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

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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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Scanlon Property Group — Peregian Beach Needs Assessment . ‘Eeonomics