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

NOOSA SHORT STAY ACCOMMODATION ECONOMIC & SOCIAL ASSESSMENT



1.          INTRODUCTION
1.1         BACKGROUND
In response to rising concerns over the impacts of short term accommodation on residential amenity, housing
supply and affordability, in late 2019 and early 2020 Noosa Shire Council (Council) made the decision to make
short term accommodation an inconsistent use in Low Density Residential (LDR) zones as part of their proposed
Noosa Plan 2020 (NP2020). Existing use rights mean that those that had short stay prior to the planning scheme
amendments would still be able to offer short stay accommodation.

Short term accommodation would continue to be a consistent use in the Medium and High Density Residential
zones as well as the Rural and Rural Residential zones compromising the purpose of these zones. Conversely,
despite NP2020 dedicating large areas of land within a Tourist Accommodation zone specifically for visitor
accommodation and tourism uses, permanent residential dwellings remain a consistent use, compromising the
tourism purpose of the zone.

On 18 February 2020 the then Minister for State Development, Manufacturing, Infrastructure and Planning advised
Council they could adopt NP2020 subject to a condition to monitor the provisions relating to short term
accommodation, tourism and housing supply for a two year period following its commencement. Council adopted
NP2020 and it commenced on 31 July 2020.

Council is preparing a Short Term Accommodation Monitoring Report, including recommendations to amend
NP2020, which must be submitted to the Minister within six months of the end of the two year monitoring period
(i.e., by 31 January 2023). AEC was engaged by Council to assess the recent, current and potential impact of the
relevant scheme provisions on short stay accommodation and the economic and social impacts of maintaining
and/or extending these provisions.


1.2         APPROACH
In conducting this study, AEC has examined the following data to identify relevant trends:

•     Overnight visitor data (domestic and international) in terms of total visitor nights stayed, total visitor nights in
      paid accommodation, and total visitor nights in rented houses, units and apartments.

•     Short term rental dwelling supply and demand data from AirDNA, in terms of nights available (supply), nights
      occupied (demand), revenue and average daily rate (ADR).

•     Short term rental dwelling supply data from Council’s Tourism Carrying Capacity Analysis in April 2020 and
      October 2022, in terms of number of dwellings available for short term accommodation by location across all
      zones as well as in LDR zones specifically.

•     Residential dwelling sales and rental data, in terms of number of sales/ bonds lodged as well as sales/ rental
      values.




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