Cairns business confidence up coming into 2013
IT can only get better. That's the view of the business community as the region prepares for a brighter and more optimistic 2013.
The Weekend Post asked 12 key business leaders eight questions about the region's economy, business in general, the past and future and some words of advice.
Hilton Cairns hotel general manager John Lucas:
What are your thoughts on the past year, the highlights and lows?
The year has clearly been much stronger than previous year and returns to occupancy levels of three or four years ago. Highlights were (a) a stronger convention diary with associated room blocks, (b) Chinese New Year 2012 (c) improved domestic travel.
What does next year hold and what will be the challenges facing business?
A slow and steady incline. Greatest challenges for accommodation sector remains with the yielding of rooms an hotels price cut to drive volume in low trough periods. The need to ensure our emerging markets (especially China) remain focussed on Cairns and continue their air operations. If we were to lose these flight - it would be many years before their return.
Do you think next year will be better than 2012 and why?
Yes, 2013 will show continuing improvement but the pace of growth will be more gradual. Our key markets of China, Japan, US, domestic and conventions (as above really) are all indicating the markets will continue to improve. Overall business confidence both nationally and locally. One caveat to above is the unknown of the federal election which historically always have a negative impact on business travel around that period.
What needs to be done to improve businesses in the Far North next year?
Focus of key groups, specifically Advance Cairns and their priorities to drive investment. TTNQ and the focus to drive air agreements and Cairns Regional Council to develop/improve local infrastructure.
How can all levels of government help businesses?
As above for the CRC, to drive infrastructure but additionally to determine the funding model for TTNQ. With funding provided only year to year (with no understating of what funding model will apply in the coming years really restricts the ability for planning beyond the coming 12 months). State Government to assist with a focus on roads and transport. Pressure from state and federal governments for assistance in building insurance premiums. Since cyclone Yasi premiums have risen by many 100s of per cent and continuing price hikes at similar levels would render some businesses unviable.
Can other businesses assist, i.e banks etc?
Overall business community to embrace the message that we're all in the tourism business and focus on ensuring our visitors have a memorable stay and leave as ambassadors. Secondly, that if the CRC introduce some sort of tourism funding model paid by the wider community that it is accepted by the community as being a necessity for longevity.
What is the one single thing that will help your business grow in 2013?
It's all about flights. Competitively priced domestic flights, additional seats from Japan (via Jetstar or whoever else). Longer term sustainability of China flights. Secondly, no natural disasters.
What are your best words of advice for business owners/operators?
Considering investment as the region is on the cusp of a strong recovery and now is the time to secure some benefit.
Small business advisor and author Andrew Griffiths:
What are your thoughts on the past year, the highlights and lows?
I think 2012 was the best year Cairns has had for a long time. There are signs of recovery, with plenty of good news stories out there (albeit people are hesitant to share them). Like it or not, Cairns is a tourist town and it always will be. Positive news in this sector, including arrival numbers, the eclipse, China etc have all had positive impacts. The negatives, a lack of action from local, state and federal governments to assist small business.
What does next year hold and what will be the challenges facing business?
I think next year will be much the same as 2012, which will be OK. The challenges facing many businesses and industries is that their traditional business models are no longer relevant in the modern business world and they need to change or go the way of the dinosaur.
Do you think next year will be better than 2012 and why?
I think it will be about the same. I can't see housing rebounding dramatically in the next 12 months, or construction and that is going to restrict the growth in Cairns. Governments are in cut, cut, cut mode, so there will be little to no stimulation from them and with a federal election, there will be little action, if any, from Canberra that could stimulate the Cairns economy.
What needs to be done to improve businesses in the Far North next year?
Business (small, medium and large) needs to develop markets outside of Cairns to strengthen their local operations. We can't sit back and complain, we need to be proactive and chase new markets. Those businesses that are doing this are already enjoying the results and creating more resilient businesses all round.
How can all levels of government help businesses?
All levels of Government need a dedicated and committed approach to creating more robust economies for small business in particular. I think their stance has been that if they can encourage big business, small business will grow as a result. This concept is totally floored and we need a much greater level of engagement between small business and all levels of Government to enable a proactive and comprehensive strategy and subsequent action plan to be developed and implemented accordingly.
Can other businesses assist, i.e banks etc?
Banks need to free up credit and pass on rate cuts with credit cards and business loans. Most small businesses run high levels of credit card debt and this has a big impact on their monthly cash flow. They have to use credit cards because banks don't like to give loans, they prefer to give business owners credit cards which actually creates more problems than it cures.
What is the one single thing that will help your business grow in 2013?
Access to NBN. While there are people who are quick to deride the value of the NBN I believe that it will create enormous opportunity and innovation. High speed internet will be create new industries, with global markets, which has to be good news for people living in regional areas.
What are your best words of advice for business owners/operators?
Don't wait for anyone to come to your rescue. Be proactive, change what needs to be changed in your business and go out and chase new markets and new customers. Step up and take control of the future of your business by being proactive.
Cairns Airport chief executive officer Kevin Brown:
What are your thoughts on the past year, the highlights and lows?
It has been a positive year for Cairns Airport which culminated in the commencement of direct services from mainland China along with strong growth in the domestic market from Jetstar, Virgin and Tiger on their return to Cairns. We were disappointed not to secure a direct service from Singapore just yet. However, route development including Singapore remains a key priority for the team.
What does next year hold and what will be the challenges facing business?
As domestic passenger numbers strengthen our challenge is to build international passenger numbers. To do this we need to maintain the momentum of the new China Eastern services from Shanghai, promote the existing services by Cathay Pacific to Hong Kong, Jetstar to Tokyo, Osaka and Singapore via Darwin, United Airlines to Guam, Air New Zealand to Auckland and Air Niugini, Airlines PNG and QantasLink to Port Moresby. We need to build new opportunities for aviation access for not only tourism, but also for business and sporting events, education, agriculture, aquaculture and resources sectors, by working with airlines and key industry partners.
Do you think next year will be better than 2012 and why?
There are some positive signs for 2013, but we still face the challenges of a high Australian dollar and an uncertain global economy. Our main job is to maintain and build on the momentum that we've begun in 2012 with new direct services, seek out more and build those we already have. Cairns Airport is also looking forward to offering the aviation sector the start of a new opportunity for future growth with the development of a dedicated Aviation Enterprise Precinct.
What needs to be done to improve businesses in the Far North next year?
Far North Queensland has an incredible opportunity to embrace the Chinese tourism and business market. Many operators are already doing so and I am sure there are others who could benefit from following their lead. We need to increase the awareness of the unique aspects of our wonderful region by reviewing our marketing to new markets as well as to the existing markets we currently serve.
How can all levels of government help businesses?
There has been strong local and State Government support for aviation access in Far North Queensland in 2012 and this must continue as we work to develop new opportunities. Local and state Governments are increasingly recognising the value of aviation to the economy and providing incentives, rather than hurdles, to grow these vital sectors.
Can other businesses assist, i.e. banks etc?
Business and industry in our region are once again coming together to work to a common goal. This is essential if we are to put FNQ back on the tourism map and build new opportunities for a more diverse regional economy.
What is the one single thing that will help your business grow in 2013?
The main thing is new direct international services that make it easier for visitors to get here and spend more time on the ground rather than backtrack and for the local population to have increased choice in options to travel overseas. Achieving this will help not just Cairns Airport but the whole region to grow and prosper.
What are your best words of advice for business owners/operators?
I recommend businesses work in collaboration with other like minded businesses and industry groups to develop, secure and embrace new opportunities for our region- before our competitors do.
Tourism Tropical North Queensland chief executive officer Rob Giason:
What are your thoughts on the past year, the highlights and lows?
2012 has been a year of many highs for the tourism industry. Visitor growth has returned with a 10 per cent increase in the domestic market from the previous year and numbers increasing from the international market. We have increased visitor expenditure from $2.2 billion to $2.6 billion taking us closer to our goal of $3.2 billion by 2015. Tropical North Queensland successfully managed an influx of 60,000 people for the total solar eclipse and received incredible media exposure throughout the world. China Eastern began direct flights to Cairns taking us a step closer to our goal of 200,000 Chinese visitors by 2015. TTNQ secured almost $900,000 in additional marketing funds through the State Government's new Contestable Grants Scheme. Winning the bid to host Corroboree UK/Europe 2013 in May when we will have 300 Aussie Specialists in our region to further their knowledge of Australia, Cairns and Tropical North Queensland. The TNQ Events Strategy is starting to pay dividends with Cairns winning the bid to host the G20 Finance Ministers meeting. Business events are up 7 per cent with Tropical North Queensland hosting the largest number of international events of all regions in Queensland at 34 per cent (Gold Coast 32 per cent and Brisbane 22 per cent). Within the events strategy is the sports tourism strategy which is also kicking goals with 22 new sporting events including the Great Barrier Reef Masters Games in August 2013 already identified for the region and more to come. The successful Richmond pre-season training camp in November/December adds strength to our bid to become a heat acclimatisation centre for the 2016 Olympics. It is disappointing that a direct Singapore service is yet to be secured, but this is a goal for 2013.
What does next year hold and what will be the challenges facing business?
I'm very confident about 2013 with the direct Chinese flights and expected 18,000-20,000 Chinese visitors for Chinese New Year giving a strong start to the season. The Japanese market looks positive with growing figures and additional government funding to market the destination. Events tourism is surging ahead with new events like the Great Barrier Reef Masters Games bringing additional visitors to the region and existing events like the Cairns Ironman receiving record entries as this sector grows our shoulder season. Cairns will be hosting Corroboree UK/Europe 2013 in May when we will have 300 Aussie specialists in our region to further their knowledge of Australia, Cairns and Tropical North Queensland. Our challenge is to continue growing these sectors to meet our goal of $3.2 billion in visitor expenditure by 2015. We are on our way with expenditure already increasing from $2.2 billion to $2.6 billion this year.
Do you think next year will be better than 2012 and why?
I do think next year will be better than 2012 as we continue to move forward from the effects of natural disasters in Queensland and the decline in international travellers from the global financial crisis. The Chinese market will continue to grow, the Japanese market is rebuilding and our expanding events portfolio will help strengthen our shoulder season.
What needs to be done to improve businesses in the Far North next year?
Roll out the National Broadband Network in our region so businesses in Tropical North Queensland can take advantage of the enormous potential high speed internet access will give them in the global world. Positively focus on what each business can achieve individually and look at the bigger picture to determine how your business can deliver positive outcomes for the region. We all need to continue to implement the actions of the TNQ Regional Economic Plan to build our economy through a number of key industry groups.
How can all levels of government help businesses?
Co-operation is critical and linking to united strategic goals is essential for success. At the end of 2012 TTNQ spent time with Tourism Australia and Tourism and Events Queensland to ensure our strategies will together drive more business to our region in a coordinated and united fashion. Maximising our resources and effort will ensure we achieve our goals.
Can other businesses assist, i.e banks?
External support is always welcome but we will always need to show other sectors such as the banking sector why there is still good rationale for them to invest in our region.
What is the one single thing that will help your business grow in 2013?
More airline seats. More seats will grow the domestic and Japanese markets and the introduction of direct flights to Singapore will open up new markets for Tropical North Queensland.
What are your best words of advice for business owners/operators?
Set goals, support local industries and products, and determine how you can work cooperatively with other businesses to benefit the region. Working together we can achieve so much more in strengthening our economy and ensuring a healthy future for Tropical North Queensland.
HerronToddWhite research director Rick Carr:
What are your thoughts on the past year, the highlights and lows?
2012 has seen gradual economic improvement but with the pace of improvement quickening in the latter half of the year. The economic highlight was probably the China flight start-up, the biggest disappointment the loss of the entertainment precinct.
What does next year hold and what will be the challenges facing business?
2013 will continue to build. The light at the end of the tunnel is getting closer. One of the biggest challenges will be rebuilding the building industry, both in terms of skills/labour, and finance for development
Do you think next year will be better than 2012 and why?
2013 will continue down the path of recovery, not necessarily to the point of economic vibrancy but a lot closer to it.
What needs to be done to improve businesses in the Far North next year?
Need to continue the process of diversification, nurturing new markets/industries, building on the infrastructure and expertise we already have, in order to broaden our economic base and improve our economic resilience.
How can all levels of government help businesses?
Better cohesion and coordination between all levels of government, particularly in relation to infrastructure development, reduction in red tape etc etc, all the usual stuff.
Can other businesses assist, i.e banks etc?
Yes, access to finance will be a potential roadblock, credit will be cheap (interest rates to stay low) but only if you can't get it.
What is the one single thing that will help your business grow in 2013?
The property market recovery which will flow from economic recovery.
What are your best words of advice for business owners/operators?
Plan for the economy to keep getting better but recognise there are risks, have a plan B in case the world economy goes pear shaped again.
Queensland Hotels Association Far North accommodation division chairman Peter Blackburn:
What are your thoughts on the past year, the highlights and lows?
2012 was an improvement on the previous four years. The second half improved by about 10 per cent. The highs were the sporting events, the Special Olympics and the Solar Eclipse which was a good event as some guests stayed for almost a week. The lows would have to be the February to June period with February and March being the most challenging. Potential guests are still of the opinion that it can be too wet, windy and hot.
What does next year hold and what will be the challenges facing business?
The second half of 2013 looks promising with some good business already "on the books". The challenge will still be to fill the low season. The high Australian dollar will continue to dampen demand especially from the long haul markets of US/UK/Europe, which have their own economic problems.
Do you think next year will be better than 2012 and why?
We won't have the same result as 2012 due to no major special events.
What needs to be done to improve businesses in the Far North next year?
Tourism Queensland did not have the funds to help promote the region in conjunction with the major domestic wholesalers in 2012. Hopefully this funding will be available in 2013.
How can all levels of government help businesses?
Work with the Cairns Airport to help maintain the direct flights from China and encourage more airlines to fly to Cairns, both domestically and internationally.
Can other businesses assist, i.e banks etc?
Banks need not be so aggressive with their loan requirements, e.g. debt to equity ratios. Insurance companies need to revise their premiums so they are more realistic. Electricity prices have increased over 10 per cent in the past 12 months and this needs to be looked at urgently.
What is the one single thing that will help your business grow in 2013?
Maintain direct flights from China.
What are your best words of advice for business owners/operators?
Provide the guest with superior service and at the same time watch your costs.
Knight Frank Cairns director Greg Wood:
What are your thoughts on the past year, the highlights and lows?
The 2012 financial year was another difficult year for businesses in Cairns, however, there was more stability in the market with the property sector showing signs of improvement and a less lumpy environment. The main highlights have to include increased tourism numbers, new Chinese airlines and increased investor interest. The lows include missed opportunities in major infrastructure items such as the proposed cultural centre and potential reviews on Barlow Park and sporting facilities.
What does next year hold and what will be the challenges facing business?
While the market is still lacklustre, as indicated, it has stabilised and it is notable that most of the "pain" resulting from prominent business collapses (Hedley, CEC Group, CMC, Glenwood etc) has not continued, which gives businesses a basis on which they can move forward. Businesses cash flow and financing will always prove to be a challenge. However, after a couple of rough years most businesses bottom lines have taken into account the need to refresh and revitalise themselves along with necessary business adjustments.
Do you think next year will be better than 2012 and why?
The coming year will certainly not be spectacular but is likely to be more stable and should even out the ups and downs, specifically in relation to the property industry as there has not been a great deal of activity over the past few years. Most sectors are in robust position, that is, there is limited supply of retail, industry and commercial premises allowing for the opportunity of rental growth and creating circumstances where future development becomes possible. This is also true of the residential sector in that supply of available allotments for new homes is thin with a demand for existing residential and higher than average demand for rental accommodation.
What needs to be done to improve businesses in the Far North next year?
Any opportunity to improve growth in the general community by population or extension of existing of facilities is a distinct advantage, with all associations requiring extra effort to lift the profile of the area and its economic advantages, over and above the normal tourism issues. While tourism is important, additional consideration for the university including potentially a city campus, as well as bio/tropical medicine, avionics and ties with south east Asian neighbours including PNG require consolidation.
How can all levels of government help businesses?
It would be helpful to see the state government provide additional assistance in decentralising government from George St and providing a greater opportunity for representation in Far North Queensland, together with tax concessions and incentive programs for start up businesses and the development industry. The local government has had some initiatives to assist in development with relaxation on contributions and headwork charges etc which is an essential part of enticing fresh development.
Can other businesses assist, i.e banks etc?
It is important that all businesses understand the need to promote each other and the Cairns region in general. Without such support and positive attitude financial institutions will be restrictive in the their lending polices throughout Far North Queensland. It is fair to suggest that there has been some enormous exposure through some high profile collapses, which in the main, are now resolved and should not be seen as an impediment to lending criteria and assessment of the region generally.
What is the one single thing that will help your business grow in 2013?
Confidence to pursue business opportunities becomes a self fulfilling prophecy. The fundamentals for growth are in place. There is not an oversupply in any part of the market. Tourism has improved and the general economic climate is climbing. It is therefore a time for some well deserved optimism and an attitude of “half glass full and filling”.
What are your best words of advice for business owners/operators?
While nobody's crystal ball is perfect, it is clear that the worse is behind us and that promotion of the region and its attributes at all levels needs solid ongoing attention. The tough environment endured by business operators in the region only improved their skill and entrepreneurial capacity to sustain and prosper in what most consider the best part of Australia to reside. This aspect of life in the north should never be overlooked.
Dixon Homes managing director Andrew Thomas:
What are your thoughts on the past year, the highlights and lows?
The year started with plenty of momentum from the $10,000 building boost which was due to finish at the end of January. The boost was extended before the end of the month which dampened commitment somewhat but gave us three extra months of building boost. We completed construction of our new office and showroom in mid- March and moved in with all new computers, phones, and furniture. Our team and customers love the new office and what it offers in convenience and comfort. Our Townsville office started to fire but we were making little impression in the Melbourne market and so started to make arrangements to withdraw from that market. We successfully negotiated two premium development sites. The first was the old Forest Gardens sales office with an eleven lot subdivision overlooking the jewel in the crown of Forest Gardens which is the duck pond. The sales office is now available to rent and the first tenant is already finalised with a cafe restaurant and gourmet shop. We are hopeful to be able to build 11 premium quality architecturally designed, four bedroom, two bathroom, two garage homes. The second development site was the remaining land in Silkwood Ridge.
What does next year hold and what will be the challenges facing business?
We have plenty to do with these projects as well as working on expanding our brand in both the Cairns and Townsville markets. Business is constantly facing challenges with changing laws and requirements.
Do you think next year will be better than 2012 and why?
The Cairns and Townsville markets both have extremely low vacancy rates for rental properties and in particular houses, rents are already on the rise. With falling interest rates and well priced land and construction costs we expect buyers to be coming back into a market where there is very little stock and even less stock that is new, this should see a significant improvement to demand though off a rather overly low base.
What needs to be done to improve businesses in the Far North next year?
Tourism numbers continue to improve and overall I think most businesses are doing better than previous years and I expect that to continue into 2013. Having confidence to reinvest in their business has probably been the biggest obstacle. We made significant investments with new offices and equipment as well as with development sites that represented good value to our business model.
How can all levels of government help businesses?
On Friday the state government announced new legislation with regard to water tanks and hot water system requirements in new homes. Subject to local councils endorsing the move new homes pricing will reduce by around $5000. This helps with affordability and with reducing interest rates again should be evident with increased sales.
Can other businesses assist, i.e banks etc?
Banks, valuers and mortgage insurers could all help by allowing a little more scope on valuations. In some instances several thousand dollars reduced value can cause a deal to crash causing a loss of work for hundreds of workers.
What is the one single thing that will help your business grow in 2013?
There has been plenty of research done on home buyers and in particular first home buyers, another 1per cent reduction will bring buyers back as repayments drop to below or are comparable to rent payments.
What are your best words of advice for business owners/operators?
Business owners need to be taking a good look at their business model to see if it fits the current market rather than sitting back and waiting for conditions to come back to the way they were as there is a chance things may never return to how they were. The world is changing, buying habits, technology, advertising and government demands on business unless we are prepared to change we will be left behind. Our business is quite different from how it was pre GFC though from the outside much of it would appear the same. We are now having to try harder, spend more and sell less than we use to but also leverage off our skills and use vertically integrated businesses SP Solar and Inspire Kitchens and Bathrooms to add value to our homes for our customers. We are also using our team to build investment and spec homes.
Chamber of Commerce and Industry Queensland Far North Queensland chairman Brett Moller :
What are your thoughts on the past year, the highlights and lows?
The highlights for 2012 were the events that brought people back to the far north. The Cairns Challenge was successfully marketed and in its inaugural year promoted Cairns and the far north nationally and internationally fantastically well. It can only but get bigger. AFL with the Suns and the Tigers showcased yet again what a great venue Cazalys is and how Cairns can attract a crowd to a quality event and ground augers well for future national AFL games being held at Cairns and allows leverage to bring test cricket or international cricket of sorts back to the far north. The eclipse showed that we have the capacity to accommodate large gatherings in our city and region, providing service and facilities to add to the visitors experience of our natural drawcards, the reef and rainforest. The lowlights are how as a community we allow negativity to become the focus of rational and healthy debate. Differing views on the entertainment precinct, bike paths, de-amalgamation, Port Douglas waterfront and other topical matters should be respected but there comes a point where we need to move on and look to the positive outcomes and solutions that will drive our city and region in to 2013 and beyond.
What does next year hold and what will be the challenges facing business?
The challenges for next year are to ensure that we grab with both hands the opportunity that has presented with China Eastern and Southern direct flights and make every post a winner. This is the first step to tapping into the emerging Chinese middle class travel experience and the growth potential for our city and region is phenomenal. The challenge will be to ensure our service delivery, infrastructure, and pricing is our unique point of difference that supplements our reef, rainforest and outback experience that we have on offer.
Do you think next year will be better than 2012 and why?
2013 will be better. Politics aside, the state and local council elections allowed the taxpayer and rate payer a say in what they want for our future. The emphatic results in both elections signalled that we wanted a change in direction. The announcements that accompanied the election results, the taking on board of business concerns, and the emerging investment opportunities are positioning us well going in to 2013. With a federal election due next year, the insecurities of a minority government will be flushed out. The Green/Independence alliance with Labor has not worked favourably with Australian businesses and a legitimately formed government at the next federal election in 2013 will go a long way to restoring consumer confidence and the subsequent business investment that will naturally follow.
What needs to be done to improve businesses in the Far North next year?
Businesses need to continue to be self reflective. What distinguishes your point of difference from your competitor, how can you be innovative, what is your product range, your level of service, how can you diversify and what will make your clients/customers want to come back are questions businesses need to ask of themselves and take charge of their own destiny in this regard. If we all take this approach then collectively we are better positioning our region for increased opportunities and growth.
How can all levels of government help businesses?
Governments need to realise that you cannot continue to increase taxes on business and increase the regulatory burden and expect that businesses will remain competitive and productive. Government at all levels need to look at policies that will drive investment and business growth, create employment and wealth thereby organically increasing the tax pie and bringing revenue back to government. Businesses also need government to clearly articulate their vision for our future so businesses can structure and align their strategies with that vision.
Can other businesses assist, i.e banks etc?
Businesses can assist each other. Networking, cluster development, mutual referrals are business techniques promoted by chambers of commerce. Belonging to the chamber movement or industry bodies allows education and training, input into policy formation and the strength of membership to influence governments locally and at State and Federal levels.
What is the one single thing that will help your business grow in 2013?
Consumer confidence is the single most important thing that all businesses are waiting for. Notwithstanding the European debt crisis, the slowing Asia economy, the US fiscal cliff crisis, the high Australian dollar, a federal election in 2013 and a legitimately formed government that can clearly articulate its vision for our future, will go a long way to restoring consumer confidence and the spending that will follow.
What are your best words of advice for business owners/operators?
Look at what you can control and do everything you can within your business to have it operating efficiently and productively. Develop a plan B for what you can't control. Look at your glass of red and make sure its half full. If its half empty you shouldn't be in business.
Pullman Cairns International hotel general manager Craig Syphers :
What are your thoughts on the past year, the highlights and lows?
This was undoubtedly the year that Far North tourism got its mojo back, post-global financial crisis. The eclipse, direct China flights, record Ironman entries and support, the first state tourism conference DestinationQ held right here in June, were all milestones. Local visitor numbers were well up too and we had positive signs of a return of the Japanese market after the earthquake and tsunami of 2011. On the critical investment front, a Hong Kong investor buying Double Island, Clive Palmer buying the Sea Temple golf course at Port Douglas, prominent Australian business families buying Dunk and Bedarra islands to revive them, and the announcement of the state's biggest ever tourism development near Innisfail made this year like no other in recent times. Not to mention the weather Gods giving us a great peak season from Easter to Spring, and then a dry run up to Christmas. Then, our hotel ended the year as part of the worldwide Accor group, the Pullman Cairns International re-launch mixes a global brand with a much-loved name for this hotel. It's all good.
What does next year hold and what will be the challenges facing business?
All businesses need to work to grow the China market and maintain our existing international markets. Our challenge is to make sure this fast, emerging market continues to grow from positive word of mouth, while continuing to look after all of our visitors of course. The aim for the hotel industry is to keep moving rates up to more acceptable national and global levels, so that owners secure return and are more likely to re-invest.
Do you think next year will be better than 2012 and why?
We can never plan for the unexpected, but based on what we do know, there is plenty of scope to build on the success of 2012 to ensure the momentum continues. The Cairns Convention Centre is forecasting another year of landmark conferences and events from around Australia and overseas, essential to supporting our tourism growth.
What needs to be done to improve businesses in the Far North next year?/How can all levels of government help businesses?
Action not words. Lake St is a perfect example, council and state have conferred for years; funded, dumped funding, designed, dumped designs. The latest promise is something by next Christmas, so hopefully that does occur, because City Place is a heartland without a heart. Similarly the federal money that was committed for the entertainment precinct. Surely council will be able to convince Canberra to put that money to a different entertainment centre or a different, key project. Sooner, rather than later.
Can other businesses assist, i.e banks etc?
Insurance companies are in my sights. Two years on from cyclone Yasi, the insurers must show they have the ability to provide industry competition and to deliver fair premiums to business and home owners without the need for government regulation.
What is the one single thing that will help your business grow in 2013?
Now being part of a global hotel chain, with 80 Pullman hotels in 20 countries, across Europe and Asia Pacific (London, Paris, Berlin, Dubai, Kuala Lumpur, Bangkok and Shanghai to name just a few), meaning Cairns now has another global hotel brand to help position it on the world stage. Pullman Hotels and Resorts are now also the biggest five star brand in Australia, ensuring national awareness.
What are your best words of advice for business owners/operators?
Treat every customer as you would wish to be treated yourself, hoping they will go away knowing you love your business/job and this amazing part of the world.
Advance Cairns chairman Cam Charlton:
What are your thoughts on the past year, the highlights and lows?
No lows, only highs. The enormous success of events within the region including the Cairns Airport Ironman and the fact that in only its third year next year it will be promoted as second only to Hawaii on the world stage; the International Coral Reef Symposium held at the Cairns Convention centre attended by 3000 delegates, the Total Solar Eclipse, a truly memorable occasion with significant economic impact and exceptional international media exposure for the region; arrival of direct flights from China; gaining the commitment of all three tiers of government to the TNQ Regional economic Plan; bedding down the structural reorganisation of Advance Cairns as a membership based advocacy body.
What does next year hold and what will be the challenges facing business?
Commonwealth elections and focus on securing Government commitments to increasing investment in the Defence Force in this region, including HMAS Cairns. Improved business confidence and positive growth in investment in the region. Challenges will include the continuing high Australian dollar, ensuring continuing financial success of the direct China flights particularly in building business class and freight utilisation, gearing up to appropriately meet the tourism and business to business opportunities of Chinese markets and investors.
Do you think next year will be better than 2012 and why?
Yes, increasing business confidence and starting to see the benefits of the planning that has been undertaken over the last two years with regard to strengthening the regional economy including the investment flow from China and PNG. The “liveability” of our region is exceptional appealing and will continue to underpin strong growth in our population and property markets and values.
What needs to be done to improve businesses in the Far North next year?
Strong collaboration and communication between key industry bodies and three tiers of government. One region, One voice. Promote the region as a business destination/ location to PNG, south-east Queensland, the rest of Australia and Asia. Roll-out the regional brand.
How can all levels of government help businesses?
By listening, by working collaboratively across governments and with local stakeholders and focussing on agreed priorities. By streamlining government processes and reducing red tape. By adopting an ``outcomes' focussed culture rather than a “process” culture. Providing a consistent approach to attracting investment into the region across council boundaries.
Can other businesses assist, i.e banks etc?
All businesses can assist by refreshing, renewing and continuing to grow and evolve, being innovative, grow existing markets and developing new markets, investing in people. The finance sector needs to be less constrained by security and loan value ratios and more supportive of strong and sustainable cashflow business.
What is the one single thing that will help your business grow in 2013?
Focusing on and pro-actively responding to customer needs, delivering genuine added value and consistently exceeding customer expectations.
What are your best words of advice for business owners/operators?
Be agile and flexible, do the research, believe in yourself, be proactive and make it happen.
NEW CAIRNS.COM.AU COMMENT POLICY
We welcome your comments on this story. Comments are submitted for possible publication on the
condition that they may be edited. Comments submitted without a full name and suburb/location will
not be considered for publication. Please read our full comment policy and publication guidelines.
Share this article
Economic boost: The eclipse brought plenty of business to the Far North this year.
















