NOOSA HOLIDAY PARKS UPDATE · Report

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SERVICES & ORGANISATION COMMITTEE MEETING                                         8 AUGUST 2023


  •   Noosa North Shore Campground financial year on year revenue increased by 23.5%
  •   Noosa River Holiday Park financial year on year revenue increased 5.1%.
  •   During financial year 2022/23, nightly tariffs increased in the range of 2.4% to 8.8%.
  •   Revenue levels are increasing at a rate higher than tariff increases, particularly at Boreen
      point and Noosa North Shore Campgrounds.

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SERVICES & ORGANISATION COMMITTEE MEETING                                        8 AUGUST 2023




*Figures are subject to end of financial year accruals.

2. VISITATION MEASURES

Visitation is a measure of the number of occupants that were accommodated at the Noosa Holiday
Parks. During the financial year 2022/23, the Noosa Holiday Parks accommodated over 61,000
guests. This is the highest recorded annual visitation at Noosa Holiday Parks.

   •   Visitation to the Noosa Holiday Parks in financial year 2022/23 was 22% higher than the
       previous financial year period, which represents 11,062 additional individual persons.
   •   Boreen Point Campground achieved a 19% increase in visitation, or 3,018 additional
       individual visitors.
   •   Noosa North Shore Campground also performed strongly, with 3,949 additional individual
       visitors increasing the annual visitation level by 21%.
   •   Noosa River Holiday Park accommodated an additional 4,095 visitors.




The number of nights sold is a measure of the total number of camping site nights sold in a given
period and is a key indicator for visitation, economic impact and revenue performance. Currently,
the Noosa Holiday Parks have 294 sites available to guests per night. In financial year 2022/23, an
additional 7,534 nights were sold, representing a 10% increase from the previous financial year

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SERVICES & ORGANISATION COMMITTEE MEETING                                          8 AUGUST 2023


period. The Boreen Point Campground and Noosa North Shore Campground were predominantly
responsible for this increase, recording growth of 16% and 15% respectively.




3. MARKET DEMAND

Market demand at Noosa Holiday Parks is reflected in measures such as forward bookings, social
media activity, website activity and visitation levels during peak periods.

   •   Current forward bookings for financial year 2023/24 total $2.52 million.




   •   Positive social media and website activity is reflected in a high volume of website visits and
       social media followers.




   •   The percentage of total nights sold during peak periods in financial year 2022/23 has
       increased at all campgrounds and parks, a strong indicator of positive market demand and
       brand growth.




4. ECONOMIC IMPACT

Regional economic improvement and growth is directly benefited by visitation to the Noosa Holiday

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SERVICES & ORGANISATION COMMITTEE MEETING                                          8 AUGUST 2023


Parks. Increasing visitor levels and spend within regional locations such as Boreen Point and Noosa
North Shore is a way to strengthen regional business communities and help sustain employment
levels. The Caravan Industry Association of Australia provides an economic contribution tool that
calculates the economic contribution of campgrounds and holiday parks to Australia's economy,
including the input to Gross Domestic Product and employment impact of direct operations and the
broader flow-on impact in the tourism industry.




5. FACILITY MANAGEMENT

Facility management at Noosa Holiday Parks includes operation and maintenance, minor repairs
and reactive maintenance for each campground and holiday park, performed in line with established
budget allocations.

Integrated Facility Management

   •   In 2021, an integrated facility management approach commenced within the Noosa Holiday
       Parks.
   •   Integrated facility management is the unification of facility management activities under a
       singular, concentrated approach.
   •   Procurement, resources, data and management were moved into a centralised effort to
       achieve improved cost, performance, operational efficiency and higher service levels. This
       approach is now in place at all campgrounds and parks, using singular contracts to deliver
       property, building, grounds, plumbing, electrical, landscaping and reactive maintenance
       services.
   •   This approach has:
           o   Reduced the occurrence of reactive maintenance activities through investment in
               planned and preventative maintenance.
           o   Enabled more efficient deployment of contracted labour resources to achieve cost
               savings and value for money for Council.
           o   Improved service levels, facility presentation and guest amenity.
           o   Reduced complaint levels.

Grounds, Roads and Vegetation Maintenance Works
   •   Tree trimming and tree removal works were completed twice at each campground and
       holiday park in financial year 2022/23 as part of cyclical framework for vegetation
       management.

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SERVICES & ORGANISATION COMMITTEE MEETING                                          8 AUGUST 2023


   •   Internal road maintenance was completed on three occurrences within financial year
       2022/23, including the implementation of speed bumps at Noosa North Shore Campground
       and Boreen Point Campground as a mechanism to slow vehicle speeds and improve guest
       safety.
   •   Works were undertaken to raise the level of camping and caravan sites that are vulnerable
       to flooding and implement natural drainage solutions to ensure commerciality is maintained
       during periods of rainfall and inclement weather.
Completed Capital Works
   •   Installation of a boom gate at Boreen Point Campground to regulate vehicle movements into
       the campground, mitigate the risk of unregulated vehicle access and contribute to operational
       efficiency and guest experience.
   •   Installation of landscaping bays at Boreen Point Campground and Noosa North Shore
       Campground for the formal and tidy storage of road and garden maintenance materials. The
       project also contributes to circular economy outcomes, allowing for mulch created on site
       during tree management works to be stored and then used within the campground
       maintenance program.
   •   Completion of the Noosa North Shore Campground Wastewater Treatment System
       alterations project in June 2023, effectively mitigating a range of environmental, operational
       and compliance risks arising from the system that was installed as part of the 2020
       refurbishment project.
   •   Installation of screening and fencing at the Boreen Point Campground to improve the
       professionalism of the reception and guest arrival area, in addition to creating visual
       separation with the campground management residence.
   •   Improved presentation and functionality of the recycling and general waste bin area at Noosa
       North Shore Campground.

6. MANAGEMENT SERVICES

Escape Parks (1Eight Pty Ltd) provide Council with management services at Boreen Point
Campground, Noosa North Shore Campground and Noosa River Holiday Park. Their organisation
manages or leases more than eight holiday parks and campgrounds distributed across Queensland,
with a modern, digitised and local approach. Escape Park's approach to marketing and booking
capture, which uses systems, digital products and technology in innovative ways, is a critical driver
to capture and convert high volumes of enquiry into reservations and revenue. High quality guest
experiences at the Noosa Holiday Parks are supported by Escape Park's delivery of guest services,
facility maintenance and cleaning services.

7. OTHER

   •   In 2022, all Noosa Holiday Parks were individually awarded the TripAdvisor Travellers Choice
       Award.
   •   In December 2022 Escape Parks implemented a chat bot on the Noosa Holiday Parks
       website as a value add. The bot is designed to simulate conversation with customers.
       Customers can ask questions and access information quickly and interactively about the
       Noosa Holiday Parks and the broader region.


Link to Corporate Plan
Theme 5 - Excellence

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SERVICES & ORGANISATION COMMITTEE MEETING                                              8 AUGUST 2023


   •    Continue to deliver a financially sustainable Council that has the resources now and into the
        future to achieve it's strategic objective.
   •    Embrace technology and innovative practices to support the provision of contemporary, efficient
        and effective levels of service for Council operations.
   •    Increased share of operating revenue to be generated from sources other than rates and
        charges.




Previous Council Consideration
Ordinary Meeting, 17 February 2022, Item 4, Page 6
That Council note the report by the Property Advisor – Commercial Property to the Services &
Organisation Committee Meeting dated 8 February 2022 providing an update on operations of the
Noosa Holiday Park Business Activity to 31 December 2021.

Ordinary Meeting, 18 August 2022, Item 6, Page 17
That Council note the report by the Property Advisor – Commercial Property to the Services &
Organisation Committee Meeting dated 9 August 2022 providing an update on operations of the
Noosa Holiday Park Business Activity to 30 June 2022.

Ordinary Meeting, 16 February 2023, Item 1, Page 8
That Council note the report by the Property Advisor – Commercial Property to the Services &
Organisation Committee Meeting dated 9 August 2022 providing an update on operations of the
Noosa Holiday Park Business Activity to 30 June 2022.

Finance
Council's Holiday Parks are a commercial activitiy and apply Full Cost Pricing Principles under the
National Competition Policy. Any financial return from the Noosa Holiday Parks business activity is
used to offset general rate increases otherwise required to fund non-revenue generating Council
activities and programs.

Risk & Opportunities
RISKS
   •    Macro-economic factors impacting consumer spending on recreational camping and
        caravanning.
   •    Operational costs impacted by macro-economic factors such as supply constraints and
        inflation.
   •    Trending patterns of unpredictable and inclement weather impact on booking cycles and
        revenue outcomes.

OPPORTUNITIES
   •    Investigation of opportunities for expansion of the Noosa Holiday Park business activity
        through business case development and feasibility assessment of new accommodation and
        tourism locations.
   •    Strategic focus on identifying opportunities for energy, environmental, sustainability and
        water management improvements at Noosa Holiday Parks.
Consultation

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SERVICES & ORGANISATION COMMITTEE MEETING                                             8 AUGUST 2023


External Consultation - Community & Stakeholder
Nil

Internal Consultation
Departments consulted:

      Office of the CEO, Mayor &         Community Services               Corporate Services
              Councillors
         Mayor & Councillors             Director                    x    Director
         Chief Executive Officer         Community Development       x    Financial Services
         Executive Officers              Sport & Active Lifestyles        Fleet
         Community Engagement            Arts & Culture                   Revenue Services
         People & Culture                Community Connection             ICT
         Governance                      Customer Experience              Commercial Property
      Strategy & Environment &         Development & Regulation          Infrastructure Services
      Sustainable Development
         Director                        Director                         Director
         Strategic Land Use Planning     Development Assessment           Infrastructure      Planning,
                                                                          Design and Delivery
         Economic Development &          Local Laws                       Civil and Asset operations
         Destination Management
         Environmental Services          Environmental Health             Asset Management
         Innovation & Digital Hub        Building & Plumbing              Building & Facilities
                                         Property / Permits               Disaster Management
                                                                          Waste