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

This need should also be weighed against potential impacts and implications for the existing
Peregian and Noosa markets. It is Urban Economics’s opinion that there is need and demand for
the proposed short term and permanent residential development in Peregian Beach and that the
proposed development would have a net economic and community benefit for the Peregian
Beach community, complimenting and consolidating the existing role of Peregian whilst not
having a significant adverse impact on existing facilities in Peregian nor on the role of Noosa as
the premier tourist destination for the Shire.

The addition of 20 short term motel rooms and 12 accommodation units to the commercial
accommodation market in Peregian Beach would increase the overall commercial short term
accommodation stock by 26%. However, the proposed rooms would be positioned differently to
the existing commercial stock, target different visitor market sectors, and represent only a small
number of additional rooms particularly when including the overall stock of holiday homes in the
area, and would therefore not have a significant impact on the existing commercial visitor
accommodation market.

Economic Need

      There is strong and growing demand for short-term accommodation facilities that cater
       to the short-break and smaller travel group visitor markets within the Sunshine Coast
       Tourism Region and Noosa Shire, including niche experiences and visitor segments.

      Increasing short-term accommodation occupancy rates on the Sunshine Coast and in key
       centres such as Noosa and Mooloolaba, are not being matched by other locations which
       lack the diversity of facilities. The proposed development would introduce a modern,
       alternative, short term accommodation facility to the Noosa Shire/Peregian Beach,
       contributing diversity to the market and to the mix of visitors attracted to the Region.

      The accommodation component of the development will complement the scale and mix
       of short term accommodation facilities in Peregian, offering boutique style short term
       accommodation to support a limited number of short term visitors and a style of
       accommodation likely to appeal to alternative and emerging target markets. On this basis,
       the proposed short term accommodation facilities will cater for emerging visitor
       accommodation markets without significantly impacting on the role, performance and
       mix of commercial accommodation facilities in Peregian.

      It is considered that there is insufficient need and demand to support a major large scale
       short term accommodation facility in Peregian in light of major new developments
       emerging in nearby locations, as well as the scale of holiday home options available and
       the overall number of visitors to Peregian Beach, but that there is a niche market and
       need for boutique style short term accommodation to cater for emerging and unmet
       needs for short term accommodation in Peregian and Noosa Shire.



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