News Around Town – Spring 2021

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BEL PREVAILS THROUGH THE PANDEMIC

Bamaga Enterprises Ltd (BEL), which recently approved its audited financial statement for 2020/21, has continued to grow its operations with yet another improved performance across all operations.

Comparing financial year 2020/21 with the previous period is difficult given there was no tourist season for a large part of FY 20/21 and a lockdown was in place for the end of FY 19/20. JobKeeper income also assisted BEL through parts of these periods.

Robert Poipoi

Robert Poipoi

Overall, net profit was up 134% in 2020/21, partly due to a significant decrease in operating costs, especially employee expenses as Cape York Peninsula Lodge was effectively closed for three months, as was the Tavern’s bar and bistro. With many community residents receiving JobSeeker payments and able to access superannuation, BEL saw a significant increase in the amount of money being spent locally, which to a certain extent offset the lack of tourist income.

Total revenue was up 8% but some of this was because of higher fuel prices with the price of oil increasing worldwide.

Once the community opened up again and operations were back to normal, employee costs rose again to their previous levels. The increase over the previous year was offset by a similar reduction in operating costs, especially in electricity because freezers, cool rooms and air conditioners were not being used at the Tavern and Lodge during the lockdown.

One of the most improved performers was the Lodge with significantly improved revenue and net profit, which was driven by a surge in the number of tour groups in May and June as compared to previous years, as they sought domestic destinations as a result of closed international borders. The BP servo was affected by a lack of fuel sales with no tourist season, but still increased its revenue and bottom line by containing costs. Similarly with the Tavern, the drive-thru remained open as an essential service, which helped the business. Well done to everyone across our BEL operations for staying strong and helping to achieve such positive results in the face of so many challenges.

Robert Poipoi – Chairperson, Bamaga Enterprises Ltd

IS A BRIDGE OVER JARDINE RIVER A BRIDGE TOO FAR?

A bridge over the Jardine River has been a subject of constant discussion for many years now, yet no attempt has really been made to ascertain community feelings or carry out a proper consultation process with the traditional owners, the Council, private enterprise, local organisations and the community generally.

So, what are the benefits, advantages, drawbacks and disadvantages of a bridge from BEL’s perspective?

Drawbacks / Disadvantages

  • Too much tourism can overwhelm the NPA and have a negative effect on the more laidback, less hectic lifestyle of the community.
  • Council will lose significant revenue from the Jardine River Ferry. However, this can be offset to a certain degree by charging a reasonable toll given the present high cost of the ferry to tourists.
  • There is no off-road and very limited on-road parking available in Bamaga especially with many tourists now towing trailers.
  • Can the retail outlets, e.g. IBIS and BP Bamaga, keep up with the increased demand for food and fuel during the peak tourism periods such as school holidays.

Benefits / Advantages

  • Tourism is the major industry in the NPA (and Cape York) and without it there would be economic stagnation.
  • Without the profits earned during the tourist season, many local businesses would not be commercially viable if they had to survive on local demand only.
  • The limited ferry hours affect the ability of emergency services, such as Police and Ambulance (and even RACQ), to attend to accidents and health emergencies south of the Jardine River after nightfall.
  • New tourism infrastructure and new shops etc create more jobs and work for local tradies and contractors.
  • With state and national tourism bodies heavily promoting domestic travel, increased tourism is coming anyway.
  • There have been major bank ups, several kilometres long, during the tourist season causing much frustration and delays to tourists and locals alike.
  • The ferry operates limited hours and to reach the Jardine before nightfall requires drivers to leave Cairns at 4 am if they want to get through to Bamaga in the same day. This increases the risk of accidents from speeding and fatigue.
  • A bridge will open the NPA to road transport, which will reduce the cost of goods and services. Presently, trucks with two to three rigs have to do several ferry crossings each way, and pay each time.
  • The toll could be automatic and even incorporate a fee to access key tourist areas such as the Tip so that the Traditional Owners benefit financially.
  • The Federal Government has already allocated $10m towards the construction of a bridge but if there is no resolution, this funding could be withdrawn, together with funding for the Peninsula Development Road up to the NPA. The State Government has also reportedly carried out studies.

The State Member for Cook, Cynthia Lui, advised BEL that the State Government does not impose its will on communities and would act when there was 100% agreement within the community, which will never happen.

The State Government should be more proactive and put some options (and money) on the table and commence a proper community consultation process, especially with the Traditional Owners who seem to be more concerned. These concerns could be overcome when the advantages and disadvantages are properly explained during the consultation process.

Chris Foord, General Manager, Bamaga Enterprises Ltd

IS THE NPA READY FOR TOURISM?

Various representatives have concerns over growing visitor numbers (see story above), but increased tourism is certain, whether the communities of the Northern Peninsula Area (NPA) are supportive or not.

That is due to a number of factors, including the road trip to Cape York being a bucket-list adventure. Given COVID has reduced the amount of overseas travel, more Australians are holidaying domestically. Even with international borders reopening, various factors including safety should ensure the trend towards domestic holidays will continue.

We’re also seeing more tour group companies adding Cape York to their itineraries. Cape York Peninsula Lodge (CYPL) welcomed 100 tour groups during the recent tourist season, and other accommodation venues have reported similar numbers.

With the continued sealing of the Peninsula Development Road (PDR) and the possible construction of a bridge over the Jardine River, more two-wheel drive vehicles, as well as caravans and pop-up trailers, will be able to make the journey.

However, as tourism is the NPA’s major and only industry, there needs to be balance. Progress can be relentless, but you don’t need to sell your soul. Being able to properly manage increased numbers can alleviate the feeling of being overrun. It will also stimulate the economy, allowing more locally owned businesses to be established, others to expand and more employment and training opportunities to be created. But we need to assess whether community infrastructure, including toilet facilities and rubbish collection, is adequate. There’s also the question of accommodation and whether there’s enough to cater to significantly increased numbers, both in the communities and at places like the Tip, Mutee Head and Eliot Falls.

Obviously, private enterprise has to step up if more accommodation is necessary, but if it cannot obtain land leases or overcome native title issues, it will be impossible to expand operations. This is likely the major issue that will hold up the provision of increased infrastructure so the Council and native title body (PBC) must work together to speed up approval processes.

In national parks, Traditional Owners need to generate income from visitors so they can provide facilities. This is an issue that needs to be addressed so tour groups and visitors have confidence they’ll be able to access sites at a reasonable cost and have acceptable facilities.

Especially in town, Council needs to provide off-street parking for vehicles with trailers and caravans, and police illegal parking.

Shipping to the NPA also needs to be addressed. During the height of the tourist season, food
vanishes quickly from supermarket shelves and fuel supplies can run very low. A delayed ship could prove to be disastrous. A bridge, however, would enable additional road transport.

To create commercially viable tourism opportunities, local politics must be put aside and proposals supported, regardless of who is tabling them or the communities in which they’re located. Perhaps the Council has or is developing a strategy to identify these issues and how they are going to be addressed and financed, but time is running out.

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