier Directory, located in every issue of Resort News (and online at accomnews. com.au/business-directory).

For your own peace of mind when dealing with any supplier ask if they are a Preferred Supplier. This can be verified by viewing a Preferred Supplier logo – made available for use in any of their stationery or marketing material or more simply by locating them in the Preferred Supplier Directory.

So when looking for products or services give yourself the peace of mind that you are dealing with a recognised industry specialist and support these suppliers who are committed to servicing your needs. ■

• Due Diligence Reports • Trust Account Audits • Structure Advice & Tax Compliance Brisbane Level 4, 97 Creek St, Brisbane Gold Coast Level 3, Southport Central 3, 9 Lawson St, Southport

 Due diligence reports  Structure and taxation advice  Trust account auditing  Risk and superannuation Telephone 07 55202144 Paul Shannon paul@brownandbenson.com.au www.brownandbenson.com.au

Specialist Management Rights Accountants

Contact : PETER MEYERS 155 Varsity Pde, Varsity Lakes, Qld 4227 t : (07) 5630 6559 m : 0402 943 549 e : peter@pmag.com.au

accountants

Experienced Management Rights Accountants • P&L for Sale • Bank Financials • All Tax Compliance • Purchaser Due Diligence

Fixed Price Available

(07) 5343 1000

Ask for David at the Mooloolaba Office or Ask for Angela at the Noosa Office

managementrights@ascendia.com.au

www.ascendia.com.au

November, 2018 | ResortNews

Specialist Business Advisors to the Management and Letting Industry

www.mcadamsiemon.com.au

Preferred suppliers have their status reviewed every 12 months to ensure they still qualify and that their commitment to the industry is being met.

With these criteria in place it means that you as a manager have access to a complete range of specialist suppliers who are actively seeking to improve their services to the accommodation industry.

info@hostrata.com.au www.hostrata.com.au

www.archergowland.com.au

All nominations received are then qualified through a secondary questionnaire process to ensure nominated suppliers are able to provide the highest levels of service required and expected by managers.

Suppliers that still qualify are then asked to commit to the required levels of service for the next 12 months guaranteeing their commitment to the industry.

07 5631 6900

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

All suppliers must receive a nomination from a property currently using their services that is completely satisfied with their levels of service and are prepared to recommend them to another complex in the industry (ie. if asked by another manager they could comfortably recommend the required supplier).

3.

5.

McAdam Siemon Pty Ltd Specialist Accountants & Business Advisors to the Accommodation Industry

All Engagements Are Fixed Price.

This is extremely helpful for all accommodation providers but especially new managers as it allows them to benefit from the positive experiences other managers have had with their suppliers.

2.

Audits ~ Taxation Feasibilities ~ Due Diligence Reports

• Verification reports • P&L for Sale • Motel Due Diligence • Motel Business Plans • Trust Account Audits • Training & Setup on Cloud Accounting Software for MR and Motels

For over 21 years in Australia the Preferred Supplier Programme and directory has been an extremely valuable and effective tool for accommodation managers.

1.

Specialist Advisers to the Accommodation & Hospitality Industry

PREFERRED SUPPLIER DIRECTORY

www.pmag.com.au

Due Diligence Auditing Taxation Business Advice 07 5557 8700 Paul Gaffney

mail@mbapartnership.com.au mail@mbapartn

www.mbapartnership.com.au www.mbapartn www.managementrightsaustralia.net

69

AIR CONDITIONING

BEDS & BEDDING

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Expert Advice • Great Range Friendly Service • Quick Turn Around

Structuring  Income Verification  Audit Accounting/Taxation  SMSF  Estate Planning Email: jhanaghan@jonathangrant.com.au

Phone 07 5534 4333

When your Business Needs a Tune or a Service

• Bookkeeping • Marketing • Business Management • Human Resources

Where Value & Service are No.1!

www.businessmechanic.com.au (02) 6583 8386

STARTS WITH

South East Queensland P 07 5607 0695 ron@gibsonandassociates.com.au www.gibsonandassociates.com.au

A GOOD N I G H T 'S R E S T Gibson & Associates is a CPA practice

- GOLD COAST MANAGEMENT ACCOUNTANTS management rights income verification management rights trust account auditing preparation of bank review / re-finance figures

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

BODY CORPORATE MANAGERS

Hi-Rise Air Conditioning New name...

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manufacturers of quality bedding QUALITY WITHOUT COMPROMISE

with the same great

service

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1300 654 000 ahbeardcommercial.com

pbbconsult - Chartered Accountants Specialist Accommodation Industry Advisers QLD/NSW/VIC Ph: (07) 5449 9992 W: www.pbbconsult.com.au

M 0476 327 736 darrensbsc@bigpond.com

Personal Service. Trusted Advice.

Gold Coast: (07) 5592 0266 w w w. L M g o l d s t a r. c o m . a u

07 3220 9400 abcm.com.au

Industry leaders with an active approach to body corporate management

FACTORY PRICES DIRECT Sunshine Coast (07) 5446 7541 Cairns (07) 4032 5133 www.themattresscompany.com.au

Your Sunshine Coast

Management Rights Specialists FOR OVER 15 YEARS

Verification Reports - Due Diligences Tax Planning & Structures For Sale Figures - Auditing Tax & Accounting FIRST INTERVIEW FREE! Greg Kamp CPA

07 5443 7789

Supplying the Gold Coast, Southern Brisbane and Northern New South Wales regions with quality air conditioning services since 1977.

Call 07 5522 1044

enquiries@climatecontrol.net.au

www.climatecontrol.net.au

1800 425 903

www.sleepmaker.com.au

BEDSPREADS & BEDCOVERING PRODUCTS

ASBESTOS REMOVAL

“Holbrook House” 48-50 Sugar Road Maroochydore

info@kampba.com.au

www.kampba.com.au

ALL ASBESTOS REMOVED - QUEENSLAND WIDE

Personal, Professional, Reliable Service Brisbane to Far North Queensland

P:07 5443 3138

F:07 5443 3334 sunshine@selectstrata.com.au www.selectstrata.com.au

strata title consultants & body corporate managers

Accounting & Taxation Trust Account Audits P&L for Sale

P: 5456 4018 Eagle_Dad_Print.pdf 1 31/03/15 10:47 AM E: renee@rcbaccounting.com.au W: rcbaccounting.com.au BATHROOM RENOVATIONS

- NORTH QUEENSLAND -

Talk to our body corporate experts.

C

07 5341 6500

M

bcs_sunshinecoast@bcssm.com.au

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Look for the sign of an Industry Specialist

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70

PREFERRED SUPPLIER DIRECTORY

ResortNews | November, 2018

BROCHURE DISPLAY

CARPET & FURNITURE CLEANING/PROTECTION

ELECTRICAL APPLIANCES

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Sunshine Coast Brochure Display The regions’ original and leading brochure service and provider of information displays

07 5499 6222 info@SunshineCoastBrochureDisplay.com.au

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73

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PREFERRED SUPPLIER DIRECTORY

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