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

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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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Scanton Property Group - Peregian Beach Needs Assessment : Economies