Reviving a financially struggling resort demands a blend of strategic vision, operational expertise, and a deep understanding of the needs of its timeshare owners. Frontline Leisure Management exemplified this by breathing new life into Durban Spa – a beachfront resort that faced significant economic challenges due to Covid and the KwaZulu-Natal looting in 2021 followed by the 2022 floods.
The process began in mid-2021 when Frontline Leisure Management (FLM) assumed the role of Managing Agent at Durban Spa. After a comprehensive assessment, key areas for improvement were identified, including operational efficiency, guest satisfaction, and financial management. With a strategic plan, FLM set out to implement targeted initiatives to revitalise the resort.
Paul Lishman, Director of Frontline Leisure Management, explains the execution of this multi-faceted approach.
ENHANCED GUEST CENTRICITY
In collaboration with the Durban Spa Board of Directors, proactive measures ensured that owners and members affected by Covid-related closures could access replacement stock over three years, culminating in 2023. This initiative demonstrates our empathy and understanding of the challenges our guests face and reinforces our dedication to fostering long-term relationships built on trust and mutual respect.
PROPERTY REFURBISHMENT
In 2022, Falconer Designs spearheaded the renovation of two balcony units, transforming them into model units that showcase our future vision. These units give guests a glimpse into the modern, luxurious accommodations that await them.
OPTIMISED SALES OFFICES AND OWNERSHIP
We have introduced innovative ownership options, such as “pre-determined life ownership” and “Right of Use” agreements, which offer increased flexibility and appeal in our sectional title resales. These initiatives reflect our commitment to meeting our clientele’s diverse needs and preferences. Establishing two on-site sales offices has streamlined our sales processes, offering prospective buyers a convenient and personalised experience.
R1.3 MILLION DEFICIT ERADICATED
Despite facing a deficit of R1.3 million in the 2020/2021 fiscal year, our strategic business and operational initiatives have led to a remarkable transformation. Not only have we eradicated the deficit entirely, but we’ve also generated a surplus nearing R2 million in the 2023/24 period. This financial turnaround and growth mark a significant milestone in Durban Spa’s journey towards long-term sustainability and prosperity.
IMPROVED TENANT AND DEBTOR MANAGEMENT
All tenant debtors previously in arrears are now current with their payments. Implementing this robust debtor recovery strategy has contributed to a remarkable revenue increase of over 50%, while simultaneously reducing outstanding debts from the 2022/23 period.
ENERGY OPTIMISATION
By shifting resort laundry operations to night shifts and integrating cleaning automation, we have significantly reduced energy consumption while maintaining high standards of cleanliness. Furthermore, we are adopting Ozone Technology in our laundry operations and installing energy and sound-efficient windows. These measures not only reduce our environmental footprint but also enhance guest comfort.
TARIFF RECTIFICATION
An energy consultant discovered that the resort had been operating on an incorrect tariff for years. Correcting this oversight has led to substantial savings, ensuring optimal cost-efficiency.
Compliance and safety enhancements
Installing a new water tank has improved water pressure for the sprinkler system and aligned us with ASIB standards and compliance as well as enhancing fire protection throughout the resort.
A RESILIENT COMMUNITY
The collective efforts of Frontline Leisure Management, the Durban Spa Board of Directors, and the dedicated staff have yielded remarkable improvements across the resort’s operations. From enhancing guest centricity and strategic property refurbishment to achieving financial turnaround, our journey has been marked by perseverance and a relentless pursuit of excellence. As we look towards the future, we remain committed to building upon our successes.