Australia’s tourism sector may have taken a battering in recent years due to the GFC and, more latterly, the strength of the Australian dollar.
However, the stats show that the accommodation industry is beginning to recover. A recent IBISWorld report said that the $4 billion industry’s revenue decreased by an annualised 0.3% in the five years to 2011-12, but is now set to benefit from “steady growth in both domestic and international tourism, stronger economic growth and increased traveller numbers.”
So what is the cheapest way for a sole trader to tap into this upturn? You’d find it hard to run a less capital-intensive business than a bed and breakfast.
B&B operators need to comply with a multitude of laws and licensing requirements, including planning, food safety, liquor licensing, insurance, safety, employment, hire of locums and anti-discrimination.
As a rule of thumb, you will need to install a good quality fire alarm system and may need to make changes to the kitchen/s to comply with food hygiene requirements.
You may also need to factor in the cost of any new furniture, TVs, coffee-making facilities, internet access and so on.
However, beyond those costs, a solo-run operation shouldn’t break the bank and, if you’ve got the right location and build a decent reputation online, could prove a nice earner.
