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

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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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Scanlon Property Group — Peregian Beach Needs Assessment . Economics