07/1259 - Peregian Beach needs assessment [As Published] · 132007.1259

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ECONOMICS

Client: Scanlon Property Group

Project: Peregian Beach Needs Assessment

Date: 19 June 2007
Prepared By:
William Owen
[email protected]
Kate Worsfold Core Economics
[email protected] PO Box 287

Robina Queensland 4226

Project No. 07/0047 Phone — 07 $657 5123

Facs — 07 5657 5130

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Table of Contents

Table of Contents 2
Introduction 3
Objectives 3
Assumptions 3
Executive Summary 5
Section 1 Function and Site Assessment 8
1A {Introduction 8
1.2 Function Assessment 8
4.3 Concept Proposal 8
1.4 Regional Characteristics 10
15 Local Area Characteristics 10
1.6 Implications 12
Section 2 Supply and Demand Analysis 13
24 Introduction 13
22 Visitors and Visitor Nights 13
2.3 Existing Infrastructure 14
24 General Trends and Comparative Local Assessment 21
2.5 Implications 26
Section 3 Area of Economic Influence - Accommodation 28
3.1 Introduction 28
3.2 Delineation of Economic Influence Areas 28
3,3 Implications 28
Section 4 Tourist Visitation Projections 29
44 Introduction 29
4.2 Tourist Market Projections 29
43 On-site Tourist Population Capacity 30
44 Implications 30
Section 5 Retail and Commercial Assessment 32
5.4 Introduction 32
5.2 Retail and Commercial Infrastructure 32
5.3 Area of Influence 33
5.3 Expenditure Potential 34
5.4 Commercial Floorspace 36
5.5 Implications 37
Section 6 Needs Assessment 38
6.1 (ntroduction 38
6.2 Need for the Subject Site 38
63 Planning Need 42
6.4 Conclusion 42

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. Introduction

This report was commissioned by Tony Scanton of Scanlon Property Group in
April 2007. The purpose of this report is to provide an economic needs
assessment as part of a development application to Noosa Shire Council
regarding the proposed tourist accommodation, retail and commercial facilities at
215-219 David Low Way, Peregian Beach.

The needs assessment will outline and analyse:

o How the site as a caravan park is currently operating;

o Howit will operate once redeveloped as budget tourist accommodation, retail
and commercial office space;

o The trends in caravan parks and budget accommodation on the Sunshine
Coast;

o The Sunshine Coast tourism industry in terms of supply and demand;

o The number of tourists anticipated to visit the Region;

co The retail and commercial facilities surrounding the subject site to determine
tourist and resident expenditure; in addition to

co Investigating the economic, social and environmental impacts of the
proposed development, and if the development were not to proceed.

Objectives
Consequently, the project objectives are to:

o Determine the current status of the tourist accommodation market;

© Investigate caravan parks: their performance and issues surrounding
their closure;

o Analyse the current contribution of the existing caravan park located on
the subject site;

o Review budget accommodation trends;

© Highlight the need to underpin the established tourist industry;

o Undertake a needs assessment for the visitor accommodation
component;

o Undertake a centre and needs assessment for the retail and commercial
facilities;

o Examine the economic, social and environmental impacts of the
proposed development, and the impacts if the development were not to
proceed.

Assumptions

This report has been prepared on the instructions of the stated party and is
intended to address the issues as defined in the objectives. The data, analysis
and findings contained in this report are therefore not appropriate for use in any
other circumstance. The report contains a series of projections and forecasts
that have been prepared on the basis of the best available information. However,
due to the dynamic nature of many of these issues and the number of variables

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involved, Core Economics can give no guarantee that these projections and
forecasts will be realised.

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Executive Summary

 

Proposed
Facilities

The proposed development will function predominantly as short stay accommodation for the South East
Queensland drive market. The proposed concept will consist of several components: affordable short stay
accommodation (68 Visitor Hostel units and 30 Beach Shacks - approximately 11,000 Sq M), with two
levels of retail and commercial office space (approximately 1,000 Sq M each) fronting David Low Way in
Peregian Beach. The intention of the proposed redevelopment is to continue and improve the volume of
affordable accommodation upon the Sunshine Coast, with the commercial component developed
concurrently to ensure long term competitiveness of the short stay accommodation by establishing some on-
site retail and related facilities.

 

Site
Suitability

Accommodation

o The planned accommodation uses are congruent with the site's existing function in providing affordable
accommodation.

o The present caravan park situated on the subject site is too restricted and small in scale to operate in
an economically viable manner. The redevelopment will however, serve to form a natural continuation
of the present budget accommodation facilities provided by the caravan park but with increased critical
Tass, supplying four times the number of beds currently provided by the park.

Retail and Commercial

© The proposed retail and commercial uses are consistent with the site's designation under the Peregian
Beach Neighbourhood Centre node and the intended Business Activity uses outlined in the Peregian
Beach Village Masterplan. Given the site's proximity to the adjacent retail and commercial infrastructure
of Peregian Beach, the proposed development forms a natural area for expansion of the existing
neighbourhood centre and will serve to strengthen the locality as a retail and commercial node.

Overall, the components of the development are welt suited to the site, with the site providing an
appropriately sized area with suitable characteristics to host the short stay accommodation and related
facilities. The proposed development also makes best use of the subject site land, enabling a greater critica!
mix and mass of accommodation as opposed to the current caravan park.

 

Economic
Need

 

 

Accommodation

Caravan parks have a limited future

o Maintaining caravan parks is socially beneficial given they enable continuation of the cheap seaside
family holiday. However, recent trends have made operating small scale caravan parks in poor or non-
prime locations {consisting primarily of low-yielding accommodation) increasingly difficult for business
operators. Caravan parks operated by local authorities tend to be well located (due to historical
reasons), and many local authorities do no require the same financial performance as private sector
operators. Consequenily, caravan parks as they presently stand, have a limited future.

Peregian Beach Caravan Park — Specific Barriers to Success

The closure of Peregian Beach Caravan Park is inevitable. A number of inhibiting factors for the park have

been highlighted:

© Occupancy rates are average (50%) when compared to other local parks which have superior
waterfront locations, facilities/activities and critical mix.

© In conjunction with wider trends showing a national decline in overall visitor numbers to caravan and
camping grounds, Queensland land taxes are another prohibitive factor faced by caravan park owners.
Future declines in caravan ownership are also anticipated due to storage constraints imposed by
increased housing density.

o Asa result, the Peregian Beach Caravan Park has suffered increasingly larger financial losses and,
unlike the council operated parks which are not income driven, the Peregian Beach Park cannot
continue as a viable business. Consequently, for caravan parks to maintain required income levels,
many operations have trended towards more profitable and economically sustainable tourist
accommodation options.

 

 

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Sunshine Coast Accommodation Supply

© The tourist industry is highly important to the Sunshine Coast.

© Upper-end tourist accommodation constitutes the largest share (81%) of product on the Sunshine
Coast. Overall, caravan parks constitute approximately 17% of supply, 30% of nights and 7% of
takings, indicative of a price sensitive market attracting mainly groups for extended stays.

o Subsequently, there is an identified need to improve the range of tourist products in order for the
Sunshine Coast to retain its current share of source markets and increase retum patronage, particularly
when considered in conjunction with increasing tourist numbers and product diversity in low-end
product.

Given the importance of tourism to the Sunshine Coast and its economy, increasing the level of short stay

accommodation (particularly for the South East Queensland drive market) is crucial.

Sunshine Coast Tourist Projections - Demand

o From 2006 to 2016, the Sunshine Coast is expected to receive an extra 274,571 visitors.

© The domestic tourist population for the Sunshine Coast, currently the largest contributor of visitors to
the Sunshine Coast, is anticipated to grow by 117,425 visitors over the next decade to 2016, with an
extra 47 1,640 visitor nights spent within the region.

© The international market white smaller in number is expected to grow more rapidly from 2006 to 2016,
increasing by 157,146 visitors, and by 1.04 million visitor nights or 46%.

Anticipated Sunshine Coast_ Accommodation Demand

To meet this growth in tourist populations, the accommodation stock will need to develop in line with the

following demand. It is also expected that further demand will be generated by the Sunshine Coast having a

More diversified accommodation supply. .

o Based on current caravan park usage by domestic tourists, by 2016 a total of 2,500,573 nights will be
spent in caravan parks or commercial camping grounds. At present, approximately 1,012,101 occupied
nights are spent in Sunshine Coast caravan parks and camping grounds. Based on current occupancy
rates 1,487,899 nights may need to be spent in other accommodation types.

co The proposed development will also cater for the growth expected within the intemational sector.
Based on current usage rates of hostels (8%) and serviced apartments (12%), the demand from
international visitors in 2016 will be in the order of 262,332 hostel nights and 393,498 serviced
apartment nights. At present 178,952 nights are spent within hostels, leaving a shortfall of 83,380
nights.

Given the problems presented with operating caravan parks in a financially feasible manner, it is necessary
to increase the stock of affordable accommodation options to cater to this demand, particularly when the
domestic market is faced with increasing monetary pressure due to rising petrol prices. The addition of the
proposed accommodation represents an increase in existing budget accommodation stock of 8.5%, with
growth in the total accommodation stock upon the Sunshine Coast of 1.6%.

Retail

Catering to On-Site and Near Site Demand

© Peregian Beach convenience and food and beverage retailers are currently expected to capture
approximately $9.82 million ($1.8 million from on-site tourists, $43,380 from local tourists within 400
metres walking distance of the site and $8 million from Al residents). This expenditure equates to
demand for 2,262 Sq M of convenience and food and beverage retail floorspace. Based upon the
present convenience and food and beverage floorspace situated in Peregian Beach (estimated at 1,450
Sq M), an undersupply of 812 Sq M exists. As expenditure potential and demand for all retail goods will
increase as a direct result of population growth, this shortfall is expected to increase accordingly over
time.

o The proposed 1,000 Sq M of retail (670 Sq M of which is convenience and food and beverage
floorspace) will serve in reducing the present undersupply to approximately 145 Sq M.

Commercial

Smail Supply / Large Demand

o 750 Sq M of commercial office space currently services 3,090 Al residents, equating to approximately
0.24 Sq M of office space per person. Based on general trends of 1.66 Sq M of office space per

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person, an undersupply of 4,379 Sq M exists within the Peregian community. The inclusion of the
proposed 1,000 Sq M of commercial office space will reduce the undersupply to 3,379 Sq M and
improve the office space per capita ratio to 0.57 SqM.

Occurrence of Relocations

o The proposed commercial will also provide space for services located in retail shop-front space within
the existing Peregian Retail and Commercial Precinct, leaving retail space for retailers and enabling
better overall use of the existing Peregian centre.

 

Conclusion | Caravan parks have a limited future. While Council operated parks are not income focused, private
operations like that of Peregian Beach Caravan Park must remain financially feasible in order to continue
operation. The closure of the Peregian Caravan Park in its current state is unavoidable due to the increasing
level of financial losses suffered.

Due to the constrained supply of budget accommodation and the current predominance of upper-end tourist
accommodation product on the Sunshine Coast a definite need exists to improve the range of tourist
products in order for the Sunshine Coast to retain its current share of source markets and increase retum
patronage, particularly when considered with the anticipated tourist and South East Queensland population
increases.

Budget parks such as that of the proposed will help to fulfil this role on the Sunshine Coast. Significant
demand exists for each of the proposed development components (accommodation, retail and commercial).
The intention of the proposed redevelopment is to not only continue but increase the provision of budget
accommodation, supplying four times as many bed spaces across a mix of unit types. As a result, the
proposed accommodation will have increased critical mix and mass, which when combined with the
additional retail and commercial components, will allow for a better provision of services to the public and
better use of the land. The related commercial and retail component will not only help to ensure the
continued long term viability of the overall development site, but will also help to service the current
undersupply of office space and convenience and food and beverage services in Peregian Beach. The
interretatedness of the development components is a key factor to the concept’s overall success; with the
commercial facilities acting to promote the economic longevity of the budget accommodation, and the onsite
retail facilities catering primarily to intemal demand from visitors.

The proposed development will help to fulfil the desired environmental outcomes outlined in the Noosa Shire

Planning Scheme by:

© The site being a natural area of expansion for the existing Peregian retail centre;

o The accommodation component enabling the Sunshine Coast {of which is dominated by upper-end
tourist accommodation facilities) to provide a greater range of accommodation options, enabling a more
diverse tourist market of which is ultimately less vulnerable to economic volatility;

o Making a greater economic contribution to the Peregian Beach locality and strengthening the area as a
retail and commercial node.

A greater range in product will also facilitate the Sunshine Coast in remaining competitive as a tourist
destination, particulary against the Gold Coast which has increasing accommodation choice and price
options. The social benefits of the proposed development can also not be underestimated. The
accommodation component will allow the continuation of affordable holidays for budget conscious families
and individuals, a particularly important consideration when the region's largest source market (South East
Queensland) are facing rising travel costs associated with fuel price increases.

 

 

 

 

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Section1 Function and Site Assessment

41 Introduction

This section provides an outline of the function of the needs assessment. In
addition, the characteristics of the site and surrounding land uses are assessed
from a market perspective to determine the relevant locational considerations for
the site.

1.2 Function Assessment

The market of the budget tourist accommodation component of the proposed
development will be residents of Brisbane and South East Queensland visiting
the Sunshine Coast for a holiday. The market of the retail and commercial office
space component of the proposed development will include: tourists on-site,
tourists within a 400 metre radius of the subject site and local residents.

General accommodation trends reveal a declining supply of affordable family and
budget tourist accommodation with redevelopment. For these markets, the
tradition of a cheap family seaside holiday is at risk. While caravan parks have
provided a source of affordable holiday options for Australians in the past, as
Reed and Greenhalgh (2004)! note, emerging trends in the property market have
threatened the viability of caravan parks. Consequently, for caravan parks to
maintain required income levels, many operations have trended towards more
profitable and economically sustainable tourist accommodation options.

As a result of constrained supply, there is growing demand for family budget
accommodation, where families and individuals on below averages incomes will
drive to the site for five to 10 days holiday. Peak periods for the proposed
accommodation are expected to be summer schoo! holidays, with the site
Catering to a broad range of users during the remainder of the year.

1.3 Concept Proposal

The site is located at 215 - 219 David Low Way, Peregian Beach, and consists of
lots 8, 9 and 10 on RP9315 and lot 76 on Crown Plan MCH 2969. The site has
good exposure with Western frontage along David Low Way, a major arterial
serving the coastal corridor, linking Noosa in the north and Coolum and
Maroochydore in the south.

The site is designated under the Peregian Beach Neighbourhood Centre node.
Lots 8, 9 and 10 are zoned for Semi-Attached Housing and lot 76 as Open Space
Recreation. Under the Peregian Beach Village Masterplan, the portion of the site
fronting David Low Way has been nominated as a Business Activity area and is
intended for offices, medical and home based business uses.

1 Reed R., and Greenhalgh, E. (2004). Caravan parks as a provider in the affordable
housing market. Journal of Property Management.

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At present the site operates as Peregian Beach Caravan Park comprising the
following:

One dwelling (caretaker's house);
10 Cabins;

75 powered and non-powered sites;
Areas for camping;

Laundry / amenities block;

Camp oven and barbecue area; and
Workshop.

eoooo0og0o0

The existing holiday park as it stands is not a financially feasible business
operation and is thus, unlikely to survive in its current form. The intention of the
proposed redevelopment is to continue to provide a form of affordable
accommodation, with a commercial component developed concurrently to ensure
the continued long term viability of the overall development site. The proposed
concept- Essence of Peregian Beach (with a total site area of 23,131 Sq M) is
seeking also to improve its contribution to the Peregian Beach locality and
includes:

o Commercial development (generally over lots 8, 9 and 10 fronting David
Low Way) - approximately 2,220 Sq M GFA over two levels with retail
uses on the ground floor (978 Sq M) and office space on Level 2 (978
Sq M).

o Short stay accommodation (of approximately 11,000 Sq M) including:

o 68 Visitor Hostel units (58 shared accommodation units and 10
self-contained units). The shared accommodation units will
feature one and two bedroom units with a dual key
arrangement with shared kitchen and laundry facilities. The
self-contained units, again comprising dual key one and two
bedroom units will contain individual kitchenettes and a shared
laundry.

o 30 Beach Shacks each self contained unit consisting of three
bedrooms.

o Proposed tariffs for the shared accommodation units will range
from $125 per night (one bedroom unit- 2 bed spaces, no
kitchen) to $400 per night (2 x 3 bedroom units with own
kitchen and a total of 18 bed spaces). The anticipated price of
the Beach Shacks is $250 per night.

Surrounding the subject site is a mix of uses including: retail (Home Hardware
and Peregian Beach Hotel) located adjacent to the site on David Low Way and
Peregian Commercial and Retail precinct situated also on David Low Way
opposite the site. Sporting and child care facilities are located to the north of the
site and Noosa National Park to the west. Figures 1.3 and 1.4 illustrate the
regional and local characteristics of the subject site and surrounding land uses.

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Peregian Springs masterplanned
community is located
approximately 3.5 Km south west
of the subject site. The community
is proposed to have approximately
4,600 residents at completion

 

A supermarket anchored centre is
proposed for the entry to Peregian
Springs, on the south east corner
of the Sunshine Motorway and
Peregian Springs Drive

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1.4 Regional Characteristics

Noosaville is located approximately
10 Km north of the subject site and

_ forms part of the broader Noosa

regional centre. This area offers a
high volume of retail and
commercial facilities

Sunshine Beach is a coastal
residential community which is
relatively convenient to facilities at
Noosa. Residents of areas north of
the site returning from places of
employment at Coolum and
Maroochydore are a_ potential
source of inflow to the site which is
located on the homeward bound
side of David Low Way.

Lake Weyba is located to the west
of Castaways Beach and Marcus
Beach. The lake acts as a physical
boundary to the area of influence to
the north west of the subject site

The Peregian Retail and
Commercial Precinct is located
opposite the subject site and is the
central business district of Peregian
Beach It comprises of
approximately 4,121 Sq M of
floorspace

David Low Way is a major north
south arterial serving the coastal
corridor which links Noosa in the
north to Coolum and Maroochydore
in the south

Coolum Beach is approximately 6
Km south of the subject site. Retail
in Coolum Beach includes Supa
IGA and Woolworths supermarkets.
as well as strip based retail along
David Low Way

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1.5 Local Area Characteristics
The subject site is Di Bowls Tennis Kindergarten The Peregian Beach
currently occupied Hurst Club Club Hotel is located
by Peregian Oval north of the site. The
Caravan Park hotel has a drive

through liquor barn

 

Home Hardware forms The site has exposure to Peregian Retail and Peregian Beach Surf Life

the southern boundary of the western frontage of Commercial Precinct Saving Club is located to
Peregian Village's retail David Low Way the east of the Peregian
sector Retail and Commercial

Precinct, and offers food
and beverage services.

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1.6 Implications

The proposed accommodation is congruent will the present accommodation
uses. The proposed retail and commercial uses are consistent with the site’s
designation under the Peregian Beach Neighbourhood Centre node and the
intended Business Activity uses outlined in the Peregian Beach Village
Masterplan. Given the current caravan park operation is not a financially viable
business, the proposed development consisting of affordable accommodation will
enable the continuation of budget holiday accommodation. in a long-term
financially sustainable manner given the supporting commercial and retail
components. The proposed development will also contribute more substantially
to the affordable accommodation market by providing four times as many bed
spaces as the existing holiday park.

The site is well positioned along a main arterial road affording a high level of
extemal exposure and accessibility for loca! residents and workers. The site's
location also provides high internal exposure and accessibility for on-site patrons
requiring accommodation close to natural attractions, other Sunshine Coast
destinations and conveniently located retail and food and beverage services. The
proposed built form will create a southern gateway into the Peregian Beach
Locality and will strengthen the existing Peregian retail and commercial precinct.

The components of the development are well suited to the site, with the site
providing an appropriately sized area with suitable characteristics to host the
mixed-use development. The interrelationships between the components of the
development are also well suited, with the onsite retail facilities catering to
internal demand from visitors, while the commercial facilities will economically
bolster the lower yielding budget accommodation component.

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Section 2 Supply and Demand Analysis

24 Introduction

Tourism is a significant industry on the Sunshine Coast, with a large number of
tourists visiting this area every year. The Sunshine Coast has a various
accommodation options and numerous tourist attractions, both natural and
constructed. The relevant short stay accommodation market has been assessed
in this section to provide an analysis of the need for the proposed
accommodation.

2.2 Visitors and Visitor Nights

According to the latest available data from Tourism Queensland?, in the year
ending December 2005, there were a total of 2,956,273 visitors to the Sunshine
Coast. Visitors to the Sunshine Coast experienced growth of 1%, increasing from
2,926,974 visitors in the year ending December 2004. Visitors from the domestic
market accounted for 92% of all visitors, while international visitors accounted for
8%.

Of the domestic visitors, 72% came from Queensland (44% from Brisbane, 27%
from other areas), which is the largest source market for Sunshine Coast tourists.
13% of domestic visitors were from New South Wales (8% from Sydney, 5% from
other areas), 9% from Melbourne and 6% from other parts of Australia.

tn 2005 there were a total of 2,724,000 domestic visitors who stayed for a total of
10,965,000 domestic visitor nights. Since 2001, domestic visitor nights have
increased by 9.2% however they have declined by 12.4% from 2003 when there
was a total of 12,523,000 domestic visitor nights. Since 2001, the average length
of stay for domestic visitors has decreased by 11.1% from 4.5 to 4.0 nights.
Certain domestic market segments have not been performing as well as
expected, particularly the interstate market, with the number of interstate visitor
nights spent on the Sunshine Coast declining by 25.1% from 2003 and the
average length of stay declining by 20% since 2001.

There were 232,273 international visitors to the Sunshine Coast in 2005. These
visitors stayed an average of 8.6 nights each for a total annual count of 1,993,338
international visitor nights. International visitor nights have increased by 11.8%
since 2001. :

The major reason for tourists visiting the Sunshine Coast was for a holiday or
leisure purpose, with 1,786,957 tourists (representing 60% of all tourists) visiting
for this reason. There were 1,610,000 domestic visitors and 176,957
international tourists visiting the Sunshine Coast for this purpose. These tourists
stayed for 8,295,417 holiday/leisure visitor nights. There were 882,000 domestic
visitors and 44,927 international visitors who came for the purpose of visiting
friends and relatives.

2 Tourism Queensland Sunshine Coast Regional Update, December 2005.

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Table 2.1
Sunshine Coast Visitor and Visitor Nights
Year Ending
Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005
Domestic
Visitors (000) 2,242 2,649 2,482 2,686 2,724
Visitor Nights ('000) 10,042 10,251 12,523 41,296 10,965
Average Length of Stay 45 3.9 54 42 4.0
(ntrastate
Visitors (000) 1,691 1,882 1,653 4,779 1,956
Visitor Nights (000) 5,607 5,490 5,947 $140 6,040
Average Length of Stay 33 29 3.6 29 40
Interstate
Visitors (000) 551 767 829 907 768
Visitor Nights (000) 4,434 4,761 6,576 6,156 4,925
Average Length of Stay 8.0 6.2 73 68 64
International
Visitors (000) 244 204 221 241 232
Visitor Nights ('000) 1,782 4,494 1,961 1,857 1,993
Average Length of Stay 76 73 89 WW 86
Total Visitors
Visitors (000) 2,476 2,853 2,703 2,927 2,956
Visitor Nights (000) 14,824 11,745 14,484 13,153 12,958
Average Length of Stay 48 44 5.4 45 5.0

 

Source: Tourism Queensland, Core Economics

The Sunshine Coast tourist market is comprised mostly of domestic visitors, with
the majority of this market comprised of South East Queensland residents who
have a great deal of choice between the Sunshine Coast and the Gold Coast for
holidays, with the addition of cheap flights increasing their choice of holiday
destinations, allowing stronger links to budget conscious families and individuals.
Given the importance of the tourism industry to the Sunshine Coast, it is
imperative for the region to increase its product and facilities in order to remain a
choice holiday destination and attract this holiday-making tourist market.

2.3 Existing Infrastructure

The Essence of Peregian Beach development incorporates short stay budget
style accommodation. Within the region between Caloundra to Noosa, there is a
tange of existing infrastructure and facilities catering to the same market as the
proposed short stay budget accommodation.

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Figure 2.1 Existing Budget Accommodation - Sunshine Coast
ad “ , S
Legend t f Sy YP é A hs G2)
A ee ckers/Hostel aa xk ay N
| © Cavan Parks Q _ Nah" LG No08a
: aa AE ik
J’ er I A

| PR Bot he heads

P ca VF e/ Peregian

A peddh

     

 

Kénilworth

 

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Table 2.2

Existing Caravan Parks - Sunshine Coast
(D Name Suburb
1 Alex Beach Top Tourist Park Alexandra Headland
2 BIG4 Forest Glen Resort Forest Glen
3 Bli Bli Riverside Caravan Village Bli Bli
4 Bougainvillia Holiday Park Tewantin
§ Buderim Pines Caravan Park Buderim
6 Cambroon Caravan Park Cambroon
7 Coolum Beach Caravan Park Coolum
8 Cooroy Motel & Caravan Park Cooroy
9 Cotton Tree Caravan Park Cotton Tree
10 Crystal Waters Visitor's Camping Area Conondale
16 Golden Beach Holiday Park Golden Beach
14 Dicky Beach Family Holiday Park Caloundra
12 Eumundi Caravan Park Eumundi
13 Forest Glen Holiday Resort Forest Glen
14 Glasshouse Mountains Holiday Village Glass House Mountains
18 Glasshouse Mountains Tourist Park Beerburrum
V7 Hibiscus Holiday Park Caloundra
18 Kenilworth Homestead Kenilworth
19 Landborough Pines Caravan Park Landsborough
20 Lilyponds Holiday Park Mapleton
21 Maleny Palms Tourist Park Maleny
22 Mapleton Cabins & Caravan Park Mapleton
23 Maroachy Beach Caravan Park Maroochydore
24 Maroochy Palms Holiday Village Maroochydore
25 Maroochy River Cabin Village & Caravan Park Maroochydore
26 Military Jetty Caravan Park Golden Beach
27 Mooloolaba Caravan Park Mooloolaba
28 Mudjimba Beach Caravan Park Mudjimba
29 Nambour Rainforest Holiday Village Nambour
30 Noosa North Shore Retreat & Caravan Park Tewantin
31 Noosa River Caravan Park Munna Point
32 Noosa Tewantin Caravan Park Tewantin
33 Ocean View Caravan Park Mount Mellum
34 Palm Village Caloundra
35 Palmwoods Caravan Park Palmwoods
36 Peregian Beach Caravan Park Peregian Beach
37 Pomona Caravan Park Pomona
38 Sea Breeze Caravan Park Maroochydore Maroochydore
39 Sunseeker Village & Caravan Park Caloundra
40 Tanawha Van Village Tanawha
41 Woombye Gardens Caravan Park Woombye
42 Yandina Caravan Park Yandina

 

Source: RACQ, Yellow Pages

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Table 2.3

Existing Backpackers/Hostels - Sunshine Coast
ID Name Suburb
1 Mooloolaba Backpackers Mooloolaba
2 Coolum Backpackers Coolum
3 Cotton Tree Backpackers Maroochydore
4 Halse Lodge Noosa
5 Koala Beach Resort Noosa
6 Maroochydore Backpackers Maroochydore
7 Noosa Backpackers Resort Noosa
8 Gagaju Adventure Tours Tewantin
9 Peter Pan's Backpacker Adventure Sunshine Beach
10 Dolphins at Sunshine Beach Sunshine Beach
11 Melaluka On The Ocean Sunshine Beach
12 Caloundra City Backpackers Caloundra

 

Source; Yellow Pages, www.accommodation, sunshinecoastdaily, com.au

Short Stay Accommodation

The types of accommodation used by the domestic market on the Sunshine
Coast can be seen in the tables below’. The proposed development of budget
accommodation would be competing for a share of backpacker/hostels, serviced
apartments (8% and 12% of international nights respectively), and rented
house/apartment/flav/unit, caravan/camping market and other (21%, 21% and
10% of domestic nights respectively).

Table 2.4
Accommodation Used by Domestic Tourists

 

Domestic Market

 

 

Own Property 34%
Friends/relatives property 8%
Rented house/apartment/flat/unit 21%
Caravan park/commercial camping ground 21%
Caravan/camping near road/private property 5%
Other 10%

Table 2.5

Accommodation Used by International Tourists
{international Market

 

 

 

Friends/relatives property 35%
Rented house/apariment/unit/flat 21%
Serviced apartment 12%
Hotel/resort/motel/motor inn 10%
Backpacker/Hostel 8%
Other 14%
3 Ibid.
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Existing Sunshine Coast Accommodation Supply

As of the year ending December 2006, ABS data reveals the following
breakdown of accommodation supply for the Sunshine Coast as seen in the

below table and figu

re.

Table 2.5

2006 Sunshine Coast Accommodation Supply and Annual Takings

 

 

Avg Avg. Beds = Annual Nights Avg Annual Takings
Establishments _ Provided* Occupied** Occupancy (%) _ from Accom
Hotels Motels and Serviced
Apartments (5 or more rooms) 175 20,492 1,274,376 60.2 $179,361 ,665
Caravan Parks*** 28 8,540 1,012,104 65.0 $23,769,000
Holiday Flats, Units and Houses 107 19,579 987,866 61.5 $126,938,394
Visitor Hostels 9 784 178,952 626 $4,263,645
Total 319 49,394 3,453,295 62 $334,332,704

 

Source ABS Tourist Accommodation, Queensland, 2006, Core Economics

* Bed nights for caravan parks derived from the number of sites provided and using an average of 2 people per site

** Based on room nights for hotels, motels and serviced apartments, site nights for caravan parks; unit nights for holiday flats, units and houses, and

guest nights for visitor hostels

** Comprising parks with 40 or more powered site:

60% +

50%

Scanlon Property Group - Peregian Beach Needs Assessment

ss/cabinsMlats/units/villas

Proportion of Beds, Nights Occupied and Accom. Takings (*s)

Beds Nights Occupied Takings from

@ Hotels Motels and Serviced Apartments (5 or more rooms)
@ Caravan Parks***

CO Holiday Flats, Units and Houses

\o Visitor Hostels

40% {
30%
20%
10%
0%

Accom.

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According to the ABS as of December 2006, there were 28 caravan parks within
the Sunshine Coast region, with a total capacity of 4,249 comprising: 330 on-site
vans, 2,858 powered sites, 651 un-powered sites and 410 cabins/flats/units/villas.
Based on an average of 2 people per site, Sunshine Coast caravan parks provide
approximately 8,540 beds. As demonstrated in the above figure, the beds
provided by caravan parks constitute on 17.3% of total available beds. The
largest contributors to accommodation stock are hotels/motels/serviced
apartments (41.5%), followed by flats/units/houses (39.6%), with relatively few
beds provided by hostels (5.2%).

A reduction in the supply of cabins and caravan sites for short stay
accommodation is expected, with part of this stock being used for permanent
accommodation. With the proposed closure of Peregian Beach Caravan Park
and the future re-development of the Tripcony Hibiscus Caravan Park site located
on Bowman Road, Caloundra, the supply of cabins and caravan sites within the
region will be further reduced. While only one caravan park has closed on the
Sunshine Coast from December 2003 to 2006, these potential future closures
follow similar state wide trends. Since December 2003 where 361 caravan parks
existed in Queensland, 28 have closed leaving a total of 331 operational parks as
of December 2006.

Although caravan parks and hostels contribute relatively little to supply, they
constitute a much larger share of total occupied nights (29.3% and 5.2%
respectively). However as demonstrated in the figure below, accommodation
takings per number of beds provided in 2006, is lowest for caravan parks ($2,783
per available bed space). In terms of budget accommodation types, hostels
provide a much higher yield of $5,442 per bed. Holiday flats/units/houses provide
have the second highest takings per available bed ($6,484), after hotels/motels
and serviced apartments at $8,753 per bed. Consequently, there has been a
trend for caravan parks in general and on the Sunshine Coast towards higher
yielding forms of accommodation, as demonstrated in Table 2.6 where despite a
slight decline in total establishments, the number of beds provided increased
from 2003 to 2006, consequently improving takings from accommodation by
10.9%. This may be attributed to change in accommodation mix where the
number of cabins increased by 25% from December 2003 to 2006.

Overall, caravan parks constitute approximately 17% of supply, 30% of nights
and 7% of takings, indicative of a price sensitive market attracting mainly groups
for extended stays.

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2006 Accom. Takings Per Bed
Sunshine Coast

 

 

 

 

 

 

$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Accom, Takings per Bed Spaces
@ Hotels Motels and Serviced Apartments (5 or more rooms)
@ Caravan Parks
O Holiday Flats, Units and Houses
D Visitor Hostels
Table 2.6
Sunshine Coast Caravan Park Trends: 2003 - 2006
Avg. Avg. Beds — Annual Nights Avg Annual Takings
Establishments __Provided* Occupied** Occupancy (%) _ from Accom
2003 Carvan Parks 29 8,358 1,024,197 67.2 $21,441,669,90
2006 Caravan Parks 28 8,540 1,012,101 65.0 $23,769,000

 

Source: ABS Tourist Accommodation, Queensland, 2003 and 2006, Core Economics
* Bed nights for caravan parks derived from the number of sites provided and using an average of 2 people per site

** Based on room nights for hotels, motels and serviced apartments, site nights for caravan parks, unit nights for holiday flats,
units and houses; and guest nights for visitor hostels

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Price Rates

Congruent with previous accommodation takings data, price rates for various
accommodation types are as follows:

Hotels/Motels/Serviced Apartments
o The average daily rate for this accommodation type upon the Sunshine
Coast ($144.06) is significantly higher than Brisbane ($137.94) and the
Gold Coast ($135.63).

Holiday Flats, Units and Houses
o The average daily rate for flats/units/houses upon the Sunshine Coast
($120.30) is significantly higher than Brisbane ($81.71) and the Gold
Coast ($100.93).

Visitor Hostels
co The average daily bed rate for visitor hostels upon the Sunshine Coast
($22.94) is similar to Brisbane ($22.13), and slightly cheaper than the
Gold Coast ($24.62).

Caravan Parks
o The average daily site rate for caravan parks upon the Sunshine Coast
($22.57) was significantly higher than Brisbane ($15.96), but less costly
than the Gold Coast ($28.34).

The above price rates and supply data demonstrate the predominance of upper-
end accommodation on the Sunshine Coast. Hotels/motels/serviced apartments
and holiday flats/units/nouses of which constitute 81% of current accommodation
supply, are priced at higher rates than Brisbane, and the Gold Coast which is a
major destination competitor for the Sunshine Coast.

2.4 General Trends and Comparative Local Assessment

This section will address potential issues regarding the decline in caravan parks,
A comparative assessment of other successful holiday parks and regional
caravan parks has been undertaken to determine the possible reasons for
Peregian Beach Caravan Park’s lack of success.

General Australian Caravan Park Trends
Tourism Research Australia data* reveals caravan and camping grounds
received only eight million domestic visitors and 283,000 international visitors in
2005, the lowest recorded number of visitors in seven years. In comparison,
during 1999, caravan and camping grounds received 9 million domestic and
287,000 international visitors. This decline may be partially attributed to the
decline in establishments, which dropped by 5% from 1,825 in 2003, to 1,734 in
2005.

As outlined in the Profile of Travellers who Used Caravan or Camping
Accommodation in Australia (2003/2004), in the face of growing competition,

4 Tourism Research Australia. Caravan or camping snapshot, 2005.
4

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caravan park operators have been forced to make considerable financial
investments by dramatically increasing their supply of on-site vans,
cabins/flats/units and villas. As demonstrated in the table below, between 2000
and 2003 the number of on-site vans grew by 21.7%, with cabins/flats/units and
villas increasing by 27.4%. It is important to note that these are the higher
yielding forms of accommodation in caravan parks. The higher yield of such
accommodation can be seen with the growth in takings from accommodation
despite a dectine in capacity. The increase in fixed accommodation was at the
expense of powered and un-powered sites, which declined by 6.1% and 6.7%
respectively.

While not directly applicable to Peregian Beach Caravan Park (given it does not
host permanent residents), combined with this trend towards fixed
accommodation in caravan parks is the decline in long-term guests (-.6%) and
permanently reserved sites (-6.3%). All data suggest a trend in the growth of
higher yielding accommodation product in caravan parks as opposed to the
decline in lower yielding long-term permanently let sites.

 

 

Table 2.7

2000 - 2003 Australian Caravan Parks and Accommodation Trends

2000 2003 % Change
Number of Establishments 4,800 4,825 14

Capacity

On-site Vans 15,563 18,943 217
Other Powered Sites 160,299 150,549 64
Un-powered Sites 44,806 41,843 6.7
Cabins, Flats,Units and Villas 24,236» 30,873 274
Total Capacity 244,905 242,178 Ad
Sites Occupied by Long-Term Guests 39,176 38,941 0.6
Other Sites PermanentlyReserved 45,391 42,549 6.3
Site Nights Occupied 10,896 14,191 27
Site Occupancy Rate (%) 48.4 50.4 44
Takings from Accommodation $160,341,000 $198,556,000 23.8

 

Source: ABS, Tourist Accommodation, Expanded Scope Collection, 2004, Core Economics

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This data is important when considered in conjunction with the future increased
residential density outlined for South East Queensland under the SEQ Regional
Plan, which will see residential land size decreasing making caravan ownership
less practical. Furthermore, large sites for caravan parks may not exist in the
future due to constraints imposed as a result of the urban footprint.

Comparative Assessment

Current Use - Peregian Beach Caravan Park

Location: David Low Way, Peregian Beach
Close proximity to the beach and the local Peregian Beach retail and
commercial precent. Adjacent to Noosa National Park.

Accommodation
10 Cabins (40 bed spaces)
Includes from two to four berths per cabin.
Prices begin from $79.50

75 powered and non-powered sites (150 bed spaces):
Daily prices start from $28.50 for two or less occupants for powered
sites, with non-powered sites priced from $23.50

Facilities
Laundry / amenities block
Camp oven and barbecue area; and
Play area and games room

 

The poor financial performance of Peregian Beach Caravan Park is reflective of
why caravan parks are trending towards a larger proportion of fixed
accommodation. Occupancy rates are estimated to average approximately 50%.
In terms of other competing parks, Peregian Beach Caravan Park does not have
the same waterfront location like the tourist parks at Noosa River and Noosa
North Shore. The range of facilities and beachfront location of Noosa North Shore
are also superior. From 2004 to 2006, the park has continued to make
increasingly larger losses and cannot be financially sustained in its present state

Noosa River Caravan Park (Council Operated)
Location: Russell Street, Noosaville
Adjoins the Noosa River.

Accommodation:
92 powered sites:
Daily prices from $28.50 (non-peak) to $34.50 (peak) for two or less
occupants.
Estimated average occupancy of 94%

 

43 non-powered sites:
Daily prices from $22 (non-peak) to $28.50 (peak) for two or less
occupants
Estimated average occupancy of 88%

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The park does not contain any cabins and does not house any permanent
residents. Given the park is a council operated and therefore not-for-profit, it
plausible for the park to be of such small scale (270 beds) and consisting merely
of lower yielding accommodation types. However, such an accommodation mix
would not allow for a financially sustainable private business operation.

Noosa North Shore Caravan Park (Council Operated)
Location: 200 Maximillian Drive, North Shore.
o The park is situated on beachfront land, 100 metres from Lake

Cooroibah and is adjacent to the Great Sandy National Park. Hastings
Street is only 20 minutes drive.
Noosa North Shore consists of a resort section (containing cottages and
units) and the tourist park (containing a mix of cabins, powered and non-
powered sites)

Accommodation

Overall the tourist park (not including the resort sector) is estimated to provide
310 beds comprising 250 beds across powered and non-powered sites and 60
higher yielding cabin beds.

12 Cabins
Containing from four to six berths each
Prices range from $50 to $70 per night

59 Powered Sites
Prices start from $19.50 per night for two or less occupants

 

65 Non-Powered Sites
Prices start from $14 per night for two or less occupants

Facilities include swimming pools, tennis and volleyball court, canoes, and horse-
riding. Noosa North Shore is a successful tourist park situated on prime
beachfront land, incorporating a both a range of accommodation and facilities.
Occupancy is estimated to approximate 100% during peak periods, with some
decline during non-peak periods. The higher yielding resort section serves not
only to provide a more varied mix accommodation types, but is likely to financially
support the lower yielding tourist park. The scale and location of Noosa North
Shore is superior to the Peregian Beach Caravan Park.

Ashmore Palms Holiday Village

This particular holiday park has been included for case study purposes based
upon the popularity of this type holiday accommodation which has won several
tourism awards (including: Queensland Tourism Awards, Australian Tourism
Awards, HMAAQ Awards for Excellence and Gold Coast City Garden
Competition Awards). Ashmore Palms operated as Ashmore Caravan Park prior
to re-development.

Location: Hinde Street, Ashmore, Gold Coast.
While Ashmore Palms is not located within walking distance to any
natural attractions (e.g., rivers, beaches or national parks), it is only a
short drive to many such attractions, theme parks, shopping and dining
precincts

 

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Accommodation

Ashmore Palms consists entirely of self-contained, air-conditioned cabins priced
to suite a range of different budgets. Prices range between $94 and $218 per
night (off-peak). There are 200 cabins consisting of 10 different styles including:

Melanesian Cabin
Compact budget priced cabins suitable for couples, school groups and
small families. Contain five bed spaces.

Holiday Villa
Compact holiday villa that is more modern than the Melanesian Cabins,
catering for those desiring comfort at a budget price. Containing five
bed spaces, they are suitable for couples, school groups and small
families.

Hibiscus Chalet
Larger than the Holiday Villas, the five Hibiscus Chalets offer comfort at
a reasonable price. Contain five bed spaces and are suitable for
couples and small families.

Family Villa
Larger than the Hibiscus Chalets, the villas feature three bedrooms and
sleep up to six guests

Deluxe Family Villa
A more up-market version of the Family Villa, also featuring three
bedrooms and six bed spaces.

Palm Cottage
Middle-of-the-range cabin style, featuring two bedrooms with five bed
spaces

Cactus Cabana
Rendered finish cabins that include two bedrooms with five bed spaces
and carport parking.

Lorikeet Lodge
Similar to the Cactus Cabana but with ramp access to rooms, making
accessibility easier for guests with infants or special needs guests or
guests seeking accommodation without stairs

Macaw Mansion
Top-of-the-range two-storey cabins featuring a kid’s bedroom and
parents retreat with king size bed, balcony, stereo and ensuite with spa
bath. Sleeps up to six people.

Rainforest Retreat
Top-of-the range cabin. Ideal for families with up to six guests that
would prefer a relaxed setting with many appointments (e.g., private
barbecue, washing machine, dryer and dishwasher)

Interim Cabin
Cabins ranging from one to three bedrooms for those seeking affordable
accommodation for an extended holiday, work contract or period of
study. A minimum six week stay applies.

Facilities

o Two swimming lagoons, two playgrounds, tour-desk, internet booth,
barbecue and picnic areas, tennis court, laundries, general store
including grocery and souvenir items, private driveway parking, bird
aviaries and garden walkways.

 

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Ashmore Palms is reflective of the growing trend in the budget tourist market
towards fixed accommodation. Ashmore Palms is an example of how such an
accommodation product can create a greater diversity in the range of
accommodation options and experiences for this budget conscious market,
increasingly constrained by limited supply. In addition to all accommodation
types being of higher yield than caravan sites, the size of the park (14.5 acres)
allows for a greater economy of scale and therefore greater long-term financial
sustainability.

2.5 Implications

While the social benefits of maintaining caravan parks are realised in that they
provide affordable family holidays and accommodation for budget oriented
tourists, the feasibility in operating caravan parks as a private business is
diminishing. Increasing jand taxes are proving the continuation of parks as a
private business even more difficult. According to The Caravan Parks
Association of Queensland, unless land taxes on caravan parks are abolished,
more parks will be forced to close®. Nationa! trends also reveal a decline in
overall visitor numbers which are at record low numbers since 1999. At present
for the Sunshine Coast, caravan parks constitute approximately 17%, 30% of
nights and 7% of takings, indicative of a price sensitive market attracting mainly
groups for extended stays.

The comparative assessment canvassed a number of other inhibiting factors
faced by Peregian Beach Caravan Park. Occupancy rates of Peregian Beach are
average when compared to other Noosa Shire tourist parks, which have superior
location, facilities and the necessary critical mix of accommodation. The critical
mass and mix of Peregian Beach is too restrictive for the park to remain
financially viable. In addition, as opposed to the Council operated parks which
are not profit focused, privately owned parks such as Peregian Beach must
remain financially viable given they are a business operation.

A growing trend to offset the increasing costs of maintaining caravan parks is the
shift towards more fixed accommodation, as evidenced by Sunshine Coast
caravan park trend data showing cabin numbers to have increased 25% since
2003. Ashmore Palms which has won numerous tourism awards, best
demonstrates the success of this transition from caravan park to fixed budget
accommodation. Ashmore Palms also highlights the need for on-site retail
services which better and more conveniently cater for the retail demand
generated by on-site residents holidaying in self-contained accommodation. The
inclusion of such convenience retail also enhances the appeal of the
accommodation to tourists.

Given the current supply of upper-end tourist accommodation product on the
Sunshine Coast, there is an identified need to improve the range of tourist
products in the region in order for this destination to retain its current share of
source markets and increase return patronage. Given the importance of tourism

5 http:/www.abc.net.au/widebay/stories/s1334170.htm. Caravan parks on the brink of
closure.

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to the Sunshine Coast and its economy, increasing the level of short stay
accommodation for the South East Queensland drive market is crucial. Such
increases must not only be in volume. To ensure accommodation diversity,
growth must also occur in the range of product offered so that a loss of holiday
options is not incurred.

The development of budget style accommodation will increase the supply of
affordable short stay accommodation on the Sunshine Coast. The addition of 68
shared and self-contained accommodation units and 30 beach shacks providing
792 bed spaces represents an increase an 8.5% increase in budget-end
accommodation (caravan and hostel type accommodation) and a 1.6% increase
in total accommodation upon the Sunshine Coast overall. The addition of this on-
site accommodation will increase the range of accommodation options available
within the region, with this style of accommodation having particular appeal to
families and budget conscious tourists, an outcome consistent with the Sunshine
Coast Regional Economic Development Strategy. This market, which

_ encompasses a large proportion of intrastate visitors to the Sunshine Coast, has
been declining over recent years, with one contributing factor being the restricted
supply of relevant accommodation.

By having such a narrow band of holiday accommodation options for people
visiting the Sunshine Coast means there are limited experiences and places to
stay. The proposed development will aid in increasing the range of
accommodation options at the lower end of the tourist accommodation market,
helping to make the Sunshine Coast a more appealing destination for the budget
conscious and intrastate families faced with increasing travel costs due to petrol
price rises,

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Section3 Area of Economic Influence - Accommodation

3.1 Introduction

The Essence of Peregian development comprises several components; short
stay accommodation, retail and commercial office space. This section defines
and describes the areas of economic influence for the accommodation
component of the development, The retail and commercial areas of economic
influence will be described later in conjunction with the retail assessment.

3.2 Delineation of Economic Influence Areas
The areas of economic influence have been defined as follows:

o Short stay accommodation - This area of influence has been defined to
include the main source market for tourists to the Sunshine Coast, which
includes residents of Brisbane and South East Queensland visiting the
Sunshine Coast for a holiday. The area has therefore been defined to
encompass Brisbane and the South East Queensland region, which
includes Brisbane, Caboolture, Logan, Ipswich and the coastal urban
areas of the Gold Coast and Sunshine Coast. As the Brisbane and
South East Queensland tourist market provides the majority of influence
on the Sunshine Coast short stay accommodation market, this market
will consequently also impact the on-site short stay accommodation.
The proposal aims to increase the available number of affordable short
stay accommodation facilities and rooms on the Sunshine Coast.

3.3 Implications

The area of economic influence is relatively large for the short stay
accommodation, with the main source market for this component comprising
tesidents of the South East Queensland region visiting the Sunshine Coast for a
holiday.

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Section4 Tourist Visitation Projections

41 Introduction

This section provides an analysis of the current and projected tourist population
for the Sunshine Coast. The implications of this tourist growth on the
development of short stay accommodation and retail on the subject site have also
been examined.

42 Tourist Market Projections

The future provision of short stay accommodation and retail on the subject site
will be shaped by tourist population growth. Market growth will increase demand
for goods and services required within the region and the development of budget
short stay accommodation and associated retail will shape tourist growth through
supply lead demand, particularly given the decline in available budget holiday
options due to the closure of caravan parks. Both Domestic and International
tourist projections have been calculated using the latest tourism forecast data
from Tourism Queensland, 2006. Sunshine Coast visitor numbers and nights
have been derived based upon the Sunshine Coast retaining its current tourist
market share of Queensland (both domestic and international) as per the
Sunshine Coast Regional Update (Year Ending December 2005).

Domestic Visitors
Table 4.1 provides domestic tourist population projections based upon the

Sunshine Coast receiving 17% of all domestic visitors to Queensland and 15% of
domestic visitor nights.

 

 

Table 4.1
Domestic Tourist Market Growth
2006 2011 2016

Queensland
Visitors Numbers 16,748,305 16,977,213 17,439,043
Visitor Nights 76,239,000 77,281,000 + 79,383,268
Sunshine Coast
Visitor Numbers 2,847,212 2,885,126 2,964,637
Visitor Nights 11,435,850 11,692,150 11,907,480

 

Source: Tourism Queensland, Tourism Forecasts October 2006, Core Economics

Key characteristics include:

o From 2006 to 2011, domestic tourist numbers are estimated to increase by
38,914 visitors to a total of 2.89 million in 2011. Domestic visitor nights are
expected to increase from 2006 by 156,300 nights, reaching 11.59 million by
2011.

o From 2011 to 2016 domestic tourists are estimated to increase by 78,511
teaching 2.96 million by 2016. Visitor nights are anticipated to increase from
2011 by 315,340 nights, reaching 11.91 nights by 2016.

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o Over the next decade 2006 -— 2016, domestic tourist numbers on the
Sunshine Coast will increase by 117,425 and domestic visitor nights will
increase by 471,640.

International Visitors
Table 4.2 provides international tourist population projections based upon the
Sunshine Coast receiving 11% of all international visitors to Queensland and 7%
of international visitor nights.

 

 

Table 4.2
International Tourist Market Growth
2006 2011 2016

Queensland
Visitors Numbers 2,352,000 2,974,000 3,780,596
Visitor Nights 32,000,000 38,000,000 46,845,000
Sunshine Coast
Visitor Numbers 258,720 327,140 415,866
Visitor Nights 2,240,000 2,660,000 3,279,150

 

Source: Tourism Queensiand, Tourism Forecasts October 2006, Core Economics

Key characteristics include:

o From 2006 to 2011, international tourist numbers are estimated to increase
by 68,420 visitors to a total of 327,140 in 2011. International visitor nights are
expected to increase from 2006 by 420,000 nights, reaching 2.66 million by
2011.

o From 2011 to 2016 international tourists are estimated to increase by 88,726
reaching 415,866 by 2016. Visitor nights are anticipated to increase from
2011 by 619,150 nights, reaching 3.28 nights by 2016.

o Over the next decade 2006 - 2016, international tourist numbers on the
Sunshine Coast will increase by 157,516 and international visitor nights will
increase by 1.04 milion.

43 On-site Tourist Population Capacity

The development of short stay accommodation on-site will provide increased
tourist infrastructure within the Sunshine Coast to account for the growth of the
tourist market. As a large proportion of the proposed accommodation is visitor
hostel in type, the Visitor Hostel occupancy rate for the Sunshine Coast region of
63% has been used in calculating the annual on-site tourist population. Based on
this occupancy rate, the 68 shared and self-contained accommodation units (9
bed spaces each) and 30 beach shacks {6 bed spaces each) provide 792 beds,
and is anticipated to accommodate a yearly tourist population of 182,120. The
proposed development will provide key critical mass, with approximately four
times the available bed spaces currently provided by the existing caravan park.

44 Implications
The domestic tourist population for the Sunshine Coast, currently the largest

contributor to region, is expected to increase from 2006 to 2016 by 117,425
visitors, with an extra 471,640 ‘visitor nights spent within the region. In

4,

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comparison, the international market while smaller in volume is expected to grow
at a greater rate, with an increase of 157,146 visitors. Visitor nights are expected
to increase by 46% or 1.04 million from 2006 to 2016. As South East
Queensland is the main source tourist market for the Sunshine Coast, the growth
in the South East Queensland population will be the primary driver of demand for
tourist accommodation on the Sunshine Coast. To meet this growth in tourist
accommodation demand, the accommodation stock will need to develop in line
with demand. Based on current caravan park usage by domestic tourists, by
2016 a total of 2,500,573 nights will be spent in caravan parks or commercial
camping grounds. Given the problems presented with operating caravan parks in
a financially feasible manner and the decline in caravan ownership amongst the
general population, it is necessary to increase the stock of affordable
accommodation options in line with this demand, particularly when the domestic
market is faced with increasing monetary pressure due to rising petrol prices.

Furthermore, the proposed development will also cater for the growth expected
within the international sector, of which one-fifth require accommodation such as
that proposed. Based on current usage rates of hostels (8%) and serviced
apartments (12%), the demand from international visitors in 2016 will be in the
order of 262,332 hostel nights and 393,498 serviced apartment nights.

The expected tourist population increases, will produce an increase in tourist
market diversity, where the on-site accommodation is well positioned to cater to
the needs of both the growing international and domestic markets, allowing the
continuation of affordable.holidays, particularly for the domestic market faced with
increased travel costs. Increasing the supply of affordable accommodation, will
also aid in the providing a diversity of product and price point within this
accommodation type. The proposed development, incorporating both shared and
self-contained accommodation options, will appeal to a greater range of
individuals and families seeking an affordable holiday, which will potentially
accelerate the growth of this market. The increased mass of the proposed
accommodation, which will supply four times as many beds as the existing
caravan park and at comparable tariff costs, will enable a better provision of
services to the public and better use of subject site land.

Overall, the Sunshine Coast is expected to receive an extra 274,571 visitors from
2006 to 2016. The proposed development will cater to the accommodation needs
of this growing market and will diversify the current accommodation stock by
providing visitors a range of accommodation types. The addition of this on-site
accommodation only represents an increase in total accommodation stock upon
the Sunshine Coast of 1.6%.

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Section5 Retail and Commercial Assessment

5.1 Introduction

This section provides a retail and commercial overview of the site and surrounds,
as well as an analysis of the expenditure from tourists and residents that will be
captured by the development of short stay accommodation on the subject site.
This has been examined to determine the expenditure potential and floorspace
requirements from the development.

Approximately 1,000 Sq M of retail and 1,000 Sq M of commercial office space is
proposed for development on the subject site.

§.2 Retail and Commercial Infrastructure

Existing retail and commercial infrastructure surrounding the subject site is
located in Noosa, Coolum Beach and Peregian Beach.

Supermarket anchored centres in Noosa include the 4,414 Sq M Noosa Village
Shopping Centre, anchored by a 2,582 Sq M Woolworths, the 4,756 Sq M Noosa
Junction Plaza, anchored by a 2,155 Sq M Supa IGA and the 7,910 Sq M Noosa
Fair Shopping Centre, anchored by a 3,766 Sq M Coles. Strip based retail in
Noosa is concentrated on Hastings Street and Sunshine Beach Road. Noosa
also comprises of approximately 20,000 Sq M of commercial office space.

Retail in Coolum Beach comprises of the 2,818 Sq M Coolum Shopping Village,
anchored by an 803 Sq M Supa IGA and Coolum Park Shopping Centre,
anchored by a Woolworths. Retail in Coolum Beach also comprises of strip
based retail along David Low Way.

Existing retail in Peregian Beach is centred around the Peregian Retail and
Commercial Precinct, which is bordered by Heron Drive, Kingfisher Drive, Grebe
Street and David Low Way. The Precinct has a total of approximately 4,121 Sq
M of retail and commercial floorspace, comprising of 995 Sq M of convenience
retail, 741 Sq M of retail services, 455 Sq M of food and beverage retail, 574 Sq
M of clothing retail, 750 Sq M of commercial floorspace and 605 Sq M of other
retail.

Table 5.1 provides an overview of the existing retail and commercial
infrastructure surrounding the subject site in the Peregian Retail and Commercial
Precinct.

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Table 5.1 Retail and Commercial Infrastructure - Peregian Retail and
Commercial Precinct
Lettable Lettable
Area (Sq M) Area (Sq M)
Conventence Retail Clothing
Four Star Express Shopping 477 | Ladies Casual Clothing 51
Bakery 87 | 2nd Hand and New Clothes 7
News 74 | Art Fashion Jewellery 44
Liguor 109 | Curtain Works 69
Fruit and Veg 65 | Hightide Mark - Resortwear 145
Butcher 82 | Evolve 47
BwS 101 | tmpact Surf 58
Subtotal: Convenience Retall 995 | Ottiley & Lewis 7
Endeavour Foundation 2nd Hand Store 56
Subtotal: Clothing $74
Retail Services Commercial
Aus Post 80 | Peregian Chartered Accountants 88
Chemist 109 | CE Australia 57
Hair 37 | Lawyers 137
Travel Time (agent) 69 | Therapy Clearmake (Env Wastewater) 70
Real Estate 109 | Unique Meetings and Incentives 70
Hair 72 | Three Plus 70
Hair 72 | Business Management 70
LJ Hooker 101 | David Reed Homes 59
Ray White 58 | For Lease 59
Skin Fit 35. | Infoworx E Business 70
Subtotal: Retail Services 741 | Subtotal: Commercial 750
Food and Beverage Retail ‘Other
Takeway Shop 37 | Fighting Fit Gym 176
QOM Restaurant / Café 51. | Fighting Fit Studio 35
Malaga's Café 47 ‘| Medical Centre $1
Ming Garden Chinese Restaurant 101 | Vet 50
Ming Garden Chinese Takeaway 87 | Dentist 50
Wahoo Seafood Café 70 | Peregian Physiotherapy 63
Baked Poetry Café 63 | Massage 63
Subtotal: Food & Beverage Retail 455 | Peregian Hypnosis 59
Bodyworks Centre 59
Subtotal: Other 605
Peregian Retail and Commercial Precinct Total 4,121

 

 

Source: Core Economics - indicative only

Retail that is proposed surrounding the subject site includes the 5,000 Sq M
Peregian Springs Shopping Centre, which is proposed to include a 2,800 Sq M
supermarket and a medical centre.

5.3

Area of Influence

The Area of Influence (Al) has been defined based on the existing centres and
road network, as well as geographical features of the site and surrounding locale.
The Al is bounded by Marcus Creek to the north, Emu Mountain Road to the
south and Noosa National Park to the west.

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Figure 5.1 illustrates existing and proposed retail infrastructure surrounding the
subject site, as well as the Al.

Figure 5.1 Area of Economic Influence

       
 
   
 

  
 
 
  
 

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5.3 Expenditure Potential

A retail and commercial use on the subject site will be driven by the on-site
demand of tourists, tourists within a 400 metre radius of the subject site, as well
as local residents. A 400 metre radius has been chosen as this is considered to
be the maximum distance tourists will walk to purchase retail items, particularly
food and beverage retail.

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Tourist expenditure patterns are based on the latest data available from the
Tourism Australia publication ‘Travel Expenditure by Domestic and International
Visitors in Australia's Regions, year ended 31 December 2005’.

Al resident expenditure patterns are based on the Queensland average
household expenditure in the 2003/04 Australian Bureau of Statistics (ABS)
Household Expenditure Survey.

Table 5.2 provides a breakdown of convenience and food and beverage retail
expenditure for tourists staying in the on-site short stay accommodation, tourists
staying in tourist accommodation within a 400 metre radius of the subject site and

residents within the Al.
Table 5.2
Tourist and Resident Expenditure

Current
On-site poputation 182,120
Average Annual Expenditure $5,062,947
Tourist population within 400 metres 3,901
Average Annual Expenditure $216,901
Area of Influence Population (Households) 1,705
Convenience Expenditure $10,177
Convenience Expenditure Potential $17,355,233
Food and Beverage Retail Expenditure $2,498
Food and Bev Expenditure Potential $4,259,551
Total (per annum) $26,894,632

‘Source: Tourism Research Australia, ABS, Core Economics
Current Dollars - March 2007

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Table 5.3 outlines the total floorspace requirements for Peregian Beach.

 

 

Table 5.3
Retail Expenditure and Floorspace Demand
Current
On-site population 182,120
Peregian Share of Expenditure $1,772,031
Tourist population within 400 metres 3,901
Peregian Share of Expenditure $43,380
Area of Influence Population (Households) 1,705
Convenience Expenditure $10,177
Convenience Expenditure Potential $17,355,233
Peregian Share of Convenience Potential $6,942,093
Food and Beverage Expenditure $2,498
Food & Bev Expenditure Potential $4,259,551
Peregian Share of Food & Bev Potential $1,064,888
Total Floorspace Requirements Peregian 2,262

 

‘Source: Tourism Research Australia, ABS, Core Economics
Current Dollars - March 2007

Based on Table 5.3, convenience and food and beverage retailers in Peregian
are anticipated to achieve $1.8 million from on-site tourists, $43,380 from tourists
staying in accommodation within 400 metres of the site and $8 million from
residents of the Al. Based on this expenditure, this represents a demand for
2,262 Sq M of convenience and food and beverage retail floorspace. There is
currently 1,450 Sq M of convenience and food and beverage retail floorspace
within the Peregian Retail and Commercial Precinct, therefore there is currently a
shortfall of 812 Sq M of convenience and food and beverage retail.

The subject site is anticipated to comprise of 1,000 Sq M of retail. Based on
industry experience approximately one-third of a typical convenience centre will
be required to cater to local services (non retail uses); including banks, medical
centres, dentists, veterinarians, real estate agents etc. The subject site is
therefore anticipated to consist of approximately 670 Sq M of convenience and
food and beverage retail. With the addition of the subject site, a shortfall of
approximately 145 Sq M will remain. This shortfall is anticipated to increase as
population and expenditure increases.

As the subject site is located across from the Peregian Retail and Commercial
Precinct, it is anticipated to form part of this precinct.

5.4 Commercial Floorspace

The current population of residents of the Al aged over 15 years is anticipated to
be 3,090 residents. The Peregian Retail and Commercial Precinct currently
comprises approximately 750 Sq M of commercial office space. This equates to
approximately 0.24 Sq M of commercial office space per person. Based on
analysis conducted by Core Economics there is estimated to be approximately

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1.66 Sq M of commercial office space per person required within a regional
centre, At a rate of 1.66 Sq M required office space for the 3,090 residents, this
equates to demand for 5,129 Sq M. There is therefore considered to be a
shortfall of 4,379 Sq M of commercial office space in the Al. The addition of
4,000 Sq M of commercial office space provided by the subject site would result
in 0.57 Sq M of commercial office space per person and reduce the shortfall to
3,379 Sq M of commercial office space. The proposed commercial will also
provide space for services located in retail shop-front space, leaving retail space
for retailers and enabling better overall use of the existing Peregian centre.

5.5 Implications

The development of approximately 2,000 Sq M of retail and commercial office
space on the subject site will provide for three markets: the on-site demand of
tourists, tourists staying within a 400 metre radius of the site and residents of the
Al. These markets currently travel to Noosa and Coolum Beach for full-line
supermarkets, however the Peregian Retail and Commercial Precinct is
considered to fulfil the primary convenience needs of these markets. The subject
site is anticipated to extend and form part of the Peregian Retail and Commercial
Precinct, with the proposed retail catering primarily to on-site and near site
demand.

The three markets currently generate demand for approximately 2,262 Sq M of
convenience and food and beverage retail, of which 1,450 Sq M is provided
within the Peregian Retail and Commercial Precinct. This equates to a shortfall
of 812 Sq M of convenience and food and beverage retail. The addition of 670
Sq M of convenience and food and beverage retail on the subject site will reduce
the shortfall to 145 Sq M.

Based on industry experience of 1.66 Sq M of commercial office space required
per person, the 3,090 residents aged over 15 years in the Al generate a demand
for 5,129 Sq M. The amount of commercial office space currently supplied in the
Peregian Retait and Commercial Precinct (750 Sq M) is relatively small by these
standards. Consequently, there is a shortfall of 4,379 Sq M of commercial office
space in the Al. The provision of 1,000 Sq M of commercial office space on the
subject site will reduce this shortfall to 3,379 Sq M. The proposed commercial
will also provide space for services located in retail shop-front space within the
existing Peregian Retail and Commercial Precinct, leaving retail space for
retailers and enabling better overall use of the existing Peregian centre.

The success of the retail and commercial use on the subject site will be
dependent on the mix of retailers in the centre as well as their operators.

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Section6 Needs Assessment

6.1 Introduction

The purpose of this section is to translate the implications of the previous
sections which will demonstrate the need for the closure of the existing caravan
park on the subject site, and the proposed re-development incorporating a
greater volume of budget accommodation product and supporting retail and
commercial facilities. .

6.2 Need for the Subject Site

Accommodation
While the social benefits of maintaining caravan parks are realised in that they
allow for the provision of affordable family holidays and accommodation for
budget oriented tourists, the financial feasibility of operating small scale caravan
parks consisting primarily of tow-yielding accommodation is becoming
increasingly difficult. Prohibitive Queensland land taxes in are making the
continuation of parks as successful private business operations even more
difficult. Combined with the future increased residential density outlined for South
East Queensland, which will see residential land size decreasing, caravan
ownership is likely to decline per capita due to storage constraint issues

Reflective of why private caravan parks are either closing or trending towards
fixed accommodation is the poor financial performance of Peregian Beach
Caravan Park. Occupancy rates are average (50%) when compared to local
Council operated parks which have prime waterfront or beachside locations and a
greater range of facilities and activities (Noosa North Shore). As a result of the
park suffering increasingly large financial losses, it cannot be financially
sustained in its present state.

In comparison, Ashmore Palms represents a highly successful example of the
transition from caravan park towards the growing trend of budget tourist parks
offering fixed accommodation. Ashmore Palms is an example of how the re-
development of such an accommodation product can create a greater diversity in
the range of accommodation options and experiences for this budget conscious
market, while at the same time becoming a success business operation.

Overall, caravan parks constitute approximately 17% of supply, 30% of nights
and 7% of takings, indicative of a price sensitive market attracting mainly groups
for extended stays. Given the current predominance of upper-end tourist
accommodation product on the Sunshine Coast (81%), there is an identified need
to improve the range of tourist products in the region in order for this destination
to retain its current share of source markets and increase return patronage,
particularly when considered in conjunction with increasing tourist numbers.

From 2006 to 2016, the Sunshine Coast is expected to receive an extra 274,571
visitors. The domestic tourist population for the Sunshine Coast, currently the
largest contributor of visitors to the Sunshine Coast, is anticipated to grow by
117,425 visitors over the next decade to 2016, with an extra 471,640 visitor

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nights spent within the region. The international market while smaller in number is
expected to grow more rapidly from 2006 to 2016, increasing by 157,146 visitors,
and by 1.04 million visitor nights or 46%.

To meet this growth in tourist accommodation demand, the accommodation stock
will need to develop in line with demand. Sased on current caravan park usage
by domestic tourists, by 2016 a total of 2,500,573 nights will be spent in caravan
parks or commercial camping grounds. At present approximately 1,012,101
occupied nights are spent in Sunshine Coast caravan parks and camping
grounds. Based on current occupancy rates 1,487,899 nights will have to be
spent in other accommodation types. The proposed development will also cater
for the growth expected within the intemational sector. Based on current usage
fates of hostels (8%) and serviced apartments (12%), the demand from
international visitors in 2016 will be in the order of 262,332 hostel nights and
393,498 serviced apartment nights. At present 178,952 nights are spent within
hostels, leaving a shortfall of 83,380 nights.

Given the outlined barriers in operating caravan parks in a financially feasible
manner and the potential future decline in caravan ownership, it is necessary to
increase the stock of affordable accommodation options to meet this demand,
especially for the Sunshine Coast which is lacking in affordable accommodation
stock. Increasing supply is particularly important when domestic tourists (of
whom currently constitute the largest source market) are faced with increasing
monetary pressure due to rising petrol prices.

The proposed development will cater to the accommodation needs of this
growing market and will diversify the current accommodation stock by providing
visitors a range of accommodation types. The addition of this on-site
accommodation only represents an increase in existing budget accommodation
stock of 8.5% with total accommodation stock upon the Sunshine Coast growing
by 1.6%.

By having such a narrow band of holiday accommodation options for people
visiting the Sunshine Coast means there are limited experiences and places to
stay. The proposed development will aid in increasing the range of
accommodation options within the budget tourist market, helping to underpin the
established tourist industry in addition to making the Sunshine Coast a more
appealing destination for the budget conscious and intrastate families faced with
increasing travel costs due to petrol price rises. By diversifying accommodation
options especially for families seeking affordable holidays and budget conscious
tourists, the proposed development will achieve outcomes consistent with the
Sunshine Coast Regional Economic Development Strategy.

To achieve these outcomes, the development of future tourist facilities must be of
an appropriate scale to achieve economic sustainability. Unlike the existing
caravan park, the proposed development with supporting retail and commercial
facilities is of such a scale, and is located on a site that is appropriate for the
intended uses.

Retail
In Section 6 the retail expenditure potential of the on-site population was
determined. Although a convenience centre generally accounts for approximately

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25% of convenience retail expenditure potential, given the current local
convenience infrastructure, in this instance 50% of convenience retail
expenditure potential is expected to be captured by Peregian. This is due to the
absence of any surrounding full-line supermarkets within the Al. Due to this, the
resident population is anticipated to spend a larger proportion of convenience
retail expenditure at local convenience stores as opposed to travelling further
outside the Al to patronise a full-line supermarket for their convenience needs.
Food and beverage expenditure has been estimated at 25% due to a large
proportion of Al residents travelling to Noosa and other major Sunshine Coast
destinations for work where the majority of food and beverage expenditure is
likely to occur on a daily basis.

At present, Peregian Beach convenience and food and beverage retailers are
expected to capture approximately $9.82 million ($1.8 million from on-site
tourists, $43,380 from local tourists within 400 metres walking distance of the site
and $8 million from Al residents). This expenditure equates to demand for 2,262
Sq M of convenience and food and beverage retail floorspace. Based on existing
convenience and food and beverage floorspace situated in Peregian Beach
(1,450 Sq M), an undersupply of 812 Sq M therefore exists. Given expenditure
potential and demand for all retail goods will increase as a direct result of
population growth, this shortfall is consequently expected to increase.

The proposed 1,000 Sq M of retail (670 Sq M of which is convenience and food
and beverage floorspace) will help to reduce the present undersupply, leaving a
remaining shortfall of 145 Sq M. While the appeal of the centre will be dependant
on the type and mix of retailers in the centre, as well as their operators, the
proposed development will serve to further reinforce the Peregian Beach Retail
and Commercial Precinct

Impact
Given the retail uses within Peregian Beach, it has been estimated the local retail
precinct would capture in the order of 80% of the forecast convenience
expenditure potential. Therefore the remaining 20% ($1.74 million) of
convenience expenditure will be directed to other retail centres within the region
(e.g., Noosa and Coolum). The remaining 75% of food and beverage
expenditure ($3.19 million) will also be directed towards such centres.

The proposed development of approximately 1,000 Sq M will be supported by the
on-site tourists, Al residents and other local tourists within walking distance to the
site. The forecast retail expenditure potential of the development is expected to
have a positive impact on surrounding local centres as the remaining 20% of
convenience and 75% of food and beverage expenditure will be directed to other
retail centres within the Sunshine Coast region as well as providing additional
expenditure to support the proposed retail development.

Commercial
750 Sq M of commercial office space currently services 3,090 Al residents,
equating to approximately 0.24 Sq M of office space per person. Based on
general trends of 1.66 Sq M of office space per person, an undersupply of 4,379
Sq M exists within the Peregian community. The inclusion of the proposed 1,000
Sq M of commercial office space would decrease the shortfall to 3,379 Sq M or
improve the office space per capita ratio to 0.57 Sq M.

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6.3 Planning Need

Is the subject site suitable for the proposed development?

Yes, the proposed retail and commercial uses are congruent with the site's
classification under the Peregian Beach Neighbourhood Centre node and the
intended Business Activity uses outlined in the Peregian Beach Village
Masterplan. The site is considered to be a natural expansion zone for the
designated neighbourhood centre at Peregian Beach as outlined in the Noosa
Planning Scheme.

While the proposed accommodation component is not consistent with the current
Semi-Attached zoning, it is congruent will the current accommodation uses and
will enable the continuation of budget holiday accommodation in a long-term
financially sustainable manner. The proposed development will also contribute
more substantially to the affordable accommodation market by providing over four
times the bed spaces as the existing holiday park.

The site is also well located along the main arterial of David Low Way, allowing
good external exposure and accessibility for local residents and workers. The
site's location also provides good accessibility for on-site patrons requiring
accommodation close to natural attractions and other Sunshine Coast
destinations. The site’s retail will conveniently serve on-site tourists and aid in
strengthening the existing Peregian retail and commercial precinct. Overall, the
components of the development are well suited to the site, with the site providing
an appropriately sized area with suitable characteristics to host the mixed-use
development.

Does the proposed tourist development offer visitors a range of
experiences and accommodation types (Desired Environmental Outcome -
Tourism)?

Yes, the proposed tourist development would help to contribute to the Sunshine
Coast's presently constrained tourist product offer by increasing the supply of
affordable accommodation. This is particularly important with the current
predominance of Sunshine Coast accommodation stock catering to the upper-
end of the tourist market, and general decline budget priced stock.

Does the proposed tourist development contribute to the economic well-
being of the Shire; and achieve ecological, economic and social
sustainability? (Desired Environmental Outcomes — Tourism).

As opposed to the currently unviable caravan park, the proposed
accommodation, through the support of on-site retail and commercial facilities,
will be economically more sustainable over the long-term. Such a development
will also make a greater economic contribution to the Peregian community and
will help to strengthen the area as a retail and commercial node, offering a
greater variety of retail services and local office space in which there is a current
undersupply.

The development of economically sustainable budget tourist accommodation is
socially imperative as such facilities allow the continuation of holidays for families
and individuals where affordability is an issue. The proposed development will
help achieve this outcome and, through the provision of more affordable

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accommodation stock, the Sunshine Coast will become a more appealing
destination for such markets.

Given the inevitable closure of the existing caravan park, if the development were
not to proceed, this would detrimentally impact the low levels budget
accommodation upon the Sunshine Coast and inhibit growth of a diversified
tourist industry, which will help insulate the Sunshine Coast focal economy
against economic downturns.

6.4 Conclusion

Caravan parks have a limited lifespan. Unlike Council operated parks which are
not income focused, private operations like Peregian Beach Caravan Park must
remain economically viable to continue operation. In its present state, the closure
of Peregian Caravan Park is unavoidable due to the increasing level of financial
losses suffered.

Significant demand however, exists for each of the proposed development
components (accommodation, retail and commercial). The constrained supply of
budget accommodation and the present dominance of upper-end tourist
accommodation product on the Sunshine Coast has resulted in a definite need to
improve the range of tourist products in order for the region to retain its current
share of source markets and increase return patronage, particularly when
considered with the anticipated tourist population increases, Increasing the level
and range of supply is essential given the importance of the tourism industry to
the Sunshine Coast.

The intention of the proposed redevelopment is to not only continue but increase
the provision of budget accommodation by up to four times and across a more
varied mixture of accommodation. This will result in the proposed
accommodation having improved critical mass and mix, which when combined
with the additional retail and commercial facilities, will enable better service
provision to the public and improved use of the site land. The related commercial
and retail component will not only help to ensure the continued long term viability
of the overall development site, but will also help to service the current
undersupply of office space and convenience and food and beverage services in
Peregian Beach. The interrelationships between the components of the
development are also well suited, with the onsite retail facilities catering to
internal demand from visitors, while the commercial facilities will economically
bolster the budget accommodation.

The proposed development will help to fulfil the desired environmental outcomes
outlined in the Noosa Shire Planning Scheme by: the site being a natural area of
expansion for the existing Peregian retail centre and by the accommodation
component enabling the Sunshine Coast (of which is dominated by upper-end
tourist accommodation facilities) to provide a greater range of accommodation
options, enabling a more diverse tourist market of which is ultimately less
vulnerable to economic volatility. A greater range in product wilt also facilitate the
Sunshine Coast in remaining competitive as tourist destination, particularly
against the Gold Coast which has increased accommodation choice and price
options. The social benefits of the proposed development can also not be

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underestimated, as it promotes continuation of affordable holidays for budget
conscious families and individuals, a particularly important consideration when
the region's largest source market (South East Queensland) are facing rising
travel costs.

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