2022-11-14 GC Agenda - Item 4 - Attachment 2 - Appendix 13 to Attachment 1

NOOSA SHORT STAY ACCOMMODATION ECONOMIC & SOCIAL ASSESSMENT



3.               CASE STUDY – ECONOMIC AND SOCIAL
                 CONTRIBUTION OF SHORT STAY VS
                 PERMANENT RENTAL
3.1              ECONOMIC CONTRIBUTION
3.1.1            Approach
A comparison of the economic contribution of dwellings used for short stay accommodation versus dwellings used
for long-term tenants has been undertaken across four dwelling sizes – 1 bedroom flat/ units, 2 bedroom flats/
units, 3 bedroom flats/ units/ houses, and 4 bedroom houses. In undertaking this comparison analysis:

•       The assessment has incorporated the following components for short stay and long-term tenancies:

        o     Short Stay: Has included expenditure of owners on providing the dwelling for short stay accommodation
              (i.e., property management fees, cleaning, maintenance and other incidental costs) as well as expenditure
              in Noosa of visitors staying in the dwelling.

        o     Long-term Tenancies: Has included expenditure of owners on providing the dwelling for long-term tenancy
              (i.e., property management fees, maintenance and other incidental costs) as well as expenditure in Noosa
              of residents living in the dwelling.

•       A range of assumptions have been developed regarding the level of occupancy, rental revenue, owner costs,
        visitor expenditure (by expenditure item) and residential expenditure (by expenditure item) in Noosa.

•       Expenditure assumed to occur in Noosa was allocated to relevant industries in AEC’s Input-Output model to
        assess the annual direct and flow-on economic activity supported in Noosa on average per dwelling. Details
        regarding the Input-Output model methodology is provided in Appendix B.

Additional details regarding the specific assumptions used in undertaking modelling is provided in Appendix C.

    Input-Output modelling undertaken for this report examines the direct and flow-on impacts across the following
    economic measures:

    •       Output: Refers to the gross value of goods and services transacted, including the costs of goods and
            services used in the development and provision of the final product. Output typically overstates the
            economic impacts as it counts all goods and services used in one stage of production as an input to later
            stages of production, hence counting their contribution more than once.

    •       Gross product: Refers to the value of output after deducting the cost of goods and services inputs in the
            production process. Gross product (e.g., Gross Regional Product (GRP)) defines a true net economic
            contribution and is subsequently the preferred measure for assessing economic impacts.

    •       Income: Measures the level of wages and salaries paid to employees of the industry under consideration
            and to other industries benefiting from the project.

    •       Employment: Refers to the part-time and full-time employment positions generated by the economic shock,
            both directly and indirectly through flow-on activity, and is expressed in terms of full time equivalent (FTE)
            positions.


3.1.2            Results
Economic modelling indicates that, on average per annum, short stay dwellings provide a contribution of between:

•       Approximately $92,000 (1 bed) and $277,000 (4 bed) in output to Noosa businesses per dwelling.

•       Approximately $48,000 (1 bed) and $146,000 (4 bed) in GRP to Noosa per dwelling.




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