Tuesday, July 30, 2013

Aussie Motel Receives Corporate Welfare

When it comes to operating tourism businesses, our feekless Aussie cousins seem to be unable to supply adequate services to met consumer demand without outside intervention.

Following on from media reports about an Australian Government initiative to provide a "FREE" online booking solution that is available to all tourism operators, I see that the South Australian Federal Government are redistributing national tourism funding to operators that are unable to cope with the rigors of the open market.

The following bizarre news story that demands to be parodied, features moteliers that were able to identify that there is more consumer demand for the few 4-star rooms available at their property. They will be gifted a "windfall" of $85,000 to upgrade their entire property to 4-star standard and apparently this will include a brand new communal outdoor kitchen!

The Australian Government should cut-out-the-middleman and simply purchase and run accommodation businesses themselves...
"A MOUNT Gambier motel has received an $85,000 windfall from the Federal Government in a bid to boost the quality of accommodation stock in the region.

The Tower Motor Inn grant follows other regional accommodation providers The Barn and Commodore on the Park also receiving similar funding packages in recent years.

This follows only 22pc of rooms in regional South Australia being rated as four-star, compared with 39pc across regional Australia.

The SA Tourism Commission has recommended 280 rooms across the Limestone Coast should be upgraded from three to four stars.

Tower Motor Inn owners Gary and Caroline Walters yesterday welcomed the funding boost, revealing it would help fast-track refurbishment plans at the Jubilee Highway West business.
Ms Walters said the motel had plans to upgrade eight rooms to a four-star rating following increased demand from patrons.

She said the motel had been making improvements to the 19-room facility since 2004 in a move to stay competitive and satisfy growing tourist standards.

Ms Walters said their own internal research showed there was currently a 17pc gap for four-star rooms for the motel.

“Our occupancy rates are 11pc higher for our four-star rooms,” she said.

“There is strong demand for four-star rooms and over the past 12 months there have been a lot of international tourists, particularly from the growing Chinese market, whose expectations are really high.”

She said patrons wanted frameless showers, quality fixtures, leather couches and Blu-ray technology.
“They want that bit extra,” Ms Walters said.

She said the motel also planned to build an outdoor kitchen for patrons who wanted to self-cater.
Ms Walters said major refurbishment works were expected to begin in February and were expected to take five months.

Meanwhile, South Australian Senator Anne McEwen welcomed the funding.

“The Tower Motor Inn will refurbish current 3.5 star rooms to create AAA four-star facilities, as well as build an outdoor kitchen - a great addition to any accommodation,” Senator McEwen said.

“This project will increase the availability of four-star rooms for the many interstate and international visitors to Mount Gambier.

“I congratulate the Tower Motor Inn for winning the funding by strongly demonstrating their commitment to improving the tourism experience throughout the South East.”

The initiative was among 89 projects nationally that shared in $8.5m in the funding round."
Source: Click HERE

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