AAoA & AHA split on 'one voice' to represent accommodation sector

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The AAoA pledge to continue their commitment to unite the Australian accommodation industry.
The AAoA pledge to continue their commitment to unite the Australian accommodation industry.

The Accommodation Association of Australia (AAoA) along with the Australian Hotels Association (AHA) will run as separate organisations, after the dissolution of their 2014 Memorandum of Understanding (MOU) to form a joint venture.

According to AAoA CEO Richard Munro, while the outcome has been disappointing in some respects, the AAoA has been left stronger and in a more independent position than under the proposed joint venture.

Munro notes that since the deal's dissolution, 85 per cent of chains across Australia have shown enthusiasm, support and a commitment to back the AAoA moving forward, and several of the key operators involved in developing the joint venture have now joined the Accommodation Association board.

In response to comments made by AHA CEO Stephen Ferguson, Munro stated, "Firstly, we do not believe the offer presented by the AHA represented the 'intention of retaining the spirit of the agreement.'

"To the contrary, the proposal was in essence a takeover proposition and was rejected unanimously at a meeting attended by 16 senior Industry and independently by the AAoA Board as being not in the best interests of the industry.

"Therefore any offer to 'service the obligation of their members at no additional fee' would only have been offset through the absorption of AAoA assets."

According to Munro, in most states and under the AHA's current rules, unlicensed properties cannot be taken as members. On the contrary, Munro claims the AAoA can and always will have the ability to represent all accommodation operators, particularly through their registered organisation MIMA in Fair Work Australia.

The AAoA pledge to continue their strong commitment to uniting the Australian accommodation industry with a single vision and voice. They intend to work on providing much needed industry representation to accommodation operators around Australia; representation that is not compromised by competing interests such as gambling or liquor.

"The Association is an evolving organisation, reflecting our growing industry and as a result, we will soon announce a number of exciting initiatives to ensure advocacy on behalf of the accommodation industry is taken to a new level, nationally and across each state and territory."

Munro said that the first step is to reinvigorate the Board, with new Board additions having already been appointed. The new members are: Simon McGrath, Chief Operating Officer, Accor; Trent Fraser, Chief Executive Officer, Choice Hotels Australasia; and Zed Sanjana, Chief Executive Officer, Quest Serviced Apartments. Additional appointments to the board are pending.

They join existing Board members: President Julian Clark, Chief Executive Officer, Lancemore Group; Rachel Argaman, Chief Executive Officer, TFE Hotels; Col Hughes, Independent Director; Bruce Copland, Independent Director; Ian Sandilands, Director, Best Western Hotels; and Andrew Turner, Executive Vice President of Hotel Management, SilverNeedle Hotels.

"While these changes have been taking place, we are not being distracted from our main task - continuing to advance the interests of operators in the accommodation industry to key external stakeholders, including government," Munro said.

"For example, our Association was the only one to lodge a submission to the Federal Government's Tax White Paper process which has a sole focus on issues which directly impact on tourism accommodation businesses."

"While last week, we sent another policy paper to key stakeholders in response to the current review of disability access standards, another issue which is of vital importance to our industry. These and other issues such as taxation, regulation and competition were discussed directly on behalf of members with the Prime Minister, the Treasurer and Senior Ministers from both sides of politics."

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