Rottnest Island Authority chairman Laurie O’Meara says things are on track to “square the ledger” on the holiday island by the end of fiscal 2008.
Rottnest Island Authority chairman Laurie O’Meara says things are on track to “square the ledger” on the holiday island by the end of fiscal 2008.
The assurance follows the tabling of the RIA’s 2005-06 annual report in Parliament last week, in which a $3.21 million loss was revealed for the year.
Mr O’Meara said the loss was $700,000 less than its forecast of $3.9 million, and did not take into account the state government’s 30 per cent price hike on Rottnest Island accommodation from July 1.
“Prior to the June talk about increasing fees, we were booked out 12 months in advance so the actual increase won’t come into play until the next report,” he said.
“We’ve budgeted for a $1 million loss for 2006-07 by increasing fees and tightening expenses and look forward to squaring it up come the end of 2008.”
The RIA has been busy implementing the recommendations made in 2004 by a government appointed taskforce which called for a major upgrade of accommodation and amenity on the island in addition to the RIA making a greater commitment to financial sustainability.
Mr O’Meara said Mark McGowan, the tourism minister at the time, told the RIA they had to get themselves sorted out and earmarked $20.1 million in funding to modernise accommodation and complete infrastructure works.
The RIA asked for a further $6 million in funding last year to cover increased costs.
“The state of the accommodation has got progressively worse over the years to a point where I could put my two best cleaners in there and they wouldn’t get the units even close to spotless in half a day,” he said.
“The fittings were OK for an earlier time, like lino on the floors, but people expect much more for their money now.”
In just 17 weeks over winter, $7.5 million was spent transforming 14 heritage bungalows built in 1920 into self-contained family units.
In total, 202 out of the island’s 308 accommodation units have been upgraded or refurbished with the inclusion of white goods, televisions, fly-wire screens on doors, linen and new kitchenettes to a majority of cottages.
While the changes may not raise the accommodation to the heights of luxury, the units are now at an equivalent of three-and-a-half star tourism standard.
Mr O’Meara said the past “bandaid on bandaid” approach to repairs was no longer an option and suggested visitors would have to accept that up to 20 per cent of accommodation would be offline every winter as part of its new rolling maintenance program.
“We’re going to make sure things are done right this time and that we keep on top of it all,” he said.
Next on the RIA’s agenda is the announcement of a new lease-holder for the Quokka Arms Hotel at Thomson Bay next month.
In preparation for the deal, the RIA has upgraded staff accommodation, improved indoor and outdoor seating, installed new signage and upgraded the hotel’s top floor accommodation and restaurant facilities.
Handing over the facility to an experienced operator is expected to cut overheads and make supply contracts more competitive.
The only deal left to sign is for the development of a new 120-room hotel at Longreach Bay for which short-listed applicants have been notified and a final decision reserved for December.
