Original source · versioned page text
Appendix A - Economic Impact Assessment.pdf
Noosa Springs Boutique Hotel Economic Impact Assessment Prepared for Noosa Springs Real Estate Pty Ltd April 2021
Preview the original
The page text is free to read. Previews and downloads of original files need an account.
Log in to previewLog in to download the original (Appendix A - Economic Impact Assessment.pdf)
Searchable page text hides email addresses. Original files are unchanged and may show email addresses.
Full text of the other 39 pages
Page 2
lucid
/’lu:sid/
adjective
1. expressed clearly; easy to understand
2. bright or luminous
Document Control
Job Name: Noosa Springs Update
Client: Noosa Springs Real Estate Pty Ltd
Client Contact: Phil Starkey
Version Control
Version Date Authorisation
Draft v1 7/10/20 MC
Draft v2 30/10/20 MC
Final Draft 17/12/20 MC
Final 24/04/21 MC
The bulk of this research is based on data available at the beginning of 2020. While aspects of the report have
been updated since then, the core research has not been updated.
Disclaimer:
While every effort has been made to ensure the accuracy of this document, Lucid Economics Pty Ltd is unable to make
any warranties in relation to the information contained herein. Lucid Economics Pty Ltd, its employees and agents
accept no liability for any loss or damage that may be suffered as a result of reliance on this information, whether or
not there has been any error, omission or negligence on the part of Lucid Economics Pty Ltd, its employees or agents.
Any forecasts or projections used in the analysis and relied upon for any findings can be affected by a number of
unforeseen or unknown variables, and as such no warranty is given that a particular set of results will in fact be
achieved or realised.
Page 3
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Executive Summary
Introduction
Lucid Economics Pty Ltd (Lucid Economics) has been engaged by Noosa Springs Real Estate Pty Ltd to
develop an economic impact assessment for a planned luxury hotel at Noosa Springs. The hotel is
envisioned to be a 112 room, full-service, luxury hotel that represents an investment of an estimated
$50 million. The property will integrate well and leverage the existing golf course, spa, restaurant
and function area.
Strategic Context
The Tourism Strategy Noosa and the Noosa Local Economic Plan, both referenced in this strategic
framework, support increased investment into tourism product. Equally, the Tourism Strategy Noosa
highlights a current shortage of accommodation rooms as well as the need to focus on high-yielding
visitors and deliver world-class accommodation product.
The Noosa Springs Boutique Hotel aligns strongly with these strategic documents and will contribute
to achieving the aspirations and goals highlights in them.
Current Accommodation Market
The Noosa short-stay accommodation market has performed very well over the recent past, with
occupancy stabilised around 75% and growth in Average Daily Rate (ADR) averaging 6.5% per year
over the last five years (Figure E.1). With occupancy rates stable, strong growth in ADR and a
traditional seasonal market, it is likely that Noosa may have reached capacity in terms of the
accommodation market (i.e. weekends and holiday periods are full and without the ability to
activate mid-week traffic, particularly during off-peak periods, it may be difficult for the market
occupancy to rise much further).
Figure E.1 Noosa Short-Stay Accommodation Market Indicators
100% $400
90% $350
80%
$300
Occupancy Rate (%)
70%
60% $250
50% $200
40% $150
30%
$100
20%
10% $50
0% $0
2015 2016 2017 2018 2019
Occupancy Average Daily Rate Revenue per Available Room
Note: Year ending December.
Source: STR (2020); Lucid Economics
i
Page 4
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
A detailed audit of the existing accommodation supply in Noosa found a total of 3,821 rooms across
158 properties. It also revealed a chronic shortage of full-service, luxury hotel accommodation with
the market dominated by serviced apartments. The Sofitel Noosa Pacific Resort is the only full-
service, luxury hotel in Noosa (out of 158 properties) and trades at a premium relative to most other
properties in the market. The Sofitel Noosa Pacific Resort commands an asking price that is on
average 44% above the serviced apartments on Hastings Street. The market is typified by relatively
small properties (i.e. 20-30 rooms) that are older (i.e. 20-30 years old) and are actual residential
apartments (i.e. units with full kitchens) that are provided for short-stay accommodation.
In order for the Noosa tourism market to continue to grow and remain vibrant, additional hotel
room capacity is required. While the COVID-19 crisis has certainly impacted the Noosa
accommodation market negatively, a strong rebound in 2021 is likely based on interstate borders
opening, international borders remaining closed and many in the market (particularly in Victoria and
New South Wales) replacing international trips with interstate trips. While it will be 2022 before the
market returns to pre-COVID levels, the pre-existing shortage of accommodation will re-emerge,
with a shortage of 671 rooms expected in 2022. By 2023, when the Noosa Springs Boutique Hotel is
expected in the market, the shortage will be for 683 rooms.
Figure E.2. Future Supply and Demand Balance, Noosa
1,400,000 5,000
1,200,000 4,000
Room Nights Sold (No.)
1,000,000 3,000
Rooms (No.)
800,000 2,000
600,000 1,000
400,000 0
200,000 -1,000
0 -2,000
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Shortage/Surplus Rooms Room Nights Sold
Note: Year ending June. Market at 65% occupancy.
Source: Dransfield (2020); Lucid Economics
Economic Impact
The Noosa Springs Boutique Hotel will represent an estimated investment of $50 million. The
following tables (Table E.1 and Table E.2) highlight the future economic impact of the hotel. The
operational impacts will be recurring, annually.
Table E.1 Construction Phase Impact, Noosa Springs Boutique Hotel
Gross Regional Product ($m) Employment (No.)
Direct $8.12 76
Indirect $17.59 126
Total $25.71 202
Note: Employment is expressed in full-time equivalent employment positions.
Source: Lucid Economics
ii
Page 5
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Table E.2 Operational Phase Impact, Noosa Springs Boutique Hotel
Gross Regional Product ($m) Employment (No.)
Direct $6.97 94
Indirect $7.31 64
Total $14.29 158
Note: Employment is expressed in full-time equivalent employment positions.
Source: Lucid Economics
The planned Noosa Springs Boutique Hotel will greatly augment the existing accommodation market
and assist in growing the local tourism industry. Given the strength of the local accommodation
market in Noosa, the new hotel will not have a material impact on other existing properties in the
market and the new rooms will likely be easily absorbed by future market demand. With the pre-
existing shortages as well as the expected future shortages, the local market needs this increase in
supply in order not to deter visitors (and the important economic benefits that they bring) through
lack of availability. Given the nature and high quality of the future offering, it is likely that the Noosa
Springs Boutique Hotel could lure new visitors to Noosa (that would not have come otherwise),
creating a net increase in visitation and expenditure.
Beyond the economic impacts (Table E.1 and Table E.2), there will be numerous other economic
benefits delivered by the Noosa Springs Boutique Hotel development, including:
• Increase in luxury tourism product in Noosa: The Noosa Springs Boutique Hotel will
increase luxury tourism product in Noosa (first new, purpose built luxury hotel since 1989),
thereby increasing appeal to this market segment.
• Increase in luxury branding: The addition of a new, full-service luxury hotel will increase the
image and branding of Noosa as a luxury destination.
• Increase capacity for business events and weddings: While the existing Noosa Springs Golf
and Spa Resort accommodates business events and weddings, the addition of a full-service,
luxury hotel on site will dramatically increase the property’s ability to attract this market.
Events and weddings have been highlighted as key target groups by Tourism Noosa.
Activating the Noosa market mid-week through business events will unlock new areas of
demand and contribute towards Tourism Noosa’s goal of ‘value over volume’.
• Increase profile of destination: A new luxury hotel will help to increase the profile of the
destination through marketing and news events. This project will represent the largest
private sector investment in tourism in Noosa for a decade and as such it will raise the
profile of the destination for investment.
• Increase in high spending visitors: The Noosa Springs Boutique Hotel will be a luxury, full
service hotel, which will allow the hotel to bring in additional high yield visitors. As a
tourism product, the project represents a significant increase in the capacity of Noosa to
accommodate these high spending visitors. As highlighted in Section 3, increasing high
yield/high spending visitors is a key strategic goal for Tourism Noosa and without luxury
product, this goal will be difficult to achieve.
• Increase business confidence: ThFe Noosa Springs Boutique Hotel represents an investment
of approximately $50 million. With such a significant investment, the project will boost local
business confidence and potentially act as a catalyst for further investment into tourism
infrastructure and product in Noosa.
iii
Page 6
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
The Noosa Springs Boutique Hotel provides considerable economic benefits for Noosa. The
increase in room supply of 112 rooms will be easily absorbed by the market with only limited or
marginal impacts on other existing properties.
iv
Page 7
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Table of Contents
Executive Summary....................................................................................................................... i
Table of Contents ......................................................................................................................... v
Definitions .................................................................................................................................. vi
1. Introduction ............................................................................................................................ 1
2. Noosa Springs Overview .......................................................................................................... 2
2.1 Location and Site ..................................................................................................................... 2
2.2 Noosa Springs Boutique Hotel ................................................................................................. 4
3. Tourism Strategic Context ..................................................................................................... 11
3.1 Tourism Strategy Noosa 2017-22 .......................................................................................... 11
3.2 Noosa Shire Local Economic Plan .......................................................................................... 11
4. Noosa Accommodation Market ............................................................................................. 12
4.1 Current Accommodation Provision ....................................................................................... 12
4.2 Market Indicators .................................................................................................................. 15
4.3 Recent and Future Visitor Trends .......................................................................................... 18
5. Economic Impact Assessment ................................................................................................ 20
5.1 Modelling Approach .............................................................................................................. 20
5.2 Key Assumptions ................................................................................................................... 20
5.3 Economic Impact ................................................................................................................... 21
5.4 Impact on Existing Market ..................................................................................................... 22
5.5 Additional Benefits ................................................................................................................ 23
6. Summary .............................................................................................................................. 24
References................................................................................................................................. 25
Appendix A: Accommodation Audit ............................................................................................ 26
Appendix B: Input-Output Modelling Limitations ........................................................................ 30
v
Page 8
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Definitions
ADR – Average daily rate, which is a measure of the average rate paid for rooms sold, calculated by
dividing room revenue by rooms sold
B&B – Refers to a type of short-stay accommodation that is usually typified by very small number of
rooms (generally 3-5) and is the result of a redeveloped house. This type of accommodation
usually includes cooked meals served at specific times.
Hotel – Refers to a type of short-stay accommodation that does not have any in-room appliances
beyond a mini bar and coffee making facilities.
Noosa – Unless otherwise stated, Noosa refers to the local government boundaries of the Noosa
Shire.
Occupancy Rate – Occupancy rate is the percentage of available rooms that were sold during a
specified period of time. Occupancy is calculated by dividing the number of rooms sold by
rooms available.
RevPAR – Revenue per available room, which is the total guest room revenue divided by the total
number of available rooms. RevPAR differs from average daily rate (ADR) because RevPAR is
affected by the amount of unoccupied available rooms, while ADR shows only the average
rate of rooms actually sold.
Serviced Apartment – Refers to a type of short-stay accommodation that would include some in-
room appliances and equipment such as a refrigerator, sink and cooking apparatus. This type
of accommodation would also include residential units offered as short-stay accommodation
that include full kitchen and laundry areas.
Short-stay Accommodation – Refers to accommodation that is provided for the expressed purpose
of a short-stay visitor and would include a range of options including hotel, serviced
apartment and B&Bs. Caravan parks, campgrounds, youth hostels and backpackers have been
excluded from this assessment.
vi
Page 9
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
1. Introduction
Lucid Economics Pty Ltd (Lucid) has been engaged by Noosa Springs Real Estate Pty Ltd to conduct
an economic impact assessment for a planned hotel at Noosa Springs.
The Noosa Springs Golf and Spa Resort is a 100 hectare mixed use development featuring a
residential community, golf course, spa and tennis centre. It is located approximately 4km (6 minute
drive) from the famous Hastings Street in Noosa Heads, QLD.
Figure 1.1. Noosa Springs Golf and Spa Resort Location
Noosa Springs
Source: Google Maps
Noosa Springs Real Estate Pty Ltd is part of the GH Australia Group, which owns the Noosa Springs
Golf and Spa Resort, and wishes to develop a full service, luxury hotel on the site with a total of 112
rooms, which would likely enter the market in 2023. The hotel will support the existing golf club and
spa and ensure they continue to maintain the very high standard that has been developed. New
investment into the new hotel and associated infrastructure will support the growth and expansion
of Noosa as a destination.
1
Page 10
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
2. Noosa Springs Overview
2.1 Location and Site
The Noosa Springs Golf and Spa Resort was originally delivered in 2000 and included the Golf Club
Clubhouse and associated infrastructure (i.e. restaurant, bar, function rooms) as well as numerous
residential houses surrounding parts of the golf course. The Spa was added later and the original
master plan always envisioned a hotel on the site. The hotel was originally to be delivered in Precinct
F (Figure 2.1), however, this site is currently being developed as Parkridge Noosa, a residential
development consisting of 138 apartments and 28 town homes and various local amenities (Figure
2.2). Parkridge Noosa has already delivered various elements of the development and others are
under construction. The only option to deliver a hotel as part of the overall Noosa Springs
development is to build it within the existing footprint of the Noosa Springs Golf and Spa Resort.
The potential development area is over 1 ha (Figure 2.3), which is sufficient to deliver a hotel and
maintain some tennis courts.
Figure 2.1. Noosa Springs Precinct F
Existing Noosa
Springs Golf and
Spa Resort
Precinct F
Source: Smart Map, Queensland Government
2
Page 11
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Figure 2.2. Parkridge Noosa, Masterplan
Source: Blackburne Jackson Design
Figure 2.3. Noosa Springs Golf and Spa Resort Layout
Potential Area
for Hotel
Development
Spa
Club House
Restaurant
Function Area
Source: Google Maps
3
Page 12
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
2.2 Noosa Springs Boutique Hotel
The Noosa Springs Boutique Hotel will be a purpose built, luxury hotel. It will be the first purpose
built hotel in Noosa since the Sofitel was originally built in 1989. It will include the following
features:
• 112 luxury hotel rooms, including:
o 104 standard rooms (34 sqm each)
o 6 suites (68 sqm each)
o 2 presidential suites (102 sqm each)
• 2 luxury pools
• Outdoor fire pit seating area
• Café & restaurant (~ seating for 96 people, or larger functions)
• Bar area (~ seating for 26 people, or larger functions)
• Hotel Lobby
• Some covered Parking
• Guest Waiting Area
• 3 new tennis courts
The following figures (Figure 2.4 - Figure 2.9) provide a further overview of proposed luxury hotel.
The design of the hotel provides for strong integration with the existing resort assets, including the
day spa, golf course, club house and function areas. The shared lawn with the Day Spa has potential
to function as a wedding venue. Beyond weddings, the combination of accommodation rooms,
function areas and support infrastructure (i.e. restaurant, bar, kitchen) also means that the resort
would be able to host a range of other events and celebrations. The increase in local facilities and
amenities at Noosa Springs will benefit visitors as well as local residents.
4
Page 13
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Figure 2.4. Noosa Springs Boutique Hotel, Site Plan
Existing Spa
Existing Golf Clubhouse
Source: Marchese Partners (2020)
5
Page 14
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Figure 2.5. Noosa Springs Boutique Hotel, 3D Drawings
Source: Marchese Partners (2020)
6
Page 15
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Figure 2.6. Noosa Springs Boutique Hotel, Illustration, Main Entry
Source: Marchese Partners (2020)
7
Page 16
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Figure 2.7. Noosa Springs Boutique Hotel, Illustration, North from Resort Drive
Source: Marchese Partners (2020)
8
Page 17
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Figure 2.8. Noosa Springs Boutique Hotel, Illustration, Main Pool Area
Source: Marchese Partners (2020)
9
Page 18
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Figure 2.9. Noosa Springs Boutique Hotel, Illustration, Secondary Pool Area
Source: Marchese Partners (2020)
10
Page 19
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
3. Tourism Strategic Context
There are two strategic planning documents that support tourism and future tourism growth and
development in Noosa, including:
• Tourism Strategy Noosa 2017-22
• Noosa Shire Local Economic Plan
Both of these documents highlight the need to focus on higher-yielding visitors in order to maximise
the value contribution that tourism makes to the local economy.
3.1 Tourism Strategy Noosa 2017-22
The Tourism Strategy Noosa provides guidance and direction for the activities of Tourism Noosa in
terms of destination management. It provides direction regarding key priorities and strategies across
four themes:
• Engaging Marketing
• Outstanding Events
• Elevate Sustainability
• Empower Industry and Produce Development
The Strategy has four key goals, including:
• Value over volume
• New and improved world-class visitor experiences, events and accommodation
• Spread the benefits across the region
• Lift customer satisfaction
The Strategy also acknowledges a ‘lack of availability of short-term room stock’ as well as a ‘lack of
large conference facilities with high-quality brand association and occupancy availability’. The
Strategy further recognises the importance of increasing the accommodation supply as it identifies a
‘game changer’ as being ‘constantly improving and evolving accommodation’.
The Noosa Springs Boutique Hotel aligns strongly with the Tourism Strategy Noosa 2017-22 as it is
clearly focused on high-yield visitors and delivering additional hotel room stock to ease the
existing shortage. The hotel will provide a world-class accommodation experience and further
support Noosa’s brand of luxury and high-end experiences. Furthermore, the facility has been
designed to complement the existing function space, which can cater for up to 200 people. As the
development is located at Noosa Springs, it will contribute to spreading the benefits of tourism
across the Noosa region.
3.2 Noosa Shire Local Economic Plan
The Noosa Shire Local Economic Plan provides an economic vision for the future economic
development of the area:
“A dynamic and resilient economy for generations to come.”
Tourism features in the Local Economic Plan as one of seven key industries for future development.
Within the Plan, one of the key activities is to increase visitor yield/spend.
The Noosa Springs Boutique Hotel will help to deliver increase in visitor yield and spend as it
focuses on luxury travellers which spend more than the average visitor.
11
Page 20
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
4. Noosa Accommodation Market
4.1 Current Accommodation Provision
A comprehensive audit was completed of current short-stay, visitor accommodation in Noosa. This
audit was carried out through some visual inspection as well as a detailed investigation using online
accommodation sites such as TripAdvisor, Hotels.com and Bookings.com. This assessment also
included some review of traveller comments as well as current imagery of the accommodation
provided. Additionally, in order to capture the private rental market, data from Airdna was used to
identify the number of listings with Airbnb and Stayz. This method captures all trading short-stay,
visitor properties as it is highly unlikely that if a property is trading that it is not visible across these
platforms.
The results of the supply audit are highlighted in the following tables and shows numerous features
and characteristics of the current supply of short-stay visitor accommodation in Noosa, including:
• Noosa is a relatively large accommodation market (relative to the small population) with 158
short-stay accommodation properties providing 3,821 rooms
• The market is epitomised by relatively small properties (i.e. 20-30 rooms) that are older (i.e.
20-30 years old) and are actual residential apartments (i.e. units with full kitchens) that are
provided for short-stay visitor accommodation
• The majority of the market is unbranded (i.e. not associated with a major national or
international chain) and likely managed by an onsite manager, often consisting of a married
couple who may be semi-retired or close to retirement age
• The market is dominated by serviced apartment style accommodation, with the majority
being residential apartments that are let out to the short-stay visitor market
• There is only one, full-service hotel in the market (i.e. Sofitel Noosa Pacific Resort), which
trades at a premium to other properties, demonstrating the market’s demand for this type
of product
• The Sofitel Noosa Pacific Resort and Makepeace Island (Sir Richard Branson’s Australian
residence) are the only true 5-star accommodation in the region, making up just 5% of the
total market
• The majority of the market (i.e. 54%) is of relatively low quality, between 3 and 3.5 stars
• Airbnb has demonstrated a strong penetration rate into the Noosa market, with an average
annual active listings of 1,355 properties (1,285 homes and 69 private rooms)
A full listing of the accommodation audit is provided in Appendix A.
Table 4.1 Noosa Accommodation Supply Overview
Total
Properties (No.) 158
Rooms (No.) 3,821
Average Star Rating 3.7
Average Number of Rooms per Property 24
Source: Lucid Economics
12
Page 21
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Table 4.2 Noosa Accommodation Supply Overview, by Type
Total (No.) Total (%)
Property Type
Hotel 2 1%
Serviced Apartment 142 90%
B&B 14 9%
Room Type
Hotel 186 5%
Serviced Apartment 3,589 94%
B&B 46 1%
Source: Lucid Economics
Table 4.3 Noosa Accommodation Supply Overview, by Star Rating
Star Quality Total (No.) Total (%)
5 187 5%
4.5 604 16%
4 977 26%
3.5 1,265 33%
3 788 21%
Total 3,821 100%
Source: Lucid Economics
Figure 4.1. Monthly Airbnb Listings, Noosa
1,800
1,600
1,400
Active Listings (No.)
1,200
1,000
800
600
400
200
0
Jun-19
Aug-20
Aug-18
Aug-19
Jun-18
Jun-20
Apr-18
Apr-19
Apr-20
Dec-17
Feb-18
Dec-18
Feb-19
Dec-19
Feb-20
Oct-17
Oct-18
Oct-19
Entire House Private Room
Source: AirDNA (2020)
Existing Accommodation Stock in Noosa Does Not Align to Tourism Goals
As highlighted in Section 3, two of the goals for the Tourism Strategy Noosa 2017-22 are ‘value
over volume’ and ‘New and improved world-class visitor experiences, events and
accommodation’. However, the current accommodation market is focused around older, 3-3.5
star quality properties that do not represent a ‘world-class accommodation’.
There current market suffers from a lack of true luxury (5 star) properties and a lack of full-
service hotel product.
13
Page 22
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Lost Opportunities in the Meetings, Incentive, Conferences and Exhibitions (MICE) Market
The Noosa Springs Gold & Spa Resort has capacity to host a wide variety of corporate events.
However, the ability to attract these events have been significantly handicapped through the
inability to offer accommodation.
Over the past year, the following corporate events have been lost to Noosa because of the lack of
accommodation on site:
• Dulux Group Conference (120 delegates)
• Australian Institute for Disaster Resilience (AIDR)
• Nova Systems Weekender (200 delegates)
• Brisbane Taxi Association (250 delegates)
Incentive or group bookings have also had to be cancelled due to a lack of accommodation on site.
The Indooroopilly Ladies groups cancelled their visit because their accommodation needs could
not be met on site.
Additionally, many of the corporate events that have been secured for the property had to have
participate numbers capped due to the lack of onsite accommodation.
14
Page 23
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
4.2 Market Indicators
Prior to the COVID-19 crisis, the Noosa hotel market was performing well. While occupancy rates
remained stable around 75%, average daily rate showed strong growth, averaging 6.5% growth per
annum (Figure 4.2 and Table 4.4). Given the seasonality in the market, an occupancy of 75% on an
annual basis would indicate a shortage of rooms, particularly during peak periods. It is likely that the
stabilised occupancy rate of 75% represents a cap in the market (i.e. given the shortage of hotel
rooms and the seasonal market, it is not possible for occupancy rates to climb much higher). The
strong growth of average daily rates supports this situation as demand climbs and the room supply
remains stable, pricing will increase. Furthermore, the strong performance of Airbnb demonstrates
that additional demand is in the market and listings have increased to meet this demand.
It should be noted that the $334 ADR in Noosa is well above all capital city markets in Australia and
many other tourist destinations. For the year ending December 2019, Sydney has the largest ADR
($250), followed by Melbourne ($201) and the Gold Coast ($190). Furthermore, Noosa has achieved
this result, despite a lack of luxury properties, that do exist in Sydney, Melbourne and the Gold
Coast. This result demonstrates the premium that Noosa can command as a destination.
While the occupancy rate in Airbnb listings is much lower than in the traditional accommodation
market, the demand satisfied through Airbnb is significant, representing 200,000 annual nightly
bookings (pre-COVID). Combined, these bookings attracted over $80 million in revenue. This level of
revenue would be sufficient to support 900 traditional short-stay accommodation rooms.
Figure 4.2 Noosa Hotel Market Indicators
100% $400
90% $350
80%
$300
Occupancy Rate (%)
70%
60% $250
50% $200
40% $150
30%
$100
20%
10% $50
0% $0
2015 2016 2017 2018 2019
Occupancy Average Daily Rate Revenue per Available Room
Note: Year ending December.
Source: STR (2020); Lucid Economics
Table 4.4 Noosa Hotel Market Indicators
Occupancy (%) Average Daily Rate ($) Revenue per Available Room ($)
2015 70.6% $259.62 $183.27
2016 75.0% $284.26 $213.08
2017 76.9% $310.11 $238.55
2018 77.1% $322.93 $249.12
2019 75.9% $334.01 $253.51
Note: Year ending December.
Source: STR (2020); Lucid Economics
15
Page 24
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Figure 4.3 Noosa Airbnb Market Indicators
44% $500
$450
42%
$400
Occupancy Rate (%)
40% $350
38% $300
$250
36% $200
34% $150
$100
32%
$50
30% $0
Occupancy Average Daily Rate
Note: Rolling 12 month figures. Occupancy derived through monthly active listings and monthly listing nights booked.
Source: AirDNA (2020); Lucid Economics
Figure 4.4 Noosa Airbnb Market Demand and Revenue
250,000 $100
$90
Listing Nights Booked (No.)
200,000 $80
Market Revenue ($m)
$70
150,000 $60
$50
100,000 $40
$30
50,000 $20
$10
0 $0
Listing Nights Booked Market Revenue ($m)
Note: Rolling 12 month figures.
Source: AirDNA (2020); Lucid Economics
16
Page 25
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
COVID-19 Impact on the Noosa Accommodation Market
The COVID-19 crisis has had a dramatic and devasting impact on the Noosa accommodation
market. Occupancy for April (traditionally a strong month supported by Easter holidays) was just
3%. Figure 4.5 shows the dramatic drop off in market indicators. Missing out on months of
revenue, many accommodation operators would be struggling financially.
Figure 4.5 Noosa Hotel Market Indicators During the COVID-19 Crisis
90% $500
80% $450
70% $400
Occupancy Rate (%)
$350
60%
$300
50%
$250
40%
$200
30%
$150
20% $100
10% $50
0% $0
Occupancy ADR RevPAR
Note: Monthly figures.
Source: STR (2020); Lucid Economics
Noosa Plan 2020 Changes and Airbnb
Changes have been made in the new Noosa Plan 2020 regarding the short-term letting of
residential property. Under the new scheme, short-term accommodation is now an inconsistent
use in the Low Density Residential zone and it is only an accepted development outcomes where
the project meets the following requirements:
• If it is in the applicant’s principle place of residence
• The letting of only one dwelling on site
• Occupied by short term guests on no more than 4 occurrences in any calendar year
• Occupied by short term guests for a total of no more than 60 nights in any calendar year
This change means that the penetration of Airbnb and other similar platforms may slow in Noosa.
The change does not affect properties that currently offer short-term accommodation (i.e. if a
house has been listed on Airbnb or similar platform for short-term accommodation, then it may
continue to be listed and used for short-term accommodation).
Given this change, the supply of Airbnb listings (and other similar platforms) will likely not grow
along historical trends. As such, new accommodation rooms will be required in Noosa in order to
keep pace with future demand growth.
17
Page 26
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
4.3 Recent and Future Visitor Trends
The COVID-19 crisis and subsequent border closures at a national and state level have severely
impacted the Noosa accommodation market. On an annual basis, 2019-20 demand fell 20%, ending
a number of years of strong growth. The annual occupancy rate fell from an annual rate of 76% to
61%. One reason why these falls were not greater is the strong trading conditions for the traditional
Christmas and new year season.
Figure 4.6. Room Nights Sold and Occupancy Rates, Noosa
1,200,000 90%
80%
1,000,000
70%
Room Nights Sold (No.)
Occupancy Rate (%)
800,000 60%
50%
600,000
40%
400,000 30%
20%
200,000
10%
0 0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Room Nights Sold Occupancy (%)
Note: Year ending June.
Source: STR (2020); Lucid Economics
In order to better understand the future supply and demand balance of accommodation in Noosa, a
range of modelling and analysis were conducted. To better understand the potential impacts of the
COVID-19 border closures, analysis and modelling conducted by Dransfield (Dransfield, 2020) has
been used, which considers the lost demand for the Australian hotel market through the closure of
international borders as well as the likely increase in domestic travel based on the continued closure
of the international borders. The analysis was conducted based on financial years.
Additionally, consideration was also given to the second wave of COVID-19 in Australia and the
Queensland border closure for those living in identified COVID-19 hotspots. Initially, the Melbourne
metropolitan region was declared a hot spot and since, all of Victoria and New South Wales have
been declared hot spots (and remain closed to Queensland at the time of publication).
It should be noted that based on information from Tourism Research Australia (TRA, 2020), visitors
from Victoria and New South Wales contribute more visitor nights to Noosa than international
visitors. Victoria and New South Wales contributed 46% of visitor nights in the year ending March
2020, while international visitors contributed 20%. Visitors from Sydney and Melbourne alone
contributed 29% of visitor nights in Noosa and these markets have grown substantially over the last
two years.
Future demand after 2022 has been estimated based on regression analysis using a linear trend. It
should be noted that the resultant annual growth is below historical growth over the last decade
(pre-COVID).
18
Page 27
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
In order to identify a shortage or surplus of rooms, a market occupancy of 65% has been assumed,
which represents a healthy level of occupancy that would allow a property to trade profitably. The
analysis shows the existing shortage of hotel rooms in the Noosa market prior to the COVID-19 crisis.
As demand returns to the market in 2021, a shortage of 143 rooms reappears. By 2023, when the
Noosa Luxury Hotel is to be delivered into the market, it is anticipated to have a shortage of 683
rooms.
Figure 4.7. Future Supply and Demand Balance, Noosa
1,400,000 5,000
1,200,000 4,000
Room Nights Sold (No.)
1,000,000 3,000
Rooms (No.)
800,000 2,000
600,000 1,000
400,000 0
200,000 -1,000
0 -2,000
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Shortage/Surplus Rooms Room Nights Sold
Note: Year ending June. Market at 65% occupancy.
Source: Dransfield (2020); Lucid Economics
19
Page 28
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
5. Economic Impact Assessment
5.1 Modelling Approach
This assessment leverages Input-Output (IO) modelling and considers both the construction and
operational phase of the project. Construction activity is based on the latest Input-Output tables
provided by the Australian Bureau of Statistics (ABS) (ABS, 2020). The table has been modified to
reflect the structure of the Noosa economy.
Economic impact analysis identifies a series of economic metrics, during both construction and
operational phases, including:
• Gross Regional Product: value of the total economic output minus the costs of goods and
services used as inputs, plus net taxes. Gross Regional Product (GRP) and Gross State
Product (GSP) are the preferred measure of the economy as they focus on the net
contribution from the local economy. This value is the local or state-level equivalent of Gross
Domestic Product (GDP).
• Employment: employment positions generated, expressed on a full-time equivalent (FTE)
basis.
These metrics are measured in terms of the direct as well as the indirect (flow-on) impacts. Indirect
(flow-on) impacts are measured in two ways:
• Type I: Production effect or supply chain impacts linking to the direct impact.
• Type II: Consumption induced effect, which measures expenditure paid by employees
related to the project in the broader economy.
IO modelling has various limitations, as highlighted in Appendix B.
In order to measure the economic impact of the Noosa Springs Boutique Hotel during its
construction phase, the capital expenditure of the project will be the main driver of the assessment.
For the operational phase, future direct employment estimates will be used.
The geographic boundary for this assessment is the Noosa Shire Local Government Area.
5.2 Key Assumptions
In order to conduct this analysis, a number of assumptions have been made. For the construction
phase, GH Australia has advised that the hotel will cost approximately $50 million. Table 5.1 provide
the key assumptions used in this analysis.
Table 5.1 Estimated Capital Expenditure by Sector and Local Capture Rate
Industry Allocation Local Capture
Non-Residential Building Construction 55% 70%
Heavy and Civil Engineering Construction 15% 60%
Construction Services 20% 70%
Professional, Scientific and Technical Services 10% 60%
Source: Lucid Economics
20
Page 29
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
For the operational phase of the project, Table 5.2 shows the future expected level of direct
employment, which has been estimated by using the most recent ABS Tourist Accommodation
Survey tracking employment at hotels and resorts in Queensland.
Table 5.2 Estimated Future Direct Hotel Employment
Indicator Value
Noosa Springs Hotel Rooms 112
Avg Employment per Room 0.84
Estimated Direct Future Employment 94
Source: ABS (2013); Lucid Economics
5.3 Economic Impact
The results of the economic impact assessment are highlighted in the following tables (Table 5.3 and
Table 5.4). During construction, the project will increase the Noosa economy by $25.7 million (in
Gross Regional Product terms) both directly and indirectly. At the same time, the construction phase
will generate 202 jobs (both directly and indirectly).
Once the hotel is operational, it will provide $14.3 million (in Gross Regional Product terms) both
directly and indirectly. At the same time, the operational phase will provide 158 jobs (both directly
and indirectly). It should be noted that these operational impacts would be recurring and would be
supported on an annual basis moving forward.
Table 5.3 Construction Phase Impact, Noosa Springs Boutique Hotel
Gross Regional Product ($m) Employment (No.)
Direct $8.12 76
Indirect $17.59 126
Total $25.71 202
Note: Employment is expressed in full-time equivalent employment positions.
Source: Lucid Economics
Table 5.4 Operational Phase Impact, Noosa Springs Boutique Hotel
Gross Regional Product ($m) Employment (No.)
Direct $6.97 94
Indirect $7.31 64
Total $14.29 158
Note: Employment is expressed in full-time equivalent employment positions.
Source: Lucid Economics
21
Page 30
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
COVID-19 Economic Recovery
The development of the Noosa Springs Boutique Hotel will support economic recovery in Noosa in
a number of ways. The construction phase will generate considerable employment locally.
Furthermore, the development of Noosa’s first purpose built, luxury hotel since 1989 will
generate new (or renewed) interest in visiting Noosa at a time when all borders should be open.
The construction of a new nort-west/south-east runway was completed at the Sunshine Coast
Airport in June 2020 and the remaining associated infrastructure is due for completion in late
2020. The provision of a new luxury hotel in Noosa Springs will help to drive additional
international visitation to the area through the new airport infrastructure. Traditionally, Noosa
has relied upon the domestic overnight market and has never leveraged the high-end
international market.
5.4 Impact on Existing Market
As highlighted in the supply audit, there is a lack of full-service and luxury accommodation product in
Noosa. This new luxury product is required to ensure Noosa achieves ‘value over volume’, as
expressed in the Tourism Strategy Noosa. Furthermore, the development of the Noosa Springs
Boutique Hotel fulfills another goal of the Tourism Strategy Noosa, ‘new and improved world-class
visitor experiences, events and accommodation’.
The Noosa Springs Boutique Hotel is expected to have 112 rooms, which makes up only 2.9% of the
total supply of short-stay accommodation. As such a small portion of the overall market, it is likely
that the impact of this development on the existing market will be minimal, particularly as this
product is geared toward the luxury traveller and there is only one establishment in the market that
provides a full-service, luxury hotel experience (i.e. Sofitel Noosa Pacific Resort). This new product
will not be a detriment to the market.
As highlighted in Section 4 and referenced in the Tourism Strategy Noosa, the local market has a
current lack of accommodation rooms, particularly at the upper end of the market. While the COVID-
19 crisis has caused a significant drop off in demand, occupancy and revenues, Noosa is well placed
to benefit from future interstate markets (i.e. Victoria and New South Wales) that are expected to
open before international markets. Furthermore, once interstate borders are open, there is likely to
be pent up demand from visitors in these markets that either had an international or interstate trip
placed during the lockdown phases of the COVID-19 crisis.
The proposed hotel’s café and bar has been designed to largely service hotel guests and will not
affect the viability of any other restaurants or cafes.
Finally, the new Noosa Plan has made short-term letting of property in low density residential zones
an inconsistent land use and subject to a development approval. Under these new provisions, it is
unlikely that the properties offered through Airbnb and similar platforms will increase much further
than the current levels, hampering the future growth of short-stay accommodation supply further.
Considering these market dynamics, it is not surprising that a chronic shortage of accommodation
rooms will emerge in Noosa in 2022. Additional supply is required in order to facilitate the future
and on-going growth and vibrancy of the tourism sector in Noosa.
The planned Noosa Springs Boutique Hotel will not have any detrimental impact on the market, but
instead will complement and augment the existing market.
22
Page 31
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
5.5 Additional Benefits
Beyond the economic impacts identified in Section 5.3, there will be numerous other economic
benefits delivered by the Noosa Springs Boutique Hotel development, including:
• Increase in luxury tourism product in Noosa: The Noosa Springs Boutique Hotel will
increase luxury tourism product in Noosa (first new, purpose built luxury hotel since 1989),
thereby increasing appeal to this market segment.
• Increase in luxury branding: The addition of a new, full-service luxury hotel will increase the
image and branding of Noosa as a luxury destination.
• Increase capacity for business events and weddings: While the existing Noosa Springs Golf
and Spa Resort accommodates business events and weddings, the addition of a full-service,
luxury hotel on site will dramatically increase the property’s ability to attract this market.
Events and weddings have been highlighted as key target groups by Tourism Noosa.
Activating the Noosa market mid-week through business events will unlock new areas of
demand and contribute towards Tourism Noosa’s goal of ‘value over volume’.
• Increase profile of destination: A new luxury hotel will help to increase the profile of the
destination through marketing and news events. This project will represent the largest
private sector investment in tourism in Noosa for a decade and as such it will raise the
profile of the destination for investment.
• Increase in high spending visitors: The Noosa Springs Boutique Hotel will be a luxury, full
service hotel, which will allow the hotel to bring in additional high yield visitors. As a
tourism product, the project represents a significant increase in the capacity of Noosa to
accommodate these high spending visitors. As highlighted in Section 3, increasing high
yield/high spending visitors is a key strategic goal for Tourism Noosa and without luxury
product, this goal will be difficult to achieve.
• Increase business confidence: The Noosa Springs Boutique Hotel represents an investment
of approximately $50 million. With such a significant investment, the project will boost local
business confidence and potentially act as a catalyst for further investment into tourism
infrastructure and product in Noosa.
23
Page 32
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
6. Summary
The Noosa Springs Boutique Hotel will deliver a 112 room, full-service, luxury hotel in Noosa. This
development will fulfil numerous strategic goals and aspirations as espoused by the Noosa Shire and
Tourism Noosa. It will provide considerable capacity to attract high yield/high spending visitors and
would represent one of the most significant investments in tourism product over the last decade. In
order to grow as a destination, Noosa requires new tourism investment into facilities and amenity.
The Noosa Springs Boutique Hotel also addresses a significant lack of luxury, full-service hotel
product in the Noosa region. Currently, there is only one property (out of 158) that provides a
luxury, full service hotel experience (i.e. Sofitel Noosa Pacific Resort). Furthermore, Noosa suffers
from a shortage of short-stay accommodation rooms and a chronic shortage of high-end, luxury
accommodation. As the region emerges from the COVID-19 crisis, the shortage of accommodation
rooms will become more acute, creating limitations in the market and deterring visitors due to lack
of availability, particularly during peak times. The Noosa Springs Boutique Hotel provides much
needed new, luxury accommodation. The delivery of the Noosa Springs Boutique Hotel will greatly
complement the existing accommodation offer in Noosa.
The Noosa Springs Boutique Hotel provides a variety of positive economic benefits, including 202
jobs and $25.7 million (in GRP terms) during construction and $14.3 million (in GRP terms) and 158
jobs once operational.
The Noosa Springs Boutique Hotel provides considerable economic benefits for Noosa. The
increase in room supply of 112 rooms will be easily absorbed by the market with only limited or
marginal impacts on other existing properties.
24
Page 33
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
References
ABS (2020). Australian National Accounts: Input-Output Tables. Cat. No. 5209.0.55.001. Australian
Bureau of Statistics, Canberra.
ABS (2013). Tourist Accommodation Survey. Cat. No. 8635.0. Australian Bureau of Statistics,
Canberra.
AirDNA (2020). Noosa Market Overview. AirDNA, unpublished.
Dransfield (2020a). Hotel Futures 2020 – COVID-19 Update Series. Dransfield Hotels and Resorts.
Unpublished.
Dransfield (2020b). Hotel Futures 2020 – COVID-19 Update Series. Impact of Extended Closure of
International Borders. Dransfield Hotels and Resorts. Unpublished.
Rawlinson’s (2020). Rawlinson’s Australian Construction Handbook 2020. Perth, WA.
STR (2020). Trend Report, Noosa Heads. STR. Unpublished.
TRA (2020). National and International Visitor Survey. Tourism Research Australia, Canberra.
TRA (2019). State and Territory Tourism Forecasts. Tourism Research Australia, Canberra.
25
Page 34
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Appendix A: Accommodation Audit
Table A.1. Noosa Accommodation Market Audit
Number of
Name Rooms Type Star Quality
Sofitel Noosa Pacific Resort 176 Hotel 5
Makepeace Island 10 Hotel 5
U2 Twenty-Three Hastings Street 1 Serviced Apartment 5
Seahaven Noosa 68 Serviced Apartment 4.5
On the Beach Noosa 21 Serviced Apartment 4.5
Noosa Valley Manor B&B Retreat 4 B&B 4.5
Alaya Verde 3 B&B 4.5
Kingfishers Manor 3 B&B 4.5
Lake Weyba Cottages 1 B&B 4.5
Noosa Springs Golf & Spa Resort 27 Serviced Apartment 4.5
RACV Noosa Resort 167 Serviced Apartment 4.5
Peppers Noosa Resort & Villas 198 Serviced Apartment 4.5
Noosa Boutique Apartments 6 Serviced Apartment 4.5
Allambi 2 1 Serviced Apartment 4.5
Noosa Habitat Resort B&B 3 B&B 4.5
The Retreat Beach Houses 17 Serviced Apartment 4.5
Glen Eden Beach Resort 33 Serviced Apartment 4.5
Noosa Tropicana 20 Serviced Apartment 4.5
Offshore Noosa Resort 26 Serviced Apartment 4.5
Aqua Promenade Beachfront 6 Serviced Apartment 4.5
Netanya Noosa 47 Serviced Apartment 4
The Sebel Noosa 73 Serviced Apartment 4
Mantra French Quarter Resort 130 Serviced Apartment 4
Noosa Residences 23 Serviced Apartment 4
Maison Noosa Luxury Beachfront Resort 23 Serviced Apartment 4
Bella Case Noosa 26 Serviced Apartment 4
Jacaranda Noosa Apartments 6 Serviced Apartment 4
Saks on Hastings 17 Serviced Apartment 4
SandCastles Apts 14 Serviced Apartment 4
Fairshore Beachfront Apts 30 Serviced Apartment 4
2 Hastings Street 13 Serviced Apartment 4
Hastings Park 6 Serviced Apartment 4
Saks on Hastings 17 Serviced Apartment 4
Beach Road Holiday Homes 48 Serviced Apartment 4
Ingenia Holidays Noosa 36 Serviced Apartment 4
The Beet Retreat 2 B&B 4
Noosa Blue Resort 65 Serviced Apartment 4
South Pacific Resort Noosa 40 Serviced Apartment 4
Noosa Crest 39 Serviced Apartment 4
Taralla Apartments 9 Serviced Apartment 4
The Rise Noosa Apts 35 Serviced Apartment 4
26
Page 35
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Number of
Name Rooms Type Star Quality
Little Cove Court 9 Serviced Apartment 4
The Cove Noosa Resort 22 Serviced Apartment 4
Bottlebrush Holiday Townhouses 4 Serviced Apartment 4
The Noosa Apartments 8 Serviced Apartment 4
Alderly Terrace 5 Serviced Apartment 4
Pacific Blue Apts 9 Serviced Apartment 4
Beachcomber Peregian Beach 2 B&B 4
Montpellier Boutique Resort 20 Serviced Apartment 4
Rimini Holiday Apartments 20 Serviced Apartment 4
Verano Resort 28 Serviced Apartment 4
Terrapin Apartments 2 Serviced Apartment 4
Skippers Cove 24 Serviced Apartment 4
Metzo Noosa Resort 16 Serviced Apartment 4
Noosa Riviera 9 Serviced Apartment 4
Sunset Cove Noosa Resort 12 Serviced Apartment 4
Noosa Quays 23 Serviced Apartment 4
Noosa Parade Holiday Inn 11 Serviced Apartment 4
Noosa Sun Lagoon Resort 26 Serviced Apartment 4
Costa Nova Holiday Apartments 17 Serviced Apartment 4
Andari Apts 9 Serviced Apartment 4
Costa Bella Apts 2 Serviced Apartment 4
10 Hastings Street Boutique Motel 9 Serviced Apartment 3.5
The Emerald Resort Noosa 45 Serviced Apartment 3.5
Hotel Laguna 48 Serviced Apartment 3.5
Tingirana Noosa 18 Serviced Apartment 3.5
No. 1 Hastings 27 Serviced Apartment 3.5
Ocean Breeze Resort 58 Serviced Apartment 3.5
The Hastings Beach House 25 Serviced Apartment 3.5
Laguna on Hastings 12 Serviced Apartment 3.5
Eumarella Shores Noosa Lake Retreat 8 Serviced Apartment 3.5
Robyn's Nest 3 B&B 3.5
Noosa Hinterland Retreat 2 Serviced Apartment 3.5
Beech's Brook Rain Forest Retreat 2 Serviced Apartment 3.5
Noosa Lakes Chalet 3 Serviced Apartment 3.5
Annie's B&B 2 B&B 3.5
Noosa Edge 5 B&B 3.5
Noosa Heads Motel 23 Serviced Apartment 3.5
Bali Hai Apartments Noosa 11 Serviced Apartment 3.5
Noosa Hill Resort Apartments 36 Serviced Apartment 3.5
Picture Point Terraces 9 Serviced Apartment 3.5
Noosa International Resort 64 Serviced Apartment 3.5
Picture Point Apts 12 Serviced Apartment 3.5
The Outlook 5 Serviced Apartment 3.5
Lauberge Apts 6 Serviced Apartment 3.5
27
Page 36
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Number of
Name Rooms Type Star Quality
Noosa Junction Apartments 4 Serviced Apartment 3.5
Club Noosa Timeshare Resort 10 Serviced Apartment 3.5
Grantlea Holiday Lodge 4 B&B 3.5
Horizons at Peregian 15 Serviced Apartment 3.5
Sails Lifestyle Resort 22 Serviced Apartment 3.5
Peregian Court Resort 24 Serviced Apartment 3.5
Hideaway Noosa Men's Resort 10 Serviced Apartment 3.5
Calypso Sands 10 Serviced Apartment 3.5
Islander Noosa Resort 60 Serviced Apartment 3.5
Pelican Beach Resort 19 Serviced Apartment 3.5
Regatta Riverfront Apartments 22 Serviced Apartment 3.5
Colonial Resort 20 Serviced Apartment 3.5
At the Sound 22 Serviced Apartment 3.5
Sandy Beach Resort Noosa 21 Serviced Apartment 3.5
Culgoa Point Beach Resort 54 Serviced Apartment 3.5
Noosa Pacific Riverfront Resort 45 Serviced Apartment 3.5
Caribbean Noosa 16 Serviced Apartment 3.5
Caymen Quays 14 Serviced Apartment 3.5
Noosa River Retreat 15 Serviced Apartment 3.5
Noosa Shores Retreat 26 Serviced Apartment 3.5
Noosa Outrigger Beach Resort 32 Serviced Apartment 3.5
Noosa Lakes Resort 70 Serviced Apartment 3.5
Noosa Place Resort 40 Serviced Apartment 3.5
The Noosa Apts 8 Serviced Apartment 3.5
Bermuda Villas 14 Serviced Apartment 3.5
Noosa Keys Resort 19 Serviced Apartment 3.5
Noosa River Palms Resort 14 Serviced Apartment 3.5
Cloud Nine Luxury Apts 7 Serviced Apartment 3.5
Wolngarin Holiday Resort 20 Serviced Apartment 3.5
Las Rios 21 Serviced Apartment 3.5
Nautilus Noosa Holiday Resort 30 Serviced Apartment 3.5
Noosa Sound Resort 13 Serviced Apartment 3.5
Noosa Outrigger Beach Resort 32 Serviced Apartment 3.5
Mariner's Reach Apartment 1 Serviced Apartment 3.5
La Mer Beachfront Apartments 20 Serviced Apartment 3.5
Sundancer Holiday Apartments 14 Serviced Apartment 3.5
Sunshine Vista Holiday Apts 11 Serviced Apartment 3.5
Parkshores Sunshine 9 Serviced Apartment 3.5
Sunseeker Lodge 24 Serviced Apartment 3.5
Noosa Cove Holiday Apts 3 Serviced Apartment 3
Noosa North Shore Retreat 50 Serviced Apartment 3
Noosa North Shore Tourist Park 46 Serviced Apartment 3
Villa Alba 4 B&B 3
The Lookout Resort Noosa 21 Serviced Apartment 3
28
Page 37
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Number of
Name Rooms Type Star Quality
Myuna Holiday Apts 20 Serviced Apartment 3
Rosati Apts 6 Serviced Apartment 3
Palm Court 14 Serviced Apartment 3
Nomads Noosa 31 Serviced Apartment 3
Anchor Motel 18 Serviced Apartment 3
Regency Waterfront Noosa 8 Serviced Apartment 3
The Villa Noosa Hotel 24 Serviced Apartment 3
Noosa Village River Resort 22 Serviced Apartment 3
Ivory Palms Resort Noosa 116 Serviced Apartment 3
Coral Beach Noosa Resort 43 Serviced Apartment 3
Munna Beach Apartments 32 Serviced Apartment 3
Coco Bay Resort 20 Serviced Apartment 3
Noosa Harbour Resort 66 Serviced Apartment 3
Noosa River Sandy Shores 9 Serviced Apartment 3
Twin Quays 25 Serviced Apartment 3
Noosa Yallambee Apts 10 Serviced Apartment 3
Como Noosa 12 Serviced Apartment 3
Noosa Gardens Riverside Resort 14 Serviced Apartment 3
Portside Noosa Waters 20 Serviced Apartment 3
Sandy Court 10 Serviced Apartment 3
Macquarie Lodge 36 Serviced Apartment 3
Clearwater Noosa Holiday Apt 30 Serviced Apartment 3
Noosa Terrace Belmondos 12 Serviced Apartment 3
Le Court Villas 9 Serviced Apartment 3
Weyba Gardens Resort 12 Serviced Apartment 3
Cockleshells Sands 7 Serviced Apartment 3
Alexandria Resort 2 B&B 3
Villa Aqua 8 B&B 3
Chez Noosa 28 Serviced Apartment 3
Source: Lucid Economics
29
Page 38
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Appendix B: Input-Output Modelling Limitations
Input-output (IO) modelling is a common technique for economic impact assessment and has been
used for a range of purposes, including to inform strategic or government policy decision making.
However, IO modelling has certain limitations and weaknesses, including:
• Lack of supply-side constraints: IO multipliers assume that extra output can be produced in
one area of activity without taking away resources from other activities. Actual impacts
would be dependent on the availability of appropriate labour and capital and other
productive inputs.
• Fixed prices: IO systems assume fixed prices, so that the effects of relative price changes
play no role in the allocation of scarce resources between activities. Essentially, prices are
fixed and do not change relative to changes in supply and demand. Actual impacts would be
affected by relative price changes due to constraints on the availability of labour, capital and
other inputs and policy changes as well as changes in demand.
• Fixed ratios for intermediate inputs to production and outputs from production: IO
modelling uses fixed input structures for each industry so that changes in production
technology and the use of inputs in production play no role in impact assessment. Actual
impacts could be affected by changes in production technologies including in the use of
domestic and imported inputs and the mix of outputs including in the supply of products to
household, investment and export demands.
• No allowance for household purchasers’ marginal responses to change: IO modelling
assumes that consumption is fixed to initial budget shares, so that real budget shares remain
unchanged with changes in household income and relative prices. In practice, the level and
composition of household purchases would be affected by income and relative price
changes.
• Absence of budget constraints: IO modelling assumes that consumption is unconstrained so
that changes in household or government consumption occur without reducing demand
elsewhere. In practice, the level of consumption expenditure by households and government
would be budget constrained.
Despite its flaws, IO modelling has proven an effective tool in understanding the economic benefits
of a specific project, strategy or policy.
30
Page 39
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
PAGE LEFT INTENTIONALLY BLANK
31
Page 40
Noosa Springs Luxury Hotel Economic Impact Assessment
Final Report
Lucid Economics Pty Ltd
www.lucideconomics.com.au
[email protected]
32