Sports

Adelaide Oval’s boutique hotel proposal stirs debate and cynicism

A proposed hotel development alongside Adelaide Oval has kicked off fierce debate, with South Australian Cricket Association (SACA) members joining a chorus of voices who question its necessity.

The Stadium Management Authority (SMA) has proposed a $42 million development on the eastern side of the oval, which would be funded by a loan underwritten by the State Government, which supports the plan.

The $535 million redevelopment of the oval completed in 2014 has proved immensely successful and profitable, despite concerns it could threaten the venue's status as one of the best cricket grounds in the world.

One SACA member writing on social media in response to the latest announcement said he had fully supported the original redevelopment, saying it brought a "new lease of life to the venue".

"However, it's not anti-progress to see this proposal as a gross abuse of the support given by members and the general public for the original redevelopment."

He was supported by another member, who asked if "we have any say over this".

The SMA subleases the oval from SACA and the SANFL, who lease it from the Government.

When the oval was redeveloped and reopened in 2014, it followed nearly 18 months of debate and it approval from 80.37 per cent of SACA members.

There has been no mention yet as to whether SACA members will have a role to play in any decision to build the proposed 128-room boutique hotel.

Adelaide Oval and city at night

Development to utilise existing catering assets

Premier Steven Marshall told ABC Radio Adelaide's Breakfast program the development would be within the existing boundaries of Adelaide Oval and bolster the SMA's income.

"It's going to diversify the money coming into the SMA and make better use of the asset there," he said.

"They have a whole pile of catering, fixed assets on the site that are only used when there is an event there.

"This is a way to tap in and better utilise the asset that we have at the Adelaide Oval seven days a week, 365 days of the year."

But people contacting ABC Radio Adelaide said there were enough hotels within walking distance of the oval and that the $40 million footbridge was built to connect the precinct with the CBD and city accommodation:

"A quick check on the internet and it says 80 hotels in the Adelaide CBD [and] checking the map shows around 50 within walking distance of the oval."

"There are plenty of hotels to supply demand all over the city, spreading the tourism to other areas of the city and suburbs so everyone gets a piece of the pie during sporting events."

"Why not loan the money to Adelaide City Council and build a hotel on the [former] Le Cornu site in North Adelaide?"

A photo of Adelaide Oval taken from above.

But the proposed hotel did attract some support from the public:

"Love the idea. As usual it will return $10 for every $1 spent and the whingers will move on to some other issue by next week. It will be run by the oval's management authority and won't encroach one extra metre into the parklands. What's the actual issue?"

"Awesome, brilliant and sophisticated Adelaide. Very little impact with footprint. I would be using restaurants, etc of oval. How forward-thinking and what a global impact. Go for it."

SMA prices come under renewed attack

But people of both sides of the hotel debate found common ground in questioning the SMA's agenda, which has been heavily criticised for several years over inflated food and drink prices inside the ground:

"Why don't you put the loan to the SMA to keep food and drink prices down at the oval?"

"If it's anything like the food and beer pricing there, it will be the most expensive hotel in the state."

"I love the idea it will be under the current grandstand footprint and involves no outwards expansion into parklands. It's not like the stadium authority is going to ever go broke as long as a 600ml bottle of filtered water still sells for $6. Government gets the cash back with interest and hundreds of jobs are created."

Government gears up for fierce debate

Mr Marshall said he was expecting it to be a divisive issue and pointed out that a lot of people objected to the oval's original redevelopment.

He said the SMA was going to use the same architect and there would be no change to the footprint of Adelaide Oval on the Parklands.

Drinks stall at Adelaide Oval

"The SMA says this will help to improve their financial viability going forward," Mr Marshall said.

"It will create additional returns, income streams for the oval, and that's going to secure in making sure they continue to invest in this world-class facility and make sure it remains world class."

Opposition Leader Peter Malinauskas said Adelaide Oval had been a "stunning success" and already enjoyed government and taxpayer support.

"We were OK with that arrangement in the past," he said.

"What we don't think we should be doing is lending taxpayers' [money] for a hotel development when other small businesses, other hoteliers can't get access to that arrangement.

"This is money the State Government could otherwise be using to invest in infrastructure or capital with our hospital or education system."

But the Premier said the Government was not offering a grant and instead taxpayers would get a return on the 30-year loan.

"Getting a commercial loan is difficult [for the SMA] because they don't have an asset to secure it against," he said.

"We are essentially levelling the playing field."

Original Article

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