Appendix A - Economic Impact Assessment.pdf

                                             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




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