Tourism Planning Taskforce Report - Western Australian Planning ...

Chapter 7Term of Reference 47.3.1 Zoning controlsThe use of specific tourism zonings inschemes has been identified by the taskforceas having potential ancillary benefits inreducing land tax impacts on low-key tourismoperations.The Shire of Busselton planning schemecurrently includes the majority of touristaccommodation developments within a touristzone. This zone provides for the approval of asignificant range of development types at thelocal government’s discretion. In response tothe land tax effects of this zoning structure,and concerns expressed about redevelopmenttrends, the local government and tourismoperators have proposed the use of a moredefined zoning system to cover the variouscategories of tourist accommodation in thearea. This system would establish the primarylimits to the intensity of tourism developmentthat is appropriate on a site through theplanning scheme, as opposed to this beingdetermined through the development approvaland associated advertising process. Thisincreases the certainty for the developmentsector and property owners on what can bedeveloped on a site, and is envisaged to act inreducing speculative purchase of such sites.The proposal is to introduce a more definedzoning structure that would include thefollowing zones:• Caravan park and camping grounds• Cabin/chalet park• Tourist-resortEach zone is proposed to contain specificrequirements in respect to the density ofdevelopment, with the extent of developmenttypes permissible increasing from the caravanpark zone to the tourist zone. (See Chapter 8).Advice from the VGO is that the impact of thisrevised zoning structure in reducing landvalues for high-amenity beachfront sites beingconverted from a tourist to a caravan park orcabin and chalet park zone could be as greatas 30 per cent and 20 per cent respectively.For properties further away from thebeachfront, the valuation difference betweenthe various zones is predicted to reducesignificantly. While these valuation effects canbe considered as indicative only, theydemonstrate that the use of a revised zoningstructure for the purpose of achieving theretention of a variety of tourist accommodationcould have a greater land tax effect thanaddressing either permanent residentialcomponents or the use of strata schemes.Other issues associated with this proposalinclude:• Reduction in value of properties reduceslending potential of owner and capital gainon sale.• The proposal has been discussed inBusselton on a voluntary basis, ielandowners would request to be rezoned toone of the more constrained categories.This may result in a low level of take-up,with continuing pressure from land taxeffects for redevelopment of many siteswith lower-cost forms of accommodation.• It provides a greater level of certainty forthe development sector and the communityon the intensity of development that couldbe permitted on a site.• The valuation estimates rely in part on themarket perceiving that a rezoning of a siteto a higher development zone is difficultand highly unlikely where a site is identifiedfor low-intensity tourism under a localplanning strategy. This may not be realisedif the voluntary approach is maintained andsites are not zoned consistent with thelocal planning strategy.The benefit that can be achieved with theintroduction of such a zoning structure on avoluntary basis may be limited. The use ofmore defined tourism zoning structures in thepreparation of planning schemes will assistlocal governments in the retention of a varietyof tourist accommodation facilities at variousaffordability levels within their locality.7.3.2 Limitations on the use of strataschemes and/or permanentresidential useIndicative estimates are that a limitation on theuse of strata schemes, in general, will nothave a significant direct effect on landvaluations, relative to the option of zoningcontrols. The use of survey strata and vacantlot strata schemes for tourism sites haslimitations in terms of achieving integrated andconsistent tourism developments that are usedTourism Planning Taskforce Report59