Appendix A - Economic Impact Assessment.pdf

                                                                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




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