When will it all end? Even as Australian domestic tourism is on the mend after a solid 18 months they continue to topple.
Last night it was announced that 2 of the largest Iconic Cairns properties are now in receivership; The Lakes Resort and Paradise Palms Resort and Country Club (which includes one of Australia best public access golf courses). This is just another blow as the heavy weights of Far North Tourism continue to struggle, even though it is near impossible to get bookings in to most establishments over the high season.
Paradise Palms
There just doesn’t seem to be much light at the end of the tunnel and I dare say there is a lot more to come, short term turnarounds are not going to mend this ailing industry. Australians MUST dig deep and support Australian Tourism or it will get to a point that it will be completely nonviable to travel domestically.
Australian product is depreciating at a rapid rate as the “strata titled” managed unit concept continues to fail. Unit owners, looking for returns are pulling out of rentals all over, depleting the possibility of seasonal locations to maximize income and maintain and refurbish to an acceptable standard. In short, the real estate prices were too high and now we are feeling the pain. There is a lot more to it than that, and a topic for another day. But its the short answer.
Is is also fair to lay a little blame on poor property management with limited industry knowledge and not utilising occupancy or managing distribution channels correctly, they too must have a look at their practices and focus more on the big picture of domestic tourism.
However, until Australia gets some REAL investment in tourism product, unfortunately I cant see that happening, then business will continue to collapse and product will continue to depreciate.
Like I said, Australian need to get behind domestic tourism and BUY AUSTRALIAN MADE. Its our only hope. Accept that it costs more, but commit to our own backyard.
We have now seen in only 6 short months 3 iconic Far North hotels fall into administration; The Daintree Eco Lodge, Paradise Palms and The Lakes. Its just not good enough! Come on Aussies, help out! And while we are at it I would love to see the airlines help too.
Related articles
