2020-01-13 GC Agenda - Item 10 - Attachment 2 - The Value of Tourism to the Noosa Community October 2019 FINAL REPORT

bring new money into the local economy. This money is subject to a ‘multiplier effect’ as the
money spent at hotels or restaurants (for example) is passed on to related suppliers and
servicing business (the population/industry servicing industries). This is reflected in Noosa
by the prominence of rental, hiring, financial and insurance services and real estate services
and administrative and support services. These supporting industries help lock money into
the local economy.

Professional, scientific and technical services and financial and insurance services are
important, and high value per workers, industries in Noosa economy. These industries
provide an opportunity to diversify from a reliance on tourism. Analysis of incomes found
that the median wage in Noosa is lower than Queensland generally (as is the proportion of
workers who work full-time). It was found that workers in the accommodation and food
services and retail industries have a lower proportion of individuals earning a high income
($91,000 per annum or more) and a higher proportion of low-income persons (less than
$26,000 per annum) compared to the entire workforce in Noosa. These three industries are
strongly linked to tourism in Noosa. The importance of tourism to the local economy is one
likely factor in the median income bracket in Noosa being lower than Queensland. Other
factors could include the high average age of residents (48) indicating a smaller workforce.
According to the 2016 ABS census, 30% of families in the Noosa Shire consisted of a couple
where both are not working, compared to a rate of 20% for Queensland.

Health care and social assistance, and education, are important industries based on value-
added to GRP, but according to the LQ analysis, are currently no more prominent in Noosa
than it is in regional Queensland more generally. But given the rise of the wellness industry,
adult education and Noosa’s natural advantages, opportunities exist to grow health care and
education exports.

Finally, a noticeable characteristic of the Noosa economy is industry diversification. No one
industry dominates across the factors considered. This finding is supported by Lucid
Economics who reported in the Noosa Economic Profile that compared with recent years,
the Noosa economy is more diversified and better equipped to absorb changes to the
tourism sector.

Diversifying the economy is an aim for Council. Noosa Shire Council has developed priority
industry measures that are used to track economic diversification. These priority industries
are identified in Lucid (2018), Noosa Priority Industries 2018. These measures and
underlying methodology will be reviewed as part of Council’s Local Economic Plan review.

To drive economic development, Noosa needs nationally and (ideally) internationally
competitive businesses that can accelerate future growth. These businesses are most
effective if linked to growth industries that can generate new value-added for the LGA. As
outlined above, these opportunities exist for the Noosa Shire.

These industries will create jobs, increase the scale of trade in goods or services outside
Noosa, attract talent and investment and foster something unique that differentiates the
Noosa from its economic competitors – and tourism will be a key contributor.




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