Chapter 2State tourist accommodation industrythat potentially it also facilitated a higher levelof servicing, infrastructure provision andgeneral quality of development and/or theirearlier provision than otherwise may havebeen achieved. Furthermore, other types offinancing for tourism projects are now beingpursued more commonly, including propertytrusts and vacation rentals (time share).These issues are explored in further detailunder term of reference 1. (See Chapter 4).The taskforce did; however identify a numberof long term concerns with built strataschemes that relate to the ability to maintainfunding for refurbishment and upgrading of thedevelopments, maintenance of standard fit-outand services, and general maintenance. It wasalso accepted that there may be potential toaddress these concerns with appropriatestrata scheme restrictions, conditions ofapproval and management statement/by-lawrequirements. It was also noted by thetaskforce that the use of strata schemes wasmore appropriate to resort-style developmentsthat facilitated integrated management, overlow density chalet or cabin developmentwhere there would be a greater propensity forself-management or use on a lock-up basis.These issues are explored in further detailunder term of reference 3. (See Chapter 6).2.4.5 <strong>Tourism</strong> developments andfinancial returnsThe taskforce recognises that the <strong>Western</strong><strong>Australian</strong> tourism market is immature, hashigh seasonal and locational variation andoperates in a competitive market, resulting inrelatively low rates of investment return insome tourism developments. A consequencewill be that some sites recognised as havinglong-term tourism potential will not bedevelopable in the short term, resulting inholding costs for the owner. While there werevarious views in the taskforce on theprofitability of tourist accommodationoperations within the State, and theimportance of this to the findings, it stronglysupported the position that any policyapproach recognise the need to develop aneconomically sustainable tourism industry.Such an approach is necessary to ensureprofitability is adequate to facilitate initialdevelopment, maintenance, upgrading,redevelopment and marketing, all necessarycomponents for a sustainable industry.It also was recognised that the multiplier effectof tourism investment in an economy can besubstantial and to achieve this benefit StateGovernment support of tourism throughassisting the appropriate development ofstrategic sites in selected locations may bewarranted. In achieving sustainable tourismdevelopment, a blanket policy approach thatignored regional differences was recognisedas being unlikely to achieve this.2.4.6 Retention of variety andaffordability in touristaccommodationThe taskforce identified as a primary task theneed to address the retention of a variety oftourist accommodation opportunities intraditional holiday locations available to peopleat a range of socioeconomic levels due to thehigh social and cultural value of this use.The taskforce received submissions and notedthe <strong>Tourism</strong> Minister’s concerns that the Stateland tax framework was encouraging theredevelopment of many low-cost forms oftourist accommodation to resort-styledevelopments, and resulting in a loss ofaccommodation diversity. It was noted that thistrend had the potential to intensify as thecumulative effect of a number of years ofsignificantly increasing land tax took effect.It was advised to the taskforce by the ValuerGeneral’s office that this trend relates to theimmature nature of the tourism industry in<strong>Western</strong> Australia, where currently a highervalue is placed on prime tourism land forresidential use, and is driven by the valuationprocess used for calculating land tax. Asproperties are valued at their highest and bestuse, based on an unimproved land value,where they are under a common tourist zoningit can result in similarly sized and locatedproperties paying similar land tax, irrespectiveof the extent of development orincome-earning potential of the property. Alow-key accommodation facility may paysimilar land tax to a five-star resort, resultingin continued pressure for the redevelopmentof the low-key property to generate sufficientincome to manage an increasing tax liability.<strong>Tourism</strong> <strong>Planning</strong> <strong>Taskforce</strong> <strong>Report</strong>17
Chapter 2State tourist accommodation industryThese issues are explored in further detailunder term of reference 4. (See Chapter 7).To retain a range of accommodation, thetaskforce acknowledged the need for theintroduction of more specific zonings, such as“caravan and camping grounds”, “chalet andcabin” and “tourist resort” into localgovernment schemes. The taskforce alsonoted the potential of Crown Land sitessuitable for tourism development to beidentified, made available and developed tomeet the demand for affordableaccommodation, and the need to retainexisting Crown sites used for low-key tourismdevelopment. An increased role for CrownLand is one of the potential mechanismsidentified if the loss of coastal caravan parksand low-cost accommodation developments isto be addressed.varying positions on the disposal of Crownsites designated for tourist accommodation,primarily caravan parks and camping grounds,since the 1980s. More recently, the need toprotect the community’s interest throughretaining public ownership, or limiting theoptions for alternative use of such sites whenfreehold title is issued, has been given ahigher priority. While it is recognised thatdifferent approaches still are applicable, giventhe range of Crown sites and their originalrelease/lease conditions, the taskforce hasnoted the need for applications for release ofCrown sites to be assessed under theprinciples of protecting the public interest, byensuring their use in perpetuity as affordabletourist accommodation.The Government, through the Department for<strong>Planning</strong> and Infrastructure (DPI), has had18 <strong>Tourism</strong> <strong>Planning</strong> <strong>Taskforce</strong> <strong>Report</strong>