❓ Hon. Norman Moore questions the Minister for Tourism about Rottnest Island accommodation price increases and the failure to deliver promised refurbishments. The Minister, Hon. Adele Farina, explains the historical underpricing, limited past increases, and the need for current increases to fund a sustainable refurbishment program and improved services.
AnsweredQoN 544Legislative Council
QuestionView source ↗
ROTTNEST ISLAND - ACCOMMODATION PRICES
I refer the minister to the announcement that prices for accommodation on Rottnest Island will significantly increase again. Will the minister explain why price increases of up to 30 per cent for accommodation and other charges on Rottnest Island, announced during Labor’s first term, have failed to deliver the promised refurbishment and maintenance program and an improvement in the authority’s financial position and why a further increase of up to 30 per cent is required? Hon ADELE FARINA
I refer the minister to the announcement that prices for accommodation on Rottnest Island will significantly increase again. Will the minister explain why price increases of up to 30 per cent for accommodation and other charges on Rottnest Island, announced during Labor’s first term, have failed to deliver the promised refurbishment and maintenance program and an improvement in the authority’s financial position and why a further increase of up to 30 per cent is required? Hon ADELE FARINA
AnswerView source ↗
I thank the honourable member for some notice of this question. Historically the authority has always underpriced its accommodation as a means of achieving affordable access to some facilities. Accommodation price increases over the past eight years have been few, and have been largely restricted to consumer price index increases across all types of accommodation; other than increases applied on the completion of some refurbished units. Over this same period, pensioner concessions were introduced and the Caroline Thomson cabins were refurbished and leased without a price increase. The only significant increase to accommodation rates was applied to cottages and some refurbished villas in 2003. Prices for other types of accommodation, inclusive of units, bungalows, Caroline Thomson cabins and unrefurbished cottages, were increased only by a maximum of 10 to 15 per cent. These increases were the first significant increases applied to accommodation types since 1999, illustrating the long-term practice of playing catch-up to keep accommodation affordable. Revenue increases were reinvested into accommodation and refurbishment; however, the application of the increases was too narrow to allow adequate funds to establish an ongoing refurbishment program. Moreover, they were made without the benefit of having a thorough understanding of the financial requirements to enable long term sustainability. The Rottnest Island task force recommended that the Rottnest Island Authority develop a clear business plan for the period of at least the current management plan; in particular that the accommodation business should be run on a self-financing basis with provision for refurbishment with income generated by the business. The authority has undertaken extensive financial planning resulting, in part, in the current increases in fees and charges to reflect a more commercially sustainable approach. For the first time detailed analysis, review and modelling work has been done to achieve a more sustainable position for the future. It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
Hon ADELE FARINA replied: I thank the honourable member for some notice of this question. Historically the authority has always underpriced its accommodation as a means of achieving affordable access to some facilities. Accommodation price increases over the past eight years have been few, and have been largely restricted to consumer price index increases across all types of accommodation; other than increases applied on the completion of some refurbished units. Over this same period, pensioner concessions were introduced and the Caroline Thomson cabins were refurbished and leased without a price increase. The only significant increase to accommodation rates was applied to cottages and some refurbished villas in 2003. Prices for other types of accommodation, inclusive of units, bungalows, Caroline Thomson cabins and unrefurbished cottages, were increased only by a maximum of 10 to 15 per cent. These increases were the first significant increases applied to accommodation types since 1999, illustrating the long-term practice of playing catch-up to keep accommodation affordable. Revenue increases were reinvested into accommodation and refurbishment; however, the application of the increases was too narrow to allow adequate funds to establish an ongoing refurbishment program. Moreover, they were made without the benefit of having a thorough understanding of the financial requirements to enable long term sustainability. The Rottnest Island task force recommended that the Rottnest Island Authority develop a clear business plan for the period of at least the current management plan; in particular that the accommodation business should be run on a self-financing basis with provision for refurbishment with income generated by the business. The authority has undertaken extensive financial planning resulting, in part, in the current increases in fees and charges to reflect a more commercially sustainable approach. For the first time detailed analysis, review and modelling work has been done to achieve a more sustainable position for the future. It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
I thank the honourable member for some notice of this question. Historically the authority has always underpriced its accommodation as a means of achieving affordable access to some facilities. Accommodation price increases over the past eight years have been few, and have been largely restricted to consumer price index increases across all types of accommodation; other than increases applied on the completion of some refurbished units. Over this same period, pensioner concessions were introduced and the Caroline Thomson cabins were refurbished and leased without a price increase. The only significant increase to accommodation rates was applied to cottages and some refurbished villas in 2003. Prices for other types of accommodation, inclusive of units, bungalows, Caroline Thomson cabins and unrefurbished cottages, were increased only by a maximum of 10 to 15 per cent. These increases were the first significant increases applied to accommodation types since 1999, illustrating the long-term practice of playing catch-up to keep accommodation affordable. Revenue increases were reinvested into accommodation and refurbishment; however, the application of the increases was too narrow to allow adequate funds to establish an ongoing refurbishment program. Moreover, they were made without the benefit of having a thorough understanding of the financial requirements to enable long term sustainability. The Rottnest Island task force recommended that the Rottnest Island Authority develop a clear business plan for the period of at least the current management plan; in particular that the accommodation business should be run on a self-financing basis with provision for refurbishment with income generated by the business. The authority has undertaken extensive financial planning resulting, in part, in the current increases in fees and charges to reflect a more commercially sustainable approach. For the first time detailed analysis, review and modelling work has been done to achieve a more sustainable position for the future. It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
Historically the authority has always underpriced its accommodation as a means of achieving affordable access to some facilities. Accommodation price increases over the past eight years have been few, and have been largely restricted to consumer price index increases across all types of accommodation; other than increases applied on the completion of some refurbished units. Over this same period, pensioner concessions were introduced and the Caroline Thomson cabins were refurbished and leased without a price increase. The only significant increase to accommodation rates was applied to cottages and some refurbished villas in 2003. Prices for other types of accommodation, inclusive of units, bungalows, Caroline Thomson cabins and unrefurbished cottages, were increased only by a maximum of 10 to 15 per cent. These increases were the first significant increases applied to accommodation types since 1999, illustrating the long-term practice of playing catch-up to keep accommodation affordable. Revenue increases were reinvested into accommodation and refurbishment; however, the application of the increases was too narrow to allow adequate funds to establish an ongoing refurbishment program. Moreover, they were made without the benefit of having a thorough understanding of the financial requirements to enable long term sustainability. The Rottnest Island task force recommended that the Rottnest Island Authority develop a clear business plan for the period of at least the current management plan; in particular that the accommodation business should be run on a self-financing basis with provision for refurbishment with income generated by the business. The authority has undertaken extensive financial planning resulting, in part, in the current increases in fees and charges to reflect a more commercially sustainable approach. For the first time detailed analysis, review and modelling work has been done to achieve a more sustainable position for the future. It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
The Rottnest Island task force recommended that the Rottnest Island Authority develop a clear business plan for the period of at least the current management plan; in particular that the accommodation business should be run on a self-financing basis with provision for refurbishment with income generated by the business. The authority has undertaken extensive financial planning resulting, in part, in the current increases in fees and charges to reflect a more commercially sustainable approach. For the first time detailed analysis, review and modelling work has been done to achieve a more sustainable position for the future. It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
Hon ADELE FARINA replied: I thank the honourable member for some notice of this question. Historically the authority has always underpriced its accommodation as a means of achieving affordable access to some facilities. Accommodation price increases over the past eight years have been few, and have been largely restricted to consumer price index increases across all types of accommodation; other than increases applied on the completion of some refurbished units. Over this same period, pensioner concessions were introduced and the Caroline Thomson cabins were refurbished and leased without a price increase. The only significant increase to accommodation rates was applied to cottages and some refurbished villas in 2003. Prices for other types of accommodation, inclusive of units, bungalows, Caroline Thomson cabins and unrefurbished cottages, were increased only by a maximum of 10 to 15 per cent. These increases were the first significant increases applied to accommodation types since 1999, illustrating the long-term practice of playing catch-up to keep accommodation affordable. Revenue increases were reinvested into accommodation and refurbishment; however, the application of the increases was too narrow to allow adequate funds to establish an ongoing refurbishment program. Moreover, they were made without the benefit of having a thorough understanding of the financial requirements to enable long term sustainability. The Rottnest Island task force recommended that the Rottnest Island Authority develop a clear business plan for the period of at least the current management plan; in particular that the accommodation business should be run on a self-financing basis with provision for refurbishment with income generated by the business. The authority has undertaken extensive financial planning resulting, in part, in the current increases in fees and charges to reflect a more commercially sustainable approach. For the first time detailed analysis, review and modelling work has been done to achieve a more sustainable position for the future. It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
I thank the honourable member for some notice of this question. Historically the authority has always underpriced its accommodation as a means of achieving affordable access to some facilities. Accommodation price increases over the past eight years have been few, and have been largely restricted to consumer price index increases across all types of accommodation; other than increases applied on the completion of some refurbished units. Over this same period, pensioner concessions were introduced and the Caroline Thomson cabins were refurbished and leased without a price increase. The only significant increase to accommodation rates was applied to cottages and some refurbished villas in 2003. Prices for other types of accommodation, inclusive of units, bungalows, Caroline Thomson cabins and unrefurbished cottages, were increased only by a maximum of 10 to 15 per cent. These increases were the first significant increases applied to accommodation types since 1999, illustrating the long-term practice of playing catch-up to keep accommodation affordable. Revenue increases were reinvested into accommodation and refurbishment; however, the application of the increases was too narrow to allow adequate funds to establish an ongoing refurbishment program. Moreover, they were made without the benefit of having a thorough understanding of the financial requirements to enable long term sustainability. The Rottnest Island task force recommended that the Rottnest Island Authority develop a clear business plan for the period of at least the current management plan; in particular that the accommodation business should be run on a self-financing basis with provision for refurbishment with income generated by the business. The authority has undertaken extensive financial planning resulting, in part, in the current increases in fees and charges to reflect a more commercially sustainable approach. For the first time detailed analysis, review and modelling work has been done to achieve a more sustainable position for the future. It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
Historically the authority has always underpriced its accommodation as a means of achieving affordable access to some facilities. Accommodation price increases over the past eight years have been few, and have been largely restricted to consumer price index increases across all types of accommodation; other than increases applied on the completion of some refurbished units. Over this same period, pensioner concessions were introduced and the Caroline Thomson cabins were refurbished and leased without a price increase. The only significant increase to accommodation rates was applied to cottages and some refurbished villas in 2003. Prices for other types of accommodation, inclusive of units, bungalows, Caroline Thomson cabins and unrefurbished cottages, were increased only by a maximum of 10 to 15 per cent. These increases were the first significant increases applied to accommodation types since 1999, illustrating the long-term practice of playing catch-up to keep accommodation affordable. Revenue increases were reinvested into accommodation and refurbishment; however, the application of the increases was too narrow to allow adequate funds to establish an ongoing refurbishment program. Moreover, they were made without the benefit of having a thorough understanding of the financial requirements to enable long term sustainability. The Rottnest Island task force recommended that the Rottnest Island Authority develop a clear business plan for the period of at least the current management plan; in particular that the accommodation business should be run on a self-financing basis with provision for refurbishment with income generated by the business. The authority has undertaken extensive financial planning resulting, in part, in the current increases in fees and charges to reflect a more commercially sustainable approach. For the first time detailed analysis, review and modelling work has been done to achieve a more sustainable position for the future. It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
The Rottnest Island task force recommended that the Rottnest Island Authority develop a clear business plan for the period of at least the current management plan; in particular that the accommodation business should be run on a self-financing basis with provision for refurbishment with income generated by the business. The authority has undertaken extensive financial planning resulting, in part, in the current increases in fees and charges to reflect a more commercially sustainable approach. For the first time detailed analysis, review and modelling work has been done to achieve a more sustainable position for the future. It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
It must be noted that, in contrast to earlier increases, there is a rise in the standard of service contained in the current increases, such that for the first time the majority of accommodation units will have linen and items such as televisions and microwaves that were previously only available through hire. The increase of up to 30 per cent this year on a more extensive range of accommodation types is necessary to fund a five-year refurbishment program to ensure that the authority does not have to continue to play catch-up.
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