2016-08-09 S&O Agenda Item 8, Attachment 1 - CCIQ Noosa Convention and Cultural Centre Initiative Pre-feasibility Study

  CCIQ Noosa #3 Noosa Convention & Cultural Centre Initiative
  Pre-feasibility Study                                                                                                         April 2016

                                      high FIT demand42
                           c.         In the medium term, it is likely that there will be a market response to the
                                      forecast increased accommodation demand which, it is hoped, would result
                                      in upgrading of existing accommodation, and/or the building of new
                                      accommodation. The earlier that Council signals to the market that it may
                                      proceed with the construction of the proposed Convention Centre, the more
                                      likely a timely increase in visitor accommodation could be achieved
                           d.         The review of the Noosa Plan (due to commence in 2016) should consider
                                      and allow for such a potential increase in forecast visitor accommodation
                                      were the Centre to go ahead




                           a.                  Funding:
Risk Analysis                           i.         Council maintains an ongoing prioritised list of potential
                                                   infrastructure projects for funding by appropriate State and/or
                                                   Federal bodies. Currently a prospective Convention Centre may
                                                   not be t the top of that list
                                       ii.         Competition from other Regional locations for State and/or
                                                   Federal funding

                           b.                  Budget business hotel chains:
                                i.                Lack of some budget business-chain hotels, mean that PCO’s
                                                  would be unlikely to be able to construct a deal with sufficient
                                                  margin for them. However MICE type conventions are usually
                                                  targeted at the high end attendee.
                                ii.               There is availability most times of the year in other locations of a
                                                  large number of corporate hotel rooms favoured by
                                                  Conferences, eg Ibis/Oak/Best Western/Ramada. These typically
                                                  compete strongly on room price but are no-frills. Larger
                                                  companies are likely to run corporate accounts with these chains
                                                  for their normal business, and will expect reduced rates.

                           c.                  Air Transport:
                                        i.          Opportunity to seek a boost in direct air access from other than
                                                    Sydney and Melbourne and expansion of business class
                                                    (currently only Qantas). There is no direct link to Regional
                                                    Queensland, Toowoomba, regional NSW, unlike rival
                                                    destinations such as Gold Coast, Cairns, Mackay, Rockhampton
                                                    in Queensland.
                                       ii.          While the Sunshine Coast Airport doesn’t deal regionally, its
                                                    interstate and international passenger traffic increased 19% in
                                                    2015. Additional services from Virgin, Jetstar, Air NZ and Qantas
                                                    have increased carrying capacity this summer.
                                      iii.          In addition, the proposed upgrade of the Sunshine Coast Airport
                                                    and Qantas expressed intention to offer Business Class may
                                                    address some of these concerns.


  42
    Local and national MICE are less likely to conflict around school holidays, public holidays and Xmas / NY while international
  opportunities will be insensitive to these peaks




                                             CCIQ Noosa © 2015-16                                                             14 | P a g e