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QLD Marinas at competitive disadvantage in Australia

by MIAA on 23 Apr 2012
MIAA Board member & QLD marina manager Mike Harvey. MIAA
Queensland marinas pay disproportionally high taxes and lease charges and have the most negative financial outlook of the 356 marinas across all Australian States according to research released by the Marina Industries Association of Australia (MIAA).

The ‘2011 Health of the Australian Marina Industry Survey’ report indicates that Queensland (QLD) marinas had more tenants operating at marines (939) than any other state and generated 26% of Australian marinas total gross revenues in 2010/11. QLD marinas however paid 30% of the total taxes and lease charges. Only 40% of QLD marinas expected to grow gross revenue this financial year while nationally the average was 49%. Nationally 43% of marinas expect gross revenues will stay the same this financial year.

MIAA board member and Manager of Runaway Bay marina in QLD Mike Harvey said 'the report provides the evidence that industry has been saying for years; QLD marinas are paying excessive taxes and lease payments. This is strangling marina investment in a State that has a natural competitive advantage in recreational boating’.

The report indicates that the ratio of Australian marinas capital expenditures to gross revenue was on average 46%. Across the states the ratios varied greatly from 85% in Western Australia, 64% in Victoria and 10% in QLD.

The Chairman of Marine Queensland’s Marina Division Mark Robertson said lack of capital expenditure by QLD marinas was a reflection of the lack of government action to remove the barriers that are holding back investment.

'The challenge for the new State government is to quickly create a positive sustainable investment environment. For example mandating marina lease arrangements that provide a long term incentive for investment by marina operators and financiers is urgently needed in the State'.

Marine Queensland is seeking to open urgent discussions with the relevant new ministers and department heads to progress this matter.

The Recreational Marine Research Center (RMRC) at Michigan State University conducted the survey for the MIAA. Copies of the 92 page report are available from the MIAA at AU$169. A three page highlights report is available on the MIAA web site at www.marinas.net.au

Attached – pic of MIAA Board member & QLD marina manager Mike Harvey. Further info. contact colin@marinas.net.au p +61 2 9439 5806 or Mark Robertson at markr@scarbmarina.com.au

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