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

A number of new infill residential housing projects have been approved and commenced in
the last 2 years, particularly for small dwellings (up to 100sqm), meeting some demand for
smaller 1-2 bedroom permanent residential dwellings and small 3 bedroom dwellings.
However, with the current property boom, these dwellings are not considered affordable hitting
the market at $495,000 for the smallest 1 bedroom units up to $1.2m for 3 bedroom small
dwelling units.
Businesses have been experiencing significant labour shortages, a result of recent lockdowns,
staff being ill or disqualified from working, a lack of overseas and seasonal workers and a lack
of affordable and available accommodation. A lack of affordable housing in the rental market,
for all workers, not just key workers in the tourism and hospitality markets, is now being
experienced. Council has found it difficult to recruit workers in a range of occupations, with
housing supply and affordability being a key issue.
The tourism sector, including events have generally bounced back in Noosa with continued
increases in overnight stays and day visitors. Whilst a few hospitality businesses closed in the
last 2 years, which is not unusual, a number of new restaurants and bars and other businesses
have opened, particularly in Noosa Junction.
A new Economic Development Strategy was prepared in 2021 focusing on diversifying the
economy and moving Noosa towards a “smart” biosphere with growth in high value low
environmental impact industries, and being less reliant on volatile industries such as tourism,
retail and hospitality.
In response to growing pressure on the road network, particularly from day visitors driving into
Noosa, and as part of Council’s transport strategy, the free holiday buses were extended to
include weekends. In addition, a number of road infrastructure projects commenced to alleviate
pressures on the network, and in the case of Noosa Parade heading to Hastings Street, cycle
paths and wider pedestrian paths introduced.
For the community, whilst the positive benefits from tourism and events are acknowledged,
the negative impacts on housing supply and affordability from short term accommodation and
impacts on the road network from increased visitor traffic has affected resident lifestyle,
amenity and ability to find affordable suitable housing, all which are some of the biggest issues
facing Noosa going forward.


3.2 Noosa Plan 2020
As noted in Part 2, Noosa Plan 2020 underwent two draft iterations of the plan regarding the
approach to short-term accommodation and application of the Tourist Accommodation zone,
both of which had implications for housing. The following commentary is relevant to those
aspects of NP2020 with the relevant extracts contained in Appendix 9.
This section looks at the provisions in NP2020 and critically assesses the impacts on housing
supply and tourist accommodation, including short term accommodation.


3.2.1 Strategic Framework
The strategic framework sets the policy direction for the planning scheme and forms the basis
for ensuring appropriate development occurs in the planning scheme area for the life of the
planning scheme and includes a number of maps for various strategic intents.


3.2.1.1 Strategic Intent
Like former planning schemes, NP2020 recognises Noosa Shire’s role as being both a
domestic and international tourist destination with its population increasing by over 15,000
people during the holiday peaks, and tourism and retail being significant contributors to the

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Noosa Council Monitoring Report 2022/23