06/09/2024
|| UPDATE ON THE FUTURE OF THE NATIONAL PARK HOTEL ||
As Spring arrives, we want to be transparent with you about the future of the National Park Hotel.
We have decided that we will be closing Bar and Bistro in it’s current form & we are pivoting our focus towards creating an outdoor tourism business.
This new venture will roll out in stages, as part of this journey, we plan to eventually re-open the Bar with light food options for all to enjoy.
As we navigate the challenging economic landscape, we want to be fully transparent about why the National Park Hotel, in its current form, is no longer a viable business model for us.
Several key factors have contributed to this difficult decision, and we believe it’s important to share them with you;
ECONOMIC PRESSURES
The current economic climate, coupled with the rising cost of living, has put immense pressure on many families and small businesses, including pubs and venues across Tasmania and mainland Australia—some of which have, unfortunately, been forced to close permanently. We’ve come to realise that we’re not alone in facing these challenges.
Many other hospitality businesses, particularly country pubs, are also struggling with the escalating costs of essentials like food—expenses that we are all feeling at home, including alcohol etc which are magnified on a much larger scale for businesses like ours, especially including expenses such as insurances and power costs which have become untenable. The fact is when the income falls far short of covering general operational expenses, it becomes impossible to continue operating under the old model.
SEASONALITY
The National Park Hotel has always been heavily reliant on seasonal tourism. Which generally equates to 12-16 weeks per year. Unfortunately, the fluctuations in visitor numbers create periods of low business activity, making it incredibly difficult to sustain the hotel throughout the year. This seasonality prevents us from maintaining a steady income stream, which is essential for any business to survive.
COMMUNITY IMPACT
We fully recognise that this decision will cause disappointment, particularly within our local community. We’ve heard your grievances, albeit some not directly to us, but via the ‘bush telegraph’, and while some of the criticism and rumours have been unkind, we expected there would be criticism, furthermore, while some remarks have been hard to hear, we understand and accept the frustration some of you feel toward us and our decision.
We also recognise that these thoughts and opinions stem from not fully understanding the complexities and challenges involved in running this particular business in this particular environment, especially with what we have experienced over the past 3 years.
It is easy as an outsider to not have appreciation or understanding of the behind-the-scenes efforts and the difficult decisions that need to be made from an operational stand point, especially when the outcome impacts the broader community.
FINANCIAL VIABLITY
Continuing to operate the National Park Hotel as it stands is simply not a financially sustainable option. We have financially invested a significant amount of money in efforts to build the business, largely in entertainment, commercial kitchen, beer garden and a lot of required upgrades behind the scenes. The harsh reality is that this business is not generating enough income annually to cover its costs, let alone allow for growth or reinvestment, as such, it would not be smart or responsible to continue with this model.
We hope you can understand that it is simply not possible for us to operate this pub in the same way it has been in the past.
PHYSICAL & EMOTIONAL VIABILITY
Anyone in business knows that owning and operating a business involves much more than just financial investment; it demands significant emotional and physical dedication as well, which we and our staff have given over the past 3 years.
However, running a business of this nature , especially a financially challenged business, takes a heavy toll. While we have been wholeheartedly committed to the success of the National Park Hotel, we have reached a point where we must also prioritise our own well-being and the sustainability of our efforts.
THE PATH FORWARD
While the decision to close the Bar & Bistro in its current form was not easy, we are committed to creating a new and sustainable model that better suits the realities of our environment.
We are actively working on rebranding and developing an outdoor tourism business that will also allow us to include, eventually re-opening the bar to the public, as part of the new venture.
The truth is, if we don’t make significant changes, we will be forced to close permanently. However, we are determined to avoid that outcome and are doing all that we can to ensure that we can re-open the bar, so that the local community and travellers alike will have somewhere to grab a cold beer.
We thank you for your understanding as we make this transition.
Tony & Ami
Derwent Valley Council Derwent Valley and Central Highlands Tourism Association Inc
