Government vows crackdown on owners of once-stunning abandoned island resorts left in ‘apocalyptic’ ruins

A host of once-glittering island resorts are abandoned and crumbling and the government is fed-up with their owners, vowing to seize control if they don’t start redeveloping.

A pair of New Zealand yachters hoping to explore pristine island paradises off the coast of Queensland were left horrified by the “eerie” scenes they discovered.

Decaying and crumbling buildings, swimming pools filled with garbage, debris strewn across sandy beaches and other sad “skeletons” of once-thriving resorts.

Anna and Angus Willson set off on a circumnavigation in mid-2023, heading north to Noumea in New Caledonia before heading east to Australia.

“Brampton Island was our first stop, just 18 miles from Mackay to the white sand and shelter of Mary Port Bay, looking over at the abandoned Brampton Island Resort,” Ms Willson wrote of the experience for Yachting Monthly last year.

“It’s a very eerie, slightly apocalyptic feeling being at a resort that has been closed since 2006.”

What remains of the resort pool on Brampton Island.

Brampton Island Resort has been left to decay. Picture: Supplied

It was a similar scene that played out again and again as the couple travelled north.

“Every island that we visited in the Whitsundays had the skeletons and rubble of once very busy and well-loved resorts. I was saddened to see decaying buildings left to be looted and destroyed … a pile of garbage and a blot on an otherwise pristine beach.

“Brampton, South Molle, Long Island, Lindeman and Dunk Island are just a few of the defunct resorts that we saw as we made our way to Townsville and onto Cairns.”

The resort on South Molle Island in the Whitsundays is in a dilapidated state. Picture: Allards Across Oz

What remains of the once-stunning South Molle Island Resort.

The Queensland Government seized Double Island from its billionaire owner after it sat derelict and abandoned for several years.

It left her mystified, given the extraordinary potential of those “beautiful islands”, many of which are meant to be declared and protected National Parks.

“Come on Australia, it’s time to clean up the rubbish and rubble … the Whitsundays are a national treasure and an idyllic place to experience some extraordinary sailing and to enjoy picture-perfect anchorages.”

Government crackdown looms

Governments and fed-up locals, who’ve endured broken promises of restorations and upgrades for decades now, agree.

The Queensland Government is taking a tough stance on owners of island leases who sit on their hands, declaring they need to “use it or lose it”.

Hong Kong businessman Benny Wu bought the lease for the 16.2-hectare Double Island in 2012 for $5.68 million and promised to develop a high-end offering for “very rich tourists” at the “top end of the market”.

Those dreams never eventuated, the resort shut down more than six years ago, and the site became a derelict wasteland, putting Mr Wu in breach of his conditions.

In February, the billionaire was formally stripped of his lease when the Queensland Government converted Double Island from a Land Act Reserve to state-owned freehold land, giving it greater powers to restore the site.

Double Island off Palm Cove is in ruins. Picture: Emily Barker

Queensland Premier David Crisafulli has warned owners of island dumps to “use it or lose it”. Picture: NewsWire/Tertius Pickard

Chinese billionaire developer Benny Wu was stripped of the lease. Picture: Anna Rogers

“This is bloody brilliant,” local MP Craig Crawford said at the time. “It is now back in the hands of Queenslanders. This is the day we’ve all been waiting for after six long years.”

The government has since launched an expressions of interest campaign, seeking an experienced tourism operator to restore the island, which sits off the coast of Cairns.

“We need the right operator with a bold and forward-looking vision to ensure this gem in the Far North’s tourism crown lives up to its full potential,” Premier David Crisafulli said.

Mr Crisafulli last week said that kind of action should serve as a warning to others – develop or move on and let someone else.

The resort on Lindeman Island off Mackay is in a derelict state after it was abandoned following Cyclone Yasi in 2011. Picture: Red Livermore

The resort on Lindeman Island off Mackay is in a derelict state after it was abandoned following Cyclone Yasi in 2011. Picture: Ron Altmann, 2021

Dozens of resorts across several islands that were once “the jewels in our tourism crown” had been neglected for many years, Minister for Regional and Rural Development Dale Last said.

“Iconic destinations like Double Island should be vibrant tourism hot spots that support hundreds of jobs, and the Crisafulli Government is now delivering that full potential,” Ms Last night.

The Queensland Government seized Double Island from its billionaire owner after it sat derelict and abandoned for several years.

But running a successful business in these idyllic spots isn’t a walk in the park, the Whitsunday Conservation Council pointed out.

Figuring out why so many have become derelict and abandoned ghost towns isn’t difficult.

“As the older resorts became run-down, unfashionable and expensive to run, some [were] sold down the food chain to companies who simply [took] profits but [didn’t] reinvest in the island infrastructure,” the group said in a submission to the government.

It added that island resorts are expensive to run and maintain and require “constant reinvestment” to survive.

“Eventually something expensive fails and then they close, frequently after they have been damaged by a cyclone.”

Some glimmers of hope

Some ambitious proprietors have taken up the formidable task of restoring a handful of islands to a modern version of their former glory.

Dunk Island, four kilometres off Mission Beach, was devastated by Cyclone Yasi in 2011 and sat in ruins in the years that followed until billionaire Annie Cannon-Brookes swooped in and bought it for $24 million in 2022.

Six traditional campsites are now available, and bookings will open soon for another six eco glamping tents, while construction nears completion on a new bar and cafe.

Plans for the old resort are yet to be announced.

Damaged buildings on Dunk Island Resort, which has been closed since it was battered by Cyclone Yasi and Cyclone Larry Larry. Picture: Anna Rogers

Double Island off Palm Cove is in a dire state. Picture: Emily Barker

Hook Island, off Airlie Beach, was smashed by Cyclone Anthony in 2011 and again by Cyclone Debbie six years later. It hasn’t seen tourists in 12 years.

Hospitality sector Rich Lister Glenn Piper bought the 9.3-hectare site for $10 million in 2022 and recently unveiled plans for a major rebuild, featuring 39 cabins, a new arrival pavilion, wellness suites, forest pools and restaurants.

The $40 million redevelopment project is expected to be complete in 2027.

“This project has been a labour of love,” Mr Piper said.

“We’ve poured our hearts into blending thoughtful design with a profound respect for the island’s heritage and delicate ecosystem.

“After being closed for more than a decade, we can’t wait to soon welcome overnight guests and day visitors alike to experience its magic first-hand.”

Glenn Piper has big plans for Hook Island.

A concept drawing of the redeveloped Hook Island.

Lindeman Island has sat empty since Club Med was shuttered in 2012 after being devastated by Cyclone Yasi in 2011. There were a number of announced and abandoned plans for a restoration of the 136-hectare site.

One was a mega $583 million development by Chinese billionaire William Han, with construction of hundreds of villas, apartments and hotel suites, as well as restaurants, a nightclub, golf course and air strip meant to begin in 2019 and wrap in 2022.

It never happened, much to the frustration of locals and the council.

In mid-2023, Singaporean conglomerate Wall Smart Investment Holdings bought the site and announced plans for a five-star resort with 220 rooms, as well as restaurants, bars, a wedding venue and a small golf course.

Plenty of others in limbo

The fates of a host of other once-pristine hotspots are less certain.

South Molle was destroyed and has sat abandoned since. Picture: 60 Minutes

South Molle was destroyed and has sat abandoned since. Picture: 60 Minutes

South Molle Island, off the coast of the Whitsundays, was bought by Shanghai-based China Capital Investment Group in 2019 for $25 million.

The company spent $10 million upgrading its jetty, which was destroyed with much of the rest of the 28-hectare site by Cyclone Debbie in 2017.

But its plans for a five-star resort collapsed and South Molle was listed for sale in 2023. It remains on the market with a guide price of $30 million.

Brampton Island, off the coast of Mackay, shut down in 2011 shortly after it was purchased by United Petroleum Group for $5.9 million.

A refurbishment was announced, due to be complete and open to guests by the start of 2012, but works didn’t proceed.

The company instead received development approval in 2015 for an ultra-luxe, seven-star resort catering to no more than 30 guests at a time and boasting a spa, cinema, library and three-hole golf course.

A decade on, there’s been no progress, and the site remains dormant and crumbling.

Another downfallen slice of paradise is Great Keppel Island, off Yeppoon on the central Queensland coast, with a once-luxury resort closing down in 2008.

Great Keppel Island has been in limbo for years.

The government seized control of leases in 2023 after long-running negotiations with commercial operators stalled.

For a brief moment in 2022, billionaire mining magnate Gina Rinehart was vying to buy the island and spoke of plans for a high-end beach club resort. The deal fell through.

A massive clean-up was launched in January, with 60 cubic metres of rubbish, abandoned car bodies, abandoned trailers and chunks of the former resort’s infrastructure removed by barge.

The state has committed $30 million towards restoration efforts and shared infrastructure and announced a masterplan focusing on community driven development and sustainable tourism growth.

That masterplan includes efforts to attract “private or public sector funding in the future”.

Some shining examples

There are a few examples of successful redevelopments of island that fell into disrepair, like Hayman Island in the Whitsundays.

Intercontinental Hotel Hayman Island is a high-end resort.

Its former resort was left in ruins by Cyclone Debbie in 2017 and forced to close but was reborn just two years on after a $135 million project by the InterContinental Group.

There are three wings of accommodation offering 166 rooms, suites and villas with priceless views of the Coral Sea. The resort also boasts five restaurants, a spectacular pool and a spa.

The same year Hayman reopened, the $100 million development of nearby Daydream Island was also completed.

Daydream Island is also back in business.

It too had been decimated by Cyclone Debbie but after years of hard work, its 277 suites began welcoming guests again.

Natassia Wheeler, chief executive of the Queensland Tourism Industry Council, said island resorts usually require “a substantial commitment and investment”.

“Redeveloping island resorts poses a series of unique challenges, from a lack of established infrastructure and higher construction costs to the tyranny of distance and constraints on sourcing supplies and a stable workforce,” Ms Wheeler said.

But in addition to Hayman and Daydream, there are some other recent success stories, she said.

“In central Queensland, Heron, Wilson and Lady Elliot islands offer successful eco-focused models with unique Great Barrier Reef experiences,” she said.

“In the north, Orpheus Island near Townsville stands out as a high-end, sustainably run resort attracting premium travellers.”

These are examples of how both “large-scale and boutique operations can thrive” when supported by strong positioning, investment and accessibility, she said.

Orpheus Island is a high-end standout.

Those kinds of success stories are what the government now expects from leasehold owners of other abandoned resorts.

As well as talking tough, the government is investment big in stimulating activity to get islands up and running again.

Last week, it delivered an ambitious Destination 2045 strategy – a plan to double the annual economic value of tourism to $84 billion in 20 years’ time.

Part of the blueprint is a global investment campaign to sell the potential of island resorts to the private sector.

Ms Wheeler welcomed the government’s focus.

“We’re also seeing a commitment from the State Government to reduce red tape and complex approval processes, which pose delays and serious flow-on effects for developers looking to invest in island resorts.

“Based on the feedback I’m receiving from industry, the streamlining of operational and approval processes for tourism operators remains key components in the success of Queensland’s island resorts.”

Originally published as Government vows crackdown on owners of once-stunning abandoned island resorts left in ‘apocalyptic’ ruins