International Flights; Senator Calls For Townsville Airport Boss To Step Down

Corporatocracy Leadership Cohort Scrambling for Excuses

International flights out of Townsville to Bali will be discontinued by Jetstar from 22^nd March 2018 due to a lack of patronage the budget carrier said, putting Townsville’s capital of North Queensland claims in serious jeopardy and a Senator calling for the Townsville Enterprise (TEL) Chairman to stand down.

The CEO of Townsville Airport and TEL Chairman Mr. Kevin Gill campaigned aggressively in 2014-15 with local Townsville leaders to achieve federal government support for customs and border protection resources to be stationed in Townsville in order to boost the City’s international tourism numbers.

The Jetstar decision this week comes just days after Mayor Jenny Hill criticised the budget airline’s parent company Qantas for refusing to raise the price of domestic airfares by $3 per passenger as a means of funding the proposed $80 million upgrade of the airport.

Speculation that the feud created by Queensland Airports Limited and Mayor Jenny Hill demanding that Qantas increase its airfares to pay for the airport upgrade contributed to the Jetstar decision to axe the Bali flights.

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But the CEO of Jetstar’s Australian and New Zealand business Mr. Dean Salter may have unintendedly implicated Ms. Hill and Mr. Gill because he said the $3 levy would have made the route even more unviable. However, the $3 levy does not apply to international routes out of Townsville.

When Jetstar had agreed to deliver a Townsville to Bali service in 2015, the airport CEO and Chairman of TEL said: “I encourage North Queenslander’s to embrace the new service when it starts in September, proving that there is a growing appetite for direct international services from Townsville”.

Jetstar’s argument for closing the service is that insufficient support existed for the service, which could be frustrating for the TEL Chairman who anticipated the people of Townsville would prove Jetstar’s support for the city was justified. This was not to be.

Many questions must be asked now about the management of Townsville Airport and the suggestion that Townsville’s tourism marketing under the stewardship of TEL has been poorly executed in attracting international passengers from Asia through to Townsville via the Bali route.

Senator Ian McDonald called for Mr. Gill to stand down as Chairman of TEL.

This comes on the back of advice from marketing guru Don Morris in the Pure Projects report that puts Townsvilleans and the “experiences” tourism product of the City at the centre of any future successful marketing initiative.

Now it seems the lack of accountability in the Townsville cohort of leaders and the poor execution of an Asian and global marketing plan brings a sense of déjà vu just like the highly political collapse of Queensland Nickel under the weight of unviable commodity prices.

Townsville Enterprise CEO Patricia O’Callaghan said “It’s not about simply marketing, it’s much deeper than that.” she said in a comment to Townsville Bulletin reporter, Domani Cameron.

“We need to keep going and keep analysing new routes. It does definitely impact our brand and we’re going to have to work harder”, Ms O’Callaghan reported.

City’s international reputation at risk by “reckless” Mayor

Yet there was no suggestion of accountability among the Townsville leadership cohort except the local Senator Ian McDonald who called for the Townsville Airport CEO to stand down from his role as TEL Chairman or in his role with Queensland Airports Limited.

The owner of Townsville Airport, Queensland Airports Limited, has come under further scrutiny from a rambunctious Mayor Jenny Hill who has not only accused board members of a conflict of interest in not supporting Townsville’s bid to become the fly-in fly-out hub for the Adani coal mine, but directing her exuberant comments towards Qantas for not increasing prices on flights to cover airport upgrades and undermining the national icon’s brand.

Ms. Hill has become consistent in attacking commercial brands, even visiting journalists reporting candidly on the lack of appeal of the City’s tourist attractions, using bullying tactics as a weapon for negotiation that has seen the economy plummet into recession under the leadership of the veteran Labor politician.

Reaching out to another airline to fill the void of Townsville’s international descent by Jetstar fleeing the international scene could be a tall order considering the way in which the leadership treats company’s taking commercial risks in the region.

The local government authority and the leadership cohort have become used to demanding handouts and hand ups from the federal and state government, commercial enterprise and rate payers while castigating and ridiculing businesses that have already ventured their capital in the City for a little dividend over the past 5-10 years.

Despite the good news of economic stimulation projects in construction of housing, mining and energy, and the federal and state governments’ investments in social services in the City, the Townsville leadership, communication and marketing formula for success has alluded the current crop of leaders. At the glimpse of any further withdrawl of big business, the capital of North Queensland status could be stripped too if the City loses its international airport altogether.

Strategic airlines also cancelled Bali to Townsville flight in 2011 due to the lack of passenger numbers.

Again, the ripple effect of Townsville’s downgraded tourism status and lack of vision and commercial acumen within the leadership cohort of the City presents concerns for business confidence and the supply chains that service and provide opportunities to the stakeholders in the property market.

Political and climate change related risks are serious elements to the economic sustainability of the City and Northern Australia moving forward and the direct and indirect consequence on property yields and capital values.

Further reading:

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North Ward – Top Price Property Of The Week – 49 Alexandra Street – $752,500

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Construction boosts Townsville short to medium term prospects

Development frenzy  emerging between local builder alliance and national property retailers

Guide to selling a luxury home

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Anti-Coal Activists Rebuked By Adani Boss; What About Jobless In Regional Queensland And Poverty In India?

Anti-coal activists target of Adani boss

Chairman of the Adani Group, Gautam Adani, has directed a strong and scathing attack towards anti-coal activists and Adani protagonists in Queensland and across Australia for caring less about regional Queenslanders and the devastating poverty faced by millions of Indians.

The Indian energy and logistics corporation boss directed his strong rebuke of the anti-coal activists in Australia as the final investment decision approval for the Carmichael coal mine and railway project has been given the go ahead.

“I am proud to announce the project has Final Investment Decision (FID) approval which marks the official start of one of the largest single Infrastructure – and job creating – developments in Australia’s recent history,” Mr. Adani said.

“This is an historic day for Adani, an historic day for regional Queensland, and an historic day for Indian investment in Australia.

“This is the largest single investment by an Indian corporation in Australia, and I believe others will follow with investments and trade deals.

“We have been challenged by activists in the courts, in inner city streets, and even outside banks that have not even been approached to finance the project.

“We are still facing activists. But we are committed to this project.

“We are committed to regional Queensland and we are committed to addressing energy poverty in India.”

Mr. Adani said the Carmichael projects will generate 10,000 direct and indirect jobs, with pre-construction works starting in the September Quarter 2017.

Australia Head of Country and Chief Executive, Jeyakumar Janakaraj, said the company had already invested $3.3 billion in the project including buying the bulk coal handling port at Abbot Point.

Adani signed letters of award for design, construction, operations, supply of materials and professional services.

The biggest deal is with Downer Mining for the construction and operation of the Carmichael mine.

The company has also announced in the past few weeks contracts totalling more than $150 million for railway tracks and concrete sleepers for the planned 388-kms standard gauge rail link between the mine and Abbot Point.

Importantly, these contracts had gone to regional cities to generate jobs – $74 million for railway tracks (Arrium Steel, Whyalla) and $82 million for sleepers (Austrak, Rockhampton).

Mr. Janakaraj announced a further contract for the Carmichael Rail Network linking Galilee Basin mines including our mine to the port of Abbot Point.

This contract is with AECOM, who are regionally based here in Townsville.

The AECOM deal, which covers surveying and design for the rail link, with the company basing 70 people in Townsville.

“But we are building more than a rail line,” Mr. Janakaraj said.

“We are building a line that will open the Galilee Basin, linking that massive coal reserve to markets around the world, generating power, and – importantly – generating many thousands of direct and indirect jobs in regional Queensland.

Oxfam Australia CEO Dr. Helen Szoke said; “Make no mistake, Adani’s proposed mine is a disaster for the world’s poor. More coal will drive more people into poverty through the devastating consequences of climate change and the direct toll of coal burning on local communities.”

However, the Australian charity has come under serious criticism for exaggerating the impact of climate change on global poverty numbers and misleading the Australian public on the percentage of their money being donated to starving children.

On a recent visit to Africa to visit his sponsored daughter, TREN’s editor learned directly from front-line Ugandan officials near the South-Sudan border that another Australian global charity organisation was planning on closing down its child sponsorship program due to the lack of funds from the head office in Australia.

The Charity’s Ugandan director of projects said, “The Aussies are not giving as much as they used to. The priorities of the Australian leaders are being directed into climate change. The children are still in need of food, shelter and education in the Gulu area”.

“In Adani’s case, it will link its Carmichael coal mine to our bulk loading facility at the port of Abbot Point from where it will be shipped to Adani’s power stations in India.

“While some may be looking for ways to leave regional Queensland, we are looking to the future. We are looking to ensure regional Queensland remains a great place to live, work and to raise a family.

To achieve that, Adani is delivering on its promise to address power poverty for hundreds of millions in India and unacceptably high unemployment in regional Queensland.

“To those activists who sit in creature comfort and criticise us, I ask a simple question – what are you doing for those people?”

Further reading:

Major Projects Feasibility Ranking: $22 Billion Investments in Townsville North Queensland

Construction boosts Townsville short to medium term prospects

Development frenzy  emerging between local builder alliance and national property retailers

Kirwan – Top Price Property of the Week – 1 Crown Close – $655,000

Commercial property in Townsville found gasping for owner-occupiers

Magnetic Island – Top Price Property Winner of the Week – 3-5 Endeavour Road – $520,000

Durie Is Out! Gay And Green Thumb Poster-Boy Snapped Duplicity Of Premier On Townsville Water Security

Guide to selling a luxury home

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Magnetic Island - Top Price Property of the Week - 3-5 Endeavour Road - $520,000

This week’s winner – 3 Endeavour Road, Magnetic Island

Have you ever dreamt of living on a tropical island off the coast of Queensland?

It may become as no surprise to you then that many people have thought about this dream too.

Some have taken decisive action – and even now as we speak – are living the dream while others, happy to visit and make it a regular holiday get away, have put the dream into the too hard basket because it is unaffordable or out of circumstantial reach.

Well, not the excited buyers of 3 Endeavour Road at Arcadia on Magnetic Island.

The adventurous couple has broken conventional wisdom and taken a risk for their dreams. And the price is astonishingly cheap at $520,000. Compared to where they come from in the most expensive City in Australia, where Sydney’s median house prices are close to one million dollars, the acquisition of this tropical getaway home is a real bargain in anyone’s language.

Put it down to serendipity, whatever fate may bring, the Sydney couple were visiting Townsville and Magnetic Island on their winter holidays.

It is a time in Townsville where the region comes alive under perfect cool blue skies to cheer on the V8 Supercars. Thousands of tourists are visiting the City for the events, rich history and family connections and, of course for southern friends tolerating the layers of clothing, the glorious warm winter climate.

Townsville city claps on an amazing array of events in addition to the annual supercars such as the Townsville Cultural Fest, the week-long Australian Festival of Chamber Music, or while just strolling along the local Strand beach, we get to admire the abstract curiosity of the free Strand Ephemera art exhibition.

The capital of North Queensland is the home of the NQ Cowboys, 2015 Premiers, and the lovable rugby league great, Jonathon Thurston.

While in Townsville, the couple decided to take the 12 kilometre ferry ride across to Magnetic Island. Well, that is now history as they fell in love again, buying this cute 5 bedroom, 2 bathrooms with 3 carport bungalow cottage.

Magnetic Island has attracted explorers and buyers from overseas and southern states for many years. It seems the warm winter months, just as magnetic as the island itself, becomes the friend of Victoria, South Australia, Tasmania and New South Wales this time of year.

Once born only of an inspiration to think, the lovely couple decided to escape the winter blues and venture north to discover Queensland’s only residentially populated Tropical Island and realise the inspiration of the warm North Queensland sun for themselves.

And what a great decision the Sydney couple made. As far back as 1770 when Capitan James Cook discovered the island, people have been attracted to the magnetism of the 52sq kilometre island with its national park and urban appeal for over 2000 permanent residents.

The island was named by Her Majesty’s Captain James Cook, because of the “magnetic” effect the mountainous island had on his ship’s compass, the HMS Endeavour. The residents fondly named the island “Maggie”.

The island is located on the door step to the world heritage Great Barrier Reef, and as the island sites within eye shot of the humpback whales tracking on their annual migration off the coast, the couple becomes intimately appraised of the true value the lifestyle asset presented before them.

Magnetic Island’s Compass Property agent, Cindy Shafer said: “the lovely Sydney couple were on holidays and loved the island so much they decided to buy a piece of it”.

“The house was built in the 1950s so it is very solid and functional for families and guests, with plenty of land to work with too.” Ms. Shafer said.

The property

The local Magnetic Island resident and property consultant, who was very busy serving holiday letting customers and clients when TREN caught up with her, commented that “the property presented an amazing opportunity to buy a massive block of land with an incredible home in just the best location.”

“Arcadia is home to many of the most beautiful island homes but none more so than this spacious and tropical property set on 2024m2 of prime real estate.

“Some of the wonderful features include:-

Image: Kitchen at 3 Endeavour Road Arcadia Magnetic Island off
Townsville North Queensland
Photo: Compass Property

• Inspiring central roofed outdoor living area that links the whole home
• Beautiful and huge new kitchen including induction stove, central island cooking, seating as well as a plenty of cupboard and drawer space
• Five bedrooms, three of which are extra large
• Awning windows, glass louvers and large glass sliding doors that make the home light and breezy
• Massive shed and garage, big enough for all the boy toys you could wish for

“This property is undoubtedly a fantastic family home that is large enough for everyone to enjoy their own space and still be very much connected with family.

“On the other hand, this property was successfully used for a great many years as a ‘semi BnB’ or ‘Air BnB’. The home really has two distinct ‘wings’ alongside a communal (outside) dining area to relax with a shared kitchen.

“It is certainly what dreams are made of. This house would very likely be able to accommodate yours. Instead of talking or reading about it, how about you call me and make a time to view. This property is full of possibilities! Ms. Shafer said.

Investment profile

Magnetic Island and Townsville have attracted the attention of local and southern investors as the region has featured in the media recently as one of the top 10 most attractive places to invest in Australia.

TREN’s research has identified that the suburb of Magnetic Island is a retiree’s haven and very popular for people looking for the perfect sea-change lifestyle.

The island population has 2335 residents recorded in the 2016 census. Since the 2011 census, Magnetic Island had a population of 2199 residents which demonstrates the suburb has grown by 5.9 percent in five years.

The sales volumes and rental yield data for Magnetic Island has inadequate sample to determine median prices for investors. However, the 2016 census recorded that the median rental price was $250 per week for long-term rentals.

Image: Google Map of 3 Endeavour Road Arcadia Magnetic Island off
Townsville North Queensland Photo: Google maps

Holiday letting is the most popular accommodation service on the island. Compass Property who brokers holiday, rentals and sales on the island, estimate the current occupancy rate is currently 75-80 percent. Over the past 3 years, occupancy rates have increased as more tourist visitors have arrived in the Townsville region. In the less popular autumn and spring seasons, occupancy rates have reached 30-40 percent.

The suburb has a relatively high percentage of short-term holiday accommodation. In fact, 79.7 percent of houses are separate dwellings while 12.3 percent are units or apartments. A total of 1821 private dwellings exists in the suburb.

31.5 percent of the dwellings were unoccupied at the time of the 2016 census, which highlights the number of vacant rentals, unoccupied private holiday homes and transient population working and living on the island that has dual residency on the mainland at Townsville.

The number of rental dwellings is approximately 36 percent of the total dwellings on the island. 58 percent are private dwellings and 35 percent are owned outright.

Nearly 60 percent of the population declared no income. For those residents that are earning an income, 34.5 percent earn less than $650 per week. 11.2 percent of the island is children under the age of 15 years which may suggest the high number of self-retirees living on the island. In fact, 67.1 percent of the island is older or elderly independent singles, elderly couples or old couples with families.

Nearly 17 percent of adults are divorced which is 8 percent higher than the Australian average. The residents do 7 percent more voluntary work than the Australian average and contribute longer hours also.

The island suburb has nearly 15 percent higher percentage of single person households than the Australian average. The median mortgage repayment for home owners is $1387 per month approximately $430 less than the Australian median.

The island has one primary school, Magnetic Island State School which is approximately 1.7 kilometres from this property.

Townsville has excellent private and public schools, which is approximately 12 kilometres by ferry from the island to the ferry terminal at Ross Creek. Townsville has a higher percentage of children attending Catholic and Anglican schools than the Australia average and boasts the top marine biology university in the world at James Cook University.

History

Magnetic Island has Australian historical significance from the deep indigenous heritage to the modern European settlement that occurred late in the 19^th century when a resort was built at Picnic Bay by Robert Hayles Sn in 1890.

Image: Patio at 3 Endeavour Road Arcadia Magnetic Island off
Townsville North Queensland Photo: Compass Property

The Bindal people, local aboriginal inhabitants of the area called the island Yunbenun. The aboriginal people were transients to the island, travelling between the mainland and the island in canoes. Other tribes that transient the area were; the Bindal, Nyawaygi and Gugu-Badhun peoples.

Magnetic Island has a number of Aboriginal middens and cave drawings still visible in some of the bays of the island. The local elders on the mainland tell in folk law stories the history of the island, painting a picture of head hunters from Papua New Guinea and the Torres Straits reaching the island. The northern aboriginal people were known to use the northern head winds to travel south down the Queensland coast hunting, fishing and trading.

Capitan James Cook discovered the island in 1770 while navigating the Australian coast and gave the island its name, due to the “magnetic” effect the island had on his compass.

European tourists visited the island before settling as a popular place to collect stones and corals. But the first European to set foot on the island was James Morril, a shipwrecked sailor who lived with the local Bindal tribe.

In 1875, the island was gazetted as a quarantine station which was eventually completed at West Point ten years later. It was destroyed by cyclones and moved to Cape Pallarenda where some of the buildings have been preserved.

From 1901, Mr. Robert Hayles started a regular ferry service to the island until the 1970s.

The island became a defensive post during World War II as Townsville was an important military base, as it still is today, being the largest garrison city in Australia. An artillery battery and observation post, Magnetic battery, was built at Florence, Horseshoe and Arthur Bays on the island.

The resort built by Mr. Hayles Sn at Picnic Bay was commandeered for the war effort in 1939. After the war, the residents continued to reside on the island.

In 1971, Cyclone Althea impacted the island and mainland directly causing 90 percent of the houses on the island to be destroyed. The event was catastrophic as it caused the SS Yongala to sink off the coast killing 100 people at the time, and as it now sits as a monument and one of the most highly rated professional dive sites in the world.

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Further reading:

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How to stay up-to-date

Do you have an opinion about real estate pricing or marketing?

The TREN community wants to hear your story.

Become a subscriber to TREN eMagazine and be the first to receive local breaking stories, analysis and opinions on the Townsville real estate market.