2021-12-13 GC Agenda - Item 9 - Attachment 2-Noosa Economic Plan Review Update Report 2021

                                    NOOSA LEP REVIEW - ECONOMIC ANALYSIS REPORT - Draft Report



Executive Summary
The Noosa Shire Council adopted the Local Economic Plan (LEP) in 2015. Since this time, the local
economy (as well as State, national and global economy) has changed and evolved. As such, as part
of the review of the LEP it is important to understand where the Noosa economy is today and the
changes that it has undergone since the adoption of the LEP in 2015.
There are a number of on-going trends and other features that are important for the Noosa
economy, including:
    •   Population and Demographics
            o Population growth continues to be much lower than South East Queensland and
                Queensland
            o Noosa has an older population that is aging at a faster rate than the rest of the State
            o Noosa has median income levels below the State average and pockets of high
                socio-economic disadvantage
    •   Economic structure is changing
            o While construction remains the largest contributor to Gross Regional Product (GRP),
                is has exhibited a very volatile nature
            o Healthcare is now solidly the second largest contributor to GRP (firmly eclipsing
                retail trade, which was the traditional second largest sector)
            o Retail trade and accommodation and food services (industries most connected with
                the tourism sector) remain important but have been stagnant over the last five years
            o Professional services has demonstrated strong growth in terms of industry
                value-added over the last five years, growing at an average annual rate of 3.1%
            o Some industries are coping with dramatic changes driven by technology, such as
                retail, which has seen a dramatic decrease in employment over the last five years.
                Similarly, accommodation and food services is also dealing with technological
                change that is impacting how people are employed
            o Tourism had been growing strongly until the COVID-19 pandemic, including
                achieving the highest level of visitation on record in 2019
            o A large proportion of Noosa residents work outside of the Shire. The lower median
                incomes in Noosa contribute to this trend, with the more highly skilled residents in
                the area forced to find work outside of Noosa.
    •   COVID-19 has impacted Noosa significantly, as it has all parts of Australia
            o The unemployment rate has spiked since March quarter 2021
            o Based on anecdotal evidence, domestic visitors have returned to Noosa in greater
                numbers than previously, partly making up for the closed international border
            o Based on the payroll jobs index, jobs in Noosa have returned to their pre-COVID
                levels
    •   There are a number of important trends that will have an impact on Noosa moving forward,
        including:
            o Online retail has surged ahead due to COVID-19 and associated lockdowns
            o The internet has become the trading place for tourism
            o People are leaving capital cities at a rate that has not been seen before
            o Workplace dynamics have changed, with virtual meetings (and other practices)
                having increased greatly as a result of the pandemic, making business travel less and
                allowing more people the flexibility to work from home or remotely
This analysis will assist in the review of the LEP, support the consultation phase of the report as well
as the revised LEP.




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