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

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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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Scanton Property Group — Peregian Beach Needs Assessment -Eeonomies