Sunshine Coast approves plan to lure luxury hotels

Mooloolaba, Sunshine Coast, Queensland. | Newsreel
Sunshine Coast Council has approved a TLPI to attract luxury hotel development. | Photo: Wire Stock

Sunshine Coast Council has approved plans to incentivise developers to build more luxury hotels in the region.

At its meeting today (November 21), Council voted to proceed with a Temporary Local Planning Instrument (TLPI) aimed at providing short-term planning incentives to encourage the development of upscale hotels.

Sunshine Coast Mayor Rosanna Natoli said the approval followed consultation with industry experts, businesses and the community.

Mayor Natoli said the Sunshine Coast had an urgent need for four and five-star, full-service hotels.

She said the changes would apply to less than one percent of the region, in locations where hotels were already expected, and able, to be built.

“The proposed TLPI provides for a targeted and time-limited set of planning provisions to encourage the development of upscale hotels – four star and above – in those already-identified areas.

“This would include a height allowance and reduced on-site car parking requirements.

“All other provisions in the planning scheme such as biodiversity and coastal protection, continue to apply,” she said.

Mayor Natoli said attracting new luxury hotels would have flow-on benefits to the region.

“Job creation, infrastructure investment and economic growth are just some of the bonuses of a push to attract more upscale brands.”

She said research had highlighted a significant shortfall in international branded hotels, with the last luxury hotel completed in the area more than 30 years ago.

“About 70 per cent of visitor accommodation on the Sunshine Coast is 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.

“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.”

Council Economy Portfolio Councillor Terry Landsberg said that only a small number of development applications for upscale hotels were expected to be approved under the TLPI.

“Council expected the proposed incentives package would only result in a small number of new hotels being developed, the outcome would have a big impact,” Cr Landsberg said.

“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.”

Before it can take effect, the proposed TLPI must be approved by the State Planning Minister.

Fast Facts

  • Research indicates 2450 new hotel rooms are required on the Sunshine Coast over the next decade.
  • Only one per cent of our region’s hotels are considered luxury. The last was built in 1989.
  • The Sunshine Coast is the third highest visited region in the state behind Brisbane and the Gold Coast.
  • Each new hotel in the region is estimated to generate an additional $29.5m in economic impact yearly.
  • Upscale hotels attract visitors who spend two-to-three times more than average.

Learn more about the TLPI.