Resorts in Australian Tourism:

Abstract The purpose of this study was to investigate some key characteristics of resorts in Australia with particular reference to size, location and star rating. The data referred to 291 properties which either describe themselves as resorts or are so classified by the various Australian State and Territory motoring organisations. All properties listed in the Australian National Touriguide, Winter 1991, which satisfied either of the two criteria were studied. A further group of 120 properties, identified as resorts in the brochures of the six major domestic airlines and/or tour operators were also examined. The study concluded that, despite the efforts of the motoring organisations, there is a lack of consistency in the use of the term resort. The authors suggest that a mismatch exists between consumer understanding of the term, as used by the motoring organisations, and the way in which it is used for marketing purposes by tour operators and by the properties themselves. Typically, a resort in Australia is a three and a half-star property, a thirty five room motel style operation located in Northern New South Wales or Southern Queensland. It is postulated that the existing ad hoc use of the term resort is a recipe for confusion and that this confusion will reign until consumers, property operators and those responsible for informing and advising consumers have a clear and common definition of the term resort.

Brian King is an Associate Professor and Paul Whitelaw a Graduate Research Assistant in the Department of Hospitality and Tourism Management, Victoria University of Technology, Melbourne, Australia.

A recipe for confusion?

Brian King and Paul Whitelaw

Introduction In Australia, resorts have attracted substantial media attention in the 1980's and subsequently the 1990's because of their association with some of Australia's more colourful entrepreneurs who were seen by many as role models of business development prior to the stock market crash of 1987 (Coombes 1985). Notable amongst them were Mike Gore, Alan Bond, Keith Williams and Christopher Skase (Craik, 1991; King & Hyde, 1989; Williams, 1985). Attention was also paid to resorts because they have been a catalyst for overseas and particularly Asian investm ent. Finally, many resorts involved capital intensive development in remote locations. Consequently they are perceived as having a major impact on the history and environment of the regions in which they are located (Barr, 1990; Brannock, 1989; Dean & Judd, 1985; Jones, 1986; Cato, 1989). Despite the intense media and promotional attention the more prosaic issue of defining the resort has been a relatively neglected area. Weigh and Gibbings (1991) while reviewing the performance of the accommodation sector focused on hotels, motels and caravan parks yet alluded to the future role of resorts (identified as destinations and genuine product development). Academic definitions of resorts have tended to be general and pragmatic. For example, Gunn (1988) states that resorts are "complexes providing a variety of recreations and social settings at one location" (p. 108). Note that the definition does not refer to tourism or tourists specifically. An alternative definition (Burkart & Medlik, 1985) is more specific in its reference to tourism but is equally general "Gradually the term resort has come to acquire its literal meaning to denote any visitor centre to which people resort in large numbers". The authors proceed to include capital cities within the definition on account of their role of centres of comm erce and government. In most of the general tourism textbooks, the term resort is used widely, but is never defined. "Popular" usage appears to be the THE JOURNAL OF TOURISM STUDIES Vol. 3, No. 2, DEC.'92

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benchma rk. In Australia a workable definition of resorts has been necessary for legislative purposes. An example of this was Queensland's Sanctuary Cove Resort Act and subsequent amendm ent (Parliament of Queensland 1985 and 1987) which was later elaborated into the statewide Integrated Resort Development Act 1987 (Parliament of Queensland 1988). Such definitions were aimed primarily at investors and set out the responsibility of the private developer vis-a-vis the government and small property owners within resort sub-divisions. However, the focus of the act was establishing the appropriate legal relationships for property development and infrastructure rather than in developing an operating framework for the tourism industry. The e n s h r i n i n g o f t h e t e r m "resort" within a piece of l e g i s l a t i o n w a s f a r re m o v ed from the issue of how the term m ig ht be us e d f or ma rke ti ng p u r p o s e s (Day, 1987; Dobinson, 1987). It is the view of the authors that the Queensland legislation created a new and specific category of development ("the integrated resort") but has not influenced the development of consumer and industry perceptions, nor the development of properties which do not fit the criteria set out in the Act. The federal political structure in Australia has also impeded the esta blishment of a nationally accepted definition for the term resort, since most development activity focuses on the individual states and territories in consultation with local government. The role of the Federal authorities has been, of necessity, limited. In view of the minimal role played by Canberra, much of the activity concerned with the classification of resorts has fallen to the private sector, primarily the state motoring organisations, the tour operators and the resorts themselves. It is for this reason that the focus of this study will be on these three

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parties. Little consistency has been evident in the way that resorts are defined and articulated by the tourism industry to consumers (Gee, 1988; Stiles & See-Tho, 1991). In Australia it appears that different standards are observed by the m otoring organisations (including The Royal Automobile Club of Victoria (RACV), The National Roads and Motoring Association (NRMA) and their equivalents in the other States and Territories), by the main domestic tour operators (i.e. the airlines and coach operators) and by the resorts (or what claim to be resorts) themselves. It is the authors' contention that this lack of consistency may have led to a mismatch between consumer expectations and what is actually delivered by suppliers.

There is little consistency, in Australia or elsewhere, in the way that resorts are defined and how the industry presents them to consumers.

They also support White's view (White 1986) that the absence of widely accepted definitions can make it difficult for developers to gain planning approval for proposed tourism developments. This paper will examine the various characteristics of resorts across Australia. Where are they located? How are they defined? How do they market themselves? What facilities do they offer? And what do consumers understand by the term "resort"? It looks specifically at the issues affecting the definition of resorts and builds on previous debate about classification and grading schemes for the accommodation sector. The article is based on data derived from a database developed at the Centre for Hospitality and Tourism Research (C.H.T.R.) at Victoria University of Technology (Footscray Campus) in Melbourne. Additional data (on resort style facilities for

THE JOURNAL OF TOURISM STUDIES Vol. 3, No. 2, DEC.'92

example) is being gathered for future articles by surveying the properties themselves. It is hoped that the paper will generate debate about the role of resorts in the developm ent of tou rism in Australia. Discussion I t is clear that the concept of resorts means different things to different people. This is particularly so in markets where the use of the term is largely unregulated. In Australia, for example, there are few legal or regulatory restrictions on what a property may call itself or what a tour operator can describe a property as. A caravan site might describe itself as a resort and in fact, many do. The variety of consumer perceptions has allowed operators to make maximum use of the term for marketing purposes. The data indicates that properties predominantly dependent on the self drive tou rist, as well as properties that form a part of holiday packages, constructed and marketed by the domestic airlines, a re equally susceptible to this temptation. This study profiles the resort industry, assesses the incidence of property owners, managers and others designating the properties as resorts and the incidence of the word resort used as an appropriate marketing tool. It also identifies some of the repercussions of such actions. The authors have examined the broch ures of six key operators involved in the domestic Australian holiday market. Three are airlines, namely; (i) Ansett Australia, (ii) Australian Airlines and (iii) East West Airlines and three are coach operators, namely; (i) Newmans Tours, (ii) AAT/ Kings and (iii) Australian Pacific Tours. These six constitute over 80% of the domestic holidays taken in Australia which are not based on the private motor car. In addition to the six brochures, the directories of the Motoring

Organisations (RACV, NRMA and their equiva lents) ha ve been examined. This analysis involved a study of how properties have chosen to name themselves (critically do they include the word "resort" in their name or title?) and how the motoring organisations choose to classify them. The research is based on a sample of 291 properties listed in the motoring accommodation guides. These properties were selected because they are either classified as resorts or choose to use the word resort in their name. Throughout this paper the term resort will be used to refer to those properties classified as resorts by the motoring organisations. Those properties that use the word resort in their name, but are not classified by the motoring organisations are described as "self styled resorts". The entire sample of 291 establishments, consisting of both groups, will be described as the properties. Analysis Type of Property It is the contention of the authors that the view of resorts held by the public is based upon a mixture of ex perience (i.e. has the person stayed at a holiday resort previously and was the experience a favourable one?) and on the images of resorts as depicted by the resorts them selves, by package tour

operators and by other media (King & Hyde, 1989, p.205). The most common image of resorts portrayed through promotional material is of large scale developments in isolated areas. The accommodation incorporated in the resort would typically be offered by an international and often 5-star chain such as Hyatt or Sheraton. I n practice, m any of the destinations in Australia that describe themselves as resorts are more modest than what is described a bove. White, for example, acknowledges that motels are sometim es resorts (White 1986). He classes motels into three categories: (i) transit motels, (ii) terminal motels and (iii) resort motels. His definition of resort motels emphasises the availability of facilities and activities nearby, rather than their incorporation into the actual resort com plex. He states that "a resort motel caters for travellers wishing to stay an extended time in one locality in order to take full advantage of the local attractions . . . Ideally a resort motel should be located near large, open, public spaces such as parks, golf courses, lakes, rivers, beaches or man-made tourist attractions" (pp. 108-109). The definition of resorts used by the motoring organisations in the motoring guides is more explicit on what m ust be included "on the

Table 1: State by Property Type. AAA Rating TOTAL

N.S.W. QLD.

VIC.

S.A.

W.A.

TAS.

N.T.

Hostel Cabins Caravan Park Chalet Cottage Guest House Holiday Farm Holiday Unit Hotel Motel Resort Serviced Apt.

0 0 11 0 3 1 0 7 6 43 1 5

2 0 6 0 1 1 4 39 8 30 33 1

1 0 5 0 0 5 1 6 3 10 1 0

0 0 2 0 0 0 0 0 1 5 2 0

1 0 6 2 0 0 0 13 6 4 1 2

0 0 0 0 0 0 0 0 3 0 1 1

0 0 1 0 0 0 0 1 0 1 3 0

4 1 31 2 4 7 5 66 27 93 42 9

TOTAL

77

125

32

11

35

5

6

291

Source: C.H.T.R. Database

THE JOURNAL OF TOURISM STUDIES Vol. 3, No. 2, DEC.'92

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Table 2:

Number of Properties in Selected Regions.

REGION

(46% or 12 out of 26).

NUMBER OF PROPERTIES

PERCENTAGE

10 9 10 6 5 31 26 23 37 10 23 11 11

3.4% 3.1% 3.4% 2.1% 1.8% 10.7% 8.9% 7.9% 12.7% 3.4% 7.9% 3.8% 3.8%

Victorian South West Coast North East Victoria Wollongong & South Coast Hunter Valley N.S.W. Central Coast Far North N.S.W. Gold Coast Sunshine Coast Central Queensland Coast Townsville Cairns Perth Margaret River

The larger properties tended to have higher star ratings. Six of the 11 five-star properties were large, four medium and one small. Of the 53 four-star properties, 28 were small, 13 medium and 12 large. Of the 64 three and a half-star properties, 53 were small, seven were medium and four large. There was one unclassified large property and 56 small unclassified properties. We will refer to this last point in due course.

Source: C.H.T.R. Database. Note: Percentage of total of 291 properties.

premises" to merit resort categorisation. For example, they are described as those establishments which Offer(ing) extensive recreational facilities on the premises, may cater to specific interests such as golf, tennis, fishing etc. with an all inclusive tariff option. (Source: RACV Accommodation Guide, 1992, p.6) Note that the stricter definition employed here, does not preclude a property from calling itself a resort, or advertising itself as a resort in the guide. Of the 291 properties evaluated in this study, 42 are classified by the motoring guide as a "resort" whilst 249 fit into alternative categories. Geographical dispersal The geographical dispersal of the 291 properties listed above is revealing for its focus on Queensland and N.S.W. This dispersal reinforces the popular conception of resorts in that they are typically found in sub-tropical or at least warmer locations, particularly in Queensland. In practice 125 of the 291 are Queensland-based with 77 located in New South Wales. Within the states, it seems that most resorts are clustered in ge ographical groups along the coast, particularly the eastern 44

seaboard. Some of the more concentrated areas are shown in Table 2.

In term s of the geographical dispersal, the larger properties were more heavily represented in New South Wales and Queensland (see Table 3). Star rating

As one might anticipate, the resorts are found in predominantly nonurban areas, although the Gold Coast and Perth host a number of properties, 26 and 11 respectively. Size We have grouped the properties into three sizes; less than 100 rooms (small), 100 to 199 rooms (medium) and 200 plus rooms (large). Of the 26 large properties in the sample, 12 were classed as resorts, 14 of the 40 medium sized properties were classed as resorts and 16 small properties were classed as resorts. Of the 225 small properties, 59 were classed as holiday units and 83 were classed as motels. The highest proportion of properties satisfying the resort criteria was in the large category

Apart from the anomalous uncla ssified group, the star categories appeared to be normally distributed. However, of particular interest is the geographical distribution of properties by star rating. (See Table 4.) The tour operators Whilst 291 properties are listed by the motoring guides, the "tour operators" list a total 120 in their brochures. Of these 120, 82 use the word resort in the name of the property while 38 do not use the word resort in the name but use the word in the accompanying text to describe the property (see Table 5). Not surprisingly, in view of the shorter stay at the resort encountered, the coach operators

Table 3: Size Strata by State. SMALL New South Wales Queensland Victoria South Australia Western Australia Tasmania Northern Territory TOTAL

59 91 28 10 29 5 3 ____ 225

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MEDIUM 9 19 3 1 5 0 3 ____ 40

LARGE 9 15 1 0 1 0 0 ____ 26

TOTAL 77 125 32 11 35 5 6 ____ 291

Source: C.H.T.R. Database

Table 4:

State by Star Rating. N.S.W. QLD.

VIC.

S.A.

W.A.

TAS.

N.T. TOTAL

Unrated One One and a half Two Two and a half Three Three and a half Four Four and a half Five

11 0 0 1 8 11 20 18 2 6

25 1 1 5 12 17 29 31 1 3

8 0 0 1 4 10 5 4 0 0

3 1 0 1 2 2 1 0 1 0

10 0 1 2 3 6 8 0 3 2

2 0 0 0 0 2 1 0 0 0

2 0 0 0 1 3 0 0 0 0

61 2 2 10 30 51 64 53 7 11

TOTAL

77

125

32

11

35

5

6

91

Source: C.H.T.R. Database

m erely mention th e property whereas the airlines go to great lengths to provide a detailed description of the property. An interesting situation arises where the property is described as a resort in the brochure but the word does not appear in the property's name. This could imply that the airline or coach operator b elieves the resort "allure" is significant although the property operator has not felt it necessary to use the word resort in the property's name. Collectively, the airlines have used the word resort to describe a property on 45 occasions when the word does not appear in the property's name. By contrast there are 43 properties with the word resort in the name which have not been described by the airline brochures as resorts. One can speculate that in such cases either; (a) The resort title is seen as sufficient to portray the relevant image, or (b) The airlines and or coach

operators do not share the views of the "resort" management. In several instances there were differences between the use of the word resort in the brochures. One airline included the word resort when naming a property while another airline did not. In one instance one airline did not inclu de the word resort in th e property's nam e even when an a c c o m p a n y i n g pho t og ra ph o f the property clearly ide ntifie d the word in its (the property's) name. Observations Small luxury resorts appear to be particularly difficult to classify. The motoring organisations have failed to categorise a number of such installations. Fourteen properties classified as resorts which also call themselves resorts are unclassified in terms of star rating. These include significant developments such Bedarra Bay with its 1 6 units, Bedarra Hideaway (also 16 units) and Orpheus Island (23 units).

Table 5: Properties Using the Word "Resort'"

With "resort" Without "resort" Total

DESCRIBED

NOT DESCRIBED

TOTAL

46 46 ____ 92

85 12 ____ 97

82 38 ____ 120

Source: Various Coach Operator & Airline Brochures Note that some values will not total because of multiple listing by airlines and coach operators.

Australian Airlines Resorts which own the first two, promote the properties as highly luxurious and charge premium prices. We are not yet able to assess why these properties do not receive a star ra ting. This wildcat category highlights the entrenched problem of classification which affects even those apparently secure properties which are classed as resorts and describe themselves as such. A number of holiday units (12) also fail to rate a star classification. The proportion accounted for by Queensland varies substantially by property type. Thirty-three of the 42 resorts classified as resorts are in Queensland, with the remaining nine spread across the other states and territories. Thirty-nine of the 66 holiday units listed are Queensland based. These are the two categories where Queensland dominates. In the other ca tegories, th e geographical spread is substantially more dispersed. Eleven of the 30 caravan parks are in NSW, six in Queensland and 15 in other states. Five of the seven guest houses are to be found in Victoria. Eight of the 28 hotels are NSW based with the remainin g 20 dispersed across the other states. Forty three of the 93 motels are in NSW, 30 in Queensland. Of the 19 four-star and five-star motels, 15 are NSW. It is interesting that the vast bulk of properties which one might describe as conventional resorts (i.e. classed as resorts and calling themselves such) are indeed Queensland based. Furthermore, many holiday units which are located in Queensland choose to describe themselves as resorts. Popular Queensland destinations such as the Gold Coast, typically developed around the concept of family holiday units. The high number of such units in Queensland which de scribe themselves as resorts could be accounted for simply by the higher concentration of such properties in that state or else by a deliberate de cision by the operators to position themselves in a highly

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competitive market. Operators may believe that the use of the term resort adds a com petitive and positioning strength. In the ca se of NSW, th e high proportion of caravan parks, hotels and motels using the term resort is revealing. One might speculate that NSW coastal caravan parks are very conscious of competition from altern ative holiday destinations on the Queensland side of the border. By offering a resort concept, a caravan park in say Byron Bay might communicate to the key market of Greater Sydney that the range of facilities offered in the Gold Coast is offered closer to home, namely on the NSW side of the border. The substantial number of NSW motels a nd hotels describing themselves as resorts is more difficult to explain. The use of

Competitive forces seem to be pushing even caravan parks, cottages, guest houses and holiday farms to call themselves resorts ... what are the necessary requirements?

the word resort may be a symptom of the decline in market demand for highway motels and an attempt by the remaining properties to be at least seen to be offering something different.

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properties (17 out of 18). These properties are larger in scale than those with a lower star rating. The five-star properties have 269 rooms on average and the four-star properties 230. The average for three-stars is 80 rooms and those unable to be starred (e.g. Bedarra) 32. We can conclude that the bulk of larger and more luxurious resorts are located in Queensland. Not surprisingly, cottages, guest houses and holiday farm s wh ich call them selves resorts are m uch smaller (11, 36 and 15 units respectively). In the case of holiday units, it is a gain the smaller complexes that are most difficult to classify. The unclassified properties have 20 units on average. In the case of motels, the four and a half-star and five-star properties have fairly high average numbers of rooms (129 and 102 on average). Apart from the four, four and a half and five-star properties which are concentrated in NSW, the others are spread widely across all states, indicating that general factors seem to cause motels to promote themselves in this manner and not only regional factors. Conclusions

The geographical dispersal by star ra ting is also interesting: Queensland dominates in all star categories except the five-star segment where N.S.W. has six to Queensland's three. However, given our previous comments about the, perhaps, inappropriate classification of ungraded properties, it m ay b e that Queensland supplies more "true five-star" properties than N.S.W.

In the absence of a ny widely accepted working definition for the term resort, a number of interpretations have been explored. In this article we have taken the view that th e diversity of perceptions is likely to have an influence on consumption patterns a nd on levels of consumer satisfaction. It has been argued that greater standardisation would bring about a better match between what tourists are offered and what they think they are being offered.

The average room capacity of the various categories of "resort" listed above is also revealing. Of those resorts which describe themselves as such, most of the luxury properties are located in Queensland. All but one of the fivestar properties are in Queensland as are all but one of the four-star

A number of the findings of this research restate what might have been expected. It is not surprising, for example that most properties identified in this study are located in the warmer parts of the country within relatively easy reach of the

THE JOURNAL OF TOURISM STUDIES Vol. 3, No. 2, DEC.'92

main population cen tres i.e in Queensland and on the north coast of N ew South Wales. This is probably consistent with popular perceptions. Oth er conclusions are more surprising. Of our sample of 291, most were small properties (225). Of this category, only a tiny proportion are acknowledged as resorts by the motoring organisations, whilst most are described as hotels, holiday units, caravan parks or motels. Some properties have simply taken advantage of the fa ct that definitions of what constitutes a resort are many and diverse and have chosen to describe themselves as such, presumably for marketing related purposes. In NSW, it is particularly common for motels and holiday units to describe themselves as resorts. We have identified inconsistencies between the nomenclature applied by the properties and that applied by the motoring organisations charged with the job of classifying them. Furthermore, we have suggested that tou r operators apply a different set of principles to the properties. 43 properties which describe themselves as resorts and are featured in tour operator brochures, are not actually described as resorts by the operators. The coach operators and airlines each use their own independent criteria, thereby exacerbating the inconsistencies. Finally we identified a substantial category (61) of properties which call themselves resorts but which have n ot been given a formal categorisation by the motoring organisations. Clarification is needed for the benefit of both consumers and suppliers in Australia as to what facilities are necessary as a prerequisite to classification as a resort. Should swimming pools, retail outlets, marinas and golf courses be necessary requirements? If so, most of the sm aller properties would be required to un dertake major investments. Such investments

would be of at best m arginal viability. The cost of major capital investmen ts can often only be justified wh ere significant economies of scale are present. Such economies typically arise as a result of the expenditure generated by high concentrations of tourists requiring large numbers of bedspaces. Currently many of the smaller properties simply direct their clients to facilities in the neighbourhood and do not offer such opportunities on site. Most would have insufficient capital to invest in lavish resort facilities. According to ou r study of 291 properties, the typical example of what calls itself a resort is a 30 room, three and a half star motel located in New South Wales or Southern Queensland. It would be helpful to know the perception of consumers and of th e general public. Is their perception dominated by the four and a half to five star integrated resorts of Queensland? The authors recommend some further consumer research on this issue.

We conclude this study by posing a challenge for the tourism industry. (i) The issue of what facilities offered on-site (if any) are n ecessary prerequisites for resort classification should be addressed. Such a process might eventuate in a process of renaming, reclassifying and regrading certain properties. (ii) Improved guidance should be provided for consumers as to what constitutes a resort in Australia. The resort market in the Asia Pacific is increasingly competitive and consumers will seek guidan ce on product quality. If Australia is to offer world class facilities it will need to provide domestic and overseas consumers with assurances of what Australian resorts offer. The current ad hoc use of resort terminology will continue to be a recipe for confusion until these issues are addressed.

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