On-pre-mise clubs come in 2 varieties (and I am not talking about the building type) European style and American style.
The "towel" is part of the American Style club culture. Meaning that the rules of the club dictate that to enter the areas where intimacy are allowed you must disrobe, and the towel is the maximum amount of clothing allowed. In some clubs the towel is also used as a surface/barrier on which you can be intimate without the staff having to then come and change linens. Many clubs feel that the mandate to disrobe is an equalizing factor, and many clubgoers like it because you can more effectively "window shop". (From personal experience I will say that, parties in which the attendees start with less clothing do become sexually active quicker.) There are variations on the american style club that do things such as allowing clothing until as certain time and then you must disrobe. Contact the club in advance to find out what there rules/expectations are.
European style clubs allow you to remain clothed wherever you would like for as long as you like. A European style club is often less intimidating to newcomers.
It sounds like you went to an American style club that happened to be located in Australia. Most likely there is a european style club closer to home.
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