05. Town Planning Report · MCU10/2127

Executive Summary
Economic Impact of Proposed Development                                   22. The number of occupier nights accommodated within the subject
                                                                              development proposal on this basis could therefore theoretically
16. In order to provide a comparative analysis between an exclusive           reach a peak of 42,004 occupier nights at an average household
    tourist accommodation scenario and a scenario that includes               size approaching 3.4 people.
    owner occupation of the subject dwelling units, at least for some
    of the available time, it is necessary to consider the profile and    23. Based on the analysis
                                                                                                 y undertaken byy KPMG titled “Market
    retail expenditure levels for people living in the area.                  Research Report – Comparable Resorts, Final Research Paper”,
17. In this regard the Noosa-Noosaville population can be expected            it is considered that medium-long term occupancy of the units
    to generally exhibit an older age profile, occupying smaller              within the subject development proposal is unlikely to exceed
    households. In addition, whilst average income levels are                 6%.
    generally around the Queensland average or above, residents
    are likely to benefit from accumulated wealth.                        24 The occupancy rate
                                                                          24.                   rate, on average across the year
                                                                                                                               year, for
                                                                              visitors/tourists, is in our view, unlikely to exceed 50%.
18. Consequently, the population in the vicinity of the subject site
    spends approximately 55.8% more on retail goods and services          25. Consequently, in our view the most likely scenarios are as
    than is generally the case throughout Queensland when                     follows:
    measured on a per capita basis. This equates to $18,860 per
    capita or the equivalent of $51.67
                                $      per day.                           ƒ   Owner occupier occupancy rates in the range of 0%
                                                                                                                             0%-10%
                                                                                                                                10% (likely
                                                                              less than 5%).
19. We have considered a range of scenarios relating to the
    occupation of the subject development proposal. In the first          ƒ   Visitor/tourist occupancy rates in the range of 40%-50%.
    instance it is considered unlikely that the average occupancy rate
    for the 38 units would be greater than 50% if occupied                26. The likely range of retail expenditures for the owner-occupier
    exclusively
        l i l b  by th
                    the short
                         h t term
                              t     visitor
                                     i it market.
                                               k t This
                                                    Thi iis d
                                                            due tto th
                                                                    the       scenario
                                                                                     i iis th
                                                                                           therefore
                                                                                                f    $1.53
                                                                                                     $1 53 million
                                                                                                             illi – $2.24
                                                                                                                    $2 24 million
                                                                                                                             illi comparedd with
                                                                                                                                              ith
    size of the units and their price points, together with the               the base case (i.e. 50% occupancy by visitors/tourists only) at
    prevailing occupancy rates apparent throughout Noosa as a                 $1.92 million.
    whole.
                                                                          27. The most likely outcome is a 5% occupancy rate by owners and
20. The number of visitor nights that would be accommodated by the            their delegates (i.e. in line with the KPMG assessment) and a
    subject
      bj t ddevelopment
                l       t proposal,l att a 50% occupancy rate,
                                                           t iis              50% occupancy rate by visitors/tourists, resulting in total retail
    26,990 guest nights. This is referred to as the ‘base case’.              expenditure of $2.084 million or 7.7% above the base case.
21. The ultimate scenario relating to owner occupation is based on a
                                                                          28. In other words, to the extent that owner occupation adds to the
    theoretical peak occupancy rate of 90%. In other words, this
                                                                              overall occupancy rate, as seems likely, the outcome is higher
    assumes that all 38 units could be permanently occupied by
                                                                                                                                g
                                                                              overall retail expenditure than the base case. Negative
    owners or their delegates for the equivalent of 329 days per year
                                                                 year.
                                                                              consequences arise if the occupancy rate by visitors and owners
                                                                              are both low.

                                                                                                                                           6