Top Banner
HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT
28

INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

Jul 14, 2020

Download

Documents

dariahiddleston
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

HOSPITALITY Securing a strong future for Queensland’s hospitality industry

INDUSTRY FUTURES REPORT

HOSPITALITY PROFESSIONAL PROGRAM

RSA RSG Certificate III in Hospitality*

SIT50313

Certificate IV in Hospitality*

RMLV

HotelManager

Hotel Leader

HigherEducation

6 Months Experience

1 Year Experience

2 Years Experience

3 Years Experience

5 Years Experience

RED LABEL INDUSTRY EXPERIENCE BLACK LABEL INDUSTRY EXPERIENCE GOLD LABEL INDUSTRY EXPERIENCE PLATINUM LABEL INDUSTRY EXPERIENCE BLUE LABEL INDUSTRY EXPERIENCE

REDLABEL

INDUSTRY EXPERIENCE

BLACKLABEL

INDUSTRY EXPERIENCE

GOLDLABEL

INDUSTRY EXPERIENCE

PLATINUMLABEL

INDUSTRY EXPERIENCE

BLUELABEL

INDUSTRY EXPERIENCE

VenueManager

Higher Education

SIT30713

SIT40313

Diploma of Hospitality**

* delivered by RTO ID 20891 / ** delivered by RTO ID 31222

For more information call 1 300 038 000

Page 2: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

Executive summary 01

Hospitality in numbers 02

Looking forward 04

Policy Priorities – Creating the best environment 06 for a thriving hospitality industry in Queensland

Priority 1 – Implement targeted workplace relations reform 07 as a matter of priority

Priority 2 – Make commonsense changes to fee and licencing structures 10

Priority 3 – Bring an industry focus to training and education 12

Priority 4 – Build and maintain a business operating environment 16 conducive to growth

Priority 5 – Focus on the needs of regional hospitality businesses 20

Summary 22

Page 3: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

1 | HOSPITALITY

The hospitality industry consists of a unique blend of businesses, including restaurants, pubs, clubs, bars, cafes, and accommodation providers. And although tourism and hospitality are distinct sectors, they are markedly related insofar as they contribute in invaluable ways to the experience of Queensland and its lifestyle.

As the home of many renowned tourism destinations, Queensland is fertile ground for the kinds of hospitality businesses that contribute to and enhance our natural attractions.

Hospitality businesses also play an important role in communities across Queensland, adding to their culture and attractiveness – and bolstering the state’s economy.

The fact that a broad range of businesses make up the industry has also meant that it has historically faced an equally broad range of challenges.

While some are issues that government can do little about, such as the fluctuation of the Australian dollar impacting international travel decisions, others fall directly within the capacity of all levels of government to address.

Predominantly, these relate to the environment in which hospitality businesses operate in. Skilled migration, workplace relations, vocational education and training, industry licensing and energy pricing have long had direct bearing on the everyday operations of businesses in the hospitality industry.

Despite this, the policy settings in these areas continue to be misaligned with needs and realities of the hospitality industry as it exists today.

CURRENT INDUSTRY OUTLOOK Collectively, accommodation and food services businesses account for around 3 per cent of Gross State Product (GSP) in Queensland, and employ roughly 7 per cent of all Queensland workers, paying a total wages bill of over $5 billion every year. Over the year to September quarter 2015, of Queensland’s top ten industries by number employed, the largest percentage increase in employment occurred in the accommodation and food services industry (up 12.7 per cent). Even more significantly, the hospitality industry is the biggest employer of persons aged fifteen to 24 in Queensland, highlighting the essential role that hospitality businesses play in reducing youth unemployment and providing young people with essential employability skills and career pathways.

Moreover, hospitality businesses are also a major drawcard for Queensland – in the year ending December 2014, 2.34 million overseas tourists visited Queensland, spending around $4 billion dollars. In 2013-14 direct and indirect tourism GSP was $23 billion, or 7.6% of total Queensland.

The hospitality industry has a strong foundation within Queensland. The number of accommodation and food Services businesses in Queensland increased between 2012 and 2015, with good rates of new business entries over this period. Cafes and restaurants, catering services and takeaway food services all experienced an influx of new businesses between 2012 and 2015, demonstrating the continued attractiveness of the industry to new entrants. However, belying this is the fact that over this period, there was a also a high exit rate in the same sectors – notably, 18 per cent of catering businesses in operation did not survive in 2015.

EXECUTIVE SUMMARY

Page 4: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

2

Hospitality industry includes: accommodation, restaurants and cafes, takeaway services, taverns, pubs, clubs, caterers

Accommodation and food services accounts for 2.31 per cent of Australian GDP – $33.5 billion

In December 2015, Accommodation and Food Services accounted for 7 per cent of all employment in Queensland

of cafes and restaurant businesses are small businesses (employing 1-19 people)

of takeaway food services are small businesses

of catering businesses are small businesses

of clubs are small businesses

Gen Y currently comprises about 30 percent of the hospitality workforce in Australia, with many businesses employing more than 70 percent of their workforce from this generation

TOURISM IN QUEENSLAND - KEY HIGHLIGHTS

Tourism is a $23 billion industry for the State.

Tourism directly and indirectly employs 230,000 Queenslanders.

Tourism generates $65 million a day in visitor expenditure across the State.

In 2013-14 direct and indirect tourism GSP was $23 billion, or 7.6% of total Queensland GSP.

HOSPITALITY IN NUMBERS

Page 5: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

3 | HOSPITALITY

In 2013-14 tourism directly accounted for 131,000 (or 5.6%) jobs and indirectly accounted for 99,000 jobs, or in total 10%, of employment in the state.

Cafes, restaurants and takeaway food services had the largest share of tourism employment (27%), followed by retail trade (19%) and accommodation (13%).

Tourism businesses in Queensland are small businesses

Tourism is the state’s second largest export, behind coal ($5.8 billion)

In 2015 domestic overnight visitors spent $14.5 billion, domestic day visitors spent $4.2 billion and international visitors spent $4.9 billion; totaling $23.6 billion or $65 million per day.

QUEENSLAND HOSPITALITY BUSINESS ENTRIES AND EXITS

June 2015

% of Total

Change from 2011 count (%)

Entry rate (%)

Exit rate (%)

Accommodation 3,145 18.8 -3.4 8 12

Cafes and restaurants 6,607 39.5 5.6 23 18

Takeaway food services 4,721 28.2 3.5 21 17

Catering services 5,85 3.5 -0.7 16 17

Pubs, taverns and bars 1,044 6.2 2.4 16 13

Clubs 615 3.7 -0.6 5 5

TOTAL 16,717

Source: ABS catalogue 8165.0

Page 6: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

4

It is evident that collectively, hospitality businesses make an invaluable contribution to the Queensland and national economies, whether it’s through employment, training or tax revenue – and of course, the role they play in adding to the culture and attractiveness of our communities. Indeed, the industry highlights the importance of services to our future economic prosperity. However, while hospitality has clear strengths, it is apparent that it is also affected by a number of issues that have manifested in the high industry exit rate. So that the industry is able to sustain and build on its role in Queensland, it is essential that governments at all levels take note of what hospitality industries have identified as the key opportunities that exist for change, as well as weaknesses that must be addressed. The priorities that CCIQ has identified for the hospitality industry come from what businesses have told CCIQ they need. Accordingly, they are practical measures that would make a tangible improvement to the day to day operations of Queensland’s hospitality businesses.

LOOKING FORWARD

Page 7: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

5 | HOSPITALITY

FACTORS STRENGTHS WEAKNESSES

Workplace relations

> A national workplace relations system that is conducive to consistency and clarity > High potential for changes to the workplace relations system to bring

significant productivity improvements to hospitality businesses > Fair Work Commission reviewing penalty rates for the hospitality and retail

sectors

> An expensive penalty rates regime that is unsustainable and unsuited to the industry

> Frequent wage increases that don’t take into account employer capacity to pay > Unfair and unlawful dismissal provisions that leave employers exposed to

expensive ‘go away money’ claims > Few meaningful mechanisms for bringing flexibility into workplace

arrangements

Natural environment

> World class tourism destinations > Major potential for eco-tourism opportunities > Good medium and long-term population growth, particularly in some

regional areas > Significant share of international and domestic tourism markets

> Frequency of natural disasters, including floods, cyclones and fires > Market failure of insurance in central and north Queensland regions following

natural disasters > Impact of natural disasters on both business and consumer/visitor confidence

Workforce and training issues

> Positive changes to accessibility and quality of vocational education and training (VET) at the federal level, with efforts to create a ‘one stop shop’ for VET funding coming to fruition

> Ability to gain competitive international advantage through delivery of greater customer service outcomes

> Major shortage of skilled and unskilled workers in key industry professions > Perceived complexities around VET system that has led to employer

disengagement > Removal of employer incentive payments > Lack of investment in industry funded training

Migration > Access to skilled foreign workers through subclass 457 visa scheme to fill short to medium term skills shortages

> Recommendations from review by independent panel adopted in 2015, making it easier for employers to access the scheme

> Significant burdens placed on use of subclass 457 visa scheme that make it particularly difficult for regional employers to use

Regulatory environment

> Concerted efforts to reduce regulatory red tape across all levels of government > Reduction in liquor licensing red tape at the state level in Queensland

> A liquor licensing regime that remains overly complex and expensive in light of the needs and nature of the industry

> Continuing regulatory churn that creates undue confusion and complexity

Energy > Increasing number of providers of alternative energy sources > Ongoing advocacy work on behalf of small businesses to reduce excessive

electricity bills

> Consecutive major increases in electricity pricing > Alternative energy schemes, including solar, still overly expensive for business

Regional > Concerted efforts by some local governments to promote and facilitate better procurement opportunities for small and medium businesses

> Ongoing State Government focus on committing necessary funds to flood mitigation infrastructure

> Resources boom has resulted in significant increase in domestic business travel

> Perceived ‘anti-development’ approach of some local governments, including excessively high development costs

> Insurance costs becoming increasingly out-of-reach in regional areas

Page 8: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

6

POLICY PRIORITIESCREATING THE BEST ENVIRONMENT FOR A THRIVING HOSPITALITY INDUSTRY IN QUEENSLAND

The future of hospitality in Queensland is dependent upon industry and government working together to create the right policy environment to allow the hospitality sector to flourish in a 21st century economy. In Queensland, hospitality represents a significant opportunity to build upon existing industries and diversify our economy. Through extensive research and consultation with small businesses across Queensland, CCIQ has identified the following policy priorities to realise this vision:

POLICY PRIORITIES

Implement targeted workplace relations reform as a matter of priority

Make common sense changes to fee and licencing structures

Bring an industry focus to skills and training issues

Build and maintain a business operating environment conducive to growth

Focus on the needs of regional hospitality businesses

1

2

3

4

5

Page 9: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

7 | HOSPITALITY

PRIORITY 1IMPLEMENT TARGETED WORKPLACE RELATIONS REFORM AS A MATTER OF PRIORITY

CCIQ’S COMMITMENTS Federal Government: The Federal Government has primary responsibility for the national workplace relations system. CCIQ will:

> Lobby the Federal Government for specific change to key areas of the Fair Work Act directly affecting hospitality businesses;

> Specifically, the Fair Work Commission’s review of penalty rates in the hospitality sector

> Participate in the Annual Wage Review and Modern Award Review processes, which have direct bearing on wages and conditions for employees under hospitality industry modern awards; and

> Invite the Minister for Employment to address a forum ahead of the 2016 Federal Election to answer employer questions on the Government’s direction for workplace relations.

State Government: The Queensland Government has a crucial role in making a case on behalf of Queensland businesses for workplace reform. CCIQ will:

> Assist the Queensland Government in liaising with other states to put key workplace relations issues on the agenda at the Council of Australian Government meetings in order to create a case for targeted changes to the Fair Work regime.

What a Cairns restaurant told CCIQ –

“The Esplanade in Cairns is one of the city’s major tourist hubs for international and domestic visitors. However, high penalty rates on Sundays and public holidays have made it harder for this restaurant to take advantage of this trade. The owner told us that overseas tourists have an expectation that they will trade late into the night, seven days a week, and are averse to paying surcharges.”

Page 10: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

8

PENALTY RATES WHAT HAVE BUSINESSES TOLD CCIQ? Excessively high penalty rates are the major issue for businesses in the hospitality industry. Employers and managers have overwhelmingly told CCIQ that the current penalty rates regime is unsustainable and cannot continue in its current form. They run businesses that operate for extended hours, seven days a week, including on public holidays, and feel that the regime sits in direct opposition to the inherent nature and requirements of the industry. The high level of penalty rates payable on Sundays and public holidays, as opposed to those paid on Saturdays, is a particular source of frustration. They told us that penalty rates:

> Reduce the service level that they can offer customers because they are forced to put on fewer staff, i.e. clearing tables, servicing hotel and motel rooms. This is particularly damaging in the overseas tourism market, where customers often expect a higher service level;

> Mean that opening on Sundays and public holidays will generally cost them money – that is, they operate at a loss;

> Eat into already narrow profit margins and reduce capacity to compete on pricing in competitive markets, turning a profitable business into a marginal or unviable one; and

> Force business owners to reduce staff hours, hire fewer staff and spend more hours working on the floor of the business.

WHAT IS THE CURRENT STATUS OF THE ISSUE? The current penalty rates regime inhibits economic growth by providing a disincentive to employers from having longer trading hours or offering staff additional hours. Queensland businesses told CCIQ:

> They are seriously concerned about facing increased global competition with the current penalty rates regime in place;

> The current system is impacting on their ability to trade profitably, particularly with changing consumer demand;

> The impact of penalty rates is more acute for the hospitality and retail sectors;

> Continued increases in wage costs force businesses to close for longer periods and/or reduce staffing numbers; and

> They accept penalty rates as a legitimate labour cost however want to see alternative approaches for specific industries.

The applicable penalty rate for a given position is prescribed in the relevant award. For the purposes of this report, these include the Hospitality Industry (General) Award, Restaurant Industry Award, Fast Food Industry Award and the Registered and Licensed Clubs Award. Generally, the awards prescribe the following penalty rates:

What a Toowoomba Fast Food Restaurant told CCIQ –

“The owners of this business said that it stopped trading on Sundays after realising it cost them $50,000 a year. While customers told the business that they liked the fact that it opened on Sundays, doing so had become unsustainable. They considered that the only way they could trade on Sunday would be if there was change to the current penalty rates regime.”

What a Mackay Hotel Owner told CCIQ –

“Weekend penalty rates have diminished the level of service this hotel can provide customers. On weekends, the number of rooms made available is limited to reduce the servicing required, and are only serviced prior to arrival. While customers often want their rooms serviced during their stay, the cost of wages on weekends would require a hike to room rates, which the hotel manager says is not feasible given the competition and downward pressure on accommodation pricing.”

Page 11: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

9 | HOSPITALITY

OTHER WORKPLACE RELATIONS ISSUES: Wages: Employers tell us that the significant wage increases that result Annual Wage Review determinations take no account of their capacity to pay higher wages, or the affect that increases will have on their capacity to retain staff, or keep their doors open. Businesses in regional areas of Queensland have been hit hard in recent years by natural disasters, affecting hospitality businesses both directly and indirectly through impacts on discretionary spending in disaster affected areas.

Unfair dismissal and adverse action claims: These laws continue to be a major disincentive toward ‘giving someone a go’, with many hospitality businesses preferring to err on the side of caution when hiring out of fear for the cost implications of a vexatious claim.

The Alliance Hotel is an Award winning family run pub owned by Nick and Meagan Gregorski. Established in 1864, to service the local area, the pub has seen a variation on themes while the building itself, built in 1888, has been preserved with its original charm inside and out. In October 2013 and again in 2014 The Alliance Hotel was awarded the prestigious honour of being named Queensland’s ‘Best Restaurant - General Division’ by the Queensland Hotels Association.

The Alliance Hotel’s mission is to provide customers with a classic old pub experience, and Nick and Meagan are equally passionate about the future of the hospitality sector in Queensland. When asked what were some of the biggest challenges for the business at present, Nick stated that he cannot afford to open the pub on a Sunday or a public holiday due to the exorbitant cost of penalty rates. Nick said the existing Fair Work framework failed to grant employer’s the autonomy to make decisions about their staffing arrangements, and small businesses in the hospitality sector were struggling to survive as a result.

What a Brisbane Restaurant Owner told CCIQ –

“If the Saturday penalty rates applied all weekend, then we would be able to open the restaurant for functions on Sunday. We have had lots of requests to do this, but people baulk at paying the higher price resulting from Sunday penalty rates, and we just cannot afford to absorb that cost ourselves.”

OVER 50%+of employee’s are part-time workers

275% penalty paid to casuals under Hospitality Award on public holidays

$50,000 net annual cost of opening a small burger business on Sundays

42% of Queensland businesses penalties and overtime paid has increased or substantially increased under the Fair Work laws

44% of businesses noted that they have decreased or substantially decreased the number of full time staff

83%small business is the most effected, with 83% of these businesses recording reduced operating and employment hours

76%Majority of small businesses in the hospitality sector (76%) reduced operating hours and employment hours

MONDAY TO FRIDAY

110-115 per cent penalty rates payable for hours worked between 7pm and 7am

For casual employees, this penalty is applied in addition to their casual loading

SATURDAYS

125-150 per cent penalty rates payable for hours worked

SUNDAY

175 -250 per cent penalty rates payable for hours worked on Sundays and public holidays

275% for casuals in Hospitality on public holidays

150% in Restaurant for Full time and Part time on Sundays

WHAT NEEDS TO BE DONE?The policy behind penalty rates represents a failure to recognise the requirements of industries operating in the 24/7 economy such as the hospitality sector. CCIQ argues for changes to penalty rate provisions so as to allow for greater flexibility in businesses that operate outside of standard trading hours and heavier onus’ on employees to reduce ‘go away’ payments.

Although CCIQ commends the decision by the Fair Work Commission to reduce penalty rates for casual restaurant staff on Sundays, it is only the first step in fixing the problem.

To this end, CCIQ wants to see an increase in the scope in the current system to allow for greater flexibility with respect to the operation of penalty rates, particularly for those businesses that operate seven days per week or outside standard trading hours.

THE ALLIANCE HOTEL

Page 12: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

10

LIQUOR LICENSING WHAT HAVE BUSINESSES TOLD CCIQ? Liquor licensing is a major red tape issue for the hospitality industry that directly affects a high proportion of hospitality businesses. Owners and managers identified some of the major problems associated with liquor licensing as being:

> The process of obtaining a liquor licence is expensive and time consuming, often requiring the engagement of a consultant. This means that businesses often cannot trade, or cannot offer alcohol for an extended period of time after opening;

> The requirement that there always be someone on site at all times with training in the Responsible Management of Licensed Venues (RMLV), tying owners and managers to the premises;

> All bar staff are required to be trained in the Responsible Service of Alcohol (RSA), an expensive requirement in an industry where businesses have a high staff turnover;

> The unnecessary expense involved in the involvement of liquor inspectors in fire safety regulation, whereby a business seeking a liquor licence must seek a letter of clearance under liquor licensing legislation in addition to the necessary certification that must be obtained under planning laws; and

> Restrictions on live music being played as a major limitation on a business’s capacity to enhance the customer experience.

WHAT IS THE CURRENT STATUS OF THE ISSUE? The Office of Liquor and Gaming (OLGR), implemented a number of reforms in the area of liquor licensing following a wide-ranging review in 2012 and 2013. These changes included:

> Allowing for the payment of annual liquor licence fees by instalments in instances of financial hardship;

> Exempting a number of businesses from the requirement to have an approved manager on premises, including restaurants and cafes that close by midnight;

> Removal of the requirement for licensees to keep a register of persons trained in the Responsible Service of Alcohol; and

> Persons trained in the RMLV to be recognised as being trained in the RSA.

However, other issues identified by businesses as problematic remain in effect, including:

> The high costs of applying for and retaining a liquor licence.

− For a Commercial Hotel licence (for hotels and taverns), the application fee is $6,270.00 with annual fees of $3,388.00

− For a Commercial Other liquor licence (for restaurants and cafes), the application fee is $1,253.00 with annual fees of $626.50

> The continued requirement for RMLV to be renewed, taking two days every three years at $495 per person, and the for RSA to be renewed every three years;

> Over $800 for a Letter of Clearance from the Queensland Fire and Rescue Service that the premises is compliant with fire safety standards, which is in addition to the requirement to obtain a Certificate of Classification under state planning laws.

PRIORITY 2MAKE COMMONSENSE CHANGES TO FEE AND LICENSING STRUCTURES

CCIQ’S COMMITMENTS State Government: CCIQ will work with the Queensland Government to continue to drive red tape reforms to liquor licensing.

Local Government: CCIQ will support local governments being given ‘noise reduction’ powers for both licensed and unlicensed businesses.

Page 13: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

11 | HOSPITALITY

WHAT NEEDS TO BE DONE? As noted, liquor licensing laws in Queensland were subject to a review in 2013. While the review led to the removal of some red tape, other equally cumbersome provisions were left in place. The Queensland Government needs to recommit to streamlining liquor licensing regulations and reigning in unnecessary red tape more broadly. CCIQ believe the following measures should be given priority:

> Continue to reduce application costs for variations to liquor licensing for low-risk venues;

> Enhance the useability of the OLGR website, including providing application kits for each licence type;

> Increase funding and access to industry training; > Limit the Certificate of Classification issued under

State planning legislation to high risk premises.

STATE TO STATE: APPLYING FOR A LIQUOR LICENCE IN QUEENSLAND VERSUS VICTORIA

Fee description QLD

Fee description VIC

Fees QLD

Fees VIC

Application for liquor licence (commercial other)

Application for a new licence $1,253 $441.20

Application for transfer of a liquor licence

Application to modify a licence $316 $198.80

Application for variation of licence or permit

Application to modify a licence $188.50 $198.80

Liquor licensing is far too expensive and asks too much of business in terms of compliance. – Restaurant Owner, Toowoomba

OTHER ISSUES Noise controls over licensed premises: Noise limitations placed by liquor licences restrict the entertainment that venues such as restaurants and function centres can provide for their customers. Currently, noise generated by businesses is regulated by two different entities, and therefore two different sets of criterion – the OGLR for licensed, and local councils for unlicensed. Given the role that local councils play in dealing with noise complaints generally, CCIQ considers that ‘noise reduction’ powers should be transferred to local councils, facilitating greater consistency in the regulation of noise. These powers should be standardised across all councils.

Dealing with problem gambling: Hospitality businesses in the hotel sector told CCIQ that electronic gaming machines (EGMs) are an extremely important part of keeping their businesses viable and profitable in light of high staffing costs, food prices and unpredictable demand for accommodation. This aligns with data showing that hotels which have EGMs enjoy greater revenue, high levels of employment and are overall more profitable. EGMs allow businesses to subsidise the pricing of food and beverages for patrons, and a number of hotel managers in regional areas told CCIQ that there was an expectation among patrons that venues would provide EGMs as part of their entertainment, as well as the reasonably priced food and beverages that they allow for.

Competition: CCIQ supports the right of all businesses to operate on a level playing field, and our consultations highlighted two important areas where small and medium hospitality businesses are at a particular disadvantage. The number of hotels and bottle shops owned by retail giants Coles and Woolworths creates a highly anti-competitive environment for independent hoteliers and bottle shop owners and the capacity of clubs and pubs with gaming licences to cross subsidise food and beverage prices, to the disadvantage of restaurants and cafes.

33% of complaints received each year by OLGR are related to excessive noise from licenced premises

$30,000 Ongoing annual cost to business for food handling and safety can be as much as $30,000 or more

$25,000 Some businesses spend more than $25,000 annually on Fair trading regulation such as liquor licensing, responsible service of alcohol training, staff courses and consultancy costs

15 HRS/WKManagers can spend up to 15 hours per week to ensure WHS standards are met

100,000 Department of Health quotes 100 000 cases a year of food borne illnesses

$7.5 BILLION Cost and burden of red tape – annual cost of over $7.5 billion on the economy – increasing 6-8% every year

Page 14: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

12

CCIQ’S COMMITMENTS Federal Government: CCIQ will

> Work with the Australian Chamber of Commerce and Industry to comprehensively roll-out a centralised VET system that reflects industry skills needs:

> Write to the Federal Minister for Immigration making the case for greater flexibility for working holiday visa’s

> Ensure regional concessions to the subclass 457 visas are reintroduced

> Write to the Minister for Industry seeking a comprehensive review of incentive payments are working to change employer behaviour to offer apprenticeships and traineeships

State Government: CCIQ will

> Urge the State Government to identify areas where it can work with the Federal Government in creating a ‘one stop shop’ for VET system; and

> Advocate for a greater customer service focus in the provision of training in hospitality courses in the lead up to the 2018 Gold Coast Commonwealth Games.

> Increase employer awareness of government-funded training programs

PRIORITY 3BRING AN INDUSTRY FOCUS TO TRAINING AND EDUCATION

What a Brisbane Restaurant told CCIQ

This restaurant manager told CCIQ that they are happy to take on apprentice chefs, but noted that the training provided for chefs at TAFE is not necessarily equipping them for the workplace, finding that they often do not learn necessary skills such as inventory and purchasing. She also said that while they still had the capacity to take on apprentice chefs, it was an expensive exercise, and she could see why smaller businesses would opt to hire already qualified chefs from overseas.

Page 15: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

13 | HOSPITALITY

SKILLS AND LABOUR SHORTAGES WHAT HAVE BUSINESSES TOLD CCIQ? Parts of the hospitality industry are susceptible skills and labour shortages, and have long relied on overseas migrant workers to fill shortages as they occur. This has been a well-established industry practice. Accordingly, ongoing changes to skilled visa programs, including the subclass 457 visa program, have left employers confused about the operation of the program. This is particularly the case for businesses in regional areas of Queensland, where employers are often reliant on a limited pool of local workers, and can experience difficulty in finding the right person locally or in attracting them from metropolitan centres. Businesses owners and managers told CCIQ that they have experienced shortages in qualified cooks and chefs, waiters, bar attendants, pastry cooks, café and restaurant managers and hotel staff.

CCIQ was also told that there is a need for greater capacity to hire semi-skilled foreign workers in areas of shortage. The view among hospitality business owners and managers was that the resources boom has contributed to shortages necessitating the need for more overseas workers, noting that young Australian workers who may have normally opted to take a part-time job with them in secondary school are instead leaving to take apprenticeships in traditional trades.

Importantly, employers also told CCIQ that hospitality positions are not recognised for the ‘pathways’ that they provide employees, providing important technical and employability skills that will enable them to obtain future employment. It is critical that industry and government work in unison to ensure hospitality workers gain meaningful career pathways through the industry.

Finally, those businesses that make frequent use of working holiday visa holders, which is particularly common in holiday hubs such as Cairns, Port Douglas, the Whitsundays and the Gold Coast, want to be exempted from paying superannuation contributions to these workers. They do not believe that these workers expect to or will collect these funds being focussed on immediate income, and the requirement creates significant additional complexity and paperwork, which is ultimately an additional burden on employers aiming to provide jobs.

WHAT IS THE CURRENT STATUS OF THE ISSUE? It has been estimated that for the period 2012 to 2015, the hospitality industry will have qualified labour shortages of anywhere between 15,000 and 50,000 of staff for key positions. This does not take account of the industry’s unskilled labour requirements. These shortages are influenced by multiple factors, including the operational characteristics of the industry, poor labour mobility, issues associated with the resources sector, including competition for labour and its effect on living costs in regional areas, and changes to funding for employer incentive programs for apprenticeships and traineeships.

A number of changes were made to the subclass 457 visa program in 2013, which substantially increased the burden for employers in becoming sponsors under the program, including:

> The introduction of labour market testing requirements (LMT), whereby employers must provide documentary evidence of LMT when nominating a person for sponsorship and observe minimum advertising periods;

> Significant increases to the cost of visa application charges for visa applicants and their families, paid for by employer sponsors; and

> Significantly expanding the role of Fair Work inspectors to give them powers to actively monitor compliance of employer sponsors.

With respect to overseas working holiday visa holders, employers must provide workers with a group certificate and make superannuation contributions on their behalf. This is strictly enforced by a number of government regulatory bodies.

WHAT NEEDS TO BE DONE? The response to this issue of skills shortages must be two-pronged, addressing both:

> the provision of greater and easier access to overseas skilled workers; and

> ensuring that the vocational education and training system is appropriately geared to our current and future labour market needs.

Page 16: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

14

TRAINING WHAT HAVE BUSINESSES TOLD CCIQ? Many businesses want to provide training for their employees, and have innovative means of doing so, but are unsure about how to go about it, or feel that doing so is too expensive, with owners and managers highlighting the complexity of obtaining funding for workforce development or training. They also said:

> taking on an apprentice or trainee is a major commitment has been made more difficult with the removal of incentive payments for providing apprenticeships and traineeship, which were used to mitigate the costs of taking on a staff member in a learning capacity;

> the removal of incentive payments in the hospitality industry has had a particularly acute effect on those employers that typically provided Certificate I and Certificate II level qualifications for staff members; and

> they do not feel that in-house training they provide employees is given sufficient recognition, that is, as an added value proposition for potential or existing employees.

CURRENT STATUS OF THE ISSUE Training: While the State Government has responsibility for vocational education and training, both the State and Federal Governments provide funding for training and workforce development initiatives that businesses can implement in their workplaces. This includes the implementation of the Certificate III Guarantee and User Choice funding at the state level, and SkillsConnect and National Workforce Solutions at the national level.

Customer service: Given the fluctuating Australian dollar, and the relative expense of Australia as a tourism destination in comparison with other nations in our geographical region, it is difficult for Queensland tourism businesses to be price competitive with many other nations. While addressing Australia’s workplace relations framework, is one means that CCIQ has long recommended as necessary to mitigate this, local hospitality businesses must find alternative ways of enhancing our state’s competitiveness as a tourism destination.

Incentives: In 2012 and 2013, incentive payments for employers who hired apprentices and trainees were significantly reduced removed under a range of initiatives, including for traineeships and apprenticeships in ‘non-priority’ areas which included many hospitality positions. This preceded a decision by the Full Bench of the Fair Work Commission as part of the two year Modern Award Review on Apprentices, Trainees and Juniors, which increased wage rates for first year and adult apprentices.

WHAT NEEDS TO BE DONE? Training: VET policies must, at their core, recognise the central role that employers play in the VET system. Employers are the end-users of the VET system and accordingly the needs and requirements of their workplaces must have an important role in shaping how the system is funded and the outcomes that it produces. There is a need to ensure that state and federal VET initiatives are better aligned to reduce complexity. CCIQ is pleased the Federal Government has listened to employers with respect to the VET system, and is now moving to a more effective national agreement with the Commonwealth and other states and territories that focusses on providing the much needed ‘one stop shop’ that will allow employers to interact with a single VET system at the federal level.

Customer service: It is important to ensure that the customer service levels provided in hospitality businesses around Queensland are commensurate with the cost charged for goods and services. Industry must work with training institutions to ensure that these considerations are properly reflected in hospitality course requirements and outcomes.

Incentives: CCIQ doesn’t take the view that training funding should be focussed only on the trades and skills needs list occupations –this does not reflect the broader economic and productivity benefits of structured training across the economy. The loss of thousands of apprenticeship and traineeship commencements is a blow to youth employment and a cost to the Federal Government in increasing unemployment benefits. While CCIQ recognises the constrained fiscal environment underpinning decision-making in Queensland and Canberra, businesses are also operating under similar constraints which are precluding them from hiring workers in training roles. There must also be acknowledgement of the training that hospitality employers are major employers of young people, and

14% of yr 10-12 students in Australia undertake VET as part of their studies

28% of Australian school leavers will go on to study VET courses

86.9% The majority of Year 12 completers (86.9%) were studying or in paid employment at the time of the survey

61.2% Further study was a common destination for Year 12 completers, with 61.2% continuing in some recognised form of education or training in the year after they left school

39.1% Students undertaking a Bachelor Degree accounted for 39.1% of all Year 12 completers

22.1% A further 22.1% of all Year 12 completers were participating in vocational education and training (VET)

7.5% Campus-based VET students were more likely to be studying at Certificate IV level or higher compared to lower certificate levels (7.5% of all Year 12 completers)

9.1% Employment-based training accounted for 9.1% of Year 12 completers, either in apprenticeships (6.2 per cent) or traineeships (2.9 per cent)

Page 17: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

provide their staff pathways to future employment. Accordingly, government policy at the state and federal level must make clear that there is support for on-the-job training opportunities. This can be done by undertaking a comprehensive joint review that looks at how incentives are working to change employer behaviour to offer jobs to apprentices and trainees.

INDUSTRY SKILLS ADVICEEmployers and industry specify the skills and knowledge that will allow its workforce to perform effectively and for business to thrive in the current economy. In order for a government’s policy settings to be successful, it is critical that this industry insight is disseminated into bureaucratic politics and decision making.

At present, only 23% of Queensland businesses believe the effectiveness of engagement by government with industry on workforce, education and training issues is good or very good. A further 23% of businesses rate the effectiveness of government engagement as poor or very poor, signalling a need for a reinvigorated approach to industry consultation and collaboration.

How would you rate the effectiveness of engagement by government with business and industry on workforce, education and training issues?

Source: CCIQ Workforce, Education and Training Survey 2016

JOBS QUEENSLANDIn 2015, the Queensland Government has established Jobs Queensland, an independent statutory authority providing strategic industry advice to government on skills demand and future workforce planning. Jobs Queensland will play a key role to foster a skilled and productive workforce for Queensland’s changing economy and support Queenslanders into the jobs of the future.

Industry representatives sitting on the Board will provide skills analysis of industry sectors across the state to advise government on current and future skills needs, undertake workforce planning activities and provide advice to government on the apprenticeship and traineeship system.

FUNDING MODELSGovernment at both the State and Federal level are responsible for the delivery of education and training and addressing the skill shortage in Queensland. However, the majority of businesses believe that the Federal Government should hold primary responsibility for increasing the skills levels of the Queensland workforce.

In recognising this, the Federal Government continues to invest in the Industry Skills Fund with the 2016-17 Budget allocating $207 million over five years to support the training needs of small and medium enterprises which cannot be readily met by the national training system.

However, this amount represents a cut of $247 million to the programme. Industry has cited the difficulty in the application process as a significant contributor to low participation rates, rather than the lack of demand.

The increase in the proportion of employers funding training for their employees and the decline of government assistance demonstrates how businesses are increasingly shouldering the burden of training the workforce. Over the past five years, there has been a 97% increase in the proportion of training that has been funded by the employer/organisation (49% in 2011 to 81% in 2016).

2000+Skills shortages – we will be short over 2,000 qualified chefs and over 2,000 café and restaurant managers between now and 2012 and 2015

HOSPITALITY INDUSTRYBiggest employer of persons aged 15-24 in Queensland

20%Low participation in work-related training – only 20 per cent of workforce

20% / 33%Only 20 per cent of employees in small businesses and 33 per cent of employees in medium sized businesses

44.6% of employees aged between 15 and 24 years old

Very poor

Poor

Average

Good

Very good3%

20%

54%

10%

13%

The training that we do provide in the workplace needs to attract greater recognition in terms of the pathways that we provide young people with. – Fast Food Restaurant Owner, Rockhampton

15 | HOSPITALITY

DID YOU KNOW? There is funding available for training however this is largely tied to attaining formal qualifications rather than non-accredited training. Our partners in this report, Industry Graduates, provide consulting services to hospitality businesses looking to access government funding to train their staff.”

Page 18: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

16

CCIQ’S COMMITMENTS Federal Government: CCIQ will:

Seek broad consultation from the Federal Government on its red tape reduction agenda, work to ensure that regulatory cuts are targeted, and that changes are properly communicated and explained;

Continue to lobby for taxation reform, beginning with a broad-based review of the taxation system that includes consideration of the rate and base of the Goods and Services Tax; and

State Government: CCIQ will:

Work with the State Government to ensure that regulatory changes resulting from its red tape reduction agenda are properly communicated and explained to the business community;

Urge the State Government to lift the payroll tax exemption, and, as part of this, work with other states and the Federal Government towards broad-based taxation reform;

Work with the Queensland Productivity Commission to improve energy productivity through addressing cost-of-living pressures and improving small, medium and large business competitiveness, ensuring growth in energy exports and encouraging investment.

PRIORITY 4BUILD AND MAINTAIN A BUSINESS OPERATING ENVIRONMENT CONDUCIVE TO GROWTH

Page 19: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

17 | HOSPITALITY

REGULATORY ENVIRONMENT WHAT HAVE BUSINESSES TOLD CCIQ? Owners and managers of hospitality businesses told CCIQ that remaining up to date with relevant regulatory changes in areas that affect them is becoming increasingly difficult. While there are areas in which regulatory change is welcomed, it is imperative that the extent of it is properly explained so that benefits can be recognised and penalties for lack of compliance understood. Many businesses in the hospitality industry are heavily regulated across a number of areas, and they made it clear that they want to see less regulatory change and for incoming governments in particular to be more cautious in this respect.

WHAT IS THE CURRENT STATUS OF THE ISSUE? In our consultations, businesses raised policy issues that had, in actuality, been changed or fixed, but that they had not become aware of, including changes to:

> Liquor licensing: Liquor licensing directly relates to the hospitality industry; however, a number of businesses in the industry were not aware of amendments to provisions in 2013 in the liquor licensing legislation that would have lightened their compliance burden.

> Workers’ compensation: Changes to the operation of the WorkCover Queensland scheme in 2013 meant that workers could only commence a common law claim against their employer where they sustain a workplace injury if it was assessed as resulting in an impairment of five per cent or greater. This had important implications for the WorkCover premiums

that businesses pay, and was an important business -friendly change to the operation of the scheme. Unfortunately this was repealed in 2015 which undermined the reduction in premiums as a result of changes made by the previous administration.

> Workplace relations: any changes to apprenticeship and trainee wage rates will potentially have significant implications for employers, and both carry significant complexity.

WHAT NEEDS TO BE DONE? Overall, hospitality businesses support compliance and regulatory frameworks that are flexible to allow businesses to be more responsive to market trends and economic conditions. Regulatory reductions in key compliance areas will stimulate business growth and enhance the competitiveness of the hospitality industry.

> To reduce the overall compliance burden on businesses, government must:

> Establish high level political leadership and commitment to a state regulatory reform agenda

> Measure the regulatory burden and establish a baseline of existing regulatory requirements

> Impose constraints on regulators through binding targets to reduce the existing stock and restrict the future growth of regulation

> Publicly report regulatory reform measures and progress against the target on a regular and ongoing basis to achieve ministerial and government accountability.

78% of Qld businesses experience a moderate to major impact from complying with government regulation

44% of Qld businesses reported that they spend 6 or more hours p/w complying with government regulatory requirements

57% of Qld businesses indicated that the costs of dealing with red tape had increased 1

1 IN 4 Qld businesses indicated that red tape had prevented them making changes to grow their business

What a Rockhampton Motel Owner told CCIQ

This motel owner found that the compliance burden in running a small motel fairly significant, and believed that it was virtually impossible to run a business and remain abreast of and compliant with frequent changes in regulation. Her preference was that while she disliked some particular laws that she was required to comply with, those negatives were outweighed by the burden of frequent change in key compliance areas.

This motel owner found that the compliance burden in running a small motel fairly significant, and believed that it was virtually impossible to run a business and remain abreast of and compliant with frequent changes in regulation. Her preference was that while she disliked some particular laws that she was required to comply with, those negatives were outweighed by the burden of frequent change in key compliance areas. – Rockhampton Motel Owner

Page 20: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

TAXATION WHAT HAVE BUSINESSES TOLD CCIQ? Hospitality business owners and managers, like those in most businesses, told CCIQ that they want to see taxation simplified and unnecessary taxes removed. Like their counterparts in other industries, hospitality businesses spend significant time and expense completing tax-related documents. Apart from simplification of the taxation system, hospitality business owners and managers overwhelmingly want inefficient taxes removed, starting with payroll tax at the State level.

WHAT IS THE STATUS OF THE ISSUE? Payroll tax in Queensland is currently set at 4.75 per cent. The continuation of payroll tax at the state level is underpinned by the limited capacity of state governments to raise revenue in a federation in which the Federal Government raises the majority of revenue while states deliver the majority of public services.

WHAT NEEDS TO BE DONE? Queensland businesses pay $235 million in payroll taxes per year. For small and medium hospitality businesses, this undoubtedly represents money that could have been better invested in their business. Both the Queensland and Federal Governments need to treat tax reform seriously and afford it the priority that it warrants. Without change to the GST, and therefore the means by which state governments receive taxation revenue, it will be difficult for the Queensland Government, or any other state government, to completely wind back payroll tax and other inefficient state taxes. Leadership from the Commonwealth is required, and this should come in the form of a proper structural and comprehensive review of the taxation system that must include consideration of the GST.

$1.1 MILLION Payroll tax – 4.75% of wage bill over $1.1 million

75 REGULATIONSRunning a café serving alcohol and provides outdoor dining – 21 local, 29 State and 25 Commonwealth regulations – 75 in total

117 OF 12717 of Australia’s 127 taxes and charges raise only 10% of total tax revenue

$235 MILLIONpayroll tax paid by Queensland businesses annually

18

We have engaged a consultant to identify further ways that we can bring down our electricity bill. We’ve also gotten a couple of quotes for solar, but they come in at over $300,000, which is totally out of the question for us at the moment when forward bookings are down. – Motel Owner, Rockhampton

Page 21: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

19 | HOSPITALITY

UNSUSTAINABLE INCREASES IN ELECTRICITY PRICES WHAT HAVE BUSINESSES TOLD CCIQ? Our consultation indicates that the sharp increase in electricity prices in recent years has and will directly affect the ongoing viability of many businesses in the hospitality industry. Hospitality business owners and managers told us that their major concern about this increase was that their capacity to manage these increases was largely out of their control: the majority provided exhaustive lists of measures that they had employed to reduce their energy costs. However, they noted that for particular businesses, such as hotels and motels, electricity use was largely at the discretion of the customer with respect to use of heating and cooling, lighting, refrigeration and so on. They also said that alternative energy sources, such as solar, required major initial capital investments that are not currently feasible in the context of a difficult trading environment. The costs of installing solar can be highly costly, particularly where energy intensive businesses need many large panels to ensure adequate supply.

WHAT IS THE CURRENT STATUS OF THE ISSUE?The recent rises in electricity prices since 2007 are attributed predominantly to network costs, which account for around 54 per cent of bills. These costs have escalated as a result of the government’s response to pressures for

increased reliability standards of electricity and therefore invested in network infrastructure which operated to secure power supply in instances of outages or high demand. However, as a consequence, electricity bills have grown by more than 100 per cent between 2007-08 and 2014-15.

WHAT NEEDS TO BE DONE? It is the role of the Queensland Government to clarify as part of its energy policy for the state the future of the electricity market and what role the government will play in the future of energy security and affordability. In order to ensure the competitiveness of Queensland hospitality businesses into the future, the government must address issues relating to improved competition and the delivery of a more efficient electricity market and better outcomes for hospitality businesses, particularly in rural and regional Queensland. To achieve this, the Queensland Government must immediately:

> Introduce greater competition into Queensland’s electricity markets through wholesale deregulation

> Investigate fair feed in tariff rates for solar rebates > Immediately discontinue building unnecessary

infrastructure aimed at ‘gold-plating’ network reliability > Introduce efficiencies by privatising Queensland’s

network assets which will have the effect of driving down prices due to competition

Electricity prices keep rising, and we just wonder ‘when will it stop?’. The Government needs to absorb some of the cost of the electricity infrastructure. –Tour Company Owner, Bundaberg

x2Electricity bills have doubled in past six years

54% Network costs account for 54% of electricity bills

$900 MILLIONThe solar bonus scheme will impose an eventual cost of $900 million to customers

50.2% of surveyed businesses electricity usage levels less than 100MwH

18.6% of surveyed businesses electricity usage levels greater than 160MwH

59%+of surveyed businesses want to maintain the network system at current levels of efficiency

19% Retail costs contribute to 19% of electricity bills

CCIQ and QCOSS are partnering with the State Government to enhance advocacy representation for small business and residential energy customers in Queensland over the next two years. The advocacy services undertaken by CCIQ and QCOSS will be conducted with the purpose of raising the visibility of energy consumer issues, identifying emerging consumer issues to inform policy development, and disseminating relevant energy information and resources to small business and residential consumers across the state. CCIQ and QCOSS will represent the interests of Queensland residential and small business energy customers on emerging energy policy and regulatory issues, facilitating two way information exchanges between government and residential and small business customers.

Page 22: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

20

CCIQ’S COMMITMENTS State Government: CCIQ will:

> continue to engage with the State Government on the need to address the lack of competition for insurance providers in north and far north Queensland;

> seek to provide possible solutions to provide relief to businesses who are uninsured or under insured following natural disasters;

> continue to engage with CCIQ members who are uninsured or underinsured following natural disasters to determine the nature of the relief/assistance they require; and

> continue to work with the State Government to address the lack of retail competition in the electricity market.

Local Government: CCIQ will seek to facilitate greater consultation between local governments and small and medium businesses with respect to encouraging development, innovation and investment in regional areas.

PRIORITY 5FOCUS ON THE NEEDS OF REGIONAL HOSPITALITY BUSINESSES

LOCAL GOVERNMENT WHAT HAVE BUSINESSES TOLD CCIQ? Regional hospitality businesses in Queensland have identified issues relating to the interaction and engagement between local government and business, including:

> Development applications are extremely expensive and deter development and capital investment. This includes things like expanding or renovating existing premises, particularly in restaurants and bars;

> The costs of these applications push up the cost of setting up new premises. This is a deterrent to businesses of all sizes.

> Significant and unwarranted increase in rates over short periods of time; and

> Very high rents: franchisees looking to open cafés in regional centres found that they simply could not find rental premises within their budget. When they looked to purchase premises with a view to renovating it in accordance with the needs of the café, they were deterred by the high material change of use costs.

WHAT NEEDS TO BE DONE? CCIQ is eager to see more local governments around Queensland seeking to maximise opportunities for their region. In particular, there needs to be improved consultation methods in place between small and medium businesses and local governments to assist in encouraging development, innovation and investment in regional areas. As a matter of priority, local governments should review the prevalence and level of infrastructure fees.

We would love to do a major refurbishment and extension, but the cost of the development application puts that too far out of reach. – Restaurant Owner, Central Coast

What a Cooktown motel owner told CCIQ

The owner of this motel told CCIQ that he had seen a significant increase in rates, with a 316 per cent increase in water, 236 per cent increase in sewerage, and 58 per cent increase in rubbish. This did not reflect increased usages, and the basis for the costs was not explained or attributed to any particular cause.

Page 23: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

21 | HOSPITALITY

INSURANCE WHAT HAVE BUSINESSES TOLD CCIQ? Hospitality business owners and managers in regional areas of Queensland, particularly in North and Far North Queensland, told CCIQ that obtaining business insurance (including contingent, liability, asset and revenue insurance) has become extremely expensive, even for those located in lower-risk areas. During consultations, CCIQ received accounts of insurance premiums increasing anywhere between 300 and 800 per cent in areas recently affected by natural disasters. CCIQ was also told that insurance premiums are being assessed on the basis of postcode, rather than individual assessments. Consequently, many businesses are being forced to underinsure, or forgo insurance.

This can be particularly risky in the hospitality industry, where businesses tend to have large inventories, and can be exposed to public liability claims by customers. However, business owners and managers told us that they face a difficult choice: under-insure or forgo insurance on one hand, or pass increased costs on to customers on the other. For those businesses in increasingly competitive tourist markets in North and Far North Queensland, the latter is not an option.

WHAT NEEDS TO BE DONE? The Queensland Government has committed to investing in flood mitigation infrastructure on the basis that doing so will reduce the costs of premiums over time. While CCIQ welcomes investment in necessary flood mitigation infrastructure, more needs to be done to address rising insurance premiums, particularly for those businesses operating in North Queensland. CCIQ will continue to engage with state and federal governments as to the pressing need for additional solutions to address the lack of competition in North Queensland.

OTHER ISSUES Local transport: Businesses in a number of regional centres told CCIQ that a lack of adequate public transport was a major issue in encouraging people to go out at night, noting that even as local populations had grown, little had been done to improve transport options

IMPORTANCE OF ECOTOURISM TO REGIONAL QUEENSLAND

Ecotourism is a significant economic generator to regional and rural communities, providing sustainable employment opportunities to replace declining labour markets in the resources sector. Many ecotourism businesses are small and medium enterprises supporting regional economies and providing strong social outcomes through developing local pride. Importantly, eco-tourism activity works towards the conservation of nature, and effectively adopts the diversification required from the hospitality sector as Queensland and Australia transition to the new economy.

SCENIC RIM TRAIL BY SPICERSThe Scenic Rim Trail by Spicers is a standout example of business model diversification to meet the needs of the new economy and the genuine value in broadening the horizons of regional Queensland tourism. The 4 Day hike by Spicers Retreats explores the Scenic Rim region of South East Queensland’s High Country; a stunning collection of mountains, ridges, escarpments, forests and ancient volcanic plateaus set in the foothills of the Great Dividing Range and surrounded by World Heritage listed national parks. A strategic addition to their business model, Spicers have effectively tapped into consumer need to explore Queensland’s natural environment and all it has to offer.

HOW ECO ADVENTURES CAME INTO BEINGA passion driven by owners, Skroo and Jude Turner in sustainable tourism and the environment. We saw a gap in the Queensland market for activity/adventure based styles of travel that countries like New Zealand do so well, with huge growth in the last few years.

THE IMPORTANCE OF ECO-TOURISM TO QUEENSLANDEco Tourism is the only way forward. We must start looking at more sustainable and ethical ways to operate business’s in every field. Eco Tourism meets the needs of an ever expanding global market in which Queensland could be a leader in. If established and supported by the government now, Eco Tourism in QLD will be Queensland’s largest industry.

WHAT THE FUTURE HOLDS FOR ECO ADVENTURESRapid growth with the launch of a 6-day Great Walk of Australia, Scenic Rim Trail and also a 6-day Mountain Bike over the coming 24 months, with a Kayaking product in the next 5 years. All Queensland based.

THE IMPORTANCE OF QUEENSLAND’S HOSPITALITY SECTOR FROM THE PERSPECTIVE OF YOUR BUSINESSQueensland Hospitality is crucial to QLD’s growth and future development. It’s pivotal to our success that QLD’s Eco Tourism sector can stand up with the best in the world and be noticed as a pioneer in the area.

Page 24: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

22

SUMMARY The future of hospitality requires the right policy settings to ensure a strong future for an industry integral to the health of Queensland’s economy.

Through our partnership with Industry Graduates, CCIQ is taking charge of hospitality industry policy in Queensland to get better outcomes for the small and medium hospitality businesses of this proud State.

CCIQ through this report has recommended a number of policy solutions to compel governments at all levels to recognise the importance of harnessing the future of the hospitality industry. CCIQ delivers actions through its purposeful and multi-pronged advocacy agenda.

For almost 150 years we’ve been the voice for business, with a primary focus on advocacy. Our advocacy team has built an enviable reputation in this regard, and has worked tirelessly to ensure Queensland is the best place to do business.

Page 25: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

23 | HOSPITALITY

HOSPITALITY PROFESSIONAL PROGRAM

RSA RSG Certificate III in Hospitality*

SIT50313

Certificate IV in Hospitality*

RMLV

HotelManager

Hotel Leader

HigherEducation

6 Months Experience

1 Year Experience

2 Years Experience

3 Years Experience

5 Years Experience

RED LABEL INDUSTRY EXPERIENCE BLACK LABEL INDUSTRY EXPERIENCE GOLD LABEL INDUSTRY EXPERIENCE PLATINUM LABEL INDUSTRY EXPERIENCE BLUE LABEL INDUSTRY EXPERIENCE

REDLABEL

INDUSTRY EXPERIENCE

BLACKLABEL

INDUSTRY EXPERIENCE

GOLDLABEL

INDUSTRY EXPERIENCE

PLATINUMLABEL

INDUSTRY EXPERIENCE

BLUELABEL

INDUSTRY EXPERIENCE

VenueManager

Higher Education

SIT30713

SIT40313

Diploma of Hospitality**

* delivered by RTO ID 20891 / ** delivered by RTO ID 31222

For more information call 1 300 038 000

ABOUT OUR PARTNERS

Industry Graduates believe industry-based training, combined with traditional academic study, provides the best learning outcomes and opens more employment opportunities. Although technology and online platforms enhance the learning experience, we believe in a blended approach, including industry expert facilitation. Without industry-focused, practical training, qualifications will recognise theoretical knowledge, when employers are looking for hands on experience.As an Industry Training Organisation (as opposed to Registered Training Organisation) - Industry Graduates’ focus on training leading to employment outcomes. We partner with domestic and international employers, industry bodies, Registered Training Organisations and recruitment agencies, to ensure the outcomes achieved are specific job ready skills and nationally recognised qualifications. The combined focus will lead to more employment outcomes at the completion of training.

Industry Graduates provide the following benefits for Employers

> Consulting services to implement a train first / recruit second model and selection of better staff > Commercialisation of internal Recruitment and Training divisions (traditional cost centre) > Opportunity for employers to utilise students in a work experience capacity > Opportunity for the Employer to become a brand and employer of choice > Ability to be involved in the development and training of future industry employees

Page 26: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

24

RED LABEL BLACK LABEL GOLD LABEL PLATINUM LABEL BLUE LABEL INDUSTRY EXPERIENCE INDUSTRY EXPERIENCE INDUSTRY EXPERIENCE INDUSTRY EXPERIENCE INDUSTRY EXPERIENCE

REDLABEL

INDUSTRY EXPERIENCEBLACKLABEL

INDUSTRY EXPERIENCEGOLDLABEL

INDUSTRY EXPERIENCEPLATINUM

LABEL INDUSTRY EXPERIENCE

BLUELABEL

INDUSTRY EXPERIENCE

HOSPITALITY PROFESSIONAL PROGRAM

Minimum Experience• 6Months

Industry Skills• CustomerService• FoodandBeverageService• TeamWork• Hygenicfoodandbeveragehandling

QHA Training• ResponsibleServiceofAlcohol

• ResponsibleServiceofGambling

• TABOperator

Industry Accreditation• RSA• RSG

Qualification• SIT30713 Certificate III in

Hospitality*

Minimum Experience• 1Year

Industry Skills• Providehighlevelcustomerservice

• Supervisehighlevelcustomerservice

• Cashhandlingduties• Mentornewandjuniorstaff

QHA Training• ResponsibleManagementofLicensedVenue

Industry Accreditation• RMLV

Qualification• SIT40313 Certificate IV in

Hospitality*

Minimum Experience• 2Years

Industry Skills• Frontofhouseoperations• Leadanddevelopstaff• Completeendofdayprocedures

• Customercomplaintresolution

QHA Training• DevelopingHotelManagementSkills

Industry Accreditation• HotelManager

Qualification• SIT50313 Diploma of

Hospitality**

Minimum Experience• 3Years

Industry Skills• Assistvenuemanageroperatinally

• Supportvenuemanagerstrategically

• Motivatestaff• Managefunctions,promotions&customerexperience

QHA Training• HotelLeadershipProgram

Industry Accreditation• HotelLeader

Qualification• Higher Education

Minimum Experience• 5Years

Industry Skills• Achievesalesandgrowthtargets

• Financialanalysisandcostcontrol

• Leadanddevelopstaffandmanagementteam

• Businessplanningandstrategy

QHA Training• Additionaltrainingrequirementsbasedonindividualneeds

Industry Accreditation• VenueManager

Qualification• HigherEducation

* delivered by RTO ID 20891 / ** delivered by RTO ID 31222

For more information call 1 300 038 000

Page 27: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

25 | HOSPITALITY

HOSPITALITY PROFESSIONAL PROGRAM

RSA RSG Certificate III in Hospitality*

SIT50313

Certificate IV in Hospitality*

RMLV

HotelManager

Hotel Leader

HigherEducation

6 Months Experience

1 Year Experience

2 Years Experience

3 Years Experience

5 Years Experience

RED LABEL INDUSTRY EXPERIENCE BLACK LABEL INDUSTRY EXPERIENCE GOLD LABEL INDUSTRY EXPERIENCE PLATINUM LABEL INDUSTRY EXPERIENCE BLUE LABEL INDUSTRY EXPERIENCE

REDLABEL

INDUSTRY EXPERIENCE

BLACKLABEL

INDUSTRY EXPERIENCE

GOLDLABEL

INDUSTRY EXPERIENCE

PLATINUMLABEL

INDUSTRY EXPERIENCE

BLUELABEL

INDUSTRY EXPERIENCE

VenueManager

Higher Education

SIT30713

SIT40313

Diploma of Hospitality**

* delivered by RTO ID 20891 / ** delivered by RTO ID 31222

For more information call 1 300 038 000

Page 28: INDUSTRY FUTURES REPORT HOSPITALITY€¦ · HOSPITALITY Securing a strong future for Queensland’s hospitality industry INDUSTRY FUTURES REPORT HOSPITALITY PROFESSIONAL PROGRAM RSA

Chamber of Commerce & Industry Queensland375 Wickham Tce, Spring Hill QLD 4000Telephone 1300 731 988 Design: www.thoughtandprocess.com.au