They also fear it will detract from the town’s ability to host large-scale events.  

The recent closure of one motel on Bong Bong Street, and the impending closure of another has raised concerns. 

Kiama Ocean View Motor Inn closed late last year to make way for construction of apartment units.

Across the road, Kiama Cove Boutique Motel manager John Smith said their business was “being pulled down next year” for the same purpose. 

“There’s going to be nothing left motel-wise; only caravan parks and the one near the leagues club,” he said.

“The rest will be apartments. It will be hard for tourists to get accommodation at a reasonable price.” 

Kiama councillor and Kiama and District Business Chamber vice-president Gavin McClure said there were concerns with motel accommodation closing without being replaced.

“While we do have quite a number of holiday houses, it restricts groups of people coming down to stay for things like conferencing,” he said. “Also the international market, with bus charter groups wanting to come down and stay.

“It’s allowing our trade to bypass us and go elsewhere.

“It definitely has an effect on the conferencing market. Places like the Sebel and Pavilion cater for large groups, but there’s nowhere to house them. It restricts us as a destination for groups.”

Cr McClure said this was “creating a big problem in tourism”.

He said it was difficult to determine whether websites like Airbnb were “picking up any slack”.

He believed arrangements such as Airbnb were well-suited to small family groups or couples, but not bus groups for instance. 

Kiama Tourism chairman Jamie Warren said recent closures were an issue.

“The result is, one, it’s less options for tourists,” he said.

“But from a local perspective it’s less jobs and less money being spent in the various tourist sub-industries.”

Mr Warren said a potential solution was that sites within the Kiama LGA were identified as possible locations for accommodation outlets.

“Maybe working with governments, they could be identified as tourist specific sites and developed.”

Kiama Show Society president Michael Brennan said less accommodation options were a concern for their event, and likely others such as the Kiama Sevens. “If we can’t get accommodation for our judges and show officials, it makes it difficult to house them… For us, apartments are not suitable for people coming to the show for a day or two.”