Port in crisis as more doors close



Friday 11 May 2012

Port in crisis as more doors close

Doug Calvert has joined a long and growing list of retailers who have been forced to close the doors of their beloved businesses.

Mr Calvert, who sits on the committee of the Port Douglas Chamber of Commerce, made the decision to close his four shops; Something Tropical, Something Tropical For Kids, Port Douglas T-Shirt Company, and Bamboo Shack after carrying crippling debt for as long as he could.

"I bought in the peak and had three good years. We bought at a fair price because we were making the sales," he said.

Ironically, Mr Calvert was instrumental in bringing the Melbourne Business School to Port Douglas to seek their advice on how the town can dig its way out of an increasingly deep hole.

Mr Calvert blames 'tourist massification,' identified by the MBS as "a loss of destination status, particularly affecting high-income segments, resulting from a decline in service standards and infrastructure investment."

He said that banks had lost confidence in the town, and warned that other businesses burdened with high levels of debt are at risk of being liquidated, while those that have manageable debt "have half a chance."

Mr Calvert will now move to Melbourne in order to find employment.

The Chamber's president Ken Dobbs said the contribution Mr Calvert had made to the community was significant.

"I think everybody is very disappointed for Doug's sake. It's a tragedy on a personal basis. Doug was a significant contributor on the Chamber committee," he said.

"He was the impetus for the MBS. He's given so much and he's been dealt a very cruel blow."

Asked what actions the Chamber can undertake to turn things around for local businesses, Mr Dobbs was philosophical.

"The Chamber can only create an environment for a turnaround. There's nothing anybody can do to stop the GFC and exchange rates.

"Doug's not a victim of bad business practices, he's a victim of the (economic) environment.

"Our best hope is to follow up on some of the things from the MBS.

"Each individual retailer knows how difficult it is. All we can do is provide a climate for stimulating business. The seeds of the problems are sewn some years earlier than when they happen."

He acknowledged that high rental costs remained a contributing factor to a struggling retail sector.

"Rental is an issue. In Doug's case he didn't get very much sympathy from his landlord."

Mr Dobbs said the Chamber was closer to reaching an agreement on which MBS recommendations to follow up, and will hold a meeting with Tourism Port Douglas Daintree next Tuesday to discuss their position.

"Chamber will be saying what sort of things (we can do), and no doubt TPDD will too."

Tourism Port Douglas Daintree chairman, Gordon Wellham told The Newsport recently that he was confident the local tourism body was already doing much of what the MBS has recommended.

"I think we're already doing most of what they've suggested we do. I don't know whether they (the MBS) were voicing that as a blinding revelation that they've discovered, or whether they're just reinforcing, in many aspects, it's steady as she goes for TPDD."


Process of Tourist Massification (Opens external link in new windowMBS report slide 27)

  • Dated properties losing their lustre - the Sheraton Mirage losing their 5-star rating, while others lack in refurbishments
  • Overinvestment in accommodation leads to sub-optimal occupancy rate
  • Top resorts discounting rates to attract customers, followed by the low to middle price-range resorts
  • Lower room rates make investment in top quality resorts less attractive
  • Fewer high-end tourists, particularly international, come to Port as competition increases


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