A different perspective – part one
While attending an accommodation industry function recently I was taken to task for starting to write too many articles that actually talk about finance and management.
Apparently there are some readers who prefer the tales of travel and adventure shared with the managing director and certainly they’re more fun to write about.
Some months ago her ladyship (the MD as mentioned above) sent me an email advising of a special stay four nights, pay for three deal at a place called Qualia on Hamilton Island. Without taking much notice I agreed that supporting local tourism was a great idea and in any event we have clients up that way so let’s book and do the road trip.
Time passed and the road trip plan evolved into a drive up the coast to the Whitsundays, four nights on the island and a week to get home via western Queensland. While we do a lot of management rights finance we also fund stacks of motels and caravan parks all over Oz so a few tax deductible visits out west seemed like a great idea.
We headed up the coast from Noosa with plans to stay a night in Rockhampton, Mackay and Airlie Beach before heading off shore so to speak. Sadly motel and management rights operators in Rocky and Mackay say things have slowed dramatically since the mining boom came to an end. To no great surprise those who bought before the boom are back to historical trading levels and have lost nothing.
For those who bought on historical highs over the past few years the news is pretty grim. Moteliers tell me that trade has fallen and average tariffs are certainly lower than they were even 12 months ago. For leases that have been struck over the last few years there is little doubt that rent payments will be very challenging until things improve.
Landlords are finding themselves in a bind. Drop the rent and see a commensurate drop in freehold value, hold the rent and see the lessee fails. I suspect there are a few landlords not looking forward to having to go in and operate their motels themselves when they know they are unlikely to do much better than their existing tenant. It’s a pretty tough situation and I suspect no one has the answer. Sadly, buying at the top of a boom can come back to bite you on and at the bottom.
Airlie Beach looks to be improving in terms of tourism demand albeit parts of the town still look a bit tired. The main street is pack – packer central and Magnums bar still looks to be the centre of the universe for young blokes chasing the things young blokes chase. The MD says I am only upset because they remind me am not a young bloke anymore and I know she is right. I reckon if Airlie has a serious future as a tourist town it will be very much driven by the same dynamics that drive Byron Bay.
That is a laid back, almost drop out vibe with a mix of hippie culture and wealth. Byron is underpinned by a relaxed style and great natural beauty that is close at hand and so is Airlie. Given some of the high quality accommodation available in Airlie and the access to the Whitsundays and the reef, the region certainly has the natural assets and infrastructure to take advantage of the current favourable exchange rates.
The boat ride from Airlie to Hamilton Island remains one of the really wonderful short journeys you can experience with the islands and water colour truly spectacular. The island was originally settled by the Ngaro Aboriginal tribe before being visited by Captain Cook in 1770.
It evolved into a tourism destination through the 1970s and 80s via the unique vision and entrepreneurial spirit of original Gold Coast Sea World developer Keith Williams. In 2003 the island was purchased by winemaker Bob Oatley who has ploughed plenty of cash into the place and defied the odds when it comes to island resorts by not going broke in the process.
The latest addition to the island’s many accommodation options is the Qualia resort tucked away on the island’s north west corner. It’s without doubt the most spectacular resort based place we have ever stayed with a stunning combination of great views, exceptional accommodation, fine dining and wonderful service. I couldn’t help feeling that apart from training, great service costs no more and many resort staff could certainly learn a thing or two from the demeanour of the staff at Qualia.
A smile and a helpful attitude is really all it takes. The MD is a bit upset that the private jet that was sitting at the island airport while we were there had apparently been used to deliver one Johnny Depp to Qualia for a few days R&R from the latest pirate movie being filmed on the Gold Coast. Not sure if those troublesome dogs of his were also visiting but I would be surprised!
Anyway, after four days we ran out of dough and had to depart. Stay tuned next issue for the conclusion to this latest tale.
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