2017-04-11 P&E Agenda Attachment 1 to Item 1 Housing Needs Assessment

considered to be a solution, as there would be an outcry from owners, whose units are worth one
third more if they are permanent than tourist21.

Types of Households/People Seeking Permanent Accommodation in Resorts
Many permanent residents are simply average people seeking small affordable accommodation,
and include, particularly in one case, a large number of older people. Many people seeking low-
cost accommodation are said to be on welfare benefits.

For some people, resort units have been cheaper than a retirement village, and some agents have
sold one of the larger resorts that way, i.e. as a gated, managed, safe community for older people.

Issues of Visitor/Permanent Conflict
Permanent residents can create image problems for tourism, particularly those who ignore body
corporate rules. In some situations permanent residents experience noise, have clashes with
tourists and impose demands on managers that are not their responsibility (such as when an
elderly resident has an emergency at night). One resort experienced younger people in a rental
unit in the past and these caused clashes with both tourists and older residents. Rental units are
difficult to control because they are not the manager’s tenant and the real estate agent are not
on the ground. In the words of one manager, “there are always problems; the two don’t mix”.

The letting of some units through AirBnB can also create difficulties for management and guests.
Owners of these units do not contribute to costs such as running the courtesy bus, and it is both
difficult and confusing to advise guests that they are not entitled to all the services of the resort.

The reduction in numbers of tourists can make it difficult for a restaurant to survive, and other
services offered by the resort. Many managers have been fighting back to reclaim units lost from
the letting pool. This has become easier as holiday occupancies have increased and it can be
shown that holiday letting is more profitable than permanent letting.

A range of people may seek accommodation on AirBnB or similar websites for a variety of
reasons. The Holiday Rental Industry Association considers that Short Term Rental
Accommodation such as this fulfils a legitimate need and while there may be some issues, there
are likely to be significant social and economic benefits as well.

Extent of the Issue
The extent of the problem has been described by some resort owners as ‘massive’. The majority
of resorts affected are in Noosaville, because they are more affordable to purchase or rent. The
issue appears to occur across the board, from large resorts to small blocks of say 12 units. One
resort was said to have lost its business completely because it could no longer operate as a resort
with only two units holiday let.

Most of the main resorts can relate that the number of units let to permanents has decreased in
the last two years. 2008 to 2012 was the worst period, when the GFC affected people and
decreased tourism. Australis Noosa Lakes resort is the highest, with approximately 50%
permanent; however this is slowly being reclaimed. There is now only one at Noosa Blue Resort,
owned by the same owner, now reduced from 15 six months ago. Likewise South Pacific now has




21
     Note this cannot occur retrospectively.




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