Wollongong Council is exploring ways to increase and incentivise tourism accommodation across the region. Photo: Wollongong City Council.
An Illawarra luxury accommodation site has called for certainty and security in its future, while Wollongong City Council has decided to progress a tourism plan which could see the site rezoned to create greater opportunity for business.
The planning controls that restrict use, expansion and development opportunities at Illawarra accommodation sites could soon be changed as the city explores ways to increase the capacity and meet tourism needs for years to come.
The proposed changes could directly impact Stanwell Park’s boutique luxury hotel, Tumbling Waters Retreat which is currently bound by the restrictions of an environmental conservation zone rather than a tourist site.
“For years now we have been living with uncertainty, not knowing if we will be allowed to continue operating the business we have so successfully created for decades,” Tumbling Waters Retreat owner Sonya Keller told councillors. “That stress takes its toll financially and emotionally.
“It means holding back on investment, it means hesitation in hiring, it means not knowing if we can pass this business on to the next generation.
“All we are asking is to be recognised for what we already are, a long-standing tourism site.”
Sonya explained how the business had increased in prominence since they took over the site in 2000, and was now a beloved venue for visitors from all over the world.
“It’s where people fall in love, they get engaged, celebrate milestones and create memories they carry for life,” she said.
“We have guests travelling from overseas, sometimes to just stand in the same place and relive a moment that meant something deeply significant in their lives.
“That’s what Tumbling Waters Retreat means to people; it has a significant history and it’s naturally beautiful.”
It has also featured on shows such as Married at First Sight, The Bachelor and Return to Paradise.
But despite its success, the owners are still facing challenges – many of which they say would be fixed by the site being recognised as a tourist location.
“Businesses like ours shouldn’t be lost because of bureaucratic red tape,” Sonja said.
“We’re not asking for special treatment, just the chance to continue to do what we’ve done for decades.
“Businesses like ours, once they’re gone, they don’t come back.”
The planning proposal to change the zoning would be the latest action to be taken as part of the Wollongong Tourism Accommodation Strategy, which was adopted in February 2025 to help retain existing accommodation venues and incentivise the development of new accommodation offerings in the local government area.
Other actions such as increasing the height in certain existing developments and height and floor space bonuses for new developments are already in the works.
“I do want us to be a major event city and that people are coming here for events and possibly to get on a cruise ship, and to do that we need a range of accommodation in the city – not just five-star hotels – we do need a range of diverse accommodation throughout the region and I hope that this will help deliver that and that it encourages existing operators to look at their sites to see how they could be encouraged to invest in more accommodation because we certainly have a need for it,” Wollongong Lord Mayor Tania Brown said.
“More beds in the region is what our visitor economy needs desperately to thrive.”
“Zoning a site specifically for tourism is very clearly about the intent of providing a sense of security for those businesses and that is important when people’s money is being invested in those businesses but also in being able to develop a coordinated program with our organisations such as Destination Wollongong around accommodation,” Cr Ann Martin said.
Councillors voted to progress the plan, which would see a proposal be referred to the NSW Department of Planning, Housing and Infrastructure for a gateway determination. It would then be put on public exhibition for further feedback from the community.
“I think we really need to let this go forward and see what the gateway process gives us and then see what the broader community gives us,” councillor David Brown said.
“There will be a deal of concern about these particular sites, there will be a public debate and we’ll certainly be keeping our ears open to what people think and say about this matter.”
