Newly Refurbished, The Pen Draws Crowds Airbnb Study Shows Growth Across WA Backpacker ...

32 Pages·2016·6.64 MB·English

WA
OSPITALITY
The Magazine of the Australian Hotels Association (WA). October/November 2016 - Issue 55

Newly Refurbished, The
Pen Draws Crowds
Airbnb Study Shows
Growth Across WA
Backpacker Tax Relief
to Drive Visitation
Corporate Corporate Corporate Corporate Corporate
Sponsor Sponsor Sponsor Sponsor Sponsor
You’re with
the Super Fund
of the Year.
That’s a plus.
We’re proud to be recognised as Rainmaker SelectingSuper’s Super Fund
of the Year for the second consecutive year. Our consistent investment
performance*, low fees and competitive insurance ensures you retire
with more. And that’s a plus.
hostplus.com.au
Issued by Host-Plus Pty. Limited ABN 79 008 634 704, RSEL No. L0000093 AFSL No. 244392 as trustee for the Hostplus Superannuation Fund ABN 68 657 495 890 RSE No.
R1000054, MySuper No. 68657495890198, which includes the Hostplus Pension. This information is general in nature and is not intended to be a substitute for professional
financial product advice. You should determine the appropriateness of the information having regard to your objectives, financial situation and needs, and obtain and consider
a copy of the Product Disclosure Statement before making an investment decision. Ratings are only one factor to be taken into account when deciding whether to acquire,
continue to hold or dispose of a financial product. *Rainmaker SelectingSuper June 2015 Survey. HOST8975_SS_AHA_WA
HOST8975 Selecting Super 210x297_AHA_WA.indd 1 5/09/2016 1:38 pm
5 7
You’re with
16 12 10
the Super Fund
contents
of the Year.
That’s a plus.
GENERAL NEWS EVENT NEWS VENUE NEWS
5 Fight Over Price Parity Continues 12 WA Shines on National Awards 20 Revamped Peninsula Bar and
23 WA Bartenders are Helping People Stage Restaurant Focuses on High
Diagnosed with Leukaemia 13 Hospitality Awards for Excellence Standard of Service, Food and Drink
We’re proud to be recognised as Rainmaker SelectingSuper’s Super Fund 26 Online Reviews and Endorsements Tickets on Sale 24 The Reveley Reveals an Array of
Under Review Food and Beverage at a Prime
of the Year for the second consecutive year. Our consistent investment
Location
27 Pollie in a Pub TOURISM NEWS
performance*, low fees and competitive insurance ensures you retire
30 Flashback 7 Win on Backpacker Tax
TRAINING NEWS
with more. And that’s a plus.
10 Let’s Work to Change the Perception
6 Classroom Course Dates
INSIDE NEWS that WA is too Expensive
16 Summer is Coming - Are Your Staff
4 CEO’s Report 28 Get Involved With ‘Just ANOTHER
Trained
hostplus.com.au 6 President’s Report DAY in WA’
14 Middy with Mike
WORKPLACE RELATIONS NEWS
CORPORATE NEWS
18 Prepare Your Venue for a Potential
ACCOMMODATION NEWS 22 New Corporate Members Visit from WorkSafe
8 Airbnb Numbers Continue to Swell 19 ‘Buyer Beware’ for Employers; Pre-
Employment Checks are Important
Issued by Host-Plus Pty. Limited ABN 79 008 634 704, RSEL No. L0000093 AFSL No. 244392 as trustee for the Hostplus Superannuation Fund ABN 68 657 495 890 RSE No.
R1000054, MySuper No. 68657495890198, which includes the Hostplus Pension. This information is general in nature and is not intended to be a substitute for professional
Hospitality WA is published by the Australian Hotels Association (WA).
fia ncaonpcyi aolf p trhoed Purcotd audcvtic Dei.s Ycolous suhroeu Sldta dteetmeremntin bee tfhoer ea pmparkoipnrgia atne ninevsess otfm theen tin dfeocrmisiaotnio. Rn ahtainvignsg a rreeg oanrdly t oo nyeo ufar cotbojer ctoti bvees t,a fikneann icnitaol s aitcucaotuionnt wanhde nne deedcsid, ainngd wobhteatihne arn tdo c aocnqsuidireer, For enquiries please contact 9321 7701, email [email protected] or visit www.ahawa.asn.au HHOOSSPPITITAALLITITYY W WAA 3
continue to hold or dispose of a financial product. *Rainmaker SelectingSuper June 2015 Survey. HOST8975_SS_AHA_WA
HOST8975 Selecting Super 210x297_AHA_WA.indd 1 5/09/2016 1:38 pm
Inside News
“For an airline
that prides itself
on its strong
safety record to be
promoting unlicensed
accommodation
is extremely
concerning”
CEO’S REPORT Follow Bradley Woods
@BradleyBWoods
QANTAS SLAMMED FOR AIRBNB DEAL
The announcement by Qantas that it has partnered Meanwhile, the ACCC’s announcement that it will
with Airbnb to provide Frequent Flyer benefits and co- allow online travel agencies to restrict accommodation
marketing is a slap in the face to the Australian hotel businesses from advertising a lower rate on their own
industry. For Australia’s leading airline to be partnering website came as a disappointment to the industry, and
with sharing accommodation providers, whose network the AHA is continuing advocacy efforts to improve the
includes unlicensed, illegal and questionably safe deal. While OTAs have provided an important platform
premises, is outrageous. for hotels and other accommodation providers, some
say the power has shifted too far. Many in the WA
For an airline that prides itself on its strong safety record
accommodation industry are now focusing back on
to be promoting unlicensed accommodation, that in
customer loyalty programs, where a lower rate can be
many cases does not meet basic fire and emergency
offered, and improving the personalization of customer
safety standards expected of the hotel industry, is
experience.
extremely concerning.
Sharing economy short stay accommodation, provided
through private homes and apartments, does not
have anywhere near the same level of consumer safety
Bradley Woods
and amenity expected by hotels. Nor do these private
accommodation providers universally pay their fair CEO AHA(WA)
share of fees, taxes and charges.
Qantas’ endorsement of Airbnb gives the AHA even
more ammunition to demonstrate that these unlicensed
accommodation providers must be regulated.
The AHA(WA) would like to acknowledge the following Corporate Sponsors
4 HOSPITALITY WA
GGeenneerraall NNeewwss
FIGHT OVER PRICE PARITY CONTINUES
The AHA and TAA met with parliamentary advisors in Canberra in September to push the
hotel industry’s concerns about the recent Australian Competition and Consumer Commission
(ACCC) ruling on OTA’s.
The ACCC has ruled that Booking.com and Expedia have loyalty groups, is a theoretical concept, which given its
the right to stop hoteliers from publicly offering better complexity and the large number of small and medium-
deals on their own web pages vs. the rates sold by the sized hotels is not practicable.
OTA’s.
One year after the French ‘Macron Law’ lead to the
This decision forces hotels to go back to the pre-internet removal of any parity clauses between hotel portals and
era; they are only allowed to offer lower rates through hotel companies, the market share of OTAs in France
telephone bookings, walk-ins, and to customers via has still increased and OTAs continue to consolidate
loyalty groups. This hinders the marketing goals of their position. The ACCC concern that without rate
many accommodation hotels that are trying to expand parity clauses on hotels, OTA’s are unlikely to continue
online marketing as the future in offline sales channels, is redundant. Competition between OTAs has not
such as newspaper advertising, dwindles. increased.
Without the possibility of price differentiation on the
hotels’ own websites, hotels are deprived of the only Key Points:
effective means of advertising more favourable room
prices. The continued application of best price clauses • The competition watchdog, ACCC, made a
on hotels own websites prevents the expansion of the
deal with travel sites Expedia and Booking.
hotels’ own internet presence and thus deprives hotels
com.
of the possibility of holding their ground in negotiations
with hotel portals.
• Accommodation providers can’t advertise a
The AHA(WA) believes every hotelier should have the lower price on their own website.
freedom to be able to set their own conditions for their
own services, and be able to fairly negotiate on contract • Loyalty program members can be offered a
terms and conditions with every distribution partner. lower price.
The purpose of competition law is not to protect certain
business models, but to protect competition in the • Customers who call accommodation
market. Best price clauses do have a major impact on a providers directly, or walk-in, can be offered
hotels own distribution. a lower price than what’s offered on the
travel sites.
The possibility of price differentiation on the hotels’
websites, only by the setting up of non-public customer
HOSPITALITY WA 5
Inside News
“The AHA’s advocacy
and lobbying efforts
surrounding the
‘backpacker tax’ reaped
success with the
government announcing
it will introduce
legislation to reduce the
PRESIDENT’S
new tax.”
REPORT
As many of our members can attest to, employing that the weather plays a role in consumption habits –
international workers is an essential part of the business. and many beer gardens and outdoor areas of venues
Whether they are backpackers or temporary migrants, were quieter than hoped for – but that won’t last long.
these workers make up nearly 30% of our industry. The Warmer weather is on the way and we are looking
AHA’s advocacy and lobbying efforts surrounding the forward to a long busy summer.
‘backpacker tax’ reaped success with the government
Now is the time to ensure your staff are trained and
announcing it will introduce legislation to reduce the
ready to tackle the busier season. The AHA is offering
new tax on working holiday makers and created a more
a special deal for those people wishing to take the
enticing environment. The announcement came at a
Approved Managers Course. You can find details of that
critical time because WA was seeing a drop in working
on page 18.
holiday makers – and this has a direct impact on the
accommodation and hospitality sectors. Our job is not Finally, I’d like to congratulate the winners of the AHA
over until the new laws are passed, and the AHA will National Awards for Excellence, including the three
be in Canberra to continue lobbying on behalf of our winners from WA. You can see who they are on page
members and the industry. 12.
It’s definitely been a long winter and a cold start to
spring. People in Perth have experienced the coldest
September in over two decades and many restaurant
and pub owners would like a little more sunshine to lure
customers out of their homes. The record breaking cold
Neil Randall
snap, wind and rain has had an impact on hospitality
State President
businesses across the Perth region. There’s no doubt
CLASSROOM COURSE DATES
Upcoming Management of Licensed Premises (MLP 1)
Tuesday, 8 November 2016
Tuesday, 29 November 2016
Tuesday, 13 December 2016
Early bird and group booking rates available! Call us on 93217701 or email [email protected] for more details
6 HOSPITALITY WA
ToGuenriesrmal NNeewwss
WIN ON BACKPACKER TAX
Tourism and hospitality advocacy efforts over the last three years have been rewarded
with the Commonwealth Government winding back its plan to introduce a 32.5% tax
on backpacker earnings.
Since the original backpacker tax was announced Although the reduced tax rate represents a compromise
in the 2014 Federal Budget, the Australian Hotels position for industry, the AHA and TAA, who were
Association and Tourism Accommodation Australia engaged in close consultation with Government over
have been strong advocates against changes, arguing the last six months, have welcomed the new lower
it was contributing to a decline in working holiday rate.
maker numbers and harmed Australia’s reputation as
In a significant win for the industry, the Government
a working holiday destination.
adopted a range of further measures advanced by
The decline came as dire news for an industry that AHA and TAA in submissions and advocacy targeted at
according to a recent Deloitte report on the tourism lifting the international competitiveness of Australia’s
industry workforce found there was a current shortage working holiday visa. Changes include raising the
of 38,000 positions – a number expected to increase to eligibility age from 30 to 35 and reducing visa charges
123,000 by 2020. by $50 to $390. Greater flexibility to employ working
holiday makers for 12 months will also be introduced,
Working holiday makers have helped narrow the gap
providing that after 6 months they are located at a
and become an important source of labour for the
different property.
accommodation and hospitality industry. Particularly
in regional and remote areas where they have helped With the original backpacker tax forecast to return
fill chronic labour shortages and demand for seasonal $500 million to the Federal Government, the cost of a
labour. compromise tax rate has been offset with the tax on
superannuation payments to working holiday makers
But it’s in Western Australia, where backpackers and
departing Australia being increased to 95c.
international workers account for 29% of the sector’s
workforce, that the continued declines have hit hardest To safeguard the integrity of the visa class and respond
and news of reforms are long-overdue. to concerns surrounding exploitation of backpackers,
employers will be asked to comply with a one-off
Tax Rules registration with the Australian Tax Office – a measure
that will also help generate valuable data on the visa
Effective from the 1st January 2017, working holiday
program.
makers on 417 and 462 visas earning up to $37,000
will be subject to a reduced tax rate of 19%, with
continued on p. 11
ordinary tax rates applying to additional earnings.
HOSPITALITY WA 7
AccoGmemneordaal tNioenw Nsews
AIRBNB NUMBERS CONTINUE TO
SWELL ACROSS PERTH AND WA
WA research findings confirm Airbnb’s accommodation listings are outstripping hotel
room development in a market that remains unregulated by government.
Since launching in Australia in 2012, Airbnb has quickly three months from May to July, WA accommodation
established a significant foothold in the Australian listings on Airbnb grew by nearly 23%, adding 1 229
market, becoming the single largest accommodation new listings to the market.
provider with 77,000 listings nationally and 7,000 in
WA alone.
Its growth has been phenomenal but its real impact on Since May, the number of
hotel supply and demand has been difficult to measure.
Airbnb properties in WA has
The Australian Hotels Association (AHA) has been at the
increased by more than 23%
forefront of lobbying efforts for research that will allow
greater visibility of accommodation supply and demand
in the sharing economy.
The Western Australia Government has responded Geographically, the greatest number of Airbnb
to industry advocacy for research into Airbnb by accommodation were located around the Perth CBD,
contributing to a Bankwest Curtin Economics Centre Northbridge and key metropolitan tourism destinations
study into the impact of Airbnb on the WA Tourism of Fremantle, Cottesloe, Scarborough, riverfront and
Industry and Economy. surrounding suburbs. Popular holiday destinations in
the South West and Great Southern, such as Margaret
Preliminary findings from the research team, presented at
River, Augusta and Esperance, also have high numbers
an industry workshop in September, reflected a positive
of listings.
public perception of Airbnb that has the potential to
grow visitation attracted to shared accommodation. Findings identify a movement away from the company’s
roots with the number of private rooms declining
What does the data say?
over the monitored period, while entire homes and
Western Australia lags far behind popular tourism city apartments increased to 57% in July.
destinations like Paris, which has more than 50,000
Interestingly, homes make up 50% of properties listed
Airbnb listings, and populous Australia capitals Sydney,
in WA, while apartments make up 29%.
with 16,000, and Melbourne with 12,000.
The predominance of entire homes and apartments
However, there is no doubt that Airbnb is set to
in Airbnb listings is also evident in Sydney, where it
continue growing at an above-average speed. Over the
accounts for 60.3% of its more than 16,000 listings and
8 HOSPITALITY WA
Accommodation News
55.3% of Melbourne’s 12,000 listings. Airbnb users were considered to be relatively different
from WA hotel guests. In profile they are holiday
With so many private residences on the market, the
makers, usually younger in age, almost 45% are on their
industry has concerns that not all properties constitute
first visit to WA and interested in outdoor and cultural
genuine private sharing, with the market vulnerable to
activities.
exploitation by commercial letting of accommodation.
Popular source countries include France, Singapore and
A lack of transparency effectively exempts landlords
Korea.
from onerous regulatory compliance, tax on revenue
and responsibility for consumer, neighbours and the Regulating the sharing economy
community.
Curtin University’s final report is expected to be
completed at the end of 2016.
More than half of Airbnb This will allow for the further collection of data,
interviews with stakeholders, benchmarking WA against
properties in WA are listed as other cities and analysis of international and domestic
visitation.
entire houses
The WA Government has signalled that this research will
complement its inquiry into Airbnb which has been led
by Parliamentary Secretary to the Premier and Minister
According to the preliminary data, Curtin suggests that for Tourism, Hon Alyssa Hayden.
with 82% of hosts having just one listing, the practice
With the report close to finalisation it is anticipated that
of commercial letting, often including more than one
recommendations will inform government policy in the
listing, may not yet have a foothold in WA.
lead-up to the next election.
Across the state, prices per night were found on
average to be $70 for rooms and $150 for entire homes
or apartments. Occupancy is considered to be low at
20%, which is also low compared with other countries.

Fancy a Beer on the Beach?

At Bathers’ Beach House, you can!
Bigger Faster Better

A new look. A new experience. A new Perth Airport.
Call Phil to see how we can
improve your liquor licence

What a difference our $1 billion private investment has made:
• Terminal 2 opened in March 2013, offering efficiency and convenience for
regional customers. 0417 976 009
• Terminal 1 Domestic, home to Virgin Australia, offers customers a world-class
level of service with the opportunity to transfer seamlessly between regional, [email protected]
interstate and international services in one convenient location.
• Terminal 1 International has been expanded and upgraded with new arrivals

and departures facilities, scheduled A380 services and a new Emirates lounge.
Perth Airport has become a shopping and dining destination, and an exciting 16 years and counting…..
gateway to Western Australia.
perthairport.com.au
HOSPITALITY WA 9
Tourism News
Photo courtesy of Tourism WA
LET’S WORK TO CHANGE THE
PERCEPTION THAT WA IS TOO EXPENSIVE
Gwyn Dolphin, Tourism WA Chief Executive Officer
“If you build it, they will come” is a famous quote from the movie Field of Dreams.
Unfortunately, it’s not quite as simple as that when we consider the 2000-plus new
hotel rooms to come online in Perth by 2018.
When the State Government’s Perth is too expensive and too inaccessible. I know
Hotel Incentive policy was this is true because a lot of agents and distributors in
introduced in 2011, it was our key markets have told me just that.
against a backdrop of scarce
They say they don’t try and sell Perth because it is
and expensive hotel rooms in
– in their view - the second most expensive city in
Perth, particularly during the
Australia, behind Sydney. The recent, average room
week.
rate graph supports that top-line view.
This, of course, was at the
Tourism WA is doing a lot to let people know Perth
height of the most recent
has changed for the better, and that our hotels and
mining investment cycle
attractions are better prepared than ever.
when business travellers
filled those rooms. Now that
We are spruiking the message far and wide, through
sector has slowed, we need
forums such as the Australian Tourism Exchange
to attract more leisure visitors
and international trade missions, as well as through
to fill the gaps.
cooperative marketing campaigns and events in key
markets with partners such as Crown and Hyatt, and
A lot of work is being done to
through PR and marketing activity.
make that happen. Public and
private investment has seen
However, a part of the problem is that many agents
the redevelopment of Perth
are selling their packages on rates negotiated 12 to
on a massive scale, making
18 months ago, when the world was a very different
our city a more attractive place to visit.
place. This is compounding the perception that Perth
is costly. I would encourage the industry to work
Tourism WA has recently launched a new marketing
together with Tourism WA to find solutions and give
campaign, Just Another Day in WA, aiming to drive
more visitors a memorable, extraordinary experience
greater volumes of visitation.
in Perth and Western Australia.
However, there remains a lingering perception that
10 HOSPITALITY WA