Planning Report IDAS Forms Cover letter, Owner's consent, Appendices 2- PLM minutes & 3 - Economic Needs - Email 1 of 4 MCU16/0153 & REC16/0041

Based on the anticipated growth in overnight visitors alone and maintaining occupancy rates, the
Noosa Shire would have demand for an additional 220 short-term accommodation rooms
between 2016 and 2025. Without additional supply, occupancy rates would continue to rise as
estimated within the previous table, but by 2024/25 would only be approaching Australia-wide
hotel occupancy rates recorded in 2015. Furthermore, this makes no allowance for any removal
of stock from the market through obsolescence or re-use. This also has no allowance for changing
occupancy rates as a result of increased choice or diversity of commercial accommodation forms
within Noosa.

Notwithstanding this, much of the additional demand for accommodation rooms is likely to be
directed to the tourism centres of Noosa Heads and Noosaville, however, it is Urban Economics’s
opinion that there is a gap in the provision of short-term accommodation facilities other than
family holiday facilities, in other centres of Noosa such as Peregian Beach. There is an
opportunity to complement the primary tourism centres with a mix of supporting experiences
and accommodation facilities.

The development of large scale commercial short term accommodation facilities is therefore
likely to have a significant ongoing impact on overall occupancy rates for facilities within Noosa
Shire, however, there appear to be opportunities for redevelopment, repositioning and boutique
scale facilities.

Concentrating and consolidating short term and visitor accommodation proximate to existing
infrastructure meets the needs of visitors and contributes to the overall viability of infrastructure
and the commercial accommodation facilities.

Growing visitor markets such as short-break visitors and smaller traveller groups are not as well
catered for across the SCTR and the opportunity exists to provide ‘boutique’ sized hotel/motel
type accommodation such as is proposed at the subject site.




                                 Sails Lifestyle Resort, Peregian Beach




                                                                                           20 | Page