Tourism Planning Taskforce Report - Western Australian Planning ...

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