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AMPTO BUSINESS PLAN
2005

TABLE OF CONTENTS

GENERAL COMPANY DESCRIPTION
Mission Statement
Goals
Principle Objectives
Priority Issues for 2005
Business Philosophy
Membership
What Does AMPTO Do?
AMPTO Structure
AMPTO Board
Office Administration
General
Administration
Financial Accountability

THE DECISION MAKING PROCESS
Policy
Local Issues
Member Associations
Rules and Procedures for Group Meetings
Group Meetings
Membership of Groups
Attendance and Voting Rights
Notice of Group Meetings
Business at Group Meetings
Financial Expenditure
Referral and Report to Board
Express Purpose of the Group Meeting Rules and Procedures

THE MARINE TOURISM INDUSTRY
Size
Safety
 
SUCCESS STORIES
GST on EMC
RAP
Island Valuations
Partnership
Cairns Port Charges
Lobbying and Industry Recognition
Fuel
COTS

SWOT ANALYSIS
Strengths
Board Members
Membership
Acceptance by Government
Financial Position
Management
Weaknesses
Communications
Polarization of the Industry
Finances
Cost of Fees
Conflict with Politicians
Opportunities
Membership Growth
Market Growth
Better Access to Government
Increased Finances
Better Recognition of the Value of the Industry
Threats
Competition by Other Associations
Commercial Pressure on Members
Health of the GBR
Competition by Other Destinations
Possible EMC Increases
Qualified Staff
Reduced Business Class Airfares into Whitsundays

FINANCES
Current Situation
Cash Flow
Cash Flow Spreadsheet
Budget 2004

APPENDIXES
Membership Lists
2002 Business Plan


GENERAL COMPANY DESCRIPTION


Mission Statement:

Our mission is to help ensure the economic and ecological sustainability of tourism within the Great Barrier Reef Marine Park (GBRMP).


Goals:

Our goals are to assist our members in operating profitably through:

a. Promoting marine tourism in QLD,
b. Acting as a forum for the exchange ideas for businesses involved in marine tourism,
c. Lobbying government at all three levels to minimise levies and charges, reduce red tape, ensure proposed new legislation will benefit industry and not be an unjustifiable impost, and ensure that the health of the GBR is managed in such a way so that our industry can continue to be fully sustainable from an ecological point of view.
d. Acting as the peak industry body for the marine tourism industry.


UpPrinciple Objectives:

The principle objectives of AMPTO are listed in our Memorandum and Articles as being:

  1. To act as a forum for the exchange of members' views in relation to the promotion of tourism in the Great Barrier Reef Marine Park.

  2. To act as a liaison with Government Agencies and to bring before Governments and Government Agencies such recommendations as are approved by the Association.

  3. To negotiate with Governments for the adoption of policies deemed necessary for the furtherance of the objectives of the Association.

  4. To arrange the promotion of members' services by trade publicity, participation in trade fairs or whatever other legitimate means are deemed appropriate.

  5. To assist with obtaining market intelligence from any source.

  6. o enter into any arrangements with any Government or Authority, Municipal Council, local or otherwise, that may seem conducive to the Association's objectives or any of them and to obtain from any such Government or Authority any rights, privileges, concessions, grants, loans or aid which the Association may think it desirable to obtain; and to carry out exercise and comply with any such arrangements rights privileges and concessions.

  7. To develop, and maintain such standards of service as are in the interests of the objectives of the Association and the Australian Nation.

  8. To collect and disseminate among its members information on all matters affecting the objects of the Association and to print publish issue and circulate such papers periodicals books circulars leaflets and to advertise in the press or on radio or television or by any other means and in such manner as the Association may think desirable for the promotion of its objectives.

UpPriority Issues for 2005

Issues of priority for AMPTO in 2005 are:

  1. Consolidation of the RAP.

  2. Ensuring the Review of the EMC does not disadvantage members

  3. Achieving a stronger voice within the GBRMPA when its structure is reviewed.

  4. Lobbying for an industry representative on the Marine Park Authority.

  5. Lobbying for better industry recognition and a stronger voice with government.

  6. Conducting the COTS Control Program.

  7. Participation in the new "CRC Reef/Rainforest."

  8. Communication to members through the AMPTO web site and a Newsletter after every Board Meeting.

  9. Maintain a watching brief on:

    1. the tourism levy proposed by local government

    2. hull scrubbing and antifouling

    3. port security procedures and costs

    4. the GBRMPA permits and POM

UpBusiness Philosophy

AMPTO believes that the goals and objectives of the Association can only be achieved through a unified industry and that AMPTO must strive to strengthen our voice by ensuring that all industry sectors have a voice on our Board and that they can participate in our decision making.



AMPTO accepts that individual member associations of AMPTO may have different objectives or opinions to AMPTO and that they may represent those views in their own right, while AMPTO must continue to represent the views of the majority of the industry.


UpMembership

Full membership of AMPTO is available to people or businesses who are involved in the provision of tourism services within the Great Barrier Reef Marine Park and who seek to become financial members of the Association. There are two other categories of membership, both non- voting:

a. Association Member - Any member of any association which joins and is a financial member of the Association

b. Associate Member - Any persons, firms, companies, corporations, associations or organisations seeking to become associate members of the association, with the exception of Great Barrier Reef marine park tourism operators, whose membership dues, calculated under the provisions prescribed for full membership, would be greater than that for this associate category.

The current membership of AMPTO including all categories is 130 and our members take 95% of the tourists paying the Environmental Management Charge (EMC) to the GBR.
The following Associations are members of AMPTO:

a. Dive QLD
b. WCBIA
c. WCBOA
d. WBBOA
e. GBRCBOA
f. CHARROA


AMPTO accepts that it can not possibly represent 100% of the marine tourism industry because of the minority interests of some groups, such as fishing, and the existence of companies and individuals who will not join any trade association but who none the less enjoy the benefits that the associations achieve on the industries behalf. AMPTO does however intend to maintain its position as the peek industry body, representing the overwhelming majority of commercial operators and tourists visiting the GBR.

UpWhat Does AMPTO Do?

On behalf of its members and the marine tourism industry, AMPTO:

  1. Lobbies the three tiers of government on legislation, environment and assistance to industry matters.

  2. Conducts the Crown Of Thorns Starfish (COTS) Program.

  3. Liaises with the GBRMPA on a day to day basis.

  4. Represents industry on the following Forums, Boards and Committees:

    1. TRRAC (Tourism and Recreational Reef Advisory Committee) - GBRMPA
    2. Cairns LMAC (Local Marine Advisory Committee) - GBRMPA
    3. CRC Reef
    4. QLD Marine Board
    5. Alliance For Sustainable Tourism
    6. QTIC Associations Committee (QLD Tourism Industry Council)
    7. Dive QLD
    8. GIRAC (Green Island Reef Advisory Committee)
    9. FNQ NRM (Far North QLD Natural Resource Management)
    10. QMA (QLD Maritime Academy)
    11. AMTN (Australian Marine Training Network)
    12. Transport and Distribution ITAB (Industry Training Advisory Board)
    13. QLD Workplace Health and Safety Dive Industry Review Committee
    14. Australian Standards Committees for recreational and commercial diving
    15. FNQ Community Forum
       
  5. Negotiates bulk purchasing arrangements with service providers and industry wholesalers, either to raise funds for the Association or to provide direct benefit to the members. Examples are:

    1. Sea sickness tables,

    2. Credit card rates, and

    3. Telecommunications.

UpAMPTO Structure

AMPTO Ltd is a not for profit limited company. Liability is limited to a maximum payment of $500.00 per member.

Membership fees constitute the primary funding of the Association although some profit will be generated from the sale of sea sickness tablets.

AMPTO has several Groups so that the members can more easily discuss issues of concern to them within an industry sector, particularly where the full AMPTO Board may take a more global view. The Groups are:

a. Northern Group - From Townsville north to Cape York.

b. Southern Group - All areas south of Townsville.

c. Island Group - Barrier Reef and continental islands off the QLD Coast.

d. Long Range Rover Group - Operators roving over the whole GBR.

UpAMPTO Board

The Board of Directors of AMPTO is very impressive with it almost being a Who's Who for the marine industry. With the exception of the Executive Director, none of the Board Members receives any remuneration for their Board activities and even the expenses incurred in attending meetings are incurred at the member's own expense. The Board Members are:

a. David Hutchen - Chairman

David Hutchen is Managing Director of Fantasea Cruises - the largest, wholly Australian owned, Great Barrier Reef marine tourism operator. David has over 22 years experience in the marine tourism industry and has been heavily involved in local and state-wide industry and government advisory groups during that time. David is currently a Board Member of CRC Reef and Tourism Whitsunday's, a founding member of the Great Barrier Reef Research Foundation, a member of the Great Barrier Reef Marine Park Authority's Tourism and Recreation Reef Advisory Committee and a member of Singapore's Sentosa Islands Development Advisory Council.

b. Mike Burgess - Deputy Chairman

Mike is the Chairman & Managing Director of Quicksilver Connections Ltd. He has had 15 years experience in marine tourism with Quicksilver and a total of 38 years in general tourism. He is currently the Deputy Chair of AMPTO and also sits on the National Oceans Advisory Group to the Minister for Environment. He is a board member of CRC Reef and a member of the Marine Park Authority's Tourism Recreation Reef Advisory Committee.

c. Tony Baker

Tony is Group General Manager of Reef Management which owns and operates Great Adventures and Green Island Resort. Great Adventures operates tourist vessels out of Cairns to Green Island and the Barrier Reef. Green Island Resort includes a 46 room, 5 star resort and day visitor facility located on Green Island, 27 km's from Cairns. Tony has extensive experience in the tourism industry having previously held positions as General Manager of Skyrail and Sea World Theme Park.

d. Greg Boller

Greg is the Managing Director of Sunsail, a bare boat charter yacht company working out of Hamilton Island in the Whitsundays. Greg is doing his third, two year term as a Board Member of AMPTO.

e. Peter Boundy - Dive QLD

Peter is an owner of Cairns Dive Centre, one of the largest certifying dive shops in the world. Last year his business taught over 6,000 divers. Cairns Dive Centre operates a live aboard dive vessel and a fast day boat out of Cairns. Peter has been involved in the industry for over 20 years and is the immediate past President of Dive QLD

Upf. Brendan Brady

Brendan is the Marine Operations Manager for P&O Australian Resorts. He has twenty years involvement with the Queensland Marine and Tourism Industry and has been an active Board member of AMPTO for the last three years.

g. Chris Evetts - Chair Long Range Rovers Group

Chris is the Managing Director of Wyllaway Cruises and the Chair of the Long Range Rovers Group.

h. Bernard Heimann - Chair Southern Group

Bernard is the Managing Director of Maxi Action in the Whitsundays and has many years of experience within the marine tourism industry. As well as being the Chair of AMPTO's Southern Group, Bernard is also a member of the GBRMPA's TRRAC and a board member of the WCBIA.

i. Wayne Kirkpatrick - Chair Island Group

Wayne Kirkpatrick is the Managing Director and CEO of Hamilton Island Limited. Wayne has led Hamilton Island since 1996 and previously led the Ayers Rock Resort in the NT, the Mirage Resorts on the Gold Coast and in Port Douglas, Qld, and Thredbo Resort in the Snowy Mountains of NSW.
Wayne has always been involved in representing the interests of the tourism industry to Govt's, having been a Director of the Snowy Mountains Tourist Assoc, the Australian Ski Areas Association, the Tourism Task Force, CATIA ( Central Australian Tourist Industry Assoc )and the Northern Territory Tourist Commission. In recent times has been the past Chairman of Tourism Council of Australia, Tourism Whitsunday and the Whitsunday Tourism Strategy Implementation Group. He is presently a member of TRRAC and a Director of the Tourism Task Force.

j. Stuart Liebmann

Stuart is the Managing Director of Whitsundays Rent a Yacht.

k. John Millwood

John is a Director of Sunlover Cruises which operates out of Cairns.

l. Steve Moon - Chair Northern Group

With over 30 years marine experience, 15 of which have been focused on marine tourism, Steve is currently the director of business development with IRES Remote Corporate Services. Steve's current focus is on providing training and advice to the marine tourism industry, nationally and internationally, at both a recreational and commercial level. Steve is also a board member of Dive Queensland.

m. Alan Wallish

Alan is the Managing Director and part owner of Passions of Paradise a 25 metre sailing catamaran operating out of Cairns. Alan has run the business for more than 15 years and is a qualified skipper and dive instructor. He holds university qualifications in geography, education and E-commerce. Alan has been an active Dive QLD Board Member for many years.

n. David Windsor

David is a Founding Member and the Managing Director of the Great Barrier Reef Research Foundation. He is also a Director of the Association of Marine Park Tourism Operators (AMPTO) and a Director of the Co-operative Research Centre for the Great Barrier Reef World Heritage Area. David chaired the Qld. Diving Industry Committee from 1992-1997, advising the Minister for Vocational Training, Education and Industrial Relations. He chaired the Commonwealth Government Worksafe - Expert Review Group in 1995-1996, advising on occupational diving standards. He was a member of the Board of DIVE Australia 1989-1995 and DIVE Queensland representative to AMPTO from 1990 to 1997. David was appointed a life member of Dive Queensland in 1996 and was presented with a "Dive Australia Award" in 1993.

Upo. Col McKenzie - Executive Director

Col has served on the AMPTO Board for 3 years, he is an owner and Director of SSI Australia, runs a marine tourism consulting company called Gempearl Pty Ltd, and is the General Manager of Dive QLD having served on their Board for 5 years as the Secretary and 3 years as the President. He has worked in the marine tourism industry for more than 20 years in positions from instructor, skipper, owner, consultant and association administration.

p. Joe Catalano - CNS Partners - Auditors

Joe Catalano and CNC Partners have been the Auditors for AMPTO for the last 6 years and they audit our general trading accounts and the COTS Control Program expenditure.


UpOffice Administration

The Executive Director, Col McKenzie, oversees the day-to-day administration of AMPTO. He has following tasks:

General

  • Development and implementation of strategies that further the objectives of AMPTO.

  • Regular visits and liaison with operators and government officials involved with the marine tourism industry with particular reference to GBRMPA.

  • Media liaison to maximise the positive image of protecting the GBR and minimising any damage to tourism or tourism operators.

  • Attendance at industry and government meetings on behalf of AMPTO.

  • Reporting on AMPTO issues to the AMPTO Board

  • Any other tasks relating to AMPTO, as directed by the AMPTO Chair.

Administration

  • Providing a serviced office for the Association.

  • Ensuring the day-to-day management of AMPTO is conducted in a professional manner that reflects favorably on the AMPTO Board.

  • Answering all correspondence in a timely fashion.

  • Adhering to time lines set by the AMPTO Chair and Board.

  • Advising industry through regular newsletters about matters of industry importance and AMPTO's initiatives.

  • The calling of all Association meetings as directed by the Chair, timely distribution of meeting documents and recording the minutes of all AMPTO Board meetings, General and Special Meetings.

  • Providing monthly reports on AMPTO activity to the Chair.

  • Assisting where possible the administration of the various AMPTO Chapters.

Financial Accountability

  • Adherence to approved budgets.

  • The development of additional budgets and/or modifications to existing ones. (For approval by the Board).

  • Ensuring that ongoing expenditure is recorded in a manner that can be easily audited.

  • Submitting accounts to the AMPTO auditor in the required format.

  • Acquitting all expenditure to the satisfaction of the auditor.

  • Expanding AMPTO's financial base through increased membership and any other manner possible that is compatible with AMPTO's objectives.

UpTHE DECISION MAKING PROCESS

Policy

Policy is decided by the full Board.

The Board meets four times per year and any member may bring any issue affecting marine tourism before the Board for a policy determination. To bring an issue before the Board following steps must be taken:

  1. Submit the issue in writing to the Executive Director.

  2. The Executive Director will include the issue as an agenda item for the next Board meeting.

  3. If the member putting the issue forward is not a member of the Board, they will be invited to speak on the issue when it is debated but they may not vote at the Board meeting.

  4. All issues before the Board are decided by the majority vote. In the event that the votes are tied, the Chair does not have a second vote and the issue is decided in the negative.

Where an issue requires urgent attention it may be submitted to the Executive Director in writing and it will then be sent out to all Directors via email, fax or post, for a decision. Where the issue may prove controversial, a teleconference or an extra ordinary Board meeting will be held to allow active debate.

Once the policy on an issue is decided, the Executive Director is required to ensure it is implemented as soon as practicable.


UpLocal Issues

Some issues are very localised and as such a best handled by the appropriate Regional Group. Those groups are:

  • Northern Group - Cape York to Townsville

  • Southern Group - south of Townsville to the Queensland border

  • Island Group

  • Long Range Rover Group

Each group has its own committee and Chair of that committee is a Board member of AMPTO.

Issues may be brought before your local group by contacting the Chair of that group. It will then be included in the agenda for the next meeting. The person putting the issue forward may attend the meeting to speak about the issue and may vote if financial.

Local issues may be decided howsoever the relevant Group determines, provided that the decision will not impact the other Groups or AMPTO as a whole. Where is determined that an issue will have wider impact, it must be referred to the AMPTO Board for a policy decision.


UpMember Associations


Associations that are members of AMPTO follow their own association's rules for decision-making. They may however seek support from AMPTO's Board on any issue.

Once AMPTO's Board has debated an issue, a policy will be determined that in the opinion of the Board is best for the entire marine tourism industry. Where AMPTO decides against supporting a member association's stance on an issue, that association may continue to promote its own point of view but must not portray that point of view as being AMPTO's.


Rules and Procedures for Group Meetings

Group Meetings

Group meetings are held so that items and issues of interest to those Groups can be covered in detail and the most appropriate response made. They may refer any item or issue to the Board.

The Groups are free to make whatever representation they wish on all Group issues but must keep the Board advised through the Executive Director. The manner in which a Group deals with an issue may in fact vary from Group to Group and from the Board. The Board must take a reef wide view and may in some cases not be able to offer support where that support would not be in the interests of the other Groups.

Some issues are not applicable to the whole of AMPTO but are of vital importance to a Group and as such need to be actioned by that Group. A good example is the Cairns Port Authority charges where the Northern Group and Dive QLD handled the issue. All the Board did was provide overall support including financial and political backing.

Each Group elects its own committee (if needed) and Chairman. As with the Board, these positions are normally filled for two years but may be done annually as required by the Group.

UpMembership of Groups

Membership of Groups is subject to the same rules as outlined in our Memorandum and Articles. These provide for the following membership categories:

a. Full Members - Any persons, firms, companies, corporations, associations or organisations who are involved in the provision of tourism services within the Great Barrier Reef Marine Park and who seek to become financial members of the Association.

b. Association Members (Non Voting) - Any member of any association, which joins and is a financial member of the Association.

c. Associate Members (Non voting) - Any persons, firms, companies, corporations, associations or organisations seeking to become associate members of the association, with the exception of Great Barrier Reef marine park tourism operators whose membership dues, calculated under the provisions prescribed for full membership, would be greater than that for this associate category.

While Associations who join AMPTO are not bound by AMPTO's constitution and are not answerable in any way to AMPTO, they must abide by AMPTO's meeting rules at AMPTO Group Meetings. The relationship is one of co-operation and for the sourcing of information, opinions and feedback so that industry can speak strongly on issues that are of common interest. Associations are free to make their own representation to any party when their Association disagrees with an AMPTO position or policy.

UpAttendance and Voting Rights

The Memorandum and Articles of AMPTO allow any financial member to attend and speak at any general meeting of the Association and this includes Group meetings.

Only financial Full Members or an authorised member of an Association may vote. This means that an Association Member may attend and speak on an issue but may not vote. The Association gets one vote if that Association's Board has given an authorised proxy to one of its members to vote on its behalf or authorised a member of their Executive to fulfil that role by a motion moved and carried on their books. An example would be five Association Members of Dive QLD attend a meeting of the Southern Group. All can speak on any issue but only one may vote and only if that person has been authorised by Dive QLD's Board.

Non-financial members should not be allowed to attend a Group Meeting. Under no circumstances is a non-financial member allowed to speak or vote at any Group Meeting. The Chair may at its absolute discretion, invite a prospective new member to a Group Meeting but that person may not speak or vote on any issue. All such invitees are to be recorded in the Minutes along with the name of the sponsoring financial member.

Every resolution submitted to a Group Meeting shall be decided in the first instance by a show of hands of financial Full Members plus authorised Association representatives unless a poll is demanded by the Chairman or three members present in person or by their representative or proxy. In the case of an equality of votes the Chairman shall not be entitled to a second or casting vote and the motion shall be lost.

A meeting may not vote on any issue unless a quorum of members is present. A quorum is achieved when 3 financial Full Members and/or Association Members authorised to vote on behalf of their Association are present.

UpNotice of Group Meetings

Notice of a group meeting should where possible be given 7 days prior to the meeting being held. The venue and time should be chosen to maximise attendance. Notice may be served by email, post, fax or verbally, provided that a record of how each eligible voting member was contacted is maintained.

The notice of meeting should include a proposed agenda and request for additional agenda items.

Business at Group Meetings

The business to be conducted at each meeting should include:

  1. Minutes of the Previous Meeting,

  2. Matters Arising form the Previous Minutes,

  3. Financial Affairs,

  4. Chairs/Secretary's Report,

  5. Report on Main Board Activity,

  6. Report by Executive Director,

  7. Agenda Items,

  8. Recommendations for Main Board, and

  9. General Business.

UpFinancial Expenditure

Groups may not conduct financial transactions without the express approval of the Main Board, who have a fiduciary responsibility to the members and the ASIC for the financial transactions of the Association.

All financial expenditure must be approved by a moved and seconded motion and majority vote. Expenditure for items less than $500.00 may be retrospective. For items costing more than $500.00 approval from the Board must be obtained prior to commitment of funds.

AMPTO will provide funds for some secretarial and communication (postage, fax, typing of Minutes, etc) services to the Groups.

Referral and Report to Board

The Minutes of any Group Meeting and any recommendations and supporting documentation, should be made available to the Executive Director in time for them to be incorporated into the next Board Papers.

Groups must consult with the Board on issues that affect the whole or majority of the GBR, or on matters of policy.

Express Purpose of the Group Meeting Rules & Procedures

It is the express purpose of the Group Meeting Rules & Procedures to:

  1. Stop non-voting members from directing the affairs of AMPTO and its Groups.

  2. Prevent non-members from influencing decisions at meetings.

  3. Provide a framework for the efficient conduct of a meeting.

UpTHE MARINE TOURISM INDUSTRY

Size

There are about 1.8 million visitors to the GBR each year. It is estimated by industry that there is about $1.5 to $2 billion in direct revenue generated by our industry. Based on 1999 figures the Productivity Commission estimated that revenue raised by tourism within the GBR catchment was about $4.3 billion with about 37,000 jobs being provided. The Commission showed that tourism was the biggest employer in the region and second only to mining in value to the economy of the region.

An economic significance study commissioned by AMPTO, Tourism QLD and Cairns City Council showed the value of the industry in the Cairns/Port Douglas area as being worth $736 million per year.

The industry contributes approximately $7 million per year to the GBRMPA budget through the payment of the EMC and approximately $1.2 million goes to the CRC Reef for applied research.
Research shows that the GBR is the most significant attraction for tourism within the North QLD region with about 80% of tourists visiting the GBR at least once.

Approximately 1.4 million scuba dives are conducted each year with approximately 0.5 million of those dives being resort dives where the tourist experiences their first ever scuba dive without having done a formal training course.

The investment by the marine tourism industry in infrastructure to show case the GBR World Heritage Area is estimated by Ernst and Young to exceed $2.5 billion.

The federal government collects approximately $337 million in taxes from our efforts while it spends around $73 million in GBR management for tourism. The state government receives approximately $124 million of the federal tax money through GST and collects another $19 million in other taxes fro our industry. It spends about $23 million on the GBR.

The marine tourism industry spends about $17 million on marketing, education and site stewardship. This money is spent primarily in showcasing and protecting the GBR World Heritage Area

UpSafety

Diving and snorkelling on the GBR has the safest record of anywhere in the world.

We have one death for every 420,000 scuba dives and this compares to the rest of Australia at approximately 1:120,000, the USA at 1:100,000 and Japan at 1:15,000.

Unlike the rest of the world where panic is the biggest single factor, the principle cause of death has been participants having medical emergencies while underwater. Cardio vascular events are the biggest single cause.

QLD has the only scuba and snorkelling Regulations and mandatory Codes of Practise in the world.


UpSUCCESS STORIES

GST on EMC

AMPTO lobbied government for the removal of GST on the EMC and the after repeated requests for action over a 12 month time frame, we gave all our documentation to the federal opposition and asked for their help because of the Aust Tax Office's enforcement of their claims against our members. In fact several had already been forced to pay the GST along with penalties. Two accounts, one for over $14,000 and the other for over $20,000 had been enforced with devastating effect on the small businesses that had to find this unbudgeted money.

This action resulted in an immediate forgiveness on administrative grounds of all GST due on the EMC up to 1st September 2003. It is estimated that this was worth approximately $800,000 per year or $2.533 million over the 3 years and 2 months that GST had been in effect.

This success was followed up with a change to Legislation with effect as at 20th April 2004 which made GST on EMC no longer payable. This amendment to the Legislation was supported by both parties and was one of the quickest amendments to be processed by government surprising many people including our lobbyist in Canberra.

The value to industry continues to be approximately $800,000 per year and this benefit is more than six times what our members pay in combined membership fees.


UpRAP

The RAP was another success for industry and one that will take five or more years to show its true value. While science, industry and the conservation movement all supported the RAP, we went head to head with the fishing lobby.

The Dr David Kemp, the then Minister for the Environment, made it very clear that unless the marine tourism industry publicly supported the RAP, it was not going to happen!

Our public support for the RAP again placed us at loggerheads with the same members of parliament that had been less than helpful with the GST debate even though we were supporting their own party's initiative.

The RAP went through with a few amendments but was still essentially the result needed by the marine tourism industry at large. The health of our GBR being accepted as too important not to make the effort to ensure a good chance for survival despite the pressure to do otherwise!

The personal costs to our Board members on this vital but controversial issue were quite high. Our Chair had demonstrations and access to his vessels blocked by fishermen and death threats and bricks through windows also occurred.

As a direct result of our lobbying on the RAP, AMPTO has never been in a better position to represent industry and is seen by government to be effective, resolute and a sound ally on environmental issues.

UpIsland Valuations


In 2002, AMPTO acted on behalf of the members of its Island Group to obtain a fairer valuation of islands for rate purposes than that proposed by the Department of Natural Resources. With AMPTO conducting these negotiations and the Group being solidly behind us, an excellent outcome was achieved saving our members over $3 million over the 5 year term of the agreement.

The next round of negotiations on island valuations is due to start soon, with finalisation due in 2005.


UpPartnership

The last two years has seen the development of a valuable partnership with the GBRMPA. This partnership has been achieved through the efforts of our Chair and Virginia Chadwick and their determination that it should be embraced by their respective organisations.

Communications with the GBRMPA are the best we have ever had with solid membership of the TRRAC and at least weekly meetings (phone or in person) between the GBRMPA's Director of Recreation and Tourism and our Executive Director.


AMPTO is actively involved in the GBRMPA policy development process and is able to ensure that our industry's concerns are well known and taken into account.

AMPTO will however continue to lobby for inclusion on the MPA so that its voice can be automatically heard at the highest possible level within the GBRMPA and Department of Environment.


UpCairns Port Charges

While Dive QLD was seen as the driving force on this issue and received the most recognition, there were a significant number of persons that realised the main administrative and coordination work was done by AMPTO's Executive Director.

The significant outcomes were:

  1. A $731,000 saving for industry over the next 5 years just on the passenger levy.

  2. An extra year's lead-time before any charging increases. Now to start 1 July 2004.

  3. A gradual increase in berthage fees over 5 years

  4. The fact that the industry stood together to oppose the rise and the political clout we were able to wield.

UpLobbying and Industry Recognition

Without a doubt the last few years has seen AMPTO become an effective lobby group. Federal and State governments invite AMPTO to be part of most decision making processes where we are at all likely to be affected.

AMPTO employs a lobbyist in Canberra and through his services we have been able to gain access to the relevant ministers and their advisors when needed.

In order to maintain a presence within the minds of our politicians, we have programmed and allowed for within our budget, at least three trips per year for our Executive Director to visit Canberra and talk to our political leaders about industry concerns.

Many of the successes mentioned in this document are directly attributed to our lobbying approach.


UpFuel

The Diesel Fuel Rebate Scheme was reviewed in 2002 and there was significant pressure to withdraw the rebate paid to operators which in fact had only been given to our industry the previous year after lobbying by AMPTO.

AMPTO commissioned Ernst and Young to put a submission to the parliamentary committee conducting the review. The cost of this was in excess of $25,000.


Our submission helped in maintaining the benefit under the new scheme called the Diesel Fuel Rebate Scheme. At about 38c per litre this is an extremely important win for our industry and would not have been possible without AMPTO.


UpCOTS

AMPTO has lobbied for and obtained funding for an industry wide COTS control program, which it now operates for the benefit of those operators with their own COTS programs. At the time of writing the program had removed of 58,000 COTS form tourism sites from the Whitsundays to the Ribbon Reefs.

Initially funded by a State Government grant of $300,000 for a pilot study and then by Federal and State grants of $700,000 each, which allowed the program to operate through to December 2003. Subsequent funding of $300,000 was obtained from the Federal Government and the State and Federal governments then committed to $500,000 each per year for the next three years.

Total funds provided and/or promised by government will be $5 million. None of which would have been forthcoming without AMPTO.

The current program will run until December 2006 or longer if funding allows.


UpSWOT ANALYSIS

Strengths


Board Members

The Board Members of AMPTO are a major strength. They bring an almost unlimited knowledge of the industry, a wide experience range, strong leadership, instant credibility with government by virtue of their positions within our industry and the financial resources needed when projects like the Fuel Tax submission need additional funding.

The members of the Board donate their time to AMPTO and pay their own expenses in attending AMPTO meetings and functions. As the Board meets four times per year, this is not an insignificant contribution by these members.

Membership

All the major operators within the GBR are members of AMPTO.

Our members carry about 95% of the tourists that visit the GBR.

With our Association Membership we are able to represent the overwhelming majority of the tourism users of the GBR and we are clearly the peek industry body.

Acceptance by Government

Federal and State governments accept AMPTO as the peak body and this is enhanced through our partnership with the GBRMPA.

We have representation on more than 15 other Boards and are invited to comment on almost anything that is likely to impact our industry.

Financial Position

The financial position of AMPTO is sound. In 2003 AMPTO had its first ever surplus and this was again achieved in 2004. The proposed 2005 budget reflects a small surplus for the year providing membership income remains steady.

These surpluses are directly related to increased membership and membership fees while holding costs down.

Management

The management of AMPTO by the Executive Director, through the Chair, is seen by most of industry to be effective. Timelines are met, calls returned and in general, membership requests/contacts are handled in an efficient manner.

Interaction with government and other associations is positive and every effort is made to deliver on promises or support requests. This positive interaction has resulted in additional requests for AMPTO to become involved in peripheral organisations.

The relationship between the Chair and Executive Director is one of mutual trust and respect and this translates into the Executive Director being confident that he will be supported on controversial matters as long as he has briefed the Chair prior to taking action.

UpWeaknesses

Communications

Even with the massive amount of information available over the web and via email, communications with our members continues to be a weakness. The fact remains that our members do not realise how much is done on their behalf.

Our web site was developed by a site developer who went out of business and it took more than 6 months for us to obtain the passwords and move the site to a new provider.

At the time of writing the web site is being updated and in future it will be updated after every meeting of the Board.

Polarization by the Industry

The tendency for industry to polarize into groups continues to be a problem. There is a perception that the big operators versus the small, Cairns versus the Whitsundays, everyone versus the bare boat operators, etc. While this is not fact and the mix of operators on the AMPTO Board is proof that it is not, it still is a very common perception.

AMPTO needs to work harder at showing an unbiased unified voice to its members as well as government.

It is possible for a controversial issue to so polarize the membership that it could destroy AMPTO and care must be taken to ensure that AMPTO does represent the majority view.

Finances

While our financial position is the best it ever has been, finances continue to restrict what we can achieve.

Since AMPTO's inception it has attracted high quality staff but been unable to offer fulltime employment owing to the lack of its ability to raise enough money to pay those people on a fulltime basis. As a direct result AMPTO has contracted the management of the association to consulting or management companies that had other consulting contracts that topped up their remuneration to an acceptable level. Historically while this has worked, the question must be asked of what might be achieved if the Executive Director could concentrate 100% on AMPTO's objectives and not have to do additional contracts.

Lobbying expenses could easily be doubled to allow six visits per year to Canberra and several to Brisbane. I am sure that the gains in increasing our presence would be enormous, particularly since tourism has just started to become a national and state political force.

The lack of administrative support for the Executive Director often results in time being spent in mind numbingly repetitive tasks that divert productive output but the finances do not allow for an assistant.

Cost of Fees

The cost of being a member of AMPTO is high. With the highest fee being $12,500 plus GST and the lowest full membership fee being $500 many businesses find it difficult to pay.

While the savings generated by AMPTO for the operators on such things as GST, Fuel Rebates and Island Valuations have saved many times the costs of membership, businesses still resist joining AMPTO because of the fees.

Our Association Membership Fee of $200 was more than the annual fee that one association that wanted to join us charged their members on and annual basis. Naturally, they did not join.

Conflict with Politicians

Over the last two years the Executive Director has had several public conflicts with politicians over the GST and RAP issues. These conflicts have been compounded by the fact that he is an active member of the opposition party and managed the election campaign for the current State Environment Minister.

While his standing with the State government is understandably high, he has been banned from contacting the federal member for Leichhardt by the member himself.

Care must be taken for AMPTO to be politically neutral and work will be needed to repair the relationship with the local member and minimise any damage should that person gain higher office.

UpOpportunities

Membership Growth

With more than 700 permittees in the GBR there is an excellent opportunity for membership growth if we can identify the permittees and issues that they feel are important.

Market Growth

Australia is still seen as safe and the value of our currency is not too high, making it an affordable destination. With the advent of international and domestic budget airlines and additional flights from SE Asian and China we will see an increase in tourism visitation. The mix will change and we will have to be very price conscious but with the additional numbers we should be able to see real growth over the next few years.

Better Access to Government

Effective lobbying will open up better access to government. This access will enable AMPTO to put forward our concerns on a multitude of issues and ensure that those concerns are taken into account.

On a State level AMPTO already has the ability to access any Minister but the challenge is to obtain the same degree of access on a Federal basis.

Increasing Finances

Sales of seasickness tablets and other lines may be an excellent way in which to increase AMPTO's funds.

AMPTO has already provided several companies with the tablets and could possibly raise up to $20,000 through their sale over a 12 month period, once we start getting orders from more businesses.

Better Recognition of Value of the Industry

Tourism and in particular, marine tourism has become a very topical subject with government over the last two years primarily because of the RAP process but also because of the national acceptance of the GBR as a major drawcard for tourism and AMPTO's continual lobbying. AMPTO has an excellent base to ensure the recognition of the value of our industry and should try and ensure that they are able to convert that recognition into political strength so that our needs are not overlooked in government policy.

UpThreats

Competition by Other Associations

Competition by other associations is serious threat for AMPTO. These associations all have local or sectorial support and offer their members similar benefits to those offered by AMPTO.

A significant threat is to our membership fees because someone can join an association and have Association Membership of AMPTO for $200 while a full member must pay at least 10% of one day's maximum revenue or $500, whichever is the least. The only thing the Association Member does not get from AMPTO is a vote. Nearly all our full members belong to at least one other association and if they opted to not join AMPTO to save money, it would create a very serious cash flow problem.

Recognition and influence is another potential problem. Government likes to listen to one voice on behalf of industry but when that voice disagrees with them, they have in the past looked to other associations for a different view to justify their own position. We have all seen the "divide and conquer" principle used against our industry with marked success.

There are numerous examples of breakaway association being formed when someone has a problem with the management of an association and this type of industry politics is very destructive in that is splits our voice and our resources and inevitably places yet another association in competition with those that already exist including AMPTO.

Commercial Pressures on Members

Rising costs, smaller profit margins and increased government interference in our businesses are all placing enormous commercial pressures on our members. When this occurs there is no choice other than to cut costs and/or put up prices. Price rises are the most difficult option and in any cost cutting exercise, association membership is an easy out.

Health of the GBR

The health of the GBR is as vital to our industry as is the economic health of our members.

The Federal and State governments have commenced funding the GBR Water Quality Protection Fund, ratified the RAP, restricted fishing through the Fin Fish Management Plan, funded COTS control and increased funding for research. All because of their recognition that the GBR is the economic power house of the North QLD economy.

All of the above may of course be too little too late!

The damage done to the reefs off Cairns five years ago by COTS has resulted in high visitation reefs with less than 5% coral cover and poor visitor satisfaction. Unfortunately there does not appear to be any coral recruitment on those reefs as yet and the reefs are going to be very slow to recover. Possible as long as another 10 to 15 years!

Global warming and the resultant coral bleaching is another problem with no short term answer but with the potential to destroy our reefs and livelihoods.

If tourists on the main do not enjoy their experience or if we continue to lose our coral and coral fish, our members will not survive and AMPTO will wither and die.

Competition by Other Destinations

Other destinations are competing for our traditional tourism consumer. Destinations like Thailand and Indonesia continue to expand their industry despite the perception of being unsafe and the government travel warnings that are issued.

Both the above mentioned countries spend enormous government funds on marketing their destinations.

The costs of operating in these countries are incredibly low in comparison to QLD. Wages, taxes, vessel and infrastructure costs are all much lower and therefore these destinations offer what is promoted as the same product as the GBR at a much reduced rate while maintaining better profits for the businesses concerned.

Possible EMC Increases

The GBRMPA conducted a review of the EMC concessions in early 2004 and while no decision was announced prior to the federal election, there is a strong possibility that an increase in the EMC will occur.

Qualified Staff

The shortage of qualified staff and tradesmen is becoming acute. Cairns has only two marine electricians. Diving instructors are hard to get.

The next few years will see businesses simply not able to access qualified staff or having to pay high, unsustainable rates to poach them from other operators.

Reduced Business Class Airfares into the Whitsundays

Since Qantas stopped flying into Hamilton Island, all business class seats to this destination have ceased. As the destination has a high percentage of 5 Star travelers it is likely that these people will not go to the Whitsundays and this will have a serious flow on effect to the marine tourism industry.


UpFINANCIALS

Current Situation

The current financial situation of AMPTO is sound. In 2003 we reported our first surplus ($37,844) in the history of the company and in 2004 we achieved a $15,000 surplus. 2005 should see a surplus of about $2,000 if income and expenditure match the proposed budget.

The following table shows the comparisons over the last two trading years and the projected figures for 2005. Please note these figures exclude COTS expenditure.

Trading Table

Budget 2005

Membership income is the single most important source of income and this continues to leave AMPTO in a difficult situation. Should just one or two maximum fee paying companies not rejoin AMPTO, the whole budget is thrown into disarray and a loss for that year almost inevitable. The originally approved budget for 2004 included one additional full fee paying member and when they did not re-join, it was only that other membership was up that a loss was not incurred but our projected $20,000 plus surplus was slashed.

Seasickness tablets could provide an important source of income to AMPTO and we have commenced supplying them to our members with a $0.40 markup on a twin tablet packet. We purchase them at $1.10 plus GST and on sell at $1.50 plus GST. A full year should see AMPTO gross a profit from them of around $15,000 to $20,000.

At the time of writing there is not reason to doubt that 2005 will continue in the same manner as the last two years but may, if anything, be slightly better as we generate additional income from sales.

UpCash Flow

Cash flow is relatively simple for AMPTO. Membership income is generated in the first three months with renewals and this represents about 90% of our income. The remaining 10% is generated throughout the year through cost recovery and new membership.

Expenses are essentially evenly spaced throughout the year with the single biggest expense being Management Fees and the second biggest being Lobbying. In December we reach our lowest cash at bank position but this is quickly rectified in January and February with membership renewals. Historically some of our members have been asked to pay their fees early to cover the end of year shortfalls.

A cash flow table is provided below as an example of what it might look like and is close to what has occurred in 2004.

Cash Flow Table


UpAPPENDIXES


Membership Lists

Some businesses belong to more than one association.


AMPTO membership

BMD Constructions Cairns Dive Centre
Capricorn Star Cruises Captain Cook Cruises
CHARROA Club Med Lindeman Island
Coastal Fishing CO PTY LTD Coral Princess Cruises
Daydream Island Dive Queensland
Elizabeth E Coral Cruises Fantasea Cruises
Great Adventures & Green Island Resort Haba Dive
Hamilton Island Aviation Hamilton Island Enterprises
Kanimbla Charters Lady Elliot Island Holidays
Maxi Action (Jetstream & Ragamuffin) Michael Yeo
Mike Ball Dive Expeditions Northern Coast Charters
Oz Sail Cruising Yachts Passions of Paradise
Quicksilver Connections Reef Holidays - Ditchside Pty Ltd
IRES Remote Corporate Services Saunder Family Trust
SSI Australia Sunlover Cruises
Sunsail Trinity Marine Pty Ltd
Voyagers Mountain & Marine WBOA
WCBIA Windsor's Australia


36 Members including associations.


Dive QLD

Adrenalin Dive Allways Diving
Aristocat Reef Cruises B.C.C.S. Pty Ltd
Byron Bay Dive Centre Cairns Dive Centre
Cairns Diving Academy Cairns Scuba Air
Calypso Reef Charters Deep Sea Divers Den
Dive 7 Seas Dive Dive Dive
Diversion Dive Travel & Training Diversnet
Diving Plaza- World Plaza Explorer Ventures Australia
Fantasea Cruises Fitzroy Island dive & watersport
Frankland Island Dive Cruise & Dive Great Adventures & Green Island Resort
Hostel Reef Trips Mantaray Charters
MCL Australia Mike Ball Dive Expeditions
Mission Beach Dive Neptune Scuba Center
Ocean Dive Australia Ocean Spirit Cruises/Dive
Oz Sail Cruising Yachts Passions of Paradise
Payne Industries t/a Holiday Pictures Powerdive International
ProDive Cairns Quick Cat Scuba Adventures
Quicksilver Connections Reef Dive Whitsundays
Reef Magic Cruises Reef Safari Dive
Rum Runner Dive and Sail S2 Dive
Salty's Dive Centre Santa Maria Yacht Cruises
Scuba World Scubapix
Seawalker Australia Pty Ltd SSI Australia
Sunlover Cruises Surfers Paradise Divers
Taka Dive Adventures Tallarook Sail & Dive Charters
The Woolshed Chargrill & Saloon Bar Tusa Dive Charters
Undersea Explorer

53 Members


CHARROA

Mike Ball Dive Expeditions
Taka II
Explorer Ventures
GRO Sea P/L
Undersea Explorer
Poseidon
Tusa Dive
Quicksilver Dive
Great Barrier Reef Cruises
Haba Dive
Enterprise Cruises

11 Members


WCBIA

Anaconda III
Aussie Adventure Sailing
Classic Sailing - Ileola & Ron Argyll
Fantasea Cruises
Illusions
Mantaray Charters
Maxi Action Maxi Ragamuffin
Ocean Rafting
Ozsail
Reef Safari
Schooner Friendship
Seasation
Southern Cross Sailing Adventures

13 Members



WBOA

Whitsunday Rent a Yacht
Charter Yachts Australia
Cumberland Charter Yachts
Queensland Yacht Charters
Sail Whitsunday
Whitsunday Charter Vacations
Whitsunday Escape
Whitsunday Private Yacht Charters

8 Members
 



UpBusiness Plan 2002

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