Appendix A - Economic Impact Assessment.pdf

                                                           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.




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