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

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Sunshine Coast Accommodation Supply

© The tourist industry is highly important to the Sunshine Coast.

© Upper-end tourist accommodation constitutes the largest share (81%) of product on the Sunshine
Coast. 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.

o Subsequently, there is an identified need to improve the range of tourist products in order for the
Sunshine Coast to retain its current share of source markets and increase retum patronage, particularly
when considered in conjunction with increasing tourist numbers and product diversity in low-end
product.

Given the importance of tourism to the Sunshine Coast and its economy, increasing the level of short stay

accommodation (particularly for the South East Queensland drive market) is crucial.

Sunshine Coast Tourist Projections - Demand

o 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 47 1,640 visitor nights spent within the region.

© The international market white 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%.

Anticipated Sunshine Coast_ Accommodation Demand

To meet this growth in tourist populations, the accommodation stock will need to develop in line with the

following demand. It is also expected that further demand will be generated by the Sunshine Coast having a

More diversified accommodation supply. .

o 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. 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 may need to be spent in other accommodation types.

co The proposed development will also cater for the growth expected within the intemational sector.
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. At present 178,952 nights are spent within hostels, leaving a shortfall of 83,380
nights.

Given the problems presented with operating caravan parks in a financially feasible manner, it is necessary
to increase the stock of affordable accommodation options to cater to this demand, particularly when the
domestic market is faced with increasing monetary pressure due to rising petrol prices. The addition of the
proposed accommodation represents an increase in existing budget accommodation stock of 8.5%, with
growth in the total accommodation stock upon the Sunshine Coast of 1.6%.

Retail

Catering to On-Site and Near Site Demand

© Peregian Beach convenience and food and beverage retailers are currently expected to capture
approximately $9.82 million ($1.8 million from on-site tourists, $43,380 from local tourists within 400
metres walking distance of the site and $8 million from Al residents). This expenditure equates to
demand for 2,262 Sq M of convenience and food and beverage retail floorspace. Based upon the
present convenience and food and beverage floorspace situated in Peregian Beach (estimated at 1,450
Sq M), an undersupply of 812 Sq M exists. As expenditure potential and demand for all retail goods will
increase as a direct result of population growth, this shortfall is expected to increase accordingly over
time.

o The proposed 1,000 Sq M of retail (670 Sq M of which is convenience and food and beverage
floorspace) will serve in reducing the present undersupply to approximately 145 Sq M.

Commercial

Smail Supply / Large Demand

o 750 Sq M of commercial office space currently services 3,090 Al residents, equating to approximately
0.24 Sq M of office space per person. Based on general trends of 1.66 Sq M of office space per

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Scanion Property Group - Peregian Beach Needs Assessment ‘Fronomics