After years of inaction and threats of closure, Western Australian tourism icon Rottnest Island is gearing up for a new lease on life.
After years of inaction and threats of closure, Western Australian tourism icon Rottnest Island is gearing up for a new lease on life.
With $26 million worth of refurbishments close to completion, during which 202 of the 308 accommodation units were upgraded to a 3.5-star standard, visitation to the island has staged a comeback in 2007 after years in decline.
About 23,000 extra visitors, an increase of 7.5 per cent, came to Rotto during the year to June. About 80 per cent of visitors to the island are Western Australians.
Close to 5,000 people registered as part of this year’s annual ballot process, vying for just 1,600 accommodation places during the island’s peak summer season.
Located just 18 kilometres from Perth, Rottnest has been plagued by negative publicity and capacity constraints for some time.
Years of so-called band-aid solutions had done little to stem the backlog of problems with the island, with infrastructure and accommodation identified as areas in need of attention.
There were also questions raised over the management of the island, a task allocated to government body the Rottnest Island Authority, which had been accused of lacking the commercial nous, or the will, to make the island financially sustainable.
But, as pointed out in the government-commissioned Rottnest Island taskforce report in 2004, the picture was not as bad as many had thought.
The electricity and water supply systems, for example, compared well with similar operations elsewhere. And while some work was needed to upgrade capacity and address problems, there was certainly no need to restrict public access to the island.
The key priority, according to the taskforce, was to develop a more commercial approach to managing the operations currently carried out by the authority.
Current RIA chairman Laurie O’Meara, who has been in the job since June 2005, denies the authority is incapable of managing all of its responsibilities.
While he hints at the possibility of certain services, such as utility supply, being put out to contracted supply some time in the future, for now the RIA, which has not returned a profit since 2000, is working towards a model of economic self-sustainability.
“The government would like that, and I would like that, with an agreed arrangement with the government for maintenance of heritage and national parks. Tourism operations should be allowed to try and maintain themselves,” Mr O’Meara told Business Class.
Managing the island’s finances was always going to be difficult, he said.
Unlike other tourism operations, for example hotels, pricing on the island is not set according to the traditional market mechanisms.
And despite the rising costs, a family of four can still get change from $500 for one week’s stay in one of the island’s accommodation units during peak season, despite fears of the island being priced out of the reach of the average family with every tariff increase.
“It’s imperative to keep the island affordable to this mythical average Australian family; we can’t just put up our fees when we want to,” Mr O’Meara said.
For the business operators on the island, the activities over the past three years have been encouraging.
Rottnest Island Business Community chairman and manager of the Rottnest Lodge, Alan Ledger, believes the eras of management can be split into two camps – pre-taskforce and post-taskforce.
He said the RIBC’s lobbying of the government, particularly over its pre-election funding commitments, helped give rise to the formation of the Rottnest Island taskforce in late 2003.
“Prior to that, the RIA’s position was a landlord. Post-taskforce, the RIA became more involved with business community on the island,” he said.
“The RIBC sought to get the RIA more involved with the business community and break down the ‘us and them’ mentality that existed.”
Mr Ledger said the business community on the island was very positive about the new developments and the increase in interest from private investors, including the proposed $50 million Broadwater hotel at Mt Herschel.
The addition of new businesses on the island, for example the opening of the Wellness Centre incorporating a beauty and day spa, and the upgrading of existing operations, like the new $2.5 million Dome cafe relocation, were a plus for all business operators.
The changes in ownership of a number of ferry operators, including Rottnest Express and Oceanic Cruises, in the past six months had also injected some new and enthusiastic players into the market, Mr Ledger said.
“The business community is happy now infrastructure has upgraded, and we will see more private investment funds coming into the island. And that’s a good thing,” he told Business Class.
“As things evolve, people’s expectations change and the businesses have evolved because of that.”
On a business level, particularly for the food and beverage operators, improving service standards and tackling issues associated with staff shortages and staff accommodation are a priority for the RIBC.
New Rottnest Express owner, Scott Bailey, said there were a number of opportunities for the business to contribute to the development of the island into a premier tourist destination catering for a range of tourists.
He said the authority had taken a major step in moving the island forward in recent years, and he was looking forward to working with them to develop a long-term planning vision for the island.
But not everyone is a fan of increased private investment on the island, led on a large scale by the Broadwater development.
Its proponents say the hotel will provide further accommodation options on the island, with research commissioned by the RIA indicated a need for an “ordinary”, four-star hotel.
It could also increase visitation in the low season, with the possibility of bringing more conference and corporate visitors to the island, with flow-on effects for the island’s businesses.
There would also be substantial land rent increases and increased revenue from landing fees from the extra visitors for the RIA.
Rottnest Society convenor Sue Folks said she found it difficult to believe that large private investment was necessary to subsidise the island’s unit, villa and cottage accommodation.
“We would rather the government accept that it’s not possible for the RIA to become self sustaining. They’ve got too much on their plate,” she said.
“The RIA needs extra help. The government needs to commit to ongoing, annual funding.”
She said the RIA, in recent years, had done a “pretty reasonable job” of upgrading accommodation and infrastructure, and was working hard to keep the island affordable.
But she remains concerned over the potential flow-on effects of “upmarketing” the island through the addition of the 4.5-star hotel, a concern she believes is widespread.
“It amazes me how many people don’t want the island to be upmarketed,” she said.
“Our argument is that the island itself is the attraction. People don’t go there because of great accommodation; it’s the natural appeal. Keep it simple.”
