05. Town Planning Report · MCU10/2127

Executive Summary
1. The key objectives of this report are:
                                                                        10. The trend over the past 6 years or so in lettings, unit nights
ƒ   To assess the capacity of the visitor accommodation market in           occupied and the occupancy rate has been declining, or flat at
    Noosa and the need to protect the site for exclusive visitor            best.
    accommodation purposes.
                                                                        11 As is the case with holiday flats
                                                                        11.                              flats, units and houses
                                                                                                                          houses, the number
ƒ   To assess the economic impacts on the Noosa Heads retail
                                                                            of room nights occupied and the overall occupancy rate for
    economy of the proposed development.
                                                                            hotels, motels and serviced apartments in Noosa has also been
ƒ   To assess the relative economic impact on the Noosa Heads               flat at best over the past 6 years or so.
    retail economy of the proposed development, as compared to
    exclusive use for tourist accommodation.                            12. Noosa’s occupancy rate for hotels, motels and serviced
                                                                            apartments fluctuates between around 45%
                                                                                                                  45%-72%
                                                                                                                       72% of room nights
2. The Viridian Resort comprises 198 units, plus one manager’s              available, averaging approximately 57% at the present time.
   unit, within a 5 star resort complex. The design includes 10
   separate accommodation blocks together with a range of resort        13. The analysis of supply and demand relating to tourist
   facilities and services.                                                 accommodation facilities throughout Noosa suggests that
                                                                            although there may have been a reasonable case for a
3. The management
             g      rights
                      g     for the resort are held by
                                                     y Outrigger
                                                            gg
                                                                            significant
                                                                              i ifi   t increase
                                                                                        i         in
                                                                                                  i tourist
                                                                                                     t i t accommodation
                                                                                                                     d ti facilities
                                                                                                                             f iliti iin N
                                                                                                                                         Noosa
   Hotels and Resorts which manages both the holiday letting pool
                                                                            in the period prior to 2005, various factors, including the
   and the conference facilities and other functions.
                                                                            increasing importance of other destinations on the Sunshine
4. The proposed development, which is the subject of this                   Coast, have contributed to a far more cautious outlook.
   application, is to enable the occupation of 14 penthouses and 24
   resort villa units within the existing
                                        g approved
                                           pp      resort on a short-   14. There is quite clearly significant surplus capacity in the market.
   term, semi-permanent or permanent basis.                                 Consequently it is quite conceivable that the additional
                                                                            accommodation units forming part of the Viridian Noosa Resort
5. This report forms part of a Material Change of Use (MCU)                 could now dilute the market and result in further declines in the
   application relating to the occupation of the 38 dwelling units,         occupancy rates achieved by other tourist accommodation
   which will, if approved, provide both clarity and flexibility for        facilities throughout the area.
   potential investors.
                                                                        15. In terms of tourist expenditure, our analysis is based on retail
Capacity of the Visitor Accommodation Market in Noosa
                                                                            expenditure by domestic overnight visitors to Noosa, particularly
9. The average occupancy rate for holiday flats, units and houses,          on food and beverages, groceries and non-food shopping. The
   used as holiday rentals, is currently slightly less than 60% of          expenditure level adopted is $71.10 per visitor night.
   available nights, ranging from a low of about 40% to a high of
   almost 75%,
          75% based on seasonal demand levels  levels.



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