Broadwater island hoping

Island-based resorts are something of a Queensland specialty in Australia, but one West Perth-based group is hoping to be at a key player in developing this sector in this state.

Consortiums including Broadwater Hospitality Pty Ltd are seeking approval for a project on the Abrolhos Islands archipelago off Geraldton, as well as pitching for the proposed Rottnest Island resort.

The moves by the Futuris Corp Ltd subsidiary are part of a significant growth plan, which also involves mainland developments and substantial back-office programs through which it aims to better compete with international groups that dominate this sector.

Local competitors include the Seashells Hospitality Group, Assured Hospitality Group and Hawaiian Management Group.

Broadwater CEO Scott Cogar said the company was attempting to position itself to take advantage of tourism opportunities it sees in the state – noting that island-based tourism will be a part of this, an area in which he and several other executives have significant experience.

“WA is at a precipice that is unbelievably large,” Mr Cogar said. “There is so much appeal.”

The group also plans to be involved in at least two other mainland resorts to complement its current array of seven spread throughout the southern half of the state as the core part of a hub and spoke strategy.

Ultimately, it believes it could have as many as 15 of those sites, enough to be in every key part of the state, without having operations across the road from each other.

Around this, Broadwater wants to develop adventure and indigenous tourism operations, the so-called spokes around the central resort hubs.

The Abrolhos project is very much a niche spoke in this regard. Plans include a 30-room, international standard, eco-friendly resort located on a tiny isle in the middle of the vast archipelago off the Geraldton coast, which has largely been off-limits to anyone bar the most adventurous travellers and the area’s crayfishermen.

Broadwater has gone into a joint venture with Geraldton’s Humfrey Land Development on that project, a company it has teamed up with again as part of its Rottnest consortium.

But despite this grand vision, it has not all been smooth sailing for the group.

While most of its sites are strong, occupancy levels have been weak in areas like Dunsborough and Busselton, where it operates three resorts.

This has been a key issue in a long-running saga at one of the resorts it operates where strata-titled property owners have been unhappy with returns on their units under arrangements established with other entities when the development was commenced, long before Futuris took full control of Broadwater.

But Mr Cogar believes that issue – though not the drop-off in travellers to the South West – is largely behind the company.

“It is very tough down there,” he told WA Business News.

He cites the fall off in intrastate tourists due to the economic boom and high fuel prices as causal factors, while the region remains an awkward destination for those outside the state, due to the lack of air services.

In the meantime, Broadwater is focused on a number of back-office activities.

It is close to installing a new centralised reservations system, including a call centre, and hopes to use Futuris associate Amcom Telecommunications Ltd to network its resorts.

It has also embarked on two key training initiatives, acknowledging that it is difficult to get hospitality staff, especially in remote locations.

In the first instance, it has teamed up with NSW-based Southern Cross University and the Australian School of Tourism and Hotel Management to offer qualifications (including degrees) through the Broadwater Business School.

Broadwater has also launched an indigenous cadet program which it hopes will pay dividends for its development plans.

“Our objective is to have an indigenous hotel or resort manager in a few years” Mr Cogar said.