Club 'will prosper', says Hale

Outgoing Ettalong Beach War Memorial Club general manager Cr Peter Hale said he believed "the club will prosper" from recent changes.

Cr Hale cited the poker machine tax and non-smoking laws as reasons for a loss of $802,310 this year, but said that a staff-supported restructure and increased use of the club's conference and function facilities would "positively affect the going forward rate quite significantly".

"While food and beverage income has continued to grow, the increase in the rate of the NSW Government poker machine tax has eroded all those increases, and more," Cr Hale said.

"(Previously we) have explained that there are no allowable deductions for poker machine tax.

"This means the increase in the rate of poker machine tax over the last three years now sees the club paying an additional $1,476,049 this year over and above what it would have been paying at the previous rate.

"In this year alone, there was an increase of $434,320."

Cr Hale said this year's trading loss, $8000 above last year, was due to the increase in taxation mentioned above, and failure of overall income to meet original projections and tax costs.

He also noted that, since the end of the financial year, the advent of the non-smoking legislation had a dramatic effect upon income from gaming.

"This has placed the club in a serious financial position but, with the continued support of its bankers; a detailed review of both the operations and assets of the club and the significant growth expected in conference and function income, the club, with your continued support, should prosper," Cr Hale said.

"The company, as a result, and with the full support of staff, has carried out considerable restructure and this will positively affect the going forward results quite significantly.

"It is anticipated that by January 2008, annual savings in the vicinity of $1.4 million will be achievable."

Details of the savings was to be outlined at the club's general meeting next Sunday, January 20.

"The change in operator of the resort hotel from Outrigger to Mantra has proved to be an extremely beneficial change," Cr Hale stated.

"Mantra is part of the Australian Stella Group, the largest Australian hotel chain.

"Conversion rates for conference inquiries at Ettalong have already grown from four per cent to 30 per cent (with the dollar value doubling in the first three months of their tenure) due to a more aggressive attitude to market competitiveness.

"As at November 20, the club had confirmed $962,000 worth of forward bookings, in comparison with $181,000 at the same time last year.

"It is because of this growth and the restructure being implemented that we believe the club will prosper."

Annual report, 11 Jan 2007 Ettalong Beach Club