26 March 2009

Too many boats barrier to Reef business

CAIRNS Ã¢â¬' A consultantÃ¢â¬â¢s report has offered options on the best ways to counter oversupply of boats servicing QueenslandÃ¢â¬â¢s Great Barrier Reef.

Consultant Bill Calderwood has recommended either the establishment of a joint venture fleet or a Government buyback of some boats to ensure the viability of the industry sector.

Tony Baker, managing director of the Quicksilver Group Ã¢â¬' the biggest boat operator on the Reef - agreed capacity had increased over the past decade while tourist numbers had declined and it was stretching some operators to breaking point.

However, while he agreed a buyback could help ensure the sustainability of Reef tour operations, he believed economic pressures would result in changes before that option was considered.

"Given the current market, I think there will be some form of consolidation before then," Baker told the Cairns Post.

In his report, Calderwood also recommended a code-sharing arrangement where operators would sell seats on other companiesÃ¢â¬â¢ vessels.

"I donÃ¢â¬â¢t think it is as easy as code sharing like with planes. Everyone out there competes hell-for-leather,Ã¢â¬~ said Baker.

"There is an inordinate amount of competition out there and I guess you have to ask is it harming the viability of the industry as a whole."

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Your Comments (1)

Is it 1 April already?

The suggestion by Jim Calderwood to buy back "excess capacity" marine tourism boats would have been a good laugh for an April fools publication. If any politician jumps on this idea, I know a whole number of industries who'd love to get a handout from the government to sweeten their downsize. The operators who put the boats into service reap the profits for the risk they are taking. They have to live with the downside as well.

By Dirk Werner-Lutrop, Thursday, March 26, 2009