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

Page 42

accommodation stock, the Sunshine Coast will become a more appealing
destination for such markets.

Given the inevitable closure of the existing caravan park, if the development were
not to proceed, this would detrimentally impact the low levels budget
accommodation upon the Sunshine Coast and inhibit growth of a diversified
tourist industry, which will help insulate the Sunshine Coast focal economy
against economic downturns.

6.4 Conclusion

Caravan parks have a limited lifespan. Unlike Council operated parks which are
not income focused, private operations like Peregian Beach Caravan Park must
remain economically viable to continue operation. In its present state, the closure
of Peregian Caravan Park is unavoidable due to the increasing level of financial
losses suffered.

Significant demand however, exists for each of the proposed development
components (accommodation, retail and commercial). The constrained supply of
budget accommodation and the present dominance of upper-end tourist
accommodation product on the Sunshine Coast has resulted in a definite need to
improve the range of tourist products in order for the region to retain its current
share of source markets and increase return patronage, particularly when
considered with the anticipated tourist population increases, Increasing the level
and range of supply is essential given the importance of the tourism industry to
the Sunshine Coast.

The intention of the proposed redevelopment is to not only continue but increase
the provision of budget accommodation by up to four times and across a more
varied mixture of accommodation. This will result in the proposed
accommodation having improved critical mass and mix, which when combined
with the additional retail and commercial facilities, will enable better service
provision to the public and improved use of the site land. The related commercial
and retail component will not only help to ensure the continued long term viability
of the overall development site, but will also help to service the current
undersupply of office space and convenience and food and beverage services in
Peregian Beach. The interrelationships between the components of the
development are also well suited, with the onsite retail facilities catering to
internal demand from visitors, while the commercial facilities will economically
bolster the budget accommodation.

The proposed development will help to fulfil the desired environmental outcomes
outlined in the Noosa Shire Planning Scheme by: the site being a natural area of
expansion for the existing Peregian retail centre and by the accommodation
component enabling the Sunshine Coast (of which is dominated by upper-end
tourist accommodation facilities) to provide a greater range of accommodation
options, enabling a more diverse tourist market of which is ultimately less
vulnerable to economic volatility. A greater range in product wilt also facilitate the
Sunshine Coast in remaining competitive as tourist destination, particularly
against the Gold Coast which has increased accommodation choice and price
options. The social benefits of the proposed development can also not be

b,

\ Core

Scanlon Property Group - Peregian Beach Needs Assessment ‘Economics