The predicament facing Queensland’s tourist accommodation industry is having a direct impact on accommodation providers’ cash flows and the multiplier effect of a sudden drought of funds is jeopardising many businesses.

The events of September 11 in the United States had a direct impact on the aviation industry worldwide and clearly demonstrate that we are not immune from the global economy.

The Ansett collapse has further impacted on the already fragile tourism industry and illustrated the vulnerability of the day-to-day economic outcomes within the industry, which has billions of dollars of assets investment.

In 1974, the disastrous floods in South-East Queensland demonstrated that Governments needed to provide leadership in long-term emergency preparedness with strategies to mitigate unpredictable events.

Some of the major outcomes from the 1974 events were the establishment of the State Emergency Service, responsible development laws for flood plains, regular maintenance on creeks and streams, and regular training and risk analysis.

The reaction by State and Federal Governments to provide cheap capital as their immediate response to the adverse impact on Australian and Queensland tourism is not directed at the immediate needs of the industry that will ensure its long-term viability.

The industry’s short-term needs are for domestic and international holidaymakers to have the confidence and the ability to go on holidays, assuring the cash flow of accommodation providers.

The tourist industry is only too well aware of the changing patterns of holidays, especially by Australians.

No longer do we have families having the two or three weeks regular holiday break.

The changing employment patterns in Australia during the past decade has meant Australians have shorter holiday breaks, which has placed greater pressure on the industry to service this changing pattern and cope with the altered arrangements.

These changes have been through 12-hour working days and different shift patterns to accommodate new productivity programs together with the greater trend to more contract and part time employment opportunities.

Add to this the uncertain economic conditions and the tourist and holiday industry continues to remain fragile in the domestic marketplace. The Asian economic crisis and added competition from other destinations has weakened the overseas visitor market.

Thus when a crisis occurs, our tourist industry does not have an inbuilt reservoir to meet the challenge.

At these times the industry does not need additional loans for capital works, it needs ongoing support.

This is the challenge for industry leaders and the Government for our future. This current crisis may be the catalyst that draws the line in the sand to develop long term strategies to insulate the industry from a hand to mouth business, constantly flattened by unforeseen crises.

QRAMA intends to increase its representations to all levels of Government to ensure that the industry has a better emergency service, which can be called upon to help all on the ground operators continue on through adversity.

Owners of holiday apartments have been patient in the short term at the lack of return on their investments. However, history has shown that investors become inpatient very quickly. Unless managers can restore reasonable financial returns to apartment owners fairly soon, the capital value of holiday properties will diminish with the resulting problems for the industry of trying to restore both confidence and capital.

If we live and work in the smart state, then we have to be smarter. It is the only way our businesses will survive.

ENDS