State government cancels lease on abandoned island resort

Great Keppel Island’s abandoned resort will return to the state after more than a decade of failed promises and an overdue rental bill of $878,000.

• Revealed: Qld’s forgotten tropical islands
• Watch: Left to rot for 15 years

An abandoned resort on one of Queensland’s most idyllic islands will be returned to the state after more than a decade of failed promises.

Great Keppel Island resort owner Tower Holdings has had their lease cancelled by the state government after racking up an overdue rental bill of $878,000, with the now vandalised and shuttered resort closed since 2008.

The forfeiture was finalised on Friday, with the area under the lease now unallocated state land.

Deputy Premier Steven Miles said master planning for the island would continue, with public consultation on a draft set to occur in the coming months.

“The community has a strong vision for Great Keppel Island,” he said.

“To enable tourism through resolving the longstanding challenges with attracting investment on the island, to clean up the footprint of the deserted old resort, and to reinvigorate tourist activities that are environmentally friendly and respectful of the cultural heritage of the island.

“Revoking the lease is the next step in the process.”

Damaged and run-down Great Keppel Island resort.

It was understood Tower Holdings can appeal the decision.

The government’s move comes a month after the release of a damning report following a 12-month inquiry into a number of dilapidated Great Barrier Reef island resorts.

As well Great Keppel Island, resorts on Brampton Island, South Molle, Hook Island and Lindeman Island have been left to fall into rack and ruin – some for more than 10 years – due to cyclones, financial collapse or lack of investment from foreign owners.

The report urged the government obligate island resort lessees to “use it or lose it”, and recommended non-compliant operators have their leases cancelled.

The former pool at Great Keppel Island resort.

Resources Minister Scott Stewart said it was “disappointing” Tower Holdings had not met its financial obligations, which was why the action had been taken.

“Our islands are natural assets that we want Queenslanders to be able to enjoy as part of our great lifestyle,” Mr Stewart said.

“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.”

The community had been fighting to have action on the resort for several years.

Local MP Brittany Lauga said returning the island to its former glory had been a top priority, and it was time the company was held to account.

Backpackers Maria Steri, 25, and Alice Robinson Lake, 23, at the damaged and run-down Great Keppel Island resort.

She said multiple project ideas had been explored over the past decade to rebuild the resort, including Gina Rinehart considering buying the lease last year.

“Ultimately, when Hancock Prospecting decided to not acquire the lease in 2022 it was obvious that something had to change,” she said.

“Which is why I’ve worked so hard to ensure that the lease holder has been held to account.”