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

NOOSA SHORT STAY ACCOMMODATION ECONOMIC & SOCIAL ASSESSMENT


Table 3.2. Average Annual Economic Contribution per Long-term Tenancy Dwelling to Noosa
 Impact                                         Output              GRP              Incomes          Employment
                                                 ($)                 ($)                ($)             (FTEs)
 1 Bed
 Initial Stimulus                               $22,246            $10,786            $8,178               0.11
 First Round Impacts                             $5,094            $2,526             $1,788               0.02
 Industry Support Impacts                        $1,417             $670               $508                0.01
 Household Consumption Impacts                   $5,605            $3,288             $1,857               0.03
 Total Impact to Noosa                          $34,362            $17,270            $12,332              0.16
 2 Bed
 Initial Stimulus                               $35,075            $17,075            $12,936              0.18
 First Round Impacts                             $8,012            $3,994             $2,822               0.03
 Industry Support Impacts                        $2,216            $1,052              $798                0.01
 Household Consumption Impacts                   $8,859            $5,197             $2,935               0.04
 Total Impact to Noosa                          $54,162            $27,318            $19,491              0.25
 3 Bed
 Initial Stimulus                               $43,901            $21,360            $16,184              0.22
 First Round Impacts                            $10,031            $4,997             $3,532               0.03
 Industry Support Impacts                        $2,776            $1,317              $999                0.01
 Household Consumption Impacts                  $11,085            $6,503             $3,672               0.05
 Total Impact to Noosa                          $67,793            $34,177            $24,387              0.31
 4 Bed
 Initial Stimulus                               $55,255            $27,018            $20,451              0.28
 First Round Impacts                            $12,587            $6,311             $4,450               0.04
 Industry Support Impacts                        $3,457            $1,648             $1,250               0.01
 Household Consumption Impacts                  $13,994            $8,209             $4,636               0.06
 Total Impact to Noosa                          $85,293            $43,186            $30,787              0.40
Source: AEC.

There are obvious limitations to this simple comparative assessment. While using dwellings for short stay
accommodation purposes is estimated to provide approximately three times the economic contribution compared
to using dwellings for long-term tenancy, the above analysis does not factor in capacity for visitors to use alternative
accommodation. That is, where a dwelling is not available for use as short stay accommodation, visitors may still
be expected to visit Noosa and stay at alternative accommodation with minimal to no change in economic
contribution (and a transfer of rental revenue to another accommodation provider). Likewise, where a dwelling is
taken out of use for long-term tenancy, there may be minimal to no net loss in the number of residents and
household expenditure where tenants are able to find alternative accommodation in Noosa.

The overall implication on the economy from changing use from short stay accommodation to long-term tenancy
(and vice versa) depends on the prevailing visitor accommodation and property market conditions. With rental
prices for long-term tenancy rising rapidly and well above the SEQ average over the past decade, and accelerating
in recent years, there is strong evidence to suggest the property market is experiencing a considerable shortfall in
long-term tenancy accommodation supply for residents and thereby any measures that can assist in expanding
supply of properties for residents will be beneficial. Conversely, visitor data shows that Noosa has recovered in
terms of overall visitor nights faster than the SEQ average, suggesting supply of short stay accommodation is
sufficient to support visitor demand.

From an economic diversification and resilience perspective, outside of accommodation spend visitors generally
focus their spend on recreational activities and retail, food, beverage and personal services thus providing limited
financial support to sustain other sectors of the economy critical to a functioning and sustainable community.
Permanent residents have a much more diverse spend profile across a range of economic sectors including
education, health, digital economy, rural industries and food security, professional services, planning and design,
research and development, etc., in addition to providing the local labour base for all sectors of the economy.




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