MCU25/0006 - Development Application For Material Change Of Use - Short Term Accommodation (Backpackers Accommodation) At 17 Russell St, Noosaville · Attachment 1 - MCU25 0006 - Planning Officer’S Report

PLANNING & ENVIRONMENT COMMITTEE MEETING REPORT                                07 OCTOBER 2025


In support of the proposal the Applicant submits:
The report (Economic needs assessment by Foresight Partners) highlights that the proposed 48-
bed backpacker accommodation at 17 Russell Street, Noosaville, will directly support the Noosa
economy by providing accommodation for key workers. Analysis reveals a significant unmet
demand for hostel accommodation.
● Projected demand for backpacker/hostel accommodation is 214,740 visitor nights in 2024,
increasing to 256,747 by 2036.
● At a 75% occupancy rate, demand could support 784 hostel beds in 2024 and 938 by 2036.
● This indicates a current shortfall of 347 beds, projected to rise to 501 beds by 2036.
● Higher average hostel dormitory bed prices in Noosa suggest constrained supply.
● Limited land availability in the Tourist Accommodation zone of Noosaville and Noosa Heads,
coupled with proposed zoning changes, will further restrict future capacity for new hostels.
● The proposed 48-bed development directly addresses the identified accommodation shortfall.
● It supports the Noosa economy by providing housing for key workers, particularly working holiday
makers in the tourism sector.
● The economic benefits of the proposed development are anticipated to exceed those of
alternative uses, given the site's existing approval for short-term letting rather than permanent
housing.
● In conclusion, there is a clear economic and planning imperative for the proposed backpacker
accommodation at 17 Russell Street, Noosaville. Specifically, it notes that working holiday makers
frequently fill tourism-related jobs, and this development would help house this essential part of
the workforce. The report also states that the economic benefits of this proposed development,
including its role in housing key workers, are expected to outweigh any economic benefits of
potentially converting the site into three additional permanent housing units, especially since the
site is already approved for short-term letting and is not intended for the permanent housing pool.
While the applicant references the provision of accommodation for key workers as a reason to
support the development, no specific information has been provided regarding how key workers
will be accommodated or prioritised in comparison to general visitors.
Figures 8 and 9 detail that the area is well serviced by short term accommodation and that the
proposal further erodes the potential for more permanent housing to be provided in the area. The
proposal will also detrimentally impact the amenity of the surrounding residents due to the location
of the proposed ground level communal areas which are in close proximity to side boundaries.


Assessment Codes
The proposal has been reviewed against the relevant codes and pertinent issues arising out of the
assessment are discussed below:

 Criteria                   Planning Scheme               Proposal                         Complies


 Building height
 •   storeys                3 storeys max                 3 storeys                           
 •   metres                 12 metres                     <12 metres                          

 Site cover                 40%                           45% (including omitted              X
                                                          ground   level   acoustic
                                                          awning (21m²) over dining
                                                          area).