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

Page 5

Executive Summary

 

Proposed
Facilities

The proposed development will function predominantly as short stay accommodation for the South East
Queensland drive market. The proposed concept will consist of several components: affordable short stay
accommodation (68 Visitor Hostel units and 30 Beach Shacks - approximately 11,000 Sq M), with two
levels of retail and commercial office space (approximately 1,000 Sq M each) fronting David Low Way in
Peregian Beach. The intention of the proposed redevelopment is to continue and improve the volume of
affordable accommodation upon the Sunshine Coast, with the commercial component developed
concurrently to ensure long term competitiveness of the short stay accommodation by establishing some on-
site retail and related facilities.

 

Site
Suitability

Accommodation

o The planned accommodation uses are congruent with the site's existing function in providing affordable
accommodation.

o The present caravan park situated on the subject site is too restricted and small in scale to operate in
an economically viable manner. The redevelopment will however, serve to form a natural continuation
of the present budget accommodation facilities provided by the caravan park but with increased critical
Tass, supplying four times the number of beds currently provided by the park.

Retail and Commercial

© The proposed retail and commercial uses are consistent with the site's designation under the Peregian
Beach Neighbourhood Centre node and the intended Business Activity uses outlined in the Peregian
Beach Village Masterplan. Given the site's proximity to the adjacent retail and commercial infrastructure
of Peregian Beach, the proposed development forms a natural area for expansion of the existing
neighbourhood centre and will serve to strengthen the locality as a retail and commercial node.

Overall, the components of the development are welt suited to the site, with the site providing an
appropriately sized area with suitable characteristics to host the short stay accommodation and related
facilities. The proposed development also makes best use of the subject site land, enabling a greater critica!
mix and mass of accommodation as opposed to the current caravan park.

 

Economic
Need

 

 

Accommodation

Caravan parks have a limited future

o Maintaining caravan parks is socially beneficial given they enable continuation of the cheap seaside
family holiday. However, recent trends have made operating small scale caravan parks in poor or non-
prime locations {consisting primarily of low-yielding accommodation) increasingly difficult for business
operators. Caravan parks operated by local authorities tend to be well located (due to historical
reasons), and many local authorities do no require the same financial performance as private sector
operators. Consequenily, caravan parks as they presently stand, have a limited future.

Peregian Beach Caravan Park — Specific Barriers to Success

The closure of Peregian Beach Caravan Park is inevitable. A number of inhibiting factors for the park have

been highlighted:

© Occupancy rates are average (50%) when compared to other local parks which have superior
waterfront locations, facilities/activities and critical mix.

© In conjunction with wider trends showing a national decline in overall visitor numbers to caravan and
camping grounds, Queensland land taxes are another prohibitive factor faced by caravan park owners.
Future declines in caravan ownership are also anticipated due to storage constraints imposed by
increased housing density.

o Asa result, the Peregian Beach Caravan Park has suffered increasingly larger financial losses and,
unlike the council operated parks which are not income driven, the Peregian Beach Park cannot
continue as a viable business. Consequently, for caravan parks to maintain required income levels,
many operations have trended towards more profitable and economically sustainable tourist
accommodation options.

 

 

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Scanton Property Group - Peregian Beach Needs Assessment . -Eeonomies