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

        above. If the demand for tourism accommodation grows, more of this accommodation
        may be rented to tourists rather than being used for residents to live in.

This section attempts to quantify the impacts that tourism may have on housing needs if current
levels of demand were to continue, and supply of tourist accommodation was able to increase
unchecked. This is considered an extremely unlikely scenario, not only because of restrictions to
land supply which will physically limit tourist accommodation provision, but also because
community reaction to increased congestion and events etc. is likely to demand some form of
limitation. This would be in line with Council’s Sustainability Principles (Section 1.4) which aim to
protect the lifestyle of the community and its unique environment.

The Local Economic Plan (Noosa Council, 2015a) was developed consistent with Council’s
Sustainability Principles, and the reining in of uncontrolled tourism accommodation demand
would be in line with the principles of the Plan. It was noted in Section 2.3.5 that this plan looks
beyond tourism-driven economic growth and employment, towards a more resilient and
diversified economy. Growing the economy is not considered a ‘develop at all cost scenario’ but
rather a dedicated plan to grow the value of priority industry sectors, by achieving growth in
‘smart’ industry sectors that have high economic value and low environmental impact, while
recognising and supporting sustainable tourism as an ongoing key economic driver. Hence it will
be important to provide this balance in accommodation supply in the New Noosa Plan.

Supply and demand in tourist accommodation and visitor dwellings
Tourist accommodation (motels, hotels, B&B and holiday resorts)

As noted in Section 4.1.8, determining the actual amount of tourism accommodation in the Shire
is difficult. The most conservative count of tourist accommodation rooms/units suggests that
there were around 2,000 rooms/units at June 2015. This figure only includes tourist
accommodation establishments with 15 or more rooms/units. These rooms had an occupancy
rate of 61% in the year to 30 June 2015.

As discussed in Section 6.3.5, continued growth in total visitor nights is assumed to be 2.5% to
2036. This compounding growth rate has been applied to the average number of occupied rooms
during the year (at 61% occupancy) as an indicator of the need or demand for tourist
accommodation.

Assuming continued growth in total visitor nights of 2.5% to 2036, this form of tourist
accommodation during the period equates to a need for 1,360 additional rooms by 2036 (Table
59). However such growth is neither necessarily realistic nor sustainable.

It was calculated by Council that an additional 428 units may be provided as part of the Settler’s
Cove site. This estimate was based on density calculations and site areas. It was assumed that
these would be provided by 2021.




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