Resort News - July 2023

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CONTRIBUTING THIS ISSUE... Andrew Morgan, Col Myers, Commissioner for Body Corporate and Community Management, Jonathan Hanaghan, Kelley Rigby, Laura Bos, Lynda Kypriadakis, Mike Phipps, Stephen West, Sylvia Johnston, Trevor Rawnsley, Will Kenny and Yoav Tourel

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Welcome to the latest issue of Resort News!

Here we are, halfway through 2023, a perfect time to reflect, consolidate, and plan for what lies ahead. July marks the beginning of the financial year, a time when we dive into spreadsheets, crunch numbers, and strategise ways to revolutionise our business, bank balance, or even our life. Well, at least that’s what they tell me. Personally, I rely on the experts to handle the numbers, as long as I have enough funds to keep the coffee and wine flowing and the wifi working smoothly. After all, a good cup of coffee and a reliable internet connection are surely the secret ingredients to business success in the modern world?

But wait, July is not just about spreadsheets and budgets. It’s also the start of the events season in our industry. Cue invitations, tempting you with informative conferences, exciting award ceremonies, and glamorous

Mandy Clarke, Editor editor@accomnews.com.au

galas. It’s when we get our very own red-carpet moment.

The highlight of the month is undoubtedly ARAMA’s Top Awards, night of nights on July 25, our very own Oscars of onsite management. I’ll be dusting off my heels, adding a touch of glitter, and slipping into my best frock to cheer extra loud for Resort News’ very own Stewart Shimmin. He has been nominated for the prestigious ARAMA Service Provider of the Year, and it’s well-deserved recognition of his outstanding 27 years of service

to the industry and his staunch support for ARAMA. And a massive congratulations to all the other deserving nominees as well.

As we gather at these events, it’s not just about the awards and glamour, it’s also a time to mingle, share a yarn, and celebrate achievements. So, dress your best, brush up your small talk, and get ready to show off your dance moves.

Back to the mag, this month, we tackle the contentious issue of Online Travel Agencies (OTAs). Are they the superheroes, bringing us bookings from all corners of the globe? Or are they the villains, swooping in and taking profits away from our beloved small accommodation providers? We delve into the accusations, shed light on the challenges, and explore potential solutions to navigate this complex issue. It’s a topic that affects us all, and understanding its nuances is key to thriving.

We’re also excited to showcase Reflections Coolangatta. Julie Smith and her husband Gordon have been doing an outstanding job managing this magnificent property on behalf of Dreamtime Resorts, a well-known property management and marketing group. It’s a tale of dedication, innovation, and creating extraordinary guest experiences. As you navigate the daily challenges of onsite management, take a moment for yourself. Whether you’ve been nominated for an award this year or not, celebrate your own wins, learn from the hurdles, and find support from your industry peers. It’s the camaraderie and shared experiences that make our industry so special. Sit back, relax, and enjoy this month’s issue of Resort News And cheers to a successful second half of the year!

Mandy

The fight to stop OTAs from cashing in

By Grantlee Kieza, Industry Reporter

Online travel agencies are expected to see a thousand billion dollars pass through their accounts this year. That staggering figure - a trillion Australian dollars - is provided in the Online Travel Agent market report prepared by The Business Research Company.

It predicts that OTA revenue will grow from $US761.9 billion in 2022 to $US865.5 billion this year and will reach a jaw-dropping $US 1,060.01 billion in 2027.

The Asia Pacific was the most profitable region in the online travel agent market in 2022, and Australians running Management and Letting Rights businesses are sick of forking over huge commissions which can swallow more than half the profits of smaller operators.

Online Travel Agents are estimated to control 85 to 90 percent of all accommodation bookings in Australia.

The very public “Book Direct” campaign led by entrepreneur Dick Smith has had some success, particularly for the Budget Motel chain.

But the continued surge in the number of smartphone users is expected to boost the reach and wealth of the online tourism industry further.

Despite Mr Smith’s very public campaign imploring Australians to call accommodation properties directly and stop sending their money to overseasbased online booking portals, Australian travellers continue to flock to those sites to compare prices from a number of properties in a desired area.

OTAs are easy to use, offer plenty of choices, and help guests find places to stay that they might otherwise never discover. They claim to offer the best deals

and flexible cancellation fees. But many MLR operators consider that their rapid rise to global domination in the accommodation industry comes at the expense of many small businesses and cheaper travel and have accused them of not only bullying but sometimes even hijacking a property’s website.

Brad Atkins, a straight-talking former policeman and publican who runs the spectacular Dunes at Cotton Tree on Queensland’s Sunshine Coast, has called on MLR operators to unite in a fightback against overseas invaders.

He has suggested accommodation owners from around Australia kick-in to a fighting fund for a massive advertising campaign urging Australians to book directly with hotels and resorts.

“The OTAs try to bully the little guys and a lot of people in management rights get bluffed by them,” he told Resort News

“But I believe if we all take a stand against the OTAs and remove the bullies this will not happen. We are the people who should make the rules and we should decide who stays at our properties and at what rate.”

Ryan Rae, who has spent all his adult life in management rights and now runs the Noosa Blue and Noosa Lakes properties, also spent seven years in management roles with the OTA, Wotif - four of those years heading up the entire hotel division for the company.

“To be honest the OTAs have evolved beyond what Wotif was when I was there,” Mr Rae said. “Wotif was acquired by Expedia, and with other takeovers you now have a duopoly in the industry with Booking.com and Expedia. They own virtually every distribution channel that exists,

“It’s a Coles and Woolworths situation and we are certainly hamstrung as resort operators because of their market power.

“But what I am doing at my resort is utilising technology in building our own data bases, using direct marketing to encourage customers away from those OTAs and direct them to ourselves so we can cut out that 15 percent middleman.”

Michelle Smith, who with partner Gary Strickland runs the two properties Tides Apartments and Riverstone Retreat in Port Fairy, Victoria, says their websites ensure more than half of their bookings are made direct rather than through OTAs.

Ms Smith said with OTAs taking large commissionsand with that money going offshore rather than to local communities - Australian property owners needed to invest in a ‘simple, effective website and a direct booking engine that is easy to operate.

“It’s one thing to get traffic to the website but if you don’t have a simple booking tool that people can work out in a couple of clicks, they will move on and find somebody else,” she said.

Kerryn Beck, who with her husband Peter runs The Shores Holiday Apartments at Blacks Beach outside Mackay,

is calling for action against OTA “brand hijacking” and an Australia-wide promotion to encourage potential guests to call properties direct.

“People need to know that so many sites on the internet for accommodation properties in Australia are actually sites run by the OTAs,” she said.

“It would be an enormous help to the industry if the general public was really made aware of what the OTAs were doing and if they instead booked directly with the property.

“The problem now is that people can’t find the property’s real website because OTAs dominate the Google searches.”

She agrees, though, that together the accommodation industry could mount a major campaign to educate holidaymakers.

Trevor Rawnsley, the CEO

of the Australian Resident Accommodation Managers Association, said “confidence in travel comes from talking or directly communicating with the property operator and we are seeing that communication drives more direct bookings than anything else.”

Mr Rawnsley said ARAMA had been pushing the “book direct” message at every opportunity.

“We’re encouraging government whenever they do a tourism campaign to run a book direct campaign as well,” he said.

“By booking directly the consumer will get a better deal and better value, but it is hard to get that message out for a mum and dad operator from Port Douglas up against the hundreds of millions being spent on advertising and marketing by the OTAs.”

Last month an Expedia Group spokesperson responded to concerns raised by moteliers in an article on AccomNews

They said: “Expedia Group consistently invest and reinvests into ensuring that our world-leading platform is highly intuitive, which enables travellers to find their best travel options quickly and efficiently.

“While other models may charge a listing fee or cost for clicks, Expedia Group only receives compensation once a traveller has completed a booking through the site, without cancellation.

“The compensation covers every aspect of marketing and customer acquisition on our platform, including travellers who find the accommodation on our platform and go on to book directly with the property (transactions where Expedia Group earns nothing).

“Our platform is therefore one of the most cost-effective means for hotels to fill their rooms and offer valuable investment against the return of exposure and business conversion.”

It’s a Coles and Woolworths situation and we are certainly hamstrung

TOP managers earn accolades for exceptional service

By Trevor Rawnsley, CEO, ARAMA

ARAMA’S Top Awards

This year’s awards will take place at a gala function on July 25 at Brisbane’s Royal International Convention Centre and will highlight the outstanding work that resident managers are doing on behalf of owners, bodies corporate and residents. All the finalists exhibit the marvellous traits that go into building a successful MLR business, they all know that first and foremost they are working in a service industry, and they are providing benefits to their clients that go above and beyond what is expected of them. This month I’d like to share with you some of the uplifting feedback we’ve received regarding the nominees for Top Awards this year, feedback that highlights the respect that our

top operators create for a job well done. These samples are firsthand proof of the esteem that many of our managers generate, and they should encourage all operators to do everything they can to promote their business to their clients so that those clients will be motivated to write glowing testimonials about their work too.

It’s important for managers to seek feedback from their residents and owners, not just for assurance that they’re doing a good job, but also to see ways that improvements can be made.

Here’s how Chris Puplett, a facilities manager with Oaks Hotels and Resorts, is regarded in the industry, with one of those nominating him for the award

telling ARAMA: “I have had the pleasure of knowing and working with Chris for over fifteen years. During this time, he has always been a poised and experienced manager with a well-developed leadership knowledge and the ability to relate effectively with owners, employees and suppliers at all levels. Chris, with his coolheaded manner, always displays an excellent ability to understand the complexities that arise in his day-to-day working environment. He brings his high integrity approach to all aspects of his work and is a difference maker.”

Georgina Bishop has built an outstanding reputation as resident manager at Newstead Terraces, and at other

management rights businesses including Lush Apartments in Lutwyche. ARAMA received this testimonial on her behalf: “Georgina’s attention to detail and proactive approach to building management has made her an invaluable asset to the Lush Community. We as body corporate managers love to see building managers with such enthusiasm who strive to nurture the schemes on behalf of owners. We believe Georgina is more than worthy of receiving a nomination for the Building Manager of the Year award.”

Ken and Joyce Xia also received outstanding accolades for their work at the Glades North Hill golf course residences at Robina.

are a showcase of everything that we love about Management and Letting Rights.

“Ken and Joyce have shown lot owners and the committee how a truly professional team can manage a complex,” one of the committee members wrote.

Glades North Hill has recently undertaken a reconstruction of the pool area which involved many structural reports and council certifications and some setbacks due to previous records being unavailable.

ARAMA was told that Joyce and Ken tirelessly followed up on every aspect of this project “with the utmost efficiency” and kept the committee informed at every moment.

“They have gone out of their way to ensure that all areas of safety, fire, pest control and general maintenance are all logged and up to date and have invested in new equipment to ensure the grounds are kept to a high standard,” the committee member wrote.

“They have invested in battery operated trimmers and blowers to reduce the noise levels within the complex and have put in place LED modification of the streetlights to reduce energy consumption. The irrigation system has recently been upgraded to include rain sensors to reduce water consumption. Newsletters are also sent on a regular basis so that all owners are aware of the improvements being made and where their levies are being utilised.

Joyce and Ken are a breath of fresh air. They have given lot owners a wonderful and safe environment in which to reside.”

The strata manager for Lanai Luxury Riverside Apartments in Mackay said that the nomination of Karen Nelson and her team for Building Manager of the Year, was well deserved as she was “not just a building manager to the owners and guests but is their friend and acts in the best interests of everyone”.

This is what the strata manager said about Karen: “I have found Karen to have a wealth of background knowledge in the body corporate’s history which is very important as the incoming strata manager. Understanding the Body Corporate and Community Management Act is very complex, and Karen has a very good grasp of this, which makes working with Karen easy. In January this year a fire sprinkler was accidentally damaged by a contractor which caused significant flooding to eight lots. The aftermath has been a mammoth task that

Karen is still coordinating. Karen has worn many hats during the restoration stage of the sprinkler flooding – owner, mediator, friend, caretaker, letting agent, and psychologist to name a few.”

ARAMA was also told that Karen has worked tirelessly to ensure the body corporate remained free of any insurance claims so as to not jeopardise the insurance premiums. As a result of Karen’s hard work, Karen saved the body corporate owners more than $500,000 in insurance premiums, which also means less money owners must pay annually.

Matt and Shelley Rogers are resident managers of Leeward Tower at Runaway Bay on the Gold Coast, and two new residents told ARAMA they were grateful for the help and support the couple provided during their move from Melbourne. “Shelley is always on the front desk or close by and very approachable with any question we may have,” the new residents said. “And we have Matt’s mobile number for anything urgent. Anything we ask is actioned straight away. We have learned from this whole experience that the building you live in is only part of the story. The building managers have shown to us how important it is to have great management.”

At the Noosa Blue Resort, Ryan Rae has also created a fan club of his own, with one of his supporters writing to ARAMA to say that his business processes were an “invaluable asset in the successful management of this building. He is one of the most accomplished onsite managers that we deal with. He is also a fabulous family man and is able to balance life, work and family in an exemplary manner. The building has a long and complicated history and Ryan collaborates well with the body corporate committee and body corporate manager to ensure that the property is well positioned in the market to ensure its future success. Of particular focus has been the planning and preparation of upgrades to the building and the application of environmentally sustainable business and building practices.”

As the manager of Element on Coolum Beach for five years, Susannah Hart has also won many admirers.

“Susannah has the ability to effectively communicate with a diverse range of personalities and successfully adapts to the competing demands of her role,” wrote one committee member. “She is wonderful

with her customer service … always going above and beyond to ensure guests receive the finest service and experience.”

The ARAMA Awards Committee was also alerted about the work of Benjamin Webb at Macleay Tower and Villas, a residential complex in Kangaroo Point with 110 units, in a 22-storey tower and 12-villa separate building on the waterfront of the Brisbane River.

The committee was told: “Ben has adapted rapidly to the different challenges this job presents and has brought a welcome energy and freshness to the way he collects information and thinks about the way our vertical village can be better organised and made a happier more successful, and more comfortable place to live.

“In his first few days on the job, Ben was faced with a disaster when a ruptured hose in the aircon compressor in a vacant unit spilled the best part of 50,000 litres of water through that unit and other owner’s homes and common infrastructure. Ben was new and did not have access to the previous manager for advice. With the committee and our black book of tradesmen, Ben did a cracker job of prioritising the hundred jobs that were required, restoring services, and communicating appropriately with interested, disgruntled, upset, querulous, and anxious owners and tenants.

“Even while under pressure, Ben was making video recordings while ankle-deep with the plumber so he could learn and preserve for future reference the tips and skills on how to isolate water flows and piping systems should it ever happen again.”

That’s what you call great service from a resident manager, and an example for everyone in the industry to follow.

These real-life testimonials are a living example of the positive acceptance and massive contribution that Management Rights makes to the people who live, invest, and rent in a community title scheme. To be recognised for just doing your job is a wonderful achievement. There were more testimonials to share but space is limited in this month’s column.

What can you do to be recognised for your efforts and build your local fan base?

See you at the TOP!

Bullying orders against the committee

Committee, the manner in which they have been raised, including the frequency, tone, timing, content and approach detailed in the correspondence is not at all times reasonable and there are multiple incidents of substantiated unreasonable behaviour.”

By Col Myers, Small Myers Hughes

Earlier this year, the Fair Work Commission found that a director and employee of a caretaking company were bullied at work and ordered each member of a body corporate committee, including any new members of that committee in the future, to undergo antibullying training.

The facts

The scheme was a multiresidential private gated estate with around 93 homes.

The caretaking company had a management agreement with the body corporate to perform various duties.

The director and employee of the caretaking company applied to the Fair Work Commission for orders to stop the alleged bullying of the treasurer and committee generally.

It was alleged that

The treasurer and committee generally were behaving unreasonably through a series of emails exchanged, and the non-payment of the caretaking fee and expenses, over several months.

The substance of the emails included changes to long-held arrangements (shortly prior to Christmas), such as refusing to reimburse receipts for fuel used for the mower, vehicle and other equipment, mower blades, and a requirement to provide logbooks.

Photos of the employee were taken while carrying out duties and going about personal business as a resident, as well as recording notes detailing the employee’s whereabouts.

A notice was issued to residents and owners stating to the

effect that the director and employee were making false and unsubstantiated allegations. The above conduct created an immediate and ongoing risk to the health and safety of the director and employee, and financial strain.

The Fair Work Commission considered submissions and evidence from the parties about those allegations, including cross-examination.

The outcome

The Fair Work Commission had jurisdiction to make orders in this application. The question about jurisdiction is outside the scope of this article, save to say that the primary concepts are whether there is a ‘constitutionallycovered business’ and a ‘person conducting a business or undertaking’.

The Fair Work Commission found:

“…whilst the majority of the issues raised reasonable matters to be raised by the

“…repeated unreasonable conduct has occurred and that there is an ongoing risk to the health and safety of the director and employee…”

The Fair Work Commission therefore determined that the director and employee had been bullied at work and that it was appropriate to issue interim orders to ensure a safe place of work.

What does this mean?

Building managers may be able to seek redress against committee members or owners and occupiers in their complex, if they feel that they have been harassed and bullied. While the code of conduct applying to committee members does not include provisions relating to bullying or harassment, that does not prevent a building manager from pursuing remedies through the Fair Work Commission.

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

The Fair Work Commission found that a director and employee of a caretaking company were bullied

Navigating the dispute resolution process: Part 1

under the BCCM Act, it cannot be dealt with in conciliation or adjudication within our office. Contractual matters involving an engagement or authorisation of a body corporate manager, service contractor or letting agent are classed as complex disputes. Applications to adjust lot entitlements also fall within this category of dispute.

By the Office of the Commissioner for Body Corporate and Community Management

Community living has its challenges because of the potential for conflict.

The proximity of residents to one another in community living and the fact that individuals with diverse backgrounds and views must, as a group, make major decisions, opens itself up to disagreements. If a dispute cannot be resolved internally, the two official avenues for dispute resolution under the Body Corporate and Community Management

Act 1997 (the BCCM Act) are conciliation and adjudication. Our office also provides referees who can resolve disputes under the Building Units and Group Titles Act 1980 (BUGT Act), however, this article focuses on the disputes lodged under the BCCM Act

If you require information about seeking an order of a referee please submit an enquiry online at www.qld.gov.au/ bodycorporatequestion or read our webpage referee orders for body corporate disputes.

As dispute resolution is both an essential and a substantial topic, we have broken it into two separate articles. This first article highlights some important

preliminary points to consider before starting an application.

Can we consider your dispute?

We deal with disputes relating to rights and obligations under the BCCM Act or a body corporate’s community management statement (CMS).

From the outset, you must bear in mind that our office can only consider disputes that fall within our jurisdiction. For example, while some debt disputes may be conciliated, disputes of this kind cannot progress to adjudication under the BCCM Act Additionally, if a dispute is defined as a ‘complex’ dispute

We recommend reading Practice Direction 24 and Practice Direction 25 for further guidance about debt disputes and complex disputes and the appropriate forum for resolving these disputes.

Who you can lodge a dispute against

Section 227 of the BCCM Act sets out the different combinations of parties that can have a ‘dispute’. Importantly, your application will be rejected if your dispute does not fall within one of the specified combinations. In our experience, the most common mistakes are made by owners who attempt to lodge an application directly against their committee,

Observations & recommendations Developer Review:

But who creates housing? It might sound like a simple question but the process of taking land from a plot of dirt to several hundred strata titled lots is an incredibly complex one that impacts us all. At the heart of this process are developers, who in substance buy land, create a concept of a project then contract a whole bunch of other people or entities to do all the work of building and selling the project.

and most importantly ensures we have a supply of suitable shelter for an ever-growing population. But, like any industry, the development industry can have problems, and obviously given how much time our members spend dealing with these problems, we have a significant interest in solving them.

By Laura Bos, General Manager, SCA (QLD)

So, a developer is kind of like the CEO of the housing project, and often developers make a career out of doing this. This process is important because it creates jobs

The Queensland Government recently undertook a review into the role of the Property Developer in Queensland’s economy. SCA (Qld), whose members’ core business is indeed property put a lengthy submission in. The review was conducted by a

After plumbing and a basic policing and legal system, stable supply of housing is probably the third key building block to the concept of cities or towns that has now been the mainstay of humanity for millennia. SCA (Qld) members, of course, spend their days managing a specific type of housing in accordance with a complex and technical legal framework.

Dispute resolution is both an essential and a substantial topic

caretaking service contractor or body corporate manager.

An owner cannot lodge an application against any of these parties.

If an owner wants to dispute a committee decision, the other party in the dispute would be the body corporate - not the committee. A decision of the committee is a decision of the body corporate under the BCCM Act

If an owner wants to raise concerns about a body corporate manager or caretaking service contractor, they can ask their committee to issue a remedial action notice if contractual duties are not being performed or there has been a breach of the relevant code of conduct.

Mandatory selfresolution

Before wading any deeper into the waters of dispute resolution, you must attempt to resolve your dispute internally with whomever your dispute is against. If you ignore this step before lodging your application, it is likely to be rejected.

This self-resolution requirement is in keeping with the key legislative objective of self-management, which is essential to community living. In addition to being more efficient, there is a greater likelihood of better managing delicate relationships if a matter is

resolved internally. The benefits of preserving relationships within a body corporate cannot be stressed highly enough.

Conciliation

If your self-resolution efforts prove unsuccessful, conciliation is the more informal of the two dispute resolution processes.

Conciliators do not make decisions about the issues in dispute. Rather, conciliators play a more facilitative role by trying to help the parties reach a good faith agreement. As the name suggests, ‘good faith’ agreements are not binding on the parties.

If the parties cannot agree to resolve the issues through conciliation, or if a good faith agreement is ultimately ignored, adjudication may be the next step to gain a resolution.

It is important to note, that conciliation is not a service that is offered to clients seeking dispute resolution under the BUGT Act

Adjudication

Adjudication is a more formal process in which an adjudicator makes a binding order on the issues in dispute.

Many of our clients mistakenly assume that adjudication involves a hearing - this is not the case. These applications are normally determined ‘on the papers’ by an adjudicator after reviewing an application, submissions

and replies to submissions. Our adjudicators have broad powers of investigation which enable them to seek additional information from any party or other person, undertake site inspections or request copies of body corporate records.

To safeguard natural justice, these investigative powers do not extend to meeting or speaking with the parties individually. The equivalent process for clients lodging an application to resolve a dispute under the BUGT Act is called an order of a referee.

Do I start with conciliation or adjudication?

In most instances, you cannot side-step conciliation and jump straight to adjudication, although there are some matters where conciliation is not suitable.

If you are lodging an application against your body corporate, it is helpful to ask yourselfcan the committee make a decision to resolve this issue?

If the answer is yes, you will generally need to lodge a conciliation application. If the answer is no, it is more likely that you will need to lodge an adjudication application.

For instance, adjudication is normally the correct process for disputing a motion passed by the owners at a general

meeting. This is because the body corporate representatives at a conciliation session are normally voting committee members.

As the legislation does not allow the committee to change or revoke motions passed at a general meeting, it follows that the committee would have no authority to do so in conciliation.

It may be different in smaller bodies corporate where all owners are on the committee, as there is arguably little practical distinction between a committee decision and a general meeting decision if the same people are voting. Conciliation may be the more appropriate starting point when disputing a general meeting decision in this situation.

You can read Practice Direction 9 about other matters that are not suitable for conciliation. We hope that this first article about dispute resolution has clarified some of the preliminary points you must consider before starting your application. In view of the time and effort invested in an application, it is in your best interests to equip yourself with the necessary knowledge from the outset, to avoid unnecessary mistakes. Remember to keep an eye out for our second article about dispute resolution, as it provides some practical information and tips to assist you with completing an application.

panel of three eminent experts and was extensive. The review covered pretty much go to woe what happens across the life cycle of a development, from acquisition of a site to sale.

The recommendations and observations of the panel have been released. Recommendations are proposals the review panel is putting directly to the Department of Energy and Public Works whilst observations are the panel’s assessment of proposals or policy areas currently under investigation within other areas of government. SCAQ is pleased with the vast majority of the recommendations and observations.

One area of contention, that SCAQ notably did not support in its submission was the concept of developer “accreditation” with mandatory education (both initial and ongoing) proposed by

the panel. SCAQ believes this may have a deleterious effect on property supply whilst offering little gain for consumers.

SCAQ was particularly pleased with some of the observations made by the review panel around building defects and scheme structuring. There was an acknowledgement of the need for appropriate insurance cover in high rise construction as well as reform to management rights and how developers are able to influence schemes after owners and occupiers start to move in.

SCAQ hopes this very thorough review is taken seriously and implemented into legislation for the most part. An equitable balance between consumers, their service providers (particularly our members) and the rights and responsibilities of developers is a critical change needed for Queensland strata.

The nuances of these issues are important to be mindful of. Development conducted without regard for the longterm needs of the building and residents can get ugly. All our members have a scheme in their portfolio riddled with defects, inappropriate structuring and long-term contracts that do not serve the purposes of residents. The strata manager is inevitably the meat in this sandwich, dealing with residents aggrieved and confused about their lack of control in their own homes.

Despite this, it is important to note that society would not function without developers, and our industry simply would not exist. So, it is important to understand the need for a balanced framework that appropriately finesses protecting the interests of all in an equitable and cohesive fashion. At SCAQ

we are naturally unashamedly pro-strata development, given all the benefits strata brings when compared with traditional quarter-acre blocks. But development cannot only serve the interests of the person selling the project, it must work in the long term for all stakeholders.

SCAQ is pleased to see that slowly but surely, the importance of strata is being recognised by government and society. The recommendations and observations to come from the Developer Review Panel indicate a growing understanding of the need to treat strata differently and appreciate its nuances. Government policy with respect to housing must now and into the future respect the complexities of strata and ensure those living and working in strata have a legal framework that protects their interests.

Uniting the short stay holiday rental industry

in all states and within many LGAs (Local Government Areas) and puts our industry at an existential risk. Any government decisions in 2023 will determine the future of our industry.

By

We are at a critical time in our industry.

STRA (Short-Term Rental Accommodation) is under constant political and media attack, being made the scapegoat for the housing crisis in Australia. It is happening

Now, more than ever, it’s crucial for us to continue to come together and work in unison as one STRA community. It’s through our collective efforts and collaboration that we can drive real change and create a thriving, sustainable future for our industry.

The strength of any industry comes from being united through knowledge sharing, connecting, learning, and inspiration. Our industry needs to be united and establish a unified voice to tackle the impact and future of STRA regulation, NSW registration and Code of Conduct progress, the value and valuation of STRA

PMCs, operation efficiency, what’s new in tech, guest experience, and much more.

The up-and-coming ASTRA ‘Here to Stay’ Conference will tackle all of these important issues and help prepare us for future challenges but above all it’s the perfect opportunity to network and unite.

Our conference is set to take place from October 9 to October 10, 2023. It will be a gathering of hosts, owners, managers, and stakeholders in the short-stay holiday rental industry and promises to be a transformative event, driven by the powerful theme of ‘Stronger Together.’ Held at the picturesque Waterview in Bicentennial Park, Sydney, the conference aims to forge connections, foster collaboration, and explore new frontiers in the industry.

On the evening of October 9, attendees will gather at the esteemed Novotel Sydney Olympic Park for a cocktail gala awards dinner, a night of celebration and recognition for the outstanding achievements of individuals and organisations in the shortstay holiday rental sector.

At the heart of the conference is the strong belief that the industry can achieve more by working collaboratively and supporting one another. The theme of ‘Stronger Together’ serves as a guiding principle, emphasising the power of unity, shared knowledge, and collective action.

Leading the proceedings as the MC will be the esteemed Julie George, an influential figure in the short-term rental space. Julie’s impressive credentials include being the co-author of ‘Hospitable Hosts’ and the Author of ‘Million Dollar Host,’ both of which have become international best sellers.

Adding to the line-up is the keynote speaker, Simon Griffiths, the CEO of ‘Who Gives a Crap’. Simon’s entrepreneurial journey is a testament to the power of using business as a force for good. Simon founded ‘Who Gives a Crap’, a toilet paper company that builds toilets in the developing world.

The conference program is designed to cater to the diverse needs and interests of attendees. Participants will have the opportunity to learn from industry experts, share their experiences, and collaborate on solutions to common challenges. Moreover, the conference will serve as a vibrant hub for networking, fostering connections, and building meaningful relationships with peers and industry leaders. It’s poised to leave a lasting impact on the industry, inspiring attendees to work together, adapt to evolving trends, and build a future where success is achieved collectively.

One of the Sunshine Coast’s most experienced firms in on-site management rights transactions.

Damian Quinn Isabella Mansell

Yoav Tourel, Temporary Board Chair of Directors at ASTRA

A $10 million hit for Glenn Millar

By Grantlee Kieza, Industry Reporter

There are very few brokers who understand management rights like Glenn Millar, certainly not to the degree needed to be so great in such a specialist field. This month we talk with New Zealand-born Glenn who has been a proud resident of the Sunshine Coast for more than 30 years.

He is one of the most prominent figures in the management and letting rights industry, and Glenn reveals that right now he has a business under contract that will fetch a record price for management rights on the Sunshine Coast.

ResortBrokers’ longest-serving broker, Glenn has become a Sunshine Coast institution in the sector. Since joining ResortBrokers in 2005, Glenn has established himself as one of Australia’s premier management rights brokers, particularly in the premium end of the market.

He has had more than 40 years of experience in the hotel and resort sector and says he lives and breathes management rights, focusing on high-end, highnetting businesses. This includes properties that have additional components such as restaurants, day spas, and conference facilities. You’ve been with ResortBrokers for 18 years and chalked up $350 million worth of sales. That’s a pretty good inning.

Yes, and I’ve got roughly another $30 million under contract at the moment. I’ve settled about 200 management rights businesses over the years so that works out better than one a month. It’s something like settling one every 25 days or so. Where is home?

I live in Cooroy. It’s very beautiful here and it’s been home for

30-odd years. I look after the Sunshine Coast for ResortBrokers along with my colleague Chenoa Daniel. But I also have clients all over the country. I try not to do too much work outside my area, but I’m just selling one management rights business in Broome in Western Australia now. That is settling in June. I’ve sold three others in Broome over the years. We’ve just listed a $5 million property on the Sunshine Coast, and a $6 million one - they are at Maroochydore and Mooloolaba. So, you could say we are pretty busy with work at the moment.

You’ve sold most of Noosa’s premier management and letting rights businesses over the years, and some more than once?

Yes. I sold Noosa Quays, Noosa Pacific, Maison in Hastings Street, Tingirana in Hastings Street, On the Beach in Hastings Street - I’ve sold that property twice. I also sold Saks in Hastings Street, Noosa Harbour Resort, Noosa Crest, and the Rise Apartments. What made you move to the Sunshine Coast in the first place?

I was living in Sydney, and I came

up on holiday. I was blown away by the prices for land up here, after living in Sydney I couldn’t believe it. I thought that they must have missed a couple of noughts. So, while I was up here on holiday, I bought five acres at Cooroy. That was in 1991.

I’ve got two boys, one is in the auto industry, he sells cars in Noosa and my other son is in the mining industry in Mackay. However, my wife Maggie is my rock and keeps me well grounded. What’s your background?

Since starting out in New Zealand in my early 20s, I’ve been involved in the hospitality, hotel and resort business. I’ve done everything from being the catering manager on New Zealand ski fields to being the manager on the Milford Track, to running large hotels. I come from the top of the North Island, at a place called Kaitaia. I left there when I was 12 and moved to Auckland, and later I backpacked around Australia for a couple of years in the early 1970s. Then I joined the Tourist Hotel Corporation in New Zealand in the mid-1970s, and I worked in a number of hotels there. I came to Australia in the late 1970s and worked with the Southern Pacific Hotel Corporation, mainly in food and beverage. I spent about five years in the recruitment industry, but I was still focused on the hospitality and tourism sectors in that job. Management rights is a very specialised field. How did you get into the business of selling them?

I was working for a company that specialised in distressed hotels and the first three that I worked with were under management rights. That was in the 1990s. One of the hotels was in Port Douglas, one was in Airlie Beach, and one was on the Sunshine Coast. I worked with that company for several years. In 2005 I had a chance meeting with somebody from ResortBrokers and that resulted in me starting with them.

Glenn Millar

Even though your focus is on the Sunshine Coast, you still sell management rights around Australia, so you must have built up some strong contacts over the years?

I have good relationships with several hotel groups. The first management rights business I sold in Broome was to Oaks Hotels and Resorts, and the second one I sold was to Mantra. I’ve got great long-term relationships with both of those groups. Most of the stuff I’ve sold away from the Sunshine Coast has been through contacts of mine that I’ve built up over the years and who know me from previous work. I’ve also sold management rights in the ACT and in Victoria. I’m settling on a property this month in Canberra. It’s a rare sale because there are very few buildings under management rights in the ACT. I sold that in conjunction with

our NSW agent. It’s his area but he’s not that familiar with management rights so he brought me in on the sale and I handle the management rights side of it. You’ve won ResortBroker’s Management Rights Broker of the Year five times. That’s very impressive.

Yes, and I’m hoping that I’ll win it again this year. I won’t know until the end of July if anyone’s pipped me at the post but I’m confident. We’ve just settled Breeze at Mooloolaba, and we now have under contract a business that will fetch a record price for management rights on the Sunshine Coast. What price is that?

I can’t reveal the exact price now because it’s very confidential, but we’re talking in excess of $10 million. It’s an off-market sale - very confidential.

You’ve made some record sales before?

Alex Cook and I were appointed by the receivers to sell Soul at Surfers Paradise, and we sold the management rights to Mantra for $27.5 million. That was about six years ago. It’s a huge building with about 300 apartments. At the time it was the most prestigious building on the Gold Coast. I don’t think there have been many higher sales on the Gold Coast since then, but there are new properties going up all the time, and there are probably properties now that are worth more. I also sold Peppers in Hervey Bay to Oaks Resorts. That was another huge business.

Why do you think so many people are so passionate about the industry?

I think it’s a fantastic business model. The thing I really like is that management rights is a

relationship business. You’ve got owners, you’ve got tenants, you’ve got committees, body corporates and you’ve got a business where you’re answering to everyone in the building, and you have to have strong relationships.

Run well, management rights are very profitable businesses. You and Chenoa must also be busy organising the Sunshine Coast ARAMA functions?

Chenoa is sort of the chief organiser for ARAMA on the Sunshine Coast. She and I come up with the venues and help with sponsorship. We also run our own seminars. ARAMA is such a great aid to the industry. It’s an association that really helps people in management rights, and I see it as essential. I’ve been a long-term ARAMA member and I’m very much a supporter of what they do.

What do you do when you’re not selling management rights?

I try and get away for two overseas trips a year. I’ve just come back from two weeks in Hawaii, and I went to Bali before that. Being a broker is a seven-day-a-week business and I think it’s important to have a break every so often and recharge the batteries. I’ve been all over the world but one of my favourite destinations would have to be Lake Tahoe, up in northern California, and the nearby wine district of the Napa Valley. It’s absolutely beautiful up there.

Glenn with his colleague Chenoa Daniel

Glenn with his wife Maggie

An update on assignments

By Will Kenny, Property Lawyer, Mahoneys

Managers who have bought and sold businesses in recent years can attest to how difficult the assignment process has become. Gone are the days when the assignment was merely a ‘tick and flick’ and consent of the body corporate was once treated as a foregone conclusion.

Nowadays, committees (and strata managers and the lawyers involved) are handling assignments more thoroughly than ever.

As a seller, it is vitally important to ensure you and your buyer are well prepared for when it comes time to seek consent, even well before your contracts become unconditional. In the current environment, here is what you need to be aware of before notifying your committee.

What information must your buyer provide?

The industry adopted special conditions for management rights contracts now require a buyer to provide certain information upon the contracts becoming unconditional. As a minimum, this includes the

proposed deed of assignment and motion, a business plan, resumes and references for the directors or key personnel of the buyer, police checks and any other information required under the agreements and at law. You should ensure that the buyer has prepared this information to a high standard so that it is presented well to your committee. We are seeing many buyers now seek professional assistance in draft ing and compiling resumes and business plans. If the buyer has prepared this material poorly it will not give your committee much confidence in supporting the assignment.

What is reasonable for a committee?

We are seeing committees now regularly insist on having buyers undertake a competency assessment carried out by industry specialists. The primary reason for this is to take the burden off the committee in rigorously assessing the buyer’s suitability and so that the committee can rely on the findings of the assessment to make an informed decision. These assessments critically analyse a buyer’s knowledge in all facets of caretaking and lett ing which means that prior preparation is key. As a seller it comes as a further cost of the assignment which is “reasonably incurred”. Despite the additional cost and complexity of the assessment,

it is not unreasonable for a committee to ask for it. If your buyer has previously owned or currently owns another business, you can expect that the committee will ask for references from either a committee member or the strata manager for those schemes. Inevitably, some buyers will be reluctant to do so due to the confidentiality of the purchase and the relationships with the individuals involved at those other schemes. Again, it is not unreasonable for a committee to insist on these references and refusing to cooperate will only raise suspicion. You should ensure that your buyer is candid in disclosing the full background of their experience in management rights and that they demonstrate that to your committee. Buyers that deliberately withhold this information will only cause complications for or even the loss of your sale.

What can you do to make the process easier?

Make sure that your buyers have their resumes, business plans and references ready (or at least working draft s) at the very outset. If in doubt about your buyers, you may want to see these even before contracts are executed. If what they have is not up to scratch, flag this with them immediately. If you have a selling agent involved,

they should be working with the buyers to review the material before it is provided for formal submission. Generally, your committee will want this information to be as detailed as possible - there is no such thing as being over prepared!

In our experience, the difficulty of your assignment will depend on the relationship with your committee. If hostility exists, more often than not a committee will either go out of their way to complicate or delay the assignment. This is why it is important to always maintain a good relationship with your committee. Even if you are not planning to sell in the immediate future, you will always need their assistance in facilitating a sale when the time comes. Unsurprisingly, we see that high performing managers who have good relationships with their committee will always get their support. Those managers can ensure that the timeframes of the assignment will be met and can even recommend appropriate legal representation to their committee.

Whether we like it or not, assignments are now much tougher than they were. It is indicative of how the industry has changed in recent years. Committees are much more careful in who they approve and are more aware of their rights and obligations when it comes to an assignment. Ultimately, it is to prevent a body corporate from becoming stuck with an underperforming manager and facing the difficulties of trying to remove them. If you keep your committee onside and perform your duties well, you will find that your assignment will be much more streamlined and uncomplicated.

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

New name for Management Rights Accounting Specialists

The MBA Partnership has been a part of the Management Rights industry and Gold Coast community for over 20 years.

In that time, we’ve also been part of the Count network- a collection of like-minded advisory firms with national presence and scale and the provider of our financial planning licence. Count has recently updated its brand and identity to better reflect an integrated accounting and financial planning offer, and The MBA Partnership is joining this initiative to bring our valued clients, referral partners and industry colleagues access to

experience we already have locally. Our integrated accounting, financial planning and advisory services provide you with the confidence to look ahead.

What is changing?

The MBA Partnership will now be known as Count. You may have already noticed the new logo for the first time in this advertorial and in our updated Preferred Supplier advertisement.

Other parts of our branding have also been updated, including our office spaces and online presence. We’re very excited to share these details with Resort News readers!

What is not changing.

Our experienced team of Management Rights specialists will continue to help with all your tax, bookkeeping and audit needs. The ownership of our firm, our team and management are

not changing. We will benefit from greater collaboration across our national network, with our commitment to our clients, colleagues and referral partners, a constant.

“We’re excited about what this means for our clients and our team,” says Founding Partner and Management Rights expert, Michael Beddoes. “After 22 years, it was definitely time for a spruce up. We’ve been a member of Count since 1998, so it feels like coming full circle. Our Management Rights team all share deep industry knowledge and a passion for the success of our clients and the growth of this industry.”

Should you have any questions, please don’t hesitate to contact Michael Beddoes or Paul Gaffney on 1300 667 897.

Kate Elliott, Morgan Weeks, Geoff Stephens, Deslea Firth, Michael Beddoes and Paul Gaffney

Michael Beddoes

Paul Gaffney

Lay out the future

line. It may be a few dot points and ideas or an extensive list, depending on the individual. Having some idea of how one expects the future should all go to plan, is a great idea to begin with. One possible future plan may look something like this:

Week one after settlement

By Andrew Morgan,

Part of the purchase process for a motel is that it commences well before settlement date and includes laying out a plan for the future.

Not necessarily written down, the plan can simply be a consideration of the future even before signing on the bottom

• What will be the first thing we want to immediately change?

• Will we renovate rooms?

• Is a major clean-up of the property the first matter?

Six months later

• Once we complete the above items how will we work on increasing the occupancy rate?

• How can we improve our office and working processes?

• How can we increase our tariffs?

• What expenses can we target to eliminate or reduce?

Two years later

• How can we get away more now that we have the business running as we would like?

• Can we employ additional staff, utilise a relief manager or employ a full-time manager?

Four years later

• Should we look to sell and buy a larger motel next year, take some time off, or retire?

• What do we expect the market to look like next year?

Depending how particular or meticulous one is, may mean the above short list is far more detailed.

The more detail the better. This doesn’t mean the plan will play out exactly as written five years down the track, but it’s more a guide for new owners and operators to work towards. This way various matters can be dealt with and prepared so the lead up to going to the market is smooth and organised, opposed to playing catch up and being unprepared.

Different types of motels or accommodation businesses will have very different plans and considerations. A leasehold motel owner’s plan may be to work hard for three years, sell and then buy a freehold. The plan may be then to work hard for another three years, then sell the lease and live off the tenanted investment. This is a common plan that I discuss with clients entering the motel industry. Other discussions include a straight out ‘five-year plan’ which I think is seen as not too short and not too long before one will

Tax return preparation process:

Are you ready for the tax man?

income and the associated expenses they have incurred in earning this income. For some, this is quite a simple affair but for most trading within the accommodation industry, it can be more complicated. More often than not an entity tax return, for instance a trust, company, or partnership must be completed as well as at least one individual tax return.

date for lodgement is. This due date will range from October 31 to mid-May the following year. For most businesses lodging with an accountant their due date will be mid-May.

Step 2: Obtain a checklist or information request

By Jonathan Hanaghan, Director, Jonathan Grant Accountants

Happy new financial year!

Every year from July 1 all Australian resident taxpayers need to provide the deputy commissioner of taxation with a compliant tax return declaring all amounts of assessable

I will now go through a stepped approach that should be useful in collating the required information and ensuring you meet your taxation reporting obligations…

Step 1: Due date for lodgement

Find out from your accountant or tax agent what your due

Contact your accountant for this. This may be a standard checklist, or a more customised and detailed list of the information required.

Step 3: Agree on timing

Discuss how, when, and where your work will be processed. Your accountant should have a standard processing timeframe.

Agreeing on the time frame

for completion is even more important if you require your tax returns for a finance application, an annual bank review or are part of a corporate agent partnership. Generally speaking, if you need your finance approval pre- December 31, you can use the prior year’s tax returns.

Step 4: Ensure your bookkeeping software program is accurately reconciled to June 30

Whether you use MYOB, QuickBooks, Xero, or another program you need to ensure that your data is accurately reconciled to June 30 of the relevant financial year. This is important as it provides the starting point for your accountant to begin processing

Motel Broker/Partner, Qld Tourism & Hospitality Brokers

be ready for a change. Five years also seems to be considered long enough to achieve goals more related to improving the operation and financial performance of the business to be able to make a substantial capital gain upon future sale. The hard part of the plan is how to follow through and make it a reality. How to execute and achieve it. I would say statistics show the average length of tenure for the operation of a motel is approximately three years. This obviously does not marry up with the five-year plan mentioned, however leasehold tenure is often less than freehold, and the five years relates more to freehold acquisitions.

As with any business operation, it is a fluid situation, circumstances change, and plans get re-evaluated. Who’s to say that one needs to stick to the original plan? If an offer comes along that can change things, run with it. Make a new plan and move forward. The best laid plans do not always come to fruition, as life gets in the way. Therefore, once the business is operating the way the operator wants it to, different options and opportunities can often present themselves when least expected.

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

Step 5: Collate supporting information as per your checklist or information request

This may require getting copies of bank and loan statements, purchase and sale contracts for assets bought and sold (including property, shares, motor vehicles, and so on). You may need to contact your bank, solicitor, stockbroker, or real estate agent. This can take time, so it is best to get onto this as soon as possible.

Step 6: Make sure all ATO payments have been made and are up to date

Ensure that any outstanding amounts of income tax, GST or PAYG have been paid. If this is not the case, you will need to advise your accountant.

The role of the operator in being able to execute the plan needs to be considered. This all revolves around avoiding falling into the old trap of not only working in the business, but on the business as well. One needs to consider that trying to fulfil the roles of everything and everyone within the business will not result in achieving the goal. It simply puts pressure into the operation, and all involved. Furthermore, another goal most business operators have is trying to conserve costs and run a business as efficiently as possible. This unfortunately works against other goals such

as the five-year plan. The line between doing a job yourself and delegating to an employee is a difficult one for most people. Motels are a seven day a week operation and working all day every day is not realistic, especially over a five-year term. Something in the end will have to give, and often the result is a rash decision to sell before the goals are reached. Burnout is often the main reason the five-year plan ends up being reduced to an average time frame of three years before selling and moving on. When a motel owner or manager is attempting to do all roles within

the business, inevitably they get burnt out and look to sell the motel. In many cases this ends up in selling the motel at a lower value than could have been achieved had they been able to see their original plan through to fruition. A typical example is when a new owner takes over, spends a large sum on capital improvements or refurbishments and sells out short of their planned time frame, prior to realising the full benefits of their investment.

Delegating some roles within a motel is important, whether it be management, reception, accounts, cleaning, meal preparation, and so on. If an operator can free up some of their time by allowing employees to handle certain roles, this will assist in freeing up time for the operator to work on improving the business or taking time out to recharge the batteries. Delegating jobs or just taking some time off each week or month, may cost a little more in wages, but in the long run it may be a cost that will be recouped at the end of the five-year plan.

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

Step 9: Debrief

Step 7: Forward all information to your accountant

This involves sending all requested information to your accountant together with any other written instructions, including details of who is best to deal with any queries that may arise. At this point, you may also be required to sign an engagement letter or similar document outlining both parties’

roles and responsibilities. If you are unsure about any matter, contact your accountant before sending. It is better to not start an engagement until all relevant information is with your accountant.

Step 8: Dealing with queries

Make yourself available via phone or email to deal with any queries from your accountant. Most taxation compliance jobs

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

In summary, the taxation system in Australia is based on self-assessment so each taxpayer needs to take care when preparing their tax returns. This all starts with the quality of the information supplied to your accountant and the planning that goes into the process. A smooth engagement with minimal or no queries will always result in a much better outcome for the client and accountant.

© Adobe Stock, stock.adobe.com

© Adobe Stock, stock.adobe.com

Beware the claw

By Mike Phipps, Mike Phipps Finance

I find newborn infants interesting. They seem to appear with little personality and a case of sheer exhaustion, presumably due to the rigors of their recent journey. They spend most of their time sleeping or crying and apparently pining for a return to the warm safe place from whence they recently emerged. As such I’ve previously been one of those people who finds the litt le ones far more appealing once they become mobile and start to develop a personality. In the case of our

three-year-old granddaughter that would be very mobile and some personality indeed! We love her dearly but after a day with dear Harper, the managing director seems to require more wine and valium than might otherwise be good for her. I exaggerate for eff ect of course...

The recent arrival of our first grandson caused me to reassess this apparent ambivalence. Given the happy news in the middle of the night, I found myself having a litt le cry and feeling very odd indeed. It turns out I’d been quite anxious about the whole thing and the sheer relief of knowing the litt le guy had landed safely made me quite emotional. Must be gett ing soft in my old age but I digress.

Of course, we visited the hospital the next day and there was much oohing and aahing. The MD was immediately smitten, and I must confess having a nurse was prett y special. However, there’s only so much time one can spend in a hospital room before the mobile devices sneak out and it’s back to work. This, of course, is an error. As soon as the MD observed that my attention was not 100 percent focused on the new arrival I was left in

no doubt of my transgression.

“What the hell could you be doing that’s more important than spending time with your new grandson? Have you no sense of the occasion? What is wrong with you?”

“Well dearest, I’m working on a deal that includes clawback and claw forward provisions and the calculation of those numbers is doing my head in. I’m just trying to write something that might help me make sense of it all.”

“Claw! I’ll give you claw if you don’t put that iPad away right now and pay attention to this baby.”

And so, dear readers, I approach the claw with trepidation, fear, loathing, and a certain sense of impending calamity. But, as one who enjoys opening Pandora’s Box just to observe the mayhem here goes.

Management rights are bought on a verified net profi t. That net profi t is made up of a body corporate salary and income from providing lett ing services. The lett ing service income is predominantly driven by the number of units in the lett ing pool, the configuration of those units, and the occupancy and

tariff that those units can generate. This combination of occupancy and tariff is often referred to as REVPAR (revenues per available room). It is possible to calculate exactly how much each unit in the lett ing pool makes for the manager. Given that calculation, it is then also possible to calculate how much each of those lett ing appointments is worth. Or is it? To assume that the loss of a unit from a lett ing pool would impact the profi t by the amount that unit makes is to assume the property is running at 100 percent occupancy 365 days a year. Otherwise, with the exception of times when a property is in fact 100 percent full, the loss of a unit simply means other units enjoy higher occupancy and there is no material impact on the manager’s profi t. As such there is an argument that any price adjustment occasioned by the loss of a lett ing appointment should only reflect lost revenue during times of 100 percent occupancy. These calculations can be quantified using historical data that in most cases form the basis of the forensic accounting process we know as verification of net profi t.

Claw! I’ll give you claw if you don’t put that iPad away right now and pay attention to this baby

There are of course other matters that need to be taken into account. Some are quantifiable, some are not. For example, unit configurations, particularly high-demand layouts, need to be considered. Less quantifiable but equally important is what the loss of a lett ing appointment says about the status quo in a property. To know that an appointment has been lost is important, to know why is equally so.

There is another piece of this jigsaw puzzle that’s worth thinking about but be warned, I don’t have an answer. The value of a lett ing appointment will be impacted by future demand. In a rising demand market appointments will become more valuable, in a falling demand cycle, less so. I don’t have a formula for this but if you are tossing a coin on appointment values it’s worth thinking about.

So, I think we can establish that existing appointment values can be quantified via historical data relating to the specific lot, overlaid with considerations regarding occupancy and income loss during peak demand periods. That just leaves new appointments

acquired between contract and sett lement. The value of these cannot be quantified via historical performance data relating to the specific lot acquired so what to do? The easy answer is to apply the same principles to claw forward as those applied to clawbacks but that’s a potentially flawed approach. Here’s why.

It seems implausible to me that on the one hand, a forensic approach can be taken to determine the value of units lost and then to apply the same numbers to a projected and unproven hypothetical income that a new unit might derive. As such we are essentially comparing proven historical performance with a projected income and as we know multiples on projections att ract discounts. My conclusion is that if a per lot value is assigned to units lost from a lett ing pool, then a similar methodology should be considered for units gained, but at a discount reflecting proven versus projected income. Again, there are other considerations at play here. I would contend that in a high-demand record REVPAR

cycle, new appointments are potentially worth the same as lost appointments. While the income on new appointments is indeed projected, the risk factor in terms of filling those rooms will be low. Conversely, in a falling demand cycle where occupancy is on the wane, new appointments are potentially valueless. Once again, there’s more to this than meets the eye. A new appointment signals confidence in management, support for the MLR business model and potentially diversifies the lett ing pool. There’s a value in all of this but it is beyond me to come up with a formula.

Yes, I hear you, dear readers. Mike, so much verbiage, so litt le solid advice! There’s a reason for that. Every property is diff erent, and every demand cycle varies. My advice is simple. Just as there is no set multiple for purchase prices, so there is no set formula for claw values. Based on all the potential variables it’s a case-by-case assessment, underpinned by the considerations I’ve described. If in doubt I always start with E=mc 2 and work backwards from there. A word on valuations. I read

a recent report where a valuer placed a value on each appointment. Pure mathematics was accurate, but the underlying methodology simply failed to consider all the variables above. I understand the need for valuers to be concise and to underpin reports with specific calculations but failing to consider variables in appointment values seems to me to be missing the point. Of more concern is that lenders rely on these reports in determining the possible drop in value of a business if it loses an appointment. A more sophisticated approach seems a fair expectation.

In closing, please take into account that I am mostly talking about short-stay management rights here. Calculations relating to permanent properties are a whole lot easier and for that, I do have a formula.

I’ll leave you with a quote from the bloke from whom I have stolen the formula above.

“The formulation of a problem is often far more essential than its solution” – A Einstein, Genius.

Exercising bragging rights

By

Are you an amazing caretaker doing a fabulous job of maintaining the common property of your residential strata complex, but nobody seems to notice? Do you feel you are doing an excellent job of keeping the property running smoothly but still there are complaints?

So how do you bring to everyone’s attention just how hard you are working behind the scenes and all the good ‘stuff ’ that follows because of this vigilance?

Anybody who has provided services as a caretaker or facilities manager will no doubt

have stories about feeling misunderstood or wrongly criticised throughout their career, whether that career is long or short in duration. Rarely in any profession does gratitude or recognition of skills come along routinely from clients, and more often than not, the caretaker cops the blame for any number of things going wrong. Naturally, everyone makes mistakes, but sometimes the caretaker isn’t the one to blame. For example, the garden lights on common property have never been effective since the building was brand new (ie., due to an unresolved building defect from original construction) and globes constantly blow. It

SMALL MYERS HUGHES

Management Rights Specialists

QLD-NSW-VIC-WA

BUYERS - SELLERS - DEVELOPERS

Our team of legal experts, led by Col Myers, has over 30 years’ experience in this area and will get you the best possible outcome.

Tel: +61 (0)7 5552 6666

M: +61 (0)417 620 516

E: cmyers@smh.net.au

W: www.smh.net.au

is a duty under the Caretaker’s Agreement to replace bulbs and this is duly being done, but the caretaker is somehow blamed for not proactively determining that the frequency of globe replacement requirements is excessive and evidence of some greater electrical defect.

It is not the caretaker’s duty to assess and determine an underlying electrical defect. The caretaking duty is to replace blown globes, but this is just one example of how a duty can be misconstrued.

Determining building defects or electrical system defects would be a specialist task for a highly qualified consultant to assess (not the caretaker), so how do we help our body corporate committees understand what the caretaker must do, and not do?

Communication is key

Getting the point across hinges on effective communication and it’s okay to exercise bragging rights. That means that it’s a good idea to let the community know about the good work you and your team are doing. The best way to communicate a positive message is via a short, colourful (more photos than text) and well-presented newsletter that sends the specific desired message to the reader.

It is important to ensure communications are to a professional standard if you want to be seen as a ‘professional’. If you are not an expert in communications, consider investing in a consultant to help you present yourself, your newsletters, reports (even emails) in a professional manner. Even having a logo, domain registration for your business and professional email footer and signature makes a world of difference in how your client perceives you as a professional.

Be prepared

No doubt the interactions with the committee are limited to dealing with issues and solving problems, as committees are volunteers and their time is precious, so keeping committee meetings short and to-thepoint will help everyone. As a caretaker, coming to these meetings well prepared is key. It demonstrates you are being proactive and respecting the committee’s time when you bring all the information necessary to support quick decision making. Ditto for emails. Try to be efficient in your use of emails and consider the email traffic volume being created by you and received by your client. For example, when obtaining quotes for repairs, only send one single

Lynda Kypriadakis, Diverse FMX

© Adobe Stock, stock.adobe.com

email with all the quotes for the same project attached. Then you can make a recommendation and help the reader have all the information together in one email for easy decision making.

What is a ‘professional’?

Professionalism is not something you can order online or grow in the garden. It is effectively an ‘illusion’ that your client has of you. You can’t demand to be treated as a professional and get professional treatment in return.

To be considered a ‘professional’ in your field, your client has some expectations:

• Some sort of qualification relevant to caretaking or facilities management. If you don’t have a qualification in your field, how can you expect your client to respect you as a ‘professional’ services provider? The ABMA Building Compliance Accreditation Agency provides Industry Practitioner Accreditation for residential strata Caretakers and Facilities Managers as a recognition of professionalism and competency.

• A professional image: You can manage a professional image through excellence in communications.

• Written communication: Including branding, proper grammar, spelling, documents, and emails set out to a professional standard.

• In-person communication: Including being positive, resolution-oriented, nonemotional and polite.

• A uniform: Wearing a neat and tidy and fit-for-purpose uniform, complete with branding that identifies you as part of a team, goes a long way toward uplifting a professional image.

• Responsiveness: Being proactive and responding to contact in a timely manner.

• Memberships and associations: Most professionals belong to a peak body association relevant to their trade or services, which for

caretakers’ and facilities managers would be ARAMA or the FMA.

• Bound by professional standards: To promote professionalism you must be able to state which standards your professional services apply (for example) the ABMA Building Management Code, which is the objective industry standard for the delivery of caretaking and facilities management (and associated) duties.

• Rectify at own cost: Another hallmark of a professional services provider is that they are self-auditing and rectify their mistakes at their own cost. Are you auditing your own work to ensure it achieves the required standard?

• Covered by insurance: A professional services provider is always covered by insurance to indemnify its clients.

Solve problems

Even when a matter surfaces that is outside your area of expertise or knowledge, a professional services provider would take steps to assist with problem solving. As a caretaker, if a building rectification matter is outside your expertise, get onto your network of consultants and advisors and find out who will solve the problem. The quicker the problem is solved the better your client will feel.

Trusted advisor

The goal of every caretaker or facilities manager is to be seen as the trusted advisor to the client. This requires you to be the most knowledgeable person in the room when discussing maintenance and repairs related to the common property of your building. If someone on the committee knows more than you do about your building, then you have some catching up to do!

Training programs specific to caretakers and facilities managers are widely available online and highly recommended for those that seek to provide the ultimate in professional building management services to their clients.

Are you missing opportunities?

By Kelley Rigby, Managing Director, Lett s Rebuild

Are you missing opportunities to create strong relationships from the very beginning?

You will hear me harp on about the importance of being involved with residential sales within your community, often highlighting the fact that you are missing financial opportunities but there is so much more at stake than that. Being involved in the sale means that you are the very first person your new owner has contact with, you are the one they will look to in a time of vulnerability. Yes, buying a new home or an investment is always a nerve-racking process no matter how savvy you are. If you are the person to help answer all their questions and make them, feel at ease about the purchase, that is the start of a strong and lasting relationship.

Okay yes, the extra income stream is great especially in times like these but let’s talk long term, let’s talk about the relationships.

I feel as though I haven’t written a scenario for a while so let’s do that…

Scenario one:

An agent, (one you have already had words with because he is very arrogant and doesn’t have any respect for you or your business) is selling a townhouse in your complex. You only know this

because you’ve found an ‘Open Home’ sign hammered into your beautiful garden. This happens for a few weekends then stops and you think it must have sold. You see a removalist truck and assume that the new owners are moving in, you go over to say hello and they are quite standoffish. Did the agent speak highly of you to these owners, or do you suspect he shared a negative opinion of you?

Now you are already on the backfoot with these owners!

Scenario two

You are selling a townhouse in your complex; it is sold to an investor, and it goes into your letting pool. You have a great relationship with these owners as you helped them immensely from the very beginning.

They always vote ‘yes’ and they are a huge supporter of management rights.

Scenario three:

You are selling a townhouse in your complex; it is sold to an owner occupier. You have a great relationship with these owners, they are always singing your praises to other owners in your community.

They always vote ‘yes’ and they are a huge supporter of management rights.

If you start to build strong relationships from the beginning with your owners, whether they are an owner occupier or an investor, you have a greater chance of enjoying a smooth and conflict free community.

There is so many more benefits when selling in your community than just financial, I don’t know about you but scenarios two and three are my picks.

You have the ability, so what have you got to lose?

Maximising opportunities for bookings in 2023

of your accommodation business is your ability to attract and retain paying guests. Bookings are paramount and all bookings are good, irrespective of the source. Direct bookings, however, are the ‘golden egg’ due to the increased revenue and future marketing opportunities that they provide.

By Sylvia Johnston, Senior Executive, HiRUM Software Solutions

2023 is without a doubt a big year for exploring the world. Even with tightening financial markets it currently remains a priority for prospective travelers. However, consumer behaviours continue to change, and it is very important that, as a travel provider, you take those changes into account to ensure you take advantage of every opportunity to secure a booking.

A major change that is evident is the amount of time travellers spend researching and booking their travel. This has increased by up to 29 percent since 2019, depending on the country of origin. This increase is indicative of the savvy traveller’s tendency to research across multiple sites to make a purchase decision, irrespective of how they decide to book. In fact, studies show that a prospective traveller is likely to visit the property’s own website up to 50 times while researching to seek information about the property.

Without doubt, the most important factor in the success

Online bookings now supersede other avenues, 68 percent of all travel bookings in 2022 were made online. Given this information it is clear how important it is to make the most of online booking opportunities from all sources. So, what does this mean for you, as an accommodation provider?

Firstly, take full advantage of the “Billboard Effect”

The prospective traveler will undoubtedly see your property advertised on many OTA sites. They have enormous buying power when it comes to Google advertising and will be the first sites listed in any travel accommodation search.

We have already established that during their research, savvy guests will turn to your website to learn more about your property and may do this many times over before booking. This is known as the “Billboard Effect”. This is a golden opportunity to convert the advertising power of the OTA to a direct booking by providing incentives that make booking direct more attractive.

To secure this guest as a direct booking you should ideally offer discounts and inclusions for booking direct by way of a pop up on your website. These inclusions can be items such as breakfast, late check outs and room upgrades to name a few.

Interestingly, in a scenario where prices are identical on hotel

websites and OTAs, statistics indicate that 70 percent of respondents will book via the OTA (Hospitalitynet). This is due to OTA loyalty programs, such as Booking.com’s Genius program, which effectively reduce the cost of the booking below the advertised price and perceived ideas of security and ease of booking. To compete with this, your website must be able to offer a better alternative in terms of price, inclusions and booking terms, and an equally simple booking process.

It is also very important that your website is attractive, visible on Google, fast to load, contains accurate and relevant information, is easy to use, has great photos and videos and has a very simple three click booking process.

Secondly, maximise the advertising the OTAs provide to secure every booking

Even if you are not successful in converting the prospective guest to a Direct Booking, you want to ensure that they book your property on the OTA site. In many cases, given their dominance over Google Advertising, the OTA will be the first impression that a potential booker has of your property. Make sure the OTA listing showcases your property in its best light, with high-quality images and relevant text. Ensure their listings highlight what makes your property unique, as you will be displayed against your competitors on the OTA sites. Your property should stand out to gain the competitive advantage.

Manage your OTA listings with an effective Channel Manager to ensure that availability remains up to date. Additionally, Google Hotels

does give you an opportunity to showcase your own property website on the first page of a Google search. Make sure your property is set up with this option.

Thirdly, don’t underestimate the power of reviews

Reviews matter to savvy researchers. They see them as an unbiased impression, even though this may not always be the case.

Encourage guests to review your property across Google Reviews and Trip Advisor. The OTAs will encourage reviews on their channels also. Make sure you monitor all reviews and answer them, whether positive or negative. Deal with negative reviews honestly and with empathy; never just ignore them. How you deal with a negative review gives guests an impression of how you may deal with an issue during their stay, so answer it carefully. Likewise, make sure your social media portrays your property well, is engaging, and includes guest testimonials. As consumer behaviors continue to morph with changes in the industry and the economy, it has never been more important to ensure that you take advantage of every opportunity for your property to make money. Understanding how much a prospective traveller will research clarifies why you need to extend your focus across all sites. Showcasing your property in its best light across all of these various sites is the best way to ensure a successful business moving forward.

Now is the time to set yourself up to convert every possible booking and ensure the strength of your business in a potentially unstable economy.

Navigating the changing landscape of travel:

Wage rise not the biggest threat to MR

By Grantlee Kieza, Industry Reporter

The increase in Australia’s minimum wage will have nowhere near as big an effect on the management rights industry as the government’s proposed moves to cap rents.

That’s the opinion of Trevor Rawnsley, the CEO of ARAMA, the Australian Resident Accommodation Managers Association.

More than 2.5 million Australians will receive a pay rise of 5.75 percent from July 1 after the Fair Work Commission announced its decision for those on minimum and award wages.

The wage rise announcement came just days after worrying inflation figures showed annual Consumer Price Index growth at 6.8 percent. Even with the wage rise to $859.32 for a 38-hour week, the nation’s lowest-paid employees will still lag behind the runaway cost of living.

The wage rise will go to about a quarter of all Australian employees, with many involved in hospitality, tourism and accommodation.

Mr Rawnsley said while most resident managers in the accommodation sector would raise tariff s slightly to absorb the additional running costs of their businesses brought on by the wage rise, the real danger to the long-term rental sector of management rights was government plans to cap rent increases.

“The only real risk a property runs by raising tariff s is that it might make them a litt le uncompetitive,” Mr Rawnsley said.

“But if pressed to meet the additional costs some managers will likely reduce hours for workers or try

to find ways to make that work more productive.

“The wage rise will not be a catastrophic change.

“Increased labour costs won’t aff ect our members who are running long-term residential properties in the same way it will aff ect the tourism sector. But the proposals to limit the rent that a landlord can charge will make life tough.

“Inflation is seeing prices going up across the board. Some politicians are saying everything will continue to go up except the rent you can charge. That makes it hard if you’ve invested in property or an accommodation business and you’re relying on that rent to pay a mortgage which is costing you more every month with interest rate rises.

“These artificial caps on rents are destructive. If you are going to put caps on price rises why not put a cap on petrol, or on taxes? Why not put a cap on insurance? Or why not freeze wages?”

Mr Rawnsley said raising wages might even benefi t the tourism sector in some ways by att racting more workers in places where they are scarce. But he said increased labour costs were another charge for resident managers coming on top of interest rate and electricity hikes.

“The real problem for a business is when you are then restricted in the amount of income you can receive, and that’s what a cap on rents will mean,” Mr Rawnsley said.

“I’m old enough to remember back in the day when there was a freeze on wages and prices to stop inflation and that seems much fairer and sensible.”

Michael Johnson, CEO of Tourism Accommodation Australia and soon to be head of the newly amalgamated peak body, Accommodation Australia (AAA) said that given the

current cost-of-living pressures, “the rise in the minimum wage is totally understandable”.

“It is hard to argue against an increase for those on low incomes who are struggling to make ends meet,” Mr Johnson said.

“But we need to keep in mind that hotels are also impacted by the increasing cost of goods and services. Wages make up around 30 percent of operating costs and this rise will have a flow-on eff ect.”

Chris Fozard, the Operations Manager of Budget Motel chain, said the pay rise, while helping many people cope with soaring living costs, would unlikely make a huge impact among

his group’s 100 members.

“Many of our members are the sort of motels that are prett y much manageable by husbandand-wife teams,” he said.

“So they are not dealing with a wages bill for 100 people like the big properties.”

And Allan Hsiao, who owns a motel at Merimbula on the NSW South Coast, said the pay rise would not significantly aff ect operators such as himself.

“It may have a small impact for medium operators, but it won’t wreck the bank,” he said.

“For big operators with a lot of staff, it becomes diff erent but for most motels the biggest cost they face is the utilities.”

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World first Indigenous experience at Uluru

Wintjiri Wiru, the breathtaking cultural storytelling experience recently launched at Uluru, is the perfect solution for companies looking to incorporate exciting cultural elements into their next conference or add to their incentive programs.

Developed in close partnership with the Anangu community, this gamechanger for the Australian tourism industry combines ancient Indigenous storytelling with a state-ofthe-art drone, laser, and light projection technology.

It is the first time an experience of this magnitude has been performed on a regular basis anywhere in the world.

“What a great drawcard for companies, PCOs and Event Planners who want to give their staff and their clients the opportunity to be among the first visitors to this exciting new experience. There is no doubt in my mind that Wintjiri Wiru allows businesses to go beyond the ordinary when planning

their upcoming events,” said Peter Graham, Director of Sales & Partnerships for Voyages Indigenous Tourism Australia.

“With a renewed interest in Indigenous experiences, Wintjiri Wiru delivers on the curiosity of Australian travellers to immerse themselves more deeply in our country’s fascinating Indigenous history.”

The show brings to life a chapter of the Mala ancestral story which sits between Kaltukatjara (Docker River) and Uluru.

More than 1100 luminous drones take flight each night to lift these ancient images to the sky. Through exquisite choreography and visual artistry, the drones depict aspects of the Mala story accompanied by a narration in Pitjantjatjara and Yankunytjatjara languages, and a soundtrack with traditional inma recorded with members of the local Anangu community.

Wintjiri Wiru perfectly complements other experiences on off er at Uluru including

Desert Awakenings which showcases the elements of the Mala story, Tali Wiru, the intimate four-course dunetop dining experience for only 20 people and, for larger groups, Sounds of Silence or A Night at Field of Light. Groups can choose from two nightly performances of Wintjiri Wiru - the threehour Sunset Dinner or the 1.5-hour After Dark show.

Rene Kulitja, on behalf of the Anangu Consultation Group said “People from every place have come to see Uluru. Now we want people to come and experience our story in a new way. We want visitors to know this is our story, to look and listen and feel with us.

“Our stories have been here since the beginning, and we want to share this story with the world.”

Guests can view the show on an environmentally sustainable, purpose-built platform just moments from the Resort. It “floats” above the desert with stunning panoramic views of both Uluru and Kata Tjuta nestled on the horizon.

Artwork from local Anangu

Wintjiri Wiru - Kurpany. Photo by Gett y Images for Voyages Indigenous Tourism Australia. Acknowledgement - Anangu share the Mala story, from Kaltukatjara to Uluru, through a drone, sound and light show designed and produced by RAMUS.

Wintjiri Wiru - Songline depicting the Mala story between Uluru and Kaltukatjara (Docker River). Photo by Gett y Images for Voyages Indigenous Tourism Australia.

artist and community member, Christine Brumby, has been cut into the architectural steel separating the various seating levels of the platform and backlit for maximum impact.

Voyages Indigenous Tourism Australia acknowledges continuing Anangu connection to land, water, sky, culture and community and pays respect to Anangu communities and Elders and welcomes the opportunity to celebrate Anangu culture through the Wintjiri Wiru experience.

As custodians of the land, Anangu hold the Mala story from Kaltukatjara to Uluru. To share their story, RAMUS designed and produced an artistic platform using drones, light and sound to create an immersive storytelling experience.

Aussies vote Queensland their number one local holiday destination

A survey has revealed a ranking of the top domestic and global travel destinations Australians are likely to seek out for a holiday this year. By a significant margin, Queensland tops the list domestically while New Zealand tops the international list.

The findings were derived from a survey of an independent panel of 1001 Australian travellers, commissioned by leading, award-winning travel insurance provider InsureandGo.

The good news is that nearly all respondents indicated they have, or will, take a holiday this year. Nearly two-thirds (61 percent) are travelling inside Australia, while 37 percent have gone or will travel overseas. Only two percent are taking a year off from travel in 2023.

Sunshine Coast news

Sunshine Coast has launched a new sustainability initiative to future-proof the region’s green tourism credentials – one tree at a time.

Visit Sunshine Coast, in partnership with Queenslandbased Reforest, TEQ and Sunshine Coast Council, has launched the Sunshine Coast Sustainability Program which invites visitors and the local tourism industry to contribute towards reducing carbon emissions through local reforestation projects.

Visit Sunshine Coast CEO Matt Stoeckel said: “Our goal is to make a positive and meaningful contribution towards the sustainability of the Sunshine Coast as a destination. This program reinforces our sustainability credentials and will go a long way in encouraging eco-conscious travellers to visit and make a positive impact to the sustainability of the region.”

While carbon calculators are not a new concept, the idea of a destination banding together on a region-wide sustainability initiative is.

Mr Stoeckel said: “The new program provides the opportunity for visitors and tourism businesses to easily calculate and remove carbon emissions through the regeneration of local ecosystems.”

Reforest co-founder and CEO Daniel Walsh said: “This is all about restoring the local ecosystems that tourism depends upon, and which visitors come to the beautiful Sunshine Coast to see. The program is launching with two native reforestation projects, one in Cooroy and the other

in Caloundra.” Sunshine Coast tourism businesses, from accommodation providers to coastal cruises and family attractions, who are keen to go green are signing up to reduce their carbon footprint. The program includes:

• A carbon calculator for visitors to understand their carbon footprint.

• Helpful tips and tricks on ways visitors can minimise their footprint.

• Local reforestation projects for visitors to remove carbon emissions.

• A toolkit for tourism businesses to calculate emissions and identify ways to take positive climate action.

• A dashboard where outcomes are displayed and sustainability stories are profiled.

The Sunshine Coast boasts three UNESCO Biospheres sitting side-by-side and planting more trees will also protect this unique Biosphere corridor for generations to come.

Sunshine Coast Council Mayor Mark Jamieson, who is also Sunshine Coast Biosphere Coordinating Committee chair, said the program brought immense shared benefit to the region’s economy and environment, encouraging and taking action to reduce carbon emissions.

“Council is proud to provide access to a 4ha location in Caloundra for revegetation as part of the Sustainable

Sunshine Coast program, which showcases the potential for local tourism industries and visitors to give back to our Biosphere,” Mayor Jamieson said.

“Since our region’s designation as a UNESCO Biosphere in June 2022, partnership opportunities such as these are more important than ever, as we continue our collaborative journey to a more sustainable future across all sectors and communities.”

Caloundra named Queensland’s Top Tourism Town

Queensland’s best holiday hotspots and local treasures were revealed in the 2023 Queensland Top Tourism Town Awards, with the coastal escape of Caloundra named the 2023 Queensland Top Tourism Town. Presented by the Queensland Tourism Industry Council (QTIC), the annual Top Tourism Town Awards celebrate regional communities that demonstrate a commitment to visitor excellence.

Sunshine Coast Council Division 2 Councillor Terry Landsberg said this was a wonderful achievement for everyone involved.

“Positivity and business confidence breeds success and I congratulate the Caloundra Chamber of Commerce and Downtown Caloundra Taskforce for their efforts in showcasing our unique destination.

“It is great to see our familyfriendly Caloundra in the spotlight and receive the recognition it deserves.

Coxen’s Fig Parrot: Image courtesy of Visit Sunshine Coast

Kondalilla Falls, Montville: Courtesy of Visit Sunshine Coast

“Caloundra Music Festival was recently named Festival of the Year at the Qld Music Awards, and now this tourism accolade reflects on all the things that make our town shine for visitors and locals alike.”

Joel McPherson of Joel’s Journeys

In addition, Sunshine Coast tour operator and owner of Joel’s Journeys, Joel McPherson, took out the inaugural award for Queensland Top Tourism Guide Operating out of Noosa and providing expert tours for small groups across the Sunshine Coast, Joel McPherson’s passion for storytelling, inspiring guests with a sense of wonderment and a deep appreciation for the Sunshine

Coast, and commitment to tourism saw him presented with the inaugural Queensland Top Tour Guide Award.

State winners from the Top Tourism Town Awards will go on to represent Queensland at the national awards held later in the year, where they

have the chance to be crowned the best in Australia.

Gold Coast news

Australia’s newest beachfront luxury destination, The Langham, Gold Coast has received five top industry accolades in the highly competitive hotel and accommodation industry awards honouring the ‘best of the best’, Queensland Hotel Australia (QHA) Awards for Excellence 2023

and Travel & Leisure Luxury Awards Asia Pacific 2023.

The prestigious QHA Awards for Excellence, was held at the Brisbane Convention and Exhibition Centre (BCEC) on June 19, recognised The Langham, Gold Coast across four key categories including, Best Deluxe Accommodation, Best Marketed Hotel –Accommodation Division, Best Suite/ Apartment Hotel and the highly coveted, Overall Hotel of the YearAccommodation for 2023, recognition that showcases the property’s excellence in the luxury hospitality industry. The Langham, Gold Coast also achieved international recognition, securing the acclaimed Best Beach or Island Hotel award in Australia at the recent Travel & Leisure Luxury Awards Asia Pacific 2023.

Hotel General Manager John O’Shea said: “We are absolutely thrilled and truly honoured to receive these prestigious awards for excellence.

“These accolades are a testament to the relentless efforts and dedication of our remarkable team, who consistently go above and beyond to deliver unparalleled luxury experiences for our guests. I express my gratitude to all our colleagues who have been instrumental in shaping our vision and driving us to continually improve and surpass expectations.”

Joel McPherson

Coolum, Courtesy of Visit Sunshine Coast

The Langham, Gold Coast

L to R Sunshine Coast Councillor Terry Landsberg with Caloundra Chamber of Commerce’s Brady Sullivan and Laura Pettigrew

Okay, COVID is over, now what?

Cruise lines on a daily basis are blamed for COVID and Flu breakouts, potentially this is because a large group of people is together for a period of time, say seven to 14 days, and safeguards once in place, such as hand sanitiser and distancing are almost a thing of the past.

Tropical North Queensland news

North Queensland’s largest luxury playground, Sheraton Grand Mirage Resort, Port Douglas, has been awarded in three categories at the inaugural Travel + Leisure Luxury Awards Asia Pacific 2023. The hotel’s General Manager Steve Molnar was awarded the Best Hotel General Manager in Australia, while the resort achieved second place in the Australian Hotel Pools category and was ranked third in the Beach Island Hotels category. He said: “It is an honour to be recognised by the prestigious Travel + Leisure Luxury Awards in their inaugural year for the Asia Pacific region, and to cement the incredible offering of our resort on the map internationally.

“We pride ourselves on delivering an offering at the resort that brings to life the quintessentially North Queensland experience and reinforces Sheraton’s position as the world’s gathering place – from our Sheraton Signature Experiences to our sparkling saltwater lagoons and relaxed beachside lifestyle, to a diverse culinary offering across seven bars and restaurants.

“We’ve been recognised in categories we care so deeply for which is a testament to the dedication of our entire team to making each and every guest’s experience with us exceptional and memorable.”

Sheraton Grand Mirage Resort, Port Douglas has also been recognised on an international scale at the Conde Nast 2023 Reader’s Choice Awards Survey in the Resorts category.

By Stephen West, Business Development Manager, Interline Travel

The outbreak of COVID-19 has had a profound impact on many aspects of life, including the global tourism industry.

International travel has been one of the sectors most severely affected by the pandemic, with the World Tourism Organisation estimating that global tourist arrivals fell by 73 percent in 2020. Whilst COVID has now been declared “over”, there are still some effects that can be seen.

Demand for airline seats has not diminished and given this, airlines like Qantas are yield managing every seat with flights to Los Angeles as high as $3000 return and Europe $4000. But if you are a tracker like I am in the first week of May 2023, you could buy a return ticket to LA for $1300.

Hotels worldwide are experiencing local tourism like never before with both occupancy high and tariffs high – some happy hoteliers everywhere.

China was the last major country to lift travel bans, but businesses that were able to pivot like Luckin Coffee, who grew their franchise at a rate of one new store opening every 10 minutes, by learning how to embrace click-and-buy ordering. But with management rights what is the right amount of loving that guests want? They want keyless and touchless entry, but they crave the local attention they may receive in the form of recommendations for restaurants or tour recommendations.

Are the public now shell-shocked by the strict requirements we once abided by and are looking for relief in the form of travel? I think yes, the pent-up demand spoken of is a real thing and we are currently booking clients through to 2025, with planned tours and cruises that are already for sale.

Locally, or regionally you still require COVID Insurance coverage before boarding a ship to areas of the Pacific such as Noumea and Vila; a Government Issued COVID Certificate should always be carried when you travel.

Travelling through the new facilities of the Gold Coast International Airport makes you aware that building works carried out during COVID are now a legacy for us, along with the new cruise terminal in Brisbane. These facilities will continue to make our state one that will rank high on the itinerary of our returning international visitors, with or without facemasks.

Stephen West has a significant background in both management rights and the travel industry, and in addition to his consultancy and training, he oversees a travel agency that specialises in cruise fares and airline fares, like those enjoyed by airline staff – all for the benefit of management rights owners. When he is not speaking at ‘Women In’ Luncheons, he is chasing deals of up to 80 percent off for the Industry. Based on the Gold Coast, with accreditations from IATA and the Cruise Line Industry.

The Langham, Gold Coast

Sheraton Grand Mirage Resort, Port Douglas

Sheraton Grand Mirage Resort, Port Douglas

Discover, Connect & Excel at NoVacancy 2023

Australia’s premier hotel and hospitality industry tradeshow and conference, NoVacancy, is gearing up for its highly anticipated return to Sydney in 2023.

As the event draws closer, hotel owners and operators from all corners of the country are eagerly preparing for this must-attend industry gathering. We had the opportunity to sit down with Matthew Gatfield, Event Director, to discuss the exciting details and what we can expect from NoVacancy 2023. For those who don’t know, can you tell us a bit about NoVacancy and what makes it different from all other hotel events out there?

NoVacancy is Australia’s largest hotel and accommodation expo and conference. What truly distinguishes NoVacancy from other events is its exceptional scope and offerings. No

other event brings together thousands of professionals from across the country and hundreds of exhibitors to showcase the latest products and innovations in the industry.

We also invest heavily in our education programme and take great pride in the content we provide. Through seven meticulously curated summits, we cover a wide range of topics from marketing strategies and technological advancements to sustainable practices and design trends.

Our range of panels and expert commentaries are led by industry leaders who bring invaluable insights and expertise to the stage.

The details:

What truly sets NoVacancy apart is our commitment to fostering lasting connections and relationships. We understand the power of networking in this industry, and we create an environment where professionals can engage, exchange ideas, and build meaningful partnerships. It’s not just about attending sessions and visiting booths; it’s about forming connections that can have a profound impact on your career and business. And the best bit - it’s completely free!

What’s new for 2023?

This year, the content will focus on the theme ‘innovate to elevate’. In an ever-changing landscape, it is crucial to look ahead, think innovatively and

be prepared for the challenges that lie ahead. The programme for this year features brand new topics, cutting edge research and a mixture of industry leaders, experts and brand new voices within the industry. We are also continuing to ensure that we develop the networking opportunities with social hubs and have added targeted networking events for Women in Hospitality and Young Hotel Leaders.

NoVacancy Expo is the mustattend annual hotel and accommodation industry event – put it in your calendar and come visit the Resort News team at the expo!

What: NoVacancy Hotel + Accommodation Industry Expo

When: Thursday August 31 and Friday September 1, 2023

Where: ICC Sydney Exhibition Centre, Darling Harbour

Details: www.NoVacancy.com.au

Images from NoVacancy 2022

Maximum Occupancy 2023

A resounding success!

That was the consensus of delegates attending this year’s Maximum Occupancy, Australia’s Accommodation Industry Conference, at the Hyatt Regency, Sydney.

On Tuesday, June 6 over 200 attendees from across the

whole industry arrived excited and enthused for day one of the two-day conference. It was an ideal environment to network with like-minded people from a very wide cross-section of the accommodation industry both in Australia and internationally. The event attracted hoteliers, more moteliers than ever, accommodation owners and

operators, accommodation industry professionals, experts, and suppliers - basically, everyone interested in growing their accommodation business, increasing their direct bookings, gaining a larger market share and maximising revenue. It was a chance to learn more about the latest accommodation and tourism trends and listen

to case studies from inspiring thought leaders and leading experts in the sector.

The conference speaker line-up was outstanding, featuring some of the best in the industry from around the globe and they were perfectly matched to each session and workshop. Making for a very informative, varied and interesting two days.

2023 ARAMA INDUSTRY EVENTS CALENDAR

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

Accommodation Industry Golf Series

Participants travelled from the Gold Coast and Brisbane to join the Sunshine Coast players for the event held at Maroochy River Golf Course (Sunshine Coast) on June 16.

Players were rewarded with perfect weather (sunny and little wind) plus a wonderful links golf course. The links layout is a credit to the Maroochy River Golf Club. The fairways and greens were immaculate. Rarely does the opportunity arise to play true links golf. Fast greens, tricky bunkers and long fairways provided the challenge.

The event for the day was a four-person team event where the two best Stableford scores on each hole were counted.

Next event will be at the Glades Gold Course, Thursday July 13 with a 12-noon shot gun start. This day will be the club championships and the Larry Maloney perpetual trophy. A 4 ball best ball competition will run in conjunction, so there will be multiple winners and prizes on the day.

The individual A, B and C grade champions will be established, and the Larry Maloney trophy winner selected. The Glades course is always a great course to play and with plenty of prizes on offer you don’t want to miss this event.

Team winners for the day were:

1st Placed Team

Ryan Hardiker; Peter Collins; Tony Mee and Steve Ascough

- Score 86

2nd Placed Team

Stewart Shimmin; Patrick Clarke; Dave Wright and Sean Casey

- Score 85

3rd Placed Team

Doug Morton; Bruce Thomson; Eddie Bartells and Tracey Taylor

- Score 83

Individual Stableford winners were:

A Grade Winner

Sean Casey

B Grade Winner

Patrick Clarke

C Grade Winner

Lindsay Durrington

This day is aimed at fun and competition. Enjoy a team atmosphere plus the chance to become a Club Champion. So, tell your mates and enjoy all the benefits provided by the generous sponsors: Watt Utilities, Mahoneys, KONE, Platinum Electrical & Air, McAdam Siemon Business Advisors, Rochele Painting, Nator Constructions, RBC Group, ResortBrokers, The House of Golf, ARAMA, REI Cloud & Resort News

For full details and to register contact Tracey Taylor taylor77@bigpond.net.au

ARAMA TOP Awards Presentation & Dinner 2023

On July 25, 2023, at the Royal International Convention Centre the management rights industry will celebrate its “night of nights”.

The TOP Awards dinner will commence at 6pm for networking over well-earned drinks and mouth-watering canapes. The formalities will begin at 7pm with dancing to end at 11pm.

The dinner will be hosted at The Royal International Convention Centre which boasts ample space, heaps of onsite parking, fantastic food and outstanding service. Dress code is formal attire.

Ticket prices:

• $215 plus GST each for members - up to two at this price.

• $280 plus GST for non-members.

• A table of 8 for $1800 plus GST.

Sponsorship packages are available that include tables of eight and amazing promotional opportunities.

For more information, please contact ARAMA on 1300 ARAMA Q or national@arama.com.au.

TOP man at Resort News

Resort News’ very own, Stewart Shimmin has been nominated for an illustrious industry award.

The ARAMA TOP Awards celebrate the variety of stakeholders instrumental to the strength and success of the management and lett ing rights industry, from resident managers in long and short stay properties to sales brokers and service providers.

The initiative aims to showcase the professional skills, experience and opportunities within the management and lett ing rights industry and recognise excellence among leaders, the positive contributions that this industry makes to strata title communities and strengthen the success of the industry. ARAMA CEO Trevor Rawnsley said the awards were a key calendar event.

“Service Provider of the Year is a vital element of ARAMA membership recruitment,

and it is a way for ARAMA to recognise and award individuals for referring members,” he added. After working at Resort News for 27 years, Mr Shimmin has built strong relationships with various key industry stakeholders. He said it was these relationships that ingrains his passion for the industry.

“I really enjoy working with the management rights industry,” he said.

“I enjoy engaging with people, businesses, onsite managers, and industry professionals, it’s the relationships I’ve built that I am proud of. “The industry has changed a lot over time which also keeps it interesting.”

Despite spending nearly three decades at Resort News, Mr Shimmin said he was surprised to have received an industry nomination- in fact, the identity of his nominee remains a mystery.

“I wasn’t expecting it at all, it was a real surprise,” he said.

“Even though we’re big advocates and supporters of ARAMA, we do work more in the background, so I feel very humbled.”

Having worked alongside ARAMA in a business

capacity since the beginning of Resort News, Mr Shimmin said the longevity of his working relationship with the association was something he was proud of.

“I always make sure to attend any events that ARAMA hosts, in fact, I presented a few awards at their awards presentation a few years ago,” Mr Shimmin said.

“I’m definitely excited about attending the awards night from the other side of the fence this year. The table is already booked and ready to go!”

Stewart Shimmin with Jen Svenson

What about Women In?

June’s Gold Coast luncheon for Women In saw a gathering of managers and suppliers at the renowned Fu Manchu restaurant on Chevron Island. With a welcome cocktail in hand, the presentation on discounted cruising for management rights operators was given by Stephen West from Interline Travel. Dining on coconut fish and a shrimp salad, the afternoon flowed into the raffle, graciously won by Elaine at Portobello and EBM. A pre-launch announcement was made where Women In will be entering a joint venture, to bring to the industry, a product that has been missing in the landscape in the training and supply of staff.

ASTRA Here to Stay Conference 2023

When: October 9 to 10, 2023

For more information and to register Where: Waterview at Bicentennial Park, Sydney visit heretostayconference.com

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

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SWIMMING POOL SUPPLIES/REPAIRS Noosa Pool & Spa Centre

All Preferred Suppliers have been recommended by other accommodation properties for their service and have qualified for inclusion in the programme. The next time you need to use a new supplier, why not make life easier and use a Preferred Supplier.

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

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

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Beachside elegance creates beautiful Reflections

By Grantlee Kieza, Industry Reporter

Reflections Coolangatta Beach

shines above some of the most spectacular coastline in Australia and is perfectly located over Greenmount Beach.

The magnificent beachfront location is complemented by modern accommodation in the resort’s two towers, with one-, two- and three-bedroom apartments and sumptuous sky-homes.

Julie Smith and her husband Gordon have been managing the magnificent resort for the last 18 months on behalf of Dreamtime Resorts, a property management and marketing group that has 16 sublime properties along the Queensland coast, with more planned.

Reflection on the Sea was the first tower built 16 years ago and then the builder, apparently stuck for another name, erected another high-rise which is known simply as Tower Two.

“The builder was the well-known Nikiforides family,” Julie said.

“Niecon Developments have built many prestigious high rises on the Gold Coast, with a great love for marble and crystal, there are beautiful marble floors throughout the building and a huge crystal on display in Tower Two’s reception.

“They are beautifully appointed properties. Each tower has its own sauna, steam room and gym. The beach is right at the door but there’s still an area where you can sit and sunbake in privacy.

“Coolangatta is such a relaxing place. Guests

and residents can park their cars, and everything is within walking distance. There are great shops here and plenty of beautiful restaurants. This has been influential in the excellent turnaround for the occupancy.

“The beaches are wonderful with some of the top surfing spots in the world. You can just arrive here and immediately unwind or you can visit the numerous tourist attractions such as ‘Cooly Rocks On Festival’ with fantastic classic cars, Rock’n Roll’n, and entertainment for the week. There is always something to do at Reflections!”

Each tower has its own theatre room (like a private cinema) which guests can book to watch movies or big sporting events. There’s also a kitchen with a fridge and microwave to make pizza, popcorn, or whatever takes their fancy.”

Julie and Gordon came to Reflections after running the large residential property Unison, a two-tower complex with 290 units at Newstead in inner-city Brisbane. Gordon is a former general manager for Accor in Western Australia.

Receptionist Noora Fareez with managers Gordon and Julie Smith

“We came to Reflections with a long background in management rights and we’ve bought and sold our own properties,” Julie said.

“I also have a retail background. I used to manage shopping centres under redevelopment. At a shopping centre you have individual owners, or a company and you manage the leases on their properties, so it is a similar sort of business to management rights - leasing out the properties for owners. Both are about managing people and their businesses and developing relationships.

“Here, Gordon concentrates on building management and I look after the resort management, overseeing the holiday letting and dealing with the owners and staff.”

Julie and Gordon came to Reflections at a difficult time, with much of Australia still locked down by COVID.

“Reflections sits right on the QueenslandNSW border. If you step out our back door you are literally on the border and the police control stopping cars were right there,” Julie said.

“It was a challenging time. When the border bubble would close, a lot of our staff were living in New South Wales, and they couldn’t come back. We had to get staff to stay in or stay with other people, but we still went from having 15 staff to suddenly having just six.

“Queenslanders were still able to travel, they were very supportive and helped to keep us going. We had to restrict our operating hours

for the office because of COVID but when the border opened, we were inundated with guests. The year 2022 was one we probably will never see again. Interstate travel started again, and people were coming to see friends and family they hadn’t seen for a long time. We all saw lots of reunions but the challenge was getting staff, especially cleaners.

“We all chipped in. I cleaned rooms, made beds, did whatever we needed to do to get the rooms turned over in time, and we managed to sort it all out eventually.”

Julie has seen management rights change over the years, and it continues to adapt.

“We’re in an accommodation module with a 25-year lease. There has been some recent controversy about 25-year agreements to look after the caretaking and letting,” Julie said.

“So, there is a movement now to change to 10-year agreements and I can see that change happening, as people become more aware of management rights.

“Moving into this year, we’ve had several interest rate rises and prices have gone up for everything - we see that when we go to the grocery store and the service station. We’re all affected by that but in management rights, we can’t just raise prices to the owners for cleaning or linen. We can only do it once a year and can only put it up by CPI. Consequently, we’ve had two linen price rises in the last 12 months of 10 percent. Most of the cost rises being passed onto us seem to be 10 percent, so the costs become a little bit more of a struggle to manage.

“These apartments are worth a lot more now and the owners are becoming more inclined to live in them or sell them to owner/ occupiers rather than rent them out.”

Julie said the rising costs were counterbalanced by a rise in domestic travel.

“You’ll find domestic travel within Australia has been really good because people are still a little reluctant to travel overseas.

“We really are fortunate to work in management rights. We really love it. You

get to meet so many interesting owners and guests. On one side of the business, you have the owners and you have to apply good business principles and be savvy to make them the most money you can, without compromising the guest experience.

“Then you have the hospitality on the other side, and you are trying to make it a really great experience for the guests because that will encourage them to keep coming back. You get to meet people from all backgrounds and walks of life, it’s a fascinating occupation. Everyone’s got a story to tell.

“As a bonus, we get to live in an exceptional location, with some of the most beautiful beaches anywhere in the world.”

Dreamtime Resorts began operating in 2004 and acquired Reflection in 2011. The group manages 16 properties along the Queensland coast, with more coming.

Aimee Mackenzie, one of the group’s marketing coordinators, said there were 83 units in the letting pool at Reflections, and the group had 869 across all its properties, a number that is expected to grow dramatically in coming years.

Reflections is one of the group’s biggest properties but Dreamtime is adding to its portfolio constantly, and recently acquired

two properties at Palm Cove, north of Cairns - Drift and Paradise on the Beach.

Dreamtime is also looking to make another move with properties in Port Douglas.

The group is one of Australia’s leading independent resort management operations, specialising in the management and promotion of high-end but affordable Australian holiday accommodations.

It specialises in providing modern, selfcontained, apartment-style holiday accommodation for the self-catering “home away from home” option.

In addition to providing some of Australia’s most popular holiday properties, Dreamtime

also provides support and guidance for investors seeking to enter the management rights industry as well as existing managers seeking to take advantage of being involved with an experienced, professional management and marketing team.

Dreamtime Resorts, in collaboration with Stay Queensland, has revolutionised the hospitality industry by offering outsourced reservations and specialised property marketing services. This partnership not only saves costs and time but also delivers impressive growth and results for properties like Reflections. With an experienced team at the helm, Dreamtime Resorts and Stay Queensland empower properties to thrive in a competitive market.

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