Hervey Bay Sheraton worth $585m, to create 1770 jobs

A proposed Sheraton at Hervey Bay is forecast to inject $583 million into the region’s economy, $158 million more than first thought, now that the five-star hotel chain is on board.

An artist's impression of the proposed Hervey Bay Sheraton.

A proposed five-star mega Sheraton hotel development in Hervey Bay is expected to generate 1770 more jobs for the region, according to a newly updated economic case study released this week by the developers.

The direct and indirect economic benefit to the region is forecast to be $583 million, a $158 million difference from the original $425 million prior to the Sheraton’s involvement.

Local industry would now receive a direct fund of $343 million compared with the previous estimate of $250 million, while the total direct and indirect employment forecast has increased from 1350 to 1770 jobs, 420 more jobs added to the project.

Developer Sunny Beach Land commissioned the updated report from consultancy group Urban Economics after it signed a Memorandum of Understanding with Sheraton Hotels and Resorts’ owner Marriott International for the five-star hotel chain to manage the resort.

An artist's impression of the proposed Hervey Bay Sheraton.

The new assessment has been lodged with the Fraser Coast Regional Council as part of the company’s development application for the project located on the Torquay waterfront.

Sunny Beach Land Director Dan Cuda said,“the hotel component of the development was originally planned to have 187 rooms but would now be 223 rooms with Sheraton as the hotel operator and an early planning is underway for a spectacular snorkeling and diving pool”.

Some of the benefits the proposed Sheraton would bring to Hervey Bay.

“The benefits of the project includes the $342 million economic contribution, an extra $12 million in annual visitor spending, 103,000 overnight visitors per year and employment for an estimated 50 local apprentices,” Mr Cuda said.

“(The report) outlines many further flow-on effects for the Fraser Coast region, such as growth opportunities for local businesses, the potential to increase direct flights to Hervey Bay and sustainability of the tourism sector due to more visitors spending more money.

“We knew that an operator of the calibre of Sheraton - part of the world’s largest luxury hotel group - would bring huge benefits to this region so, we’re excited to have this confirmed by the economic experts,” Mr Cuda added.

Artist's impression of reception area at Sheraton Hervey Bay.

Urban Economics provides advice and insights on large scale property projects.

Its Economic Impact Assessment of the proposed Sheraton Hervey Bay found the project required a critical mass of hotel rooms on the site to attract a “quality operator” such as the Sheraton.

The assessment indicates that the proposed residential apartments will also introduce additional diversity of housing stock and choice in lifestyle for downsizing and rightsizing households close to a breath of local amenities, retail and recreational infrastructure, the report states.