PM Submission - John Cochrane - MCU21/0110

“Adamson Town Planning, specialising in providing higher order town planning advice”



         A detailed audit of the existing accommodation supply in Noosa found a total of 3,821 rooms
         across 158 properties. It also revealed a chronic shortage of full-service, luxury hotel
         accommodation with the market dominated by serviced apartments.

         In order for the Noosa tourism market to continue to grow and remain vibrant, additional hotel
         room capacity is required. The EIA advises that it will be 2022 before the market returns to pre-
         COVID levels and the pre-existing shortage of accommodation will re-emerge with a shortage of
         671 rooms expected in 2022. By 2023, when the Noosa Springs “Boutique Hotel” is expected in
         the market, the shortage will be for 683 rooms16.

         The “Boutique Hotel” will deliver a 112 room, full-service, luxury hotel in Noosa. The proposed
         development will provide considerable capacity to attract high yield and high spending visitors
         and would represent one of the most significant investments in tourism product in the Noosa
         area over the last decade.

         The proposed “Boutique Hotel” will address the current significant lack of luxury, full-service hotel
         product in the Noosa area. The EIA advises there is one property (out of 158) that provides a
         luxury, full service hotel experience, which is the “Sofitel Noosa Pacific Resort” in Hastings Street.
         Furthermore, the Noosa area suffers from a shortage of short-stay accommodation rooms and a
         chronic shortage of high-end, luxury accommodation. The delivery of the “Boutique Hotel” will
         greatly complement the existing accommodation offerings in the Noosa area.

         It has been estimated by Lucid Economics that the “Boutique Hotel” will provide positive economic
         benefits, including 202 jobs and $25.7 million during construction and 158 jobs and $14.3 million
         once operational (in GRP terms). The proposed “Boutique Hotel” will represent an estimated
         investment of $50 million. It is further advised that the proposed “Boutique Hotel” will greatly
         augment the existing accommodation market and assist in growing the local tourism industry.

         Given the strength of the local accommodation market in Noosa, the new “Boutique Hotel” will
         not have a material impact on other existing properties in the market and the new rooms will be
         easily absorbed by future market demand. The EIA states beyond the economic impacts there will
         be numerous other economic benefits delivered by the “Boutique Hotel” development, including:

              •    Increase in luxury tourism product in Noosa: The Noosa Springs Boutique Hotel will increase
                   luxury tourism product in Noosa (first new, purpose built luxury hotel since 1989), thereby
                   increasing appeal to this market segment.

              •    Increase in luxury branding: The addition of a new, full-service luxury hotel will increase the
                   image and branding of Noosa as a luxury destination.

              •    Increase capacity for business events and weddings: While the existing Noosa Springs Golf
                   and Spa Resort accommodates business events and weddings, the addition of a full-service,
                   luxury hotel on site will dramatically increase the property’s ability to attract this market.
                   Events and weddings have been highlighted as key target groups by Tourism Noosa.
                   Activating the Noosa market mid-week through business events will unlock new areas of
                   demand and contribute towards Tourism Noosa’s goal of ‘value over volume’.

         16 EIA, Executive Summary, pages i & ii




         Noosa Springs Boutique Hotel – GH Australia Pty Ltd                                   Page 64