Undersupply driving demand

A recent investigation into the current supply of, and future demand for, commercial visitor accommodation on the Sunshine Coast estimates that 2150 new internationally branded and operated hotel rooms and a further 300 boutique hotel rooms are required to service the needs of the region’s growing overnight visitor economy.

The Sunshine Coast has approximately 3590 rooms available across 10 hotels, four boutique hotels, 14 motels and 57 serviced apartments.

More than 70% of the existing market is dedicated to providing self-catering accommodation which is not typically favoured by the business, health and education visitor markets.

Only 34% of all rooms are affiliated with a hotel brand, compared with 62% nationally.

This lack of branded hotel rooms leaves the region significantly undersupplied to meet the needs of a growing overnight visitor economy. The visitor economy generated 15 million visitor nights in the year ending December 2023, which is an increase of 1.7% on the previous year.²

Further, it is estimated that the number of visitor nights will increase to 12.50 million by 2033.¹

The relative lack of suitable visitor accommodation is suppressing a higher conversion rate of day visitors into overnight visitors.

Sunshine Coast Council is taking the next step in cementing the region’s position on the global map. The development of internationally-branded hotels plays an essential part in achieving this position.