Tourism Planning Taskforce Report - Western Australian Planning ...

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Appendix 5Unit owners are not able to fit out units to higherstandards or with additional facilities.For staged developments, ample public facilitiesare constructed in the first stage such asrestaurants, bars, swimming pools, golf courses,etc.(B) Separation of ownership and resortmanagementThere is a management agreement between allunit owners and the complex manager to provideviability for adequate management/serviceprovision. For large developments, observance ofASIC legislation covering prescribed interests ishighly desirable.The management agreement between owners andthe complex manager must bind successive unitowners.The management agreement between owners andthe complex manager must be for a substantialperiod.Termination of one tourism manager/operator mustbe followed by the immediate appointment of areplacement operator.If unit owners fit out their units individually,complaints arise from guests who believe the unitsthey are staying in are fitted out with inferiorfixtures, fittings and equipment compared to theirneighbours’ units. Complaints commonly arise fromthe size and quality of televisions and soundsystems, air-conditioning versus noair-conditioning, dishwashers versus nodishwashers, double beds versus king size beds,etc.Guests will be reluctant to book into establishmentsthat do not have public recreational and otherfacilities expected of establishments that describethemselves as “resorts”. Those who do book willbe disappointed and will pass the information on tofriends and relatives.A lack of management separation between unitowners and guests results in unit owners beinginvolved in day-to-day decisions on matters suchas replacement of cutlery, crockery, beds,mattresses, furniture and the upgrade of publicareas. This means that different units will havedifferent standards of fit out. Complaints arise fromguests who are in a unit with aged, worn-outfurniture and equipment that visit friends in a unitthat has new furniture and equipment.Without all unit owners using the managementservice the per unit cost is high and if numbersdecline over time the cost for those remainingincreases, or the level of management/servicedeclines. This will affect returns and can precipitateongoing withdrawal of owners and collapse of themanagement service.If the management agreement does not bindsuccessive unit owners, the problems with differentstandards of furniture and equipment arise asoutlined in the preceding paragraph.Short term agreements between unit owners andcomplex managers will result in the early possibilityof unit owners having day-to-day involvement inthe letting of their units, or not letting them at all.The complex can quickly lose the appearance andlevel of service associated with being a touristaccommodation establishment.The consequences of this not happening havebeen identified above.Tourism Planning Taskforce Report117
Appendix 5Units are either leased back to a tourism managerfor an agreed return to unit owners, or form part ofa collective investment scheme that falls underAustralian Securities and Investment Commissionregulation in which revenues are pooled,expenses (including the tourismmanager/operator’s remuneration) are shared andthe resulting profit is distributed to unit owners.Refurbishment is managed by the complexmanager resort-wide. An annual mandatory levyand the establishment of a replacement reservecontrolled by the complex manager, or similarmechanism, is essential.Occupation of units is controlled by the resortoperator. Unit owners have limited rights ofoccupation consistent with local governmentby-laws, and have no control over guest use oftheir units. All units within a development arerequired to be available for tourist letting when notoccupied by owner.When units are not under the exclusive control ofthe complex manager under a poolingarrangement, the manager is obliged to let units ona basis that has each physical unit occupied for anequal period so that there is equal revenuedistributed to each unit owner. This can result inthe more appealing units being left empty whilevisitors wanting these units are informed that onlythe less appealing units are available. Visitorseither book into alternative accommodation, orarrive and become disappointed with the operationof the resort.The consequences of this not occurring arecomplaints from guests regarding differingstandards of furniture and equipment. There is alsothe difficulty of negotiating with unit owners. Oneresort manager identified the difficulty of obtainingagreement for replacing all ironing boards in a112-unit complex.Occupation controlled by unit owners results in asubstandard operation that does not have theappearance or behaviour of a touristaccommodation establishment. Some units may beleft empty when not occupied by the owner or hisfamily and friends, while potential guests areturned away as units in the letting pool are full.(C) Resort managerThe complex manager has experience and a goodreputation in the tourism industry.The complex is operated as a single resort.Users of the resort have no visible evidence thatthe resort is owned by separate unit owners.Some smaller complexes do not have anexperienced manager onsite and complaints arisewhen basic facilities are not available or are not inworking order, such as missing light globes,refrigerators malfunctioning, pilot lights not workingin gas cylinders, insufficient number of glasses andplates, etc. If a visitor locks himself out of his room,there is no one available to let him back in.Identified aboveIdentified aboveSeveral examples of poorly developed strata titled tourist facilities exist in Western Australia. Some havebeen blatantly developer-profit motivated, and “tourism” has been used as the vehicle to gain the requiredplanning and development approvals. This has left a negative feeling and resentment in some localgovernments, and Tourism WA has become concerned that an acceptable method of financing tourismdevelopments is threatened with not being supported by some local governments because the method hasbeen exploited by those wanting a quick return and no long-term responsibility. Compliance with theattributes of tourism success as outlined above will assist strata titled tourism developments to operate asresorts and provide the level of experience that guests are seeking.118 Tourism Planning Taskforce Report
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1Front cover photographs:1 Yallingu
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GLOSSARY . . . . . . . . . . . . .
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Summary• The rezoning of a touris
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Chapter 1Introduction1 Introduction
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Chapter 1Introduction• To identif
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Chapter 2State tourist accommodatio
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Chapter 3Current tourism developmen
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Chapter 4Term of Reference 14 Term
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Chapter 4Term of Reference 1require
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Chapter 5Term of Reference 2framewo
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Chapter 5Term of Reference 2require
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Chapter 5Term of Reference 2a facil
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Chapter 5Term of Reference 2The uni
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Chapter 5Term of Reference 2• Whe
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Chapter 6Term of Reference 3clear t
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Chapter 6Term of Reference 3such de
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Chapter 6Term of Reference 3comply
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Chapter 6Term of Reference 3arrange
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Chapter 7Term of Reference 4Table 1
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Chapter 7Term of Reference 47.3.1 Z
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Chapter 7Term of Reference 4guests
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Chapter 8Taskforce recommendations8
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Chapter 8Taskforce recommendationsc
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Page 100 and 101: ReferencesReferencesAustralian Bure
Page 102 and 103: Further readingGetz, Donald (1993)
Page 104 and 105: Further readingWilliams, P., Penros
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Page 108 and 109: Appendix 2Appendix 2List of submitt
Page 110 and 111: Appendix 2Executive Officer*(4) REI
Page 112 and 113: Appendix 33 Responsibility forprepa
Page 114 and 115: Appendix 38 Proposed criteria for t
Page 116 and 117: Appendix 311 Residential componento
Page 118 and 119: Appendix 315 Use of tiered system f
Page 120 and 121: Appendix 319 Managementarrangements
Page 122 and 123: Appendix 322 Land Tax. 7 Support fo
Page 124 and 125: Appendix 327 Review period fortaskf
Page 126 and 127: Appendix 4Bradley Woods,Karen Conne
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