Appendix A - Economic Impact Assessment.pdf

                                                              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