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

short term accommodation, is considered more than adequate to meet current and future
visitor needs.
The continued growth in use of existing or future dwellings for short term accommodation,
particularly in designated residential zones and business centre zones, compromises housing
for permanent residents, particularly key workers who support the tourism industry with labour,
businesses and services.
Short term accommodation being a consistent use in the Medium and High Density Residential
zones, as well as the Rural and Rural Residential zones, compromises the purpose of these
zones for the provision of housing for permanent residents. Likewise, short term
accommodation in the business zones compromises future development for small more
affordable dwellings for key workers in close proximity to transport, employment and services.
This creates competition for Noosa’s limited dwelling stock and land supply, between the
provision of accommodation for visitors and provision of housing for residents, reducing
available supply of permanent housing and driving up prices for both the rental and purchase
housing markets.
Conversely, the take up of accommodation within traditional holiday resorts by residents
seeking accommodation, and multiple dwellings being a consistent use in the Tourist
Accommodation zone, compromises the zone’s tourism purpose and preference for visitors
only.
The mix of permanent and short term dwellings within NP2020 zones creates land use conflict
between visitors and residents impacting residential amenity, sense of community, social
cohesion and resident lifestyle, as well as visitor experience and enjoyment.
Overall, the extensive and growing use of dwellings for short term accommodation has a direct
impact on the community, housing supply and level of affordability, as well as the tourism
economy and labour supply. Without a long term known and secure supply of housing for
residents, including for workers supporting the tourism / visitor accommodation industries, the
hospitality and tourism economy and community are at risk.
The AEC economic and social assessment report concluded that:
      Increase in STA between April 2020 and October 2022 suggests NP2020 has not
       detrimentally impacted on market supply to meet tourism demands.
      There has been no noticeable negative impact of NP2020 on demand or values, with
       people wanting to buy more dwellings in Noosa and at considerably higher prices.
      Combined with dwelling sales market data, rental market data suggests Noosa is
       experiencing considerable issues of undersupply of affordable dwellings available for
       residential or worker use, with considerably higher dwelling prices and rents than in
       SEQ exacerbating issues associated with rising costs of living.
      With the existing supply of short stay accommodation, the additional take-up of latent
       supply within these premises to achieve increased occupancy, in addition to
       anticipated new supply from commercial accommodation providers, visitor demands
       within Noosa’s carrying capacity should be appropriately met into the future without the
       need for additional residential housing stock to be diverted.
To meet state planning policy requirements, security of current and long term housing supply
that is affordable and diverse, and meets the housing needs of Noosa’s community, is
required.
Whilst Noosa Council has responded to the residential amenity issues with the introduction of
a new local law, addressed some housing supply issues by restricting further short term
accommodation in the Low Density Residential zone and introduced a specific Tourist
Accommodation zone, further review of the provisions in NP2020 is required.
To this end, amendments to Noosa Plan are recommended to both ensure:

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Noosa Council Monitoring Report 2022/23