Qld Government files case against Fortune Island Holding Company over Double Island lease

Palm Cove businesses have welcomed the state government’s legal moves to strip the Double Island lease from property magnate Benny Wu’s business Fortunate Island Holding Company.

Hong Kong businessman Benny Wu has owned Double Island Resort, off the coast of Palm Cove in Far North Queensland, since 2012. He has allowed the facilities to fall into a state of neglect and disrepair, in breach of his lease conditions set out by the Queensland Government, which has now commenced legal action against his Fortune Island Holding Company in Queensland’s Land Court. Picture: Brendan Radke

Palm Cove businesses have welcomed the state government’s legal moves to strip the Double Island lease from property magnate Benny Wu’s business Fortunate Island Holding Company.

The Queensland Government has started the formal process for the forfeiture of the Double Island lease.

The Department of Resources began legal proceedings against Benny Wu’s Fortune Island Holding Company in the Queensland Land Court on Wednesday due to Fortune Island Holding’s alleged noncompliance, a spokesman for resources minister Scott Stewart confirmed.

The Cairns Post understands this is the first time the state government has taken this level of action against an island lease.

And it couldn’t have come soon enough for local Palm Cove business owners, though there are a variety of opinions about what should happen with the island if the state government is successful in its proceedings.

Pacific Watersports partner Andy Bamford regularly takes people over to the island to swim and snorkel, and believed the resort was irreparable.

“For someone to go in and fix it up is an impossibility,” he said.

“We don’t need a resort over there, that island needs to be somewhere people can go to have a picnic, to go for a walk, that sort of thing.

“Clean it up, build a really nice wharf and nice amenities, have it in its natural state so it’s available for everyone.”

Mr Bamford said he didn’t want to see a return to the days of the island as an exclusive resort for high-flyers.

“This is a national gem, it cannot be replaced, and is not available at all anywhere else along the coast,” he said.

“There’s special wildlife over there like a variety of nesting birds.”

“We discovered turtles nesting on the island three years ago.

“That sort of stuff needs to be protected.”

Meanwhile co-founder and office manager at Nu Nu Restaurant Amy Escott said a rejuvenation of the resort would be the best thing for Palm Cove, given its heavy reliance on tourism.

“(Double Island) is so run down,” she said.

“We did an event out there in 2005 and it was starting to look a little bit shabby then, and when we went out a few years ago, it was absolutely atrocious.

“It just looks abandoned.”

Ms Escott said she was supportive of the resort being renovated and brought up to spec “to try have another offering for tourists”.

“Any tourist attraction, or any activity that elevates the experience you can have here in Palm Cove benefits everybody here who is operating a business,” she said.

“I think the best thing to do is to have a vision that is economically viable and sustainable and, I think, also has an opportunity for everyone to enjoy it.”

The Queensland Government has taken its Double Island fight with Hong Kong property tycoon Benny Wu’s company to Queensland’s Land Court. Picture: Anna Rogers

The conditions of the Double Island lease specified that the island must be used for tourism purposes.

Cairns MP Michael Healy said the move was justified.

“I was informed yesterday that the next step to take back the lease of Double Island was done late yesterday afternoon with an application being filed in the Land Court,” Mr Healy said.

“I do welcome this step as both myself and Craig Crawford – but more importantly, the community – want to see a tenant in there who’s going to do the right thing, (who) is going to make an investment into Double Island.

“This is the first time that the State has ever done this so it’s a significant step and obviously there is a process but we’re confident that we have sufficient material to justify it.

“In the meantime, I’m hoping that we can get a good tenant in there who will do the right thing and comply with what the terms and conditions of the lease are.”

In August 2022 the state government issued Mr Wu with an ultimatum to either take action toward opening the island for tourism or, as has now transpired, face lease forfeiture action in court.

In May this year the Department notified Mr Wu of its intention to commence proceedings in the Land Court.

Minister for Resources Scott Stewart said the state’s islands were natural assets that the government wanted Queenslanders to be able to enjoy.

“As a government we are committed to the responsible development of our island resorts for the jobs and business opportunities they create in regional Queensland,” he said.

“However, lessees on government property are required to meet the conditions on their leases.

“Where lessees don’t meet their obligations, we will not hesitate to take action to protect these islands and the interests of all Queenslanders.”

Fortune Island Holding Company was contacted for comment.

Originally published as Qld Government files case against Fortune Island Holding Company over Double Island lease