You may have seen the stories in the Gympie Times and Fraser Chronicle last month and had a quiet chuckle as we did, but the reports of increased backpacker numbers in Rainbow Beach have ruffled a few local feathers. The success of Rainbow Beach as the real backpackers' "gateway to Fraser Island" has thrown its Fraser Coast competition into chaos. News of the closure of Hervey Bay's “Next Backpackers” resort follows less than two months after the news that tour promoter “Nomads Fraser Island Tours” had quit the Fraser Coast.
As previously reported in our monthly article, “Nomads” announced that all its operations will now be coming out of Rainbow Beach. It seems to have been the last straw for “Next Backpackers”, once regarded as one of the Fraser Coast's biggest backpacking operators. Former “Next Backpackers” manager Mark Juppenlatz acknowledged the new tourism reality in March. "Just about every major player in the backpacking market is now operating in Rainbow Beach," he said. (Source: Gympie Times, 17th May 2012) Receivers and managers, BDO have confirmed that the 100-bed operation (“Next Backpackers” in Hervey Bay) had closed. BDO partner Helen Newman said her company had been monitoring the hostel since May last year and would now rid itself of the asset. Meanwhile, “Fraser Roving Backpackers” owner John Hayes said the industry was hemorrhaging in Hervey Bay and has called for "Tourism Fraser Coast, Tourism Queensland, the Fraser Coast Regional Council and the LNP government need to do something."
Just what Mr Hayes wants the government to do about the issue is unclear – force backpackers to choose Hervey Bay over Rainbow Beach? Ultimately, as eloquently put by a Tourism Fraser Coast board of directors member, David Hay, has said “"There are both organisations and individuals with vested interests in Rainbow Beach who have power in the booking distribution system and the ability to push business into Rainbow Beach as opposed to this end." (referring to Hervey Bay). (Source: Fraser Coast Chronicle, 15th May 2012) Generally speaking, Rainbow Beach businesses want the town to grow naturally into its new role as a regional tourism leader. The government cannot dictate routes of travel and itineraries to backpackers and cannot control the business decisions of individual businesses and groups. Queensland Premier, Campbell Newman has promised help for embattled sections of the tourist industry across Queensland (including Airlie Beach, Mission Beach and Port Douglas).
But as expressed by the Rainbow Beach Commerce and Tourism Association President, Scott Elms, there is a risk that any government assistance for Hervey Bay could disadvantage Rainbow Beach. "They would be robbing Peter to pay Paul," he has said. Scott Elms’ controversial comments have ignited a mini scandal amongst the regional Tourism Boards with healthy competition and camaraderie turning a little nasty when people’s livelihoods are potentially at stake. In saying that, many of Mr Elms’ comments have some validity, for example: “Hervey Bay has grown, not necessarily because it was superior, but because it had freehold land and the government had not stopped it. Hervey Bay was now losing the battle because tourists were choosing Rainbow Beach instead.” And it is a choice they are entitled to make.
"You can't force people to holiday at Hervey Bay. We (Rainbow Beach) have beaches, national park bushwalking and faster access to Fraser Island. We are a natural tourism leader and we are the real gateway to Fraser Island”. In addition, “Hervey Bay needs to accept that, apart from whale watching season, it is not a tourist destination, it's a retirement village," Mr Elms has said. (These comments are arguably somewhat offensive – kind of funny though – and in the context of the argument, proving to be pretty close to the mark ) Against the odds to a degree, Rainbow Beach is somehow surviving the same economic times which has set off a ripple effect of business collapses in Hervey Bay. Mr Elms has also said, "Things are tight in Rainbow, but so far we've avoided the significant contraction of business which has occurred in other tourism centres, including Cairns, Hervey Bay and Airlie Beach." (Source: Gympie Times, 18th May 2012)
Rainbow Beach has very much ‘come of age’ over the past 4-5 years with a massive increase in accommodation providers, most of which are more ‘high end’ versus ‘budget’. The investment in local infrastructure such as the Aquatic Centre and Town Hall has drawn positive comment from many visitors, particularly those who had not been to Rainbow for a number of years. Ultimately, we need to play to our strengths when it comes to attracting visitors/tourists and we have a lot of natural attractions to offer. Our appeal is certainly more so the natural attractions as opposed to the ‘high-rise-theme-park-shopping-mall’ thing – which we are unlikely to ever be able to compete on in comparison to the Gold Coast and more built up sections of the Sunshine Coast but that’s ok because a lot of families are looking to ‘get back to basics’ more and enjoy a more traditional family holiday (that doesn’t cost a fortune as well).
Finally, in completely property market related news, we have our Auction at 98 Cooloola Drive going ahead on Saturday the 9th of June at 1pm. Our previous local Councillor, Graham Engeman, will be the Auctioneer on the day and we are expecting some local and interstate interest as the bank is now is possession of the Mortgage on the property.
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