2021-12-13 GC Agenda - Item 9 - Attachment 1 - Draft Economic Development Strategy 2021-2030

4. The Economic Context
4.1.     The Noosa Economy
The vibrant Noosa economy has experienced consecutive growth for most of the last twenty
years. This growth has been largely due to the desirability of our unique destination as a
place to live, work, visit and connect, and driven by the high level of awareness of the Noosa
brand. This brand evolved from a strong history of environmental protection thanks to
history of strong leadership and a community committed to the environment and
sustainability.

By design, population growth in the Noosa Shire is much lower than many areas in the State
and South East Queensland, where economic growth is due in a large part to high rates of
population growth. To date in the Noosa Shire, the rate of economic growth has been above
that of population growth. To support the continuation of this trend we are seeking economic
growth from high value, low environmental impact and knowledge based industry sectors.

While the economy has performed well over time, it has been traditionally reliant upon
tourism, retail and the construction industry, all of which can (and have) experienced volatile
swings up and down. The traditional desire to encourage a more diverse economy has paid
off with other sectors including healthcare and professional business services increasing
greatly over recent years.

Even with these gains, our community has median income levels below the State average
and pockets of high socio-economic disadvantage. We have an older population where the
average age is increasing at a faster rate than the rest of the State. This can have positive
and negative effects on the economy. The negative effects focus around a declining
workforce, lower birth rates and high service’s needs. The positive, in OECD countries
where retirement incomes are higher, this can translate to higher spend.

The housing market has boomed recently as record numbers of residents flee Melbourne
and Sydney as a result of the COVID-19 pandemic. Housing prices have increased rapidly,
affordability has declined significantly (double the house price to income ratio of the State)
and residential vacancies have been below 1% for most of 2021. Some business are
reporting staff hortages, while at the same time experiencing strong trading conditions.