A Sunshine Coast Council plan to expand luxury hotel offerings has been backed by the state government.
The Temporary Local Planning Instrument, which is part of an incentives package designed to attract upscale accommodation, has been approved with conditions.
The decision is expected to lead to the development of premium hotels at Maroochydore and Caloundra, and could benefit the proposed voco Maroochydore and 5IVE Hotel Caloundra.
The original request also included new height proposals at Mooloolaba and Alexandra Headland but they were rejected.
Sunshine Coast Mayor Rosanna Natoli welcomed the approval of the TLPI.
“Council’s desire is to encourage luxury hotels in specific, appropriate locations to foster our economic growth into the future,” she said.
“For several years, the tourism industry and business community have highlighted the urgent need for new, branded hotels. This TLPI aims to fill that need.”
The proposed TLPI provides for a targeted set of planning provisions to encourage the development of upscale hotels – four star and above – in key centre locations.
This would include a height allowance and reduced on-site car parking requirements.
The proposed TLPI complements an endorsed Strategic Policy that provides application fee relief and infrastructure charges discounts for accommodation hotel proposals.
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The last luxury hotel to be completed in the region was more than 30 years ago.
Currently, about 70 per cent of visitor accommodation on the Sunshine Coast consists of self-catering, limited-service apartment accommodation.
Mayor Natoli said the Sunshine Coast was missing out on a variety of markets due to the limited upscale accommodation.
“We need a breadth of options to suit different visitor needs,” she said.
“Upscale hotels will provide accommodation options for the high value and business markets.
“This type of visitor spends two-to-three times more, drives less, visits in off-peak times and stays longer.
“If we do not act now these visitors will continue to head – and spend their money – elsewhere.
“It’s estimated that just one upscale hotel will generate an additional spend of $29.5 million annually in our region, supporting our local businesses, providing approximately 422 jobs during construction and another 165 jobs ongoing.
“The Deputy Premier’s conditions reduce the area to which the TLPI applies, specifically targeting Maroochydore and Caloundra. This is a positive step towards attracting more hotel development in the two largest coastal centres in our region.
“Council expects the incentives package, comprising the TLPI and Strategic Policy, will only result in a small number of new hotels being developed, however this outcome would have a big impact on the quality and depth of this region’s tourism accommodation offer.”
Before the TLPI can take effect, council must consider and comply with the conditions imposed by the Minister and publish a public notice about the commencement of the TLPI, in accordance with the Planning Act 2016 and the Minister’s Guidelines and Rules.
Mr Bleijie said the economic prospects for Maroochydore and Caloundra looked promising.
“We have the right balance of protecting beachside communities and also allowing new tourism opportunities for the Sunshine Coast,” he said.
“This is an important opportunity for business and hotel investment, while also protecting our world-class lifestyle.
“There are immense opportunities for the heart of Maroochydore CBD heading into the 2032 Olympic and Paralympic Games and this decision will drive more investment while also protecting the Sunshine Coast’s lifestyle.”
A TLPI proposal for Birtinya will also be assessed by the state planning minister.
