The protection mechanisms for businesses in Australia’s tourism industry needed a major review, following exposure of its commercial vulnerability during the Ansett collapse.

While resident accommodation managers are required by law to have their owner’s and consumer’s (guests) money lodged in trust accounts, Ansett and other holiday wholesalers were able to take bookings and utilise the money as operating funds.

As a result of the Ansett collapse, our members have been left holding a bundle of debt and having to honour accommodation bookings with little chance of payment for years, if ever.

There are two levels of fidelity legislation, one for the large national operators, and another for the small businessperson.

QRAMA members accept that our owners need to have their investments protected, but if they commit to the letting pool, which is serviced by the large national wholesalers, they are at the mercy of these people completing their obligations.

In the case of a failure like Ansett, our members, owners and guests are owed millions.

The Ansett debacle had exposed QRAMA members to huge crippling financial exposure, with Ansett defaulting on thousands of dollars of accommodation payments and commissions.

The owners loose their rental and resident managers loose the commission and operating expenses (clean, linen, etc.) and the opportunity to have paying customers.

Many managers had to tell holidayers that they could not honour their accommodation vouchers unless the tourist was prepared to pay again and recover the voucher payment from the Ansett administrator.

As agents for the owners, we cannot enter into an arrangement which penalises them.

The Federal Government, through the ASIC, needs to provide protection for agents in the tourist industry to ensure that they were protected to provide services.

These are people who provide tours, cruises, meals and accommodation, the whole of the tourist infrastructure, which has been sold as a packaged commodity.

The Government has seen what a total disaster that the collapse of a major provider causes and this is for the largest international industry in the country.

Many of our operators will take years to recover and their owners have had their investments thrown into turmoil.

There is a need for both the State and Federal Governments to ensure that there are model laws, which protect the small operator and provider.

The losses suffered by guests, owners and managers is an undesirable and in our view avoidable position. On your behalf, QRAMA is working to ensure Governments require all persons receipting or receiving money from the travelling public operate a trust account.

The tourist industry must band together to get these reforms in place.

Meeting with the Office of the Commissioner

QRAMA met with the Commissioner for Body Corporate and Community Management recently to discuss the long awaited review of the Body Corporate and Community Management Act. We expect the Office of the Commissioner to release results of the long awaited review in November.

ENDS