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

supporting the tourism and hospitality industry, and the older population as well as affordable
family homes are an unmet housing need in Noosa Shire.
This has reached crisis point with many businesses unable to secure staff due to affordable
accommodation shortages and long term residents having to leave Noosa to find housing
elsewhere or seeking refuge in temporary accommodation.
The proportion of Noosa Shire residents either not in the workforce, or earning their income
outside the Shire is relatively high, as is the level of home ownership. These elements also
contribute to the shortage of permanent rental accommodation for workers.
Whilst Covid-19 created unique circumstances for the housing market and there is a national
housing crisis, the legacy planning issues and the current provisions within NP2020 contribute
to the housing situation in Noosa Shire.
The community have been very clear in consultation on various plans and strategies that short
term accommodation is having a significant impact on housing supply and affordability as well
as residential amenity. The long term security in housing supply and housing affordability has
become the biggest issue facing Noosa Shire residents.
It is also considered that Noosa has begun to overreach its carrying capacity, particularly
during tourist peak periods and weekends, with road networks, open space, Noosa River and
Main Beach often at full capacity, with negative impacts associated with this being experienced
by residents and visitors.
Since the April 2020 Tourism Carrying Capacity Analysis was undertaken, there has been an
increase in the number of dwellings being used for short term accommodation, despite the
impacts of COVID-19 throughout the last 2 years; the high demand for permanent rental
properties; the introduction of the short stay letting and home hosted accommodation local
law; and changes made by NP2020 making short term accommodation in the Low Density
Residential zone an inconsistent use.
5,265 dwellings are currently identified as being used for short term accommodation across
Noosa Shire, the highest concentration in the coastal urban area between Noosaville and the
coastal stretch to Peregian Beach, with 31.6% of dwellings used for short term
accommodation. Significantly, 52.7% of dwellings are used for short term accommodation in
Noosa Heads, 33% in Sunshine Beach and 26.4% in Noosaville.
Overall, the use of dwellings for short term accommodation grew by 307 dwellings or 5.7%
over the 2 year monitoring period. Given past growth trends, the use of dwellings for short term
accommodation is likely to continue to grow if left unregulated.
However, the true number of dwellings with use rights for short term accommodation is much
higher, with the majority of all multiple dwelling having use rights for short term
accommodation. Therefore, continued growth in dwellings converting to or being development
for short term accommodation is of high concern for current and future housing supply,
particularly within residential zones intended for permanent housing supply.
Growth in other forms of visitor accommodation, as well as short term accommodation, will
also come from designated visitor only Tourist Accommodation zoned land, at the exclusion
of residents. At the time of writing, around 345 hotel rooms, 15 luxury villas and 16 eco cabins
are either pending a Council decision or at the application stage.
Whilst tourism peaks may see high demand for short term accommodation and supply being
taken up with high occupancy rates, latent supply exists throughout non-peak periods, with
AirDnA figures showing average occupancy of 57.5% on AirBnB and Stayz booking platforms
for the year ending July 2022.
Notwithstanding this, the provision of visitor accommodation is important to the tourism
industry and should continue to be supported in the designated Tourism Accommodation zone.
The extent of land zoned for tourist accommodation, including key sites currently subject to
development proposals, together with the current provision of visitor accommodation, including

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Noosa Council Monitoring Report 2022/23