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

NOOSA SHORT STAY ACCOMMODATION ECONOMIC & SOCIAL ASSESSMENT



4.         IMPACT ASSESSMENT
4.1        ECONOMIC IMPACTS
The Noosa economy has been significantly impacted by a number of factors over the past decade, none more so
than the COVID-19 pandemic. However, analysis of visitor, short term rental dwelling and general property market
data highlights that the local economy has bounced back very strongly following the easing of border and related
restrictions. Visitor nights in short term rental dwellings have returned to pre-COVID-19 levels and the share of
visitors staying in rented houses, units and apartments has also reached record highs. There is insufficient evidence
to suggest making short term accommodation an inconsistent use in LDR zones within NP2020 has had any impact
on the performance of the local economy, with visitation to Noosa outperforming the broader SEQ experience.

Further, there is insufficient evidence to suggest making short term accommodation an inconsistent use in the LDR
zone within NP2020 has had any impact on the availability of dwellings for either short stay accommodation or
permanent rental or the demand for residential dwellings by prospective buyers. The supply of dwellings for short
term accommodation in the LDR zone actually increased between April 2020 and October 2022 due to applications
being made under the superseded planning scheme in the 12 months after NP2020 was adopted. A further increase
in the supply of dwellings for short term accommodation in other zones has also occurred.

More broadly, the increasing allocation of housing stock for use as short stay accommodation over the past decade
has resulted in a constrained operating environment for local businesses with an imbalance between the demand
for local workers and the supply of local workers across all sectors of the economy impacted by the lack of available
and affordable housing. If businesses are unable to operate or are only able to operate on a restricted basis as a
consequence of labour shortages, the economy becomes constrained.

There is a tipping point between the allocation of accommodation supply for visitors versus residents and workers
and the demand from visitors on the economy. Visitors demand a diverse retail offering and efficient and varied
hospitality experiences and food and beverage options. However, if there is insufficient appropriate housing stock
for workers in these sectors, then visitor demands are unable to be met. Council’s Value of Tourism in Noosa 2019
survey of businesses highlighted concerns surrounding housing affordability and supply for workers to meet the
needs of the local economy. In addition, other sectors of the economy developed over time to diversify and provide
increased value add (a key focus of Council’s Economic Development Strategy 2021) will also be constrained in
filling key positions.

Making short term accommodation an inconsistent use in LDR zones within NP2020 will ensure that no additional
housing within LDR zones will be allocated to short stay accommodation with any new stock available for residents
and workers to support improved functioning of the local economy.


4.2        SOCIAL IMPACTS
There is a significant impact on traditional residential neighbourhoods from the increased level and type of activity
associated with short stay accommodation, much of which is focussed on noise disturbances, amenity, safety and
security. Most of the impacts relate to resident health and residential amenity, with amenity referring to the ability
for residents to enjoy their homes in a peaceful manner with feelings of community and safety. Residential homes
should allow their occupants the ability to wind down, relax and sleep with minimal disturbances. Such residential
amenity maximises resident health and wellbeing.

AEC prepared a Cost Benefit Assessment for Council on its Short Stay Letting and Home Hosted Accommodation
Local Law to identify the costs and benefits associated with the controls included within the Local Law to better
manage the adverse effects on predominantly permanently occupied residential communities from the increased
utilisation of residential properties for short stay accommodation. It was identified that there were 10,610 residential
properties consisting of an estimated 26,525 persons that would receive benefit from the Local Law, representing
a significant portion of the local community.

The quantified benefits of the Local Law on resident health and residential amenity within Noosa were estimated
at $9.56 million per annum and the benefit-cost ratio within Noosa was calculated to be in excess of 30 (a value of




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