The Planning Act 2016 enables a local government to make a TLPI to address urgent and emergent planning matters.

The proposed Temporary Local Planning Instrument (Accommodation Hotel Incentive Measures) has been prepared to implement targeted and time limited planning provisions to respond to the urgent need for the development of new upscale hotels on the Sunshine Coast.

Recognising the investment attraction challenges and significant barriers that confront this type of development at the current time, Council has identified an urgent need for a combination of targeted policies, incentives and planning initiatives to help attract hotel investment and stimulate development of accommodation hotels on the Sunshine Coast.

The proposed TLPI is one of a suite of tools that will support the implementation of Council's Accommodation Hotel Incentives Strategic Policy.

Council has specifically chosen a TLPI over a conventional planning scheme amendment process due to the urgency of the issue and the desire for incentives to be for a temporary period only.

The Sunshine Coast is one of the most exciting business and tourism locations in Australia. It offers a perfect blend of outdoor adventure, natural beauty, cultural experiences and relaxation, making it a compelling destination for both Australian and international travellers.

The region is currently the second most visited region in Queensland (behind Brisbane). It is in the top five most visited tourism regions in regional Australia.

For several years the business community and tourism industry has spoken to Council about the urgent need for new branded hotels.

Council engaged an independent consultant, Tourism and Hospitality Services Australia (THSA), to investigate the need for hotels on the Sunshine Coast. The research highlighted a significant shortfall in international branded hotels, with the last luxury hotel being completed more than 30 years ago.

The research estimated a need for 2,150 new hotel rooms and a further 300 boutique hotel rooms across the region to address the current shortfall in serviced visitor accommodation and to satisfy the forecasted demand from overnight visitors between now and the Brisbane 2032 Olympic and Paralympic Games.

The combination of the Sunshine Coast’s solid economic growth trajectory over the next 20 years, as well as its well-established credentials as one of Australia’s most popular leisure destinations, provides a solid base to support future demand for new hotel accommodation.

The development of full-service hotel accommodation (as opposed to self-catering apartment accommodation which is already plentiful across the region) will play an important role in addressing the high levels of demand from the business, education and health visitor markets that we do not currently capture.

The tourism sector is vital to the Sunshine Coast economy, employing almost 10 percent of Sunshine Coast residents and providing billions in spend each year into local business.

There are a range of investment attraction challenges and significant constraints to the development of hotels on the Sunshine Coast, particularly with elevated construction costs weighing on investment decisions.

By acting today, Sunshine Coast Council is harnessing the opportunity to address the region’s hotel shortfall, and importantly the huge flow-on benefits to our community and economy. These include hospitality careers, education, extra business for local food and beverage providers, as well as construction work close to home.

The proposed TLPI will only apply to the following current planning scheme local plan areas and zones (as coloured on the maps in Schedule 1 (and inset maps) of the proposed TLPI):

• Maroochydore/Kuluin Local Plan Area - Principal Centre Zone, Tourist Accommodation Zone and Local Centre Zone at Cotton Tree (refer to Map Inset 1)
• Mooloolaba/Alexandra Headland Local Plan Area – District Centre Zone, Tourist Accommodation Zone, High Density Residential Zone at Mari Street and Tourism Zone (refer to Map Inset 2)
• Caloundra Local Plan Area - Major Centre Zone (refer to Map Inset 3)
• Beerwah Local Plan Area – Major Centre Zone (refer to Map Inset 4)
• Nambour Local Plan Area – Major Centre Zone (refer to Map Inset 5)
• Sippy Downs Local Plan Area – Major Centre Zone (refer to Map Inset 6)

The different colours shown on Schedule 1 (and inset maps) correspond with the land use zones currently identified under the Sunshine Coast Planning Scheme 2014, as outlined below:

Some areas within these zones have been intentionally excluded from the TLPI due to their sensitivity from a building height perspective.

The TLPI has been carefully designed to only apply to the areas coloured on the maps. Hotels can already occur in these zones under the current planning scheme, subject to Council’s approval (i.e. a development application is required to be submitted to Council for approval). Council’s approval will still be required for a proposed accommodation hotel under the TLPI. Only a small number of proposals for upscale hotels are anticipated under the TLPI.

A TLPI is a statutory instrument created under the provisions of the Planning Act 2016. It temporarily suspends or overrides parts of an existing planning scheme to address a specific, often localised, issue for a period of up to two years.

A TLPI:

• Does not amend or repeal a planning scheme.

• Does not create a superseded planning scheme and is not an adverse planning change. Therefore, a superseded planning scheme request cannot be made and compensation cannot be claimed for premises affected by a TLPI.

• Once made, Council can incorporate a TLPI into its planning scheme (if required) through a planning scheme amendment or when making a new planning scheme.

• Can be repealed by Council.

• The operation of a TLPI cannot be extended beyond the period stated in the instrument. However, a TLPI can be replaced or remade.

The proposed TLPI provides a use specific height allowance and reduced on-site car parking requirements to encourage the development of upscale accommodation hotels (4.0 star and above) in certain existing major centre and tourism locations in the Sunshine Coast region.

Building height allowance

The proposed height allowances in the TLPI are unlikely to result in development that is substantially different to the height of buildings in the relevant planning scheme zone and applicable local plan area.

The proposed use specific height allowance provides for an additional height of:

• 3 metres for sites with a pre-existing height allowance for a hotel (refer to Scenario 1)
• 7 metres for sites with no existing height allowance for a hotel (refer to Scenario 2)

PLUS

• 3 metres for a rooftop use associated with a hotel (5 metres for a lift overrun) (refer to Scenario 1 and 2).

The proposed height allowances have been carefully designed having regard to existing height limits and local characteristics. Provisions have also been incorporated in the TLPI, which require a visual assessment of proposals comparing the proposed building height outcome under the TLPI with the building height outcome provided for under the existing height limits specified in the current planning scheme as if the TLPI did not apply.

The proposed TLPI only suspends or overrides specific sections within the Sunshine Coast Planning Scheme 2014. Any proposal for an accommodation hotel subject to the TLPI will still need to be assessed in accordance with the relevant provisions of the planning scheme, including any applicable overlays (e.g. the Biodiversity, waterways and wetlands overlay), overlay codes, development codes and local plan codes.

Car parking requirements

The reduced on-site car parking requirements in the proposed TLPI are more reflective of the actual car parking generated by most upscale accommodation hotels and more consistent with hotel development in other similar local government areas.

These hotels attract high value guests who are less likely to arrive by car. Other services such as shuttles are also available as part of the full-service offering of an upscale hotel.

The proposed TLPI provides a reduced on-site car parking rate of 1 space per 3 rooming units, plus visitor and other use specific on-site car parking (as per Council’s current planning scheme minimum on-site car parking rates).

The proposed reduction in on-site car parking requirements is unlikely to have a significant adverse impact on the availability of car parking in the nominated zones/locations for the following reasons:

• upscale accommodation hotels have different operational characteristics (such as concierge services, valet parking and shuttle services)
• the visitor types prefer other means of transport than own/hire vehicles
• upscale accommodation hotels are expected to attract a different market of travellers (such as business and overseas visitors)
• the accommodation hotels are to be located in major centre and tourism areas close to existing and planned transport facilities
• a limited number of accommodation hotels are anticipated to be approved

The Sunshine Coast is currently missing out on many high value travellers by not offering the right type of accommodation. These high value travellers spend two to three times more than average, participate in more activities and also stay longer. These visitors drive less, preferring private transfers and tours. The benefit for local business would be significant.

These hotels will also support existing local businesses in other industries, who currently host their clients in Brisbane and commute each day.