Appendix A - Economic Impact Assessment.pdf

                                                   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.




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