Most operators in the management rights industry will be busy this month getting their tax affairs in order. However, it is also an important time to reflect on trade performance and map out the year ahead with strategies to both capitalise on growth opportunities and navigate emerging challenges.
Australia has faced a lot of uncertainty over the past year with the distraction of both a NSW state election and just last month a federal election, an event which we can finally put behind us.
Fortunately the management rights industry is robust and resilient as ever and domestic and international tourism continue to perform well.
The latest Tourism Research Australia data shows overnight spend from domestic tourists rose by 13 per cent to $72.7 billion over the past year. Queensland alone set records for the tenth consecutive quarterly survey, with 21.8 million visitors injecting $16.2 billion into the state’s economy.
The lower value of the Australian dollar continues to make overseas travel less appealing for Australians while luring international visitors to explore all that our country has to offer.
Announcements such as new direct flights between the Gold Coast and South Korea are promising signs for accommodation operators. Unlocking this market alone is estimated to inject up to $176 million to the Gold Coast economy annually, according to Queensland Tourism Minister Kate Jones.
You will often hear ARAMA celebrating tourism growth, because it is a very important driver of growth for management rights businesses - even those that only operate in long stay letting complexes. That is because tourism creates jobs and jobs create employment, and these workers need somewhere to live.
Many Australians are choosing holiday-style resort living to be their permanent home – and management rights plays an important role in ensuring that it provided an enhancement of lifestyle for them.
The opportunity for us all is to build on our reputation as the industry that is best placed to deliver excellence for both international and domestic visitors and also for those Australians who wish to enjoy living in secure density living homes.
While challenges such as the increasing control of online travel agents (OTAs) including Airbnb remain, ARAMA is working with all levels of government and key stakeholders in the accommodation and tourism sectors to ensure that we can make a positive contribution to the long-term success of the management rights industry.
Resident managers must engage with their industry peers and participate in the education and training programs that ensure they remain competitive and indeed at the forefront of delivering on what clients want and need.
Management rights is the most effective method of serving the interests of unit owners, bodies corporate, tourists and tenants. They want value from the resident manager. You are looking after other people’s capital and you must prove that there is no better alternative in doing so.
Fortunately the greatest risk resident managers face is something that is actually within their control. It is the quality of interaction with unit owners and bodies corporate.
Your day-to-day actions must demonstrate why investors should remain in the letting pool and confident in their returns. An investor with positive returns will be holding on to that investment, and your letting pool will remain strong and secure, along with your income and the value of your business.
This truly is a solid industry and we are here to support you and properly represent the interests of all stakeholders as a whole. Good luck with the business planning for 2019-2020.