Berth increases will hurt: Local operators
Published Wednesday 24 August 2016
PORT Douglas tour operators believe they will be “hit hard” when a berthing increase is implemented by The Reef Marina.
Although the fee rise is unknown at this stage, it is expected to come into effect towards the end of the year and has been forced by the State Government’s recent 60 per cent increase of the statutory value of its own lands and water where the Marina is situated.
“Apparently, the lands and water – which does not, for example, include our buildings and marina structure – is now worth 60 per cent more than last year. As a consequence, our costs to lease the land and water are rising by the same percentage,” said Reef Marina spokesperson, Andrew Hooper-Nguyen.
He added that while it is important that our tenants understand why berth fees must rise, “it breaks my heart to be making such good progress rejuvenating the marina, and then to be whacked like this by the state.”
Some of the larger tour operators in the port believe this is a significant kick in the guts.
“The backbone of this town is the Great Barrier Reef. If we are hit hard, it hurts the town. An increase in our fees means we have to raise our tour prices,” said Calypso Reef Charter’s Graham Jones, who is locked in for the next 12 months.
Calypso offers family cruises, reef tours, and dive trips to the Great Barrier Reef for snorkelling and scuba diving.
“Admittedly we do not know what the increase will be, however, what sort of return of investment will we get out of this?”
Jones, whose company operates seven boats, understands the costs involved to spend a day at the reef. “For a family of four, you are looking at $1,000. That’s hard to absorb.”
Jones pays between $1500-2300 per month for his seven berths.
A significant player in Port Douglas is the Quicksilver Group, Australia’s leading Great Barrier Reef cruise company. They have 14 major vessels – Reef Adventure was purchased in May as an addition to the Great Adventures fleet in Cairns – and have five vessels in Port Douglas.
Quicksilver is currently in negotiations with The Reef Marina and could not comment on the proposed berth increases.
Tony Baker, Managing Director, Quicksilver Group, said in a statement to Newsport that his company is currently engaged in negotiations with the Reef Marina in respect to various leases at this time.
“These discussions do include rental increases as were highlighted in the Reef Marina’s recent newsletter. It would be inappropriate to comment further given our discussions are still ongoing,” he said.
Another operator said he was “visibly shocked” when he received the news which was sent via email to all Reef Marina tenants.
“This is the last thing I was budgeting for, let alone expecting. It’s going to place increased pressure on us and I hope we learn sooner versus later what the increase is,” said the operator who preferred anonymity.
This operator’s monthly rental costs are almost $2,000.