MCU14/0106 & OPW15/0001 Compiled Information Request Response

                                                                                                       Noosa Civic Expansion
                         28 Eenie Creek Road, Noosaville and parts of the road reserves of Hofmann Drive and Walter Hay Drive



            Retail expenditure propensities for the identified trade area utilised are higher than the State
            average despite residents of the identified trade area having significantly lower incomes and still
            subject to significant housing costs. Limited explanation is provided for this apparent discrepancy.

            Information Required:
            19   Provide the retail expenditure propensities for each of the identified trade areas as
                 per the format provided in Table 5.6 of the retail need assessment.
            20   Provide an analysis of trade area demographics that corroborates the relatively high
                 retail expenditure estimates for the identified trade area(s) compared with State
                 averages sourced from third party, Market Data Systems.
            21   Advise to what extent the data provided by Market Data Systems has been “reality
                 checked” in relation to the identified trade area(s).”
            RESPONSE
            Please refer to Appendix B - Retails Needs Response for details of the retail expenditure
            propensities for each trade area sector.
            Urbis advises:
                 “…retail spending levels are based on estimates derived from Marketlnfo, a widely used
                 source of retail spending data in Australia. The Marketlnfo estimates are calibrated to
                 national data published by the ABS and are 'reality checked' by Urbis, as well as a group of
                 national retailers and research departments associated with the managers of Australia's
                 main REITs, prior to each public release by MOS.”
            In terms of spending levels in Noosa, it is possible that residents direct a higher proportion of their
            income to retail needs because average incomes are lower than the state average and there is a
            high retirement population and relatively high disposable income due to low mortgages.

3.10        Visitor Expenditure
            “The Retail Needs Assessment suggests the pool of tourism retail spending in Noosa (assumed
            to mean Noosa Heads-Noosaville) would increase by $105M between 2014 and 2023 but does
            not provide a base estimate or end year estimate.

            Information Required:
            22   Provide an expanded analysis of available tourism expenditure within the Noosa
                 Heads-Noosaville area that provides estimates for 2014, 2018, 2021 and 2031 (i.e.
                 those years for which resident expenditure is reported).”
            RESPONSE
            Analysis of tourism expenditure for the years requested has been undertaken, with the results
            provided in the Retails Needs Response (Appendix B).
            The analysis accounts for average retail expenditure by overnight visitors to Noosa-Noosaville,
            as reported by Tourism Research Australia. It does not allow for per capita 'real growth' over the
            forecast period and is considered to be a very conservative assumption.
            From the expanded analysis, Urbis concludes:
                 “…that retail spending by tourists to Noosa Heads-Noosaville could conservatively increase
                 by $105 million from 2014-23, and a cumulative $265 between 2014-31, excluding inflation,
                 real per capita growth, daytrippers and indirect spending through package tours.”

3.11        Major Retailers Gap Analysis
            “The Retail Needs Assessment investigates gaps in the provision of major retailers, namely
            supermarkets and discount department stores (DDSs). The assessment seeks to benchmark
            provision of supermarket and DDS floor space but retailer types are benchmarked to different
June 2015                                            Cardno HRP                                                           16