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

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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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Scanlon Property Group - Peregian Beach Needs Assessment ‘ Economics