05. Town Planning Report · MCU10/2127

 VIRIDIAN NOOSA - PROPOSAL REPORT




                             This finding is confirmed on the Gold Coast, northern New South Wales and
                             Port Douglas. Only 13 out of 943 total dwellings were permanently occupied
                             in these markets. The most comparable resorts were Palazzo Versace and
                             Sheraton Mirage, which had only 8 permanent residents out of a total of 126
                             dwellings.

                             The conclusion reached by KPMG is that the level of occupancy of
                             permanently occupied dwellings, both in Noosa and in other key tourist
                             destinations is low. KPMG’s findings support the view that even though the
                             owners of the 38 resort villas and penthouses could permanently occupy their
                             dwelling unit, what is more likely to happen is that the units would remain
                             available to the Resort through the letting pool.
                             Refer to Appendix D – Market Research Report prepared by KPMG to this
                             Report for further details.


                    8.       The economic impacts of the proposed development on the Noosa
                             tourism industry will be negligible or positive
                             Urbis has undertaken research into the capacity of the visitor accommodation
                             market in Noosa and the potential economic impacts of the proposed
                             development on the Noosa Heads retail economy.

                             In terms of the capacity of the visitor accommodation market, the average
                             occupancy rate for term accommodation in Noosa is approximately 57% of
                             available room nights at present. The average occupancy rate indicates that
                             there is significant surplus capacity in the market due to the current level of
                             available stock and increased competition from other markets on the
                             Sunshine Coast. If the specified units and penthouses are forced onto the
                             market as additional visitor accommodation, the market is very likely to
                             become diluted, thus reducing the average occupancy rates further.

                             Urbis also found that by allowing the 38 specified units and penthouses to
                             accommodate longer terms stays or permanent residents, the likely level of
                             retail expenditure in Noosa Heads is greater than if solely available for short
                             term stays.
                             Refer to Appendix E – Economic Assessment of Noosa Tourism
                             Industry prepared by Urbis to this Report for further details.



                    9.       The resort continues to be an economic driver for tourism even if the
                             proposal is approved

                             At the time the Resort was approved, the evidence established that there was
                             a strong need for a resort in Noosa Heads. The basis for this need was that a
                             resort in this location would satisfy an important economic driver, being the
                             local tourism industry.
                             As highlighted elsewhere in this Chapter, the resort will remain a resort in
                             terms of its design, construction, function and operation, irrespective of the




   HUMPHREYS REYNOLDS PERKINS PLANNING CONSULTANTS                                                         33
   20-Dec-10 - 10BR087.R01.010.docx