Townsville City Council's 2025/26 Budget and Operational Plan will introduce a fairer rating system for short-stay accommodation, aligning properties more closely with their commercial nature while reinvesting revenue to boost tourism across the region.
Acting Mayor Ann-Maree Greaney said the new approach would support long-term financial sustainability, ensure consistency across the accommodation sector, and help grow the region's $1.2 billion tourism industry.
"As Townsville continues to grow as a destination of choice, it's important our rating system reflects how different types of properties are used," Cr Greaney said.
"Short-stay accommodation contributes to our local economy, and this change ensures those benefits are shared more fairly across the community."
The updated rating category, in line with similar moves by other Queensland councils, will apply to short-stay properties such as those listed on short-stay accommodation websites which operate with a commercial focus.
The change is expected to generate about $1 million in additional revenue, which Council has committed to reinvesting directly into visitor economy through tourism marketing for the Townsville North Queensland region.
"This is about supporting sustainable tourism and ensuring we can continue to promote Townsville as a vibrant, attractive destination," Cr Greaney said.
"A $1 million boost in destination marketing can drive more than $32 million in additional visitor spending each year, directly increasing the spend on all accommodation, including short stay."
Townsville has had a 28.3 per cent increase in residential short-stay accommodation since 2022, with these properties now making up approximately 27 per cent of the market. On average, each generates more than $38,000 in annual revenue, demonstrating their commercial value.
"In most cases these larger properties are often indistinguishable from traditional hotels in how they operate, so it's fair that they contribute similarly to the services they benefit from, including tourism promotion and infrastructure," Cr Greaney said.
Importantly, the changes will not affect owner-occupiers who rent out a room or granny flat, nor will they apply to long-term rental properties.
"This is not about penalising responsible short-stay operators, it's about recognising the valuable role they play while ensuring the system is equitable and supports broader community goals, including housing availability and liveability," Cr Greaney said.
"Reinvesting in tourism creates a ripple effect across our local economy benefiting accommodation providers, hospitality venues, tour operators, and the broader community. It helps us create new jobs and attract investment."
The changes also help maintain the character of residential neighbourhoods by encouraging balance between short-term and long-term housing needs.
"Council has a responsibility to support both economic development and liveability," Cr Greaney said.
"This new approach allows us to do both ensuring our growing visitor economy continues to thrive, while preserving the wellbeing of our local communities."
Properties that have confirmed bookings or are advertised on short-stay accommodation provider websites after 1 July 2025 will automatically fall under the new category if they are offered, available or used for more than 30 days in the financial year.
