2022-11-14 GC Agenda - Item 4 - Attachment 1 - Short Term Accommodation Monitoring Report 2022

an additional 1,360 rooms required, under 2.5% annual growth scenario to 2036. The
HNA2017 noted some provision for some hotel accommodation had been planned for at
Settlers Cove, however at the time of writing this report development of this site had not been
actioned. The HNA2017 stated:
       …. 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.
       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.
       It has also been assumed that there is some excess capacity in existing tourist
       accommodation establishments given the occupancy rates of tourist accommodation
       in Noosa Shire… If occupancy rates were to increase slowly from 60% on average per
       year in 2016, to a maximum of 80% per year in 2036, some of this need would be met.
The HNA2017 identified potential social benefits for other forms of short-term rental
accommodation within homes such as bed and breakfast or home stays providing temporary
accommodation for students, work relocations, in between moves etc. The HNA2017 stated:
       Restriction of these types of accommodation would have severe implications for the
       availability of visitor, student and affordable accommodation in Noosa Shire. HRIA
       considers that social reasons for requiring Short-term Rental Accommodation may
       include work relocations, temporary stays between home purchases, widows needing
       to share their house to continue to afford living in it etc. It is also well known in Noosa
       Shire that there is an extensive student ‘home-stay’ population living in Noosa, and
       particularly in Noosa Heads.
NP2006 allowed for home hosted accommodation subject to approval, however “home stay”
or exchange accommodation for students was not considered as visitor/ tourist
accommodation and did not require any planning approval.


Residents living in resort style accommodation
Under the 2.5% annual growth scenario, the HNA2017 suggested the movement of permanent
residents out of resort style accommodation would provide greater capacity for visitors /
tourists. The implications for displaced residents, whilst noted, was not clear, and given the
limited land supply and redevelopment potential for smaller dwellings this scenario would have
significant impacts on residential housing supply. The HNA2017 stated:
       … some 250 dwellings within resort style accommodation that were currently occupied
       by residents in 2016. Three scenarios have been developed to consider the movement
       of residents out of this accommodation if it were to be used increasingly for tourist uses.
       These scenarios are based on the trends understood to be occurring through
       consultation with tourism providers, increasing visitor occupancy rates and likely future
       trends in occupancy rates as a result of increased visitor demand. The low change
       scenario therefore assumes that 50% of permanent resident households will move out
       of resort style accommodation by 2036, 70% for the medium change scenario and 90%
       for the high change scenario. Many of these households are likely to be renting.
       According to these assumptions, this would result in additional capacity in existing
       resorts of 125 rooms for the low change scenario, 175 rooms for the medium change
       scenario and 225 rooms for the high change scenario. It is considered that the medium
       change scenario may be the most appropriate. It is notable that this future is however
       dependent on the ability to increase supply in alternative small, affordable resident
       accommodation.

                                                                                           pg. 31
Noosa Council Monitoring Report 2022/23