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Land Court rule on stripping Wu of Double Island lease

No trespassing signs warning visitors to keep out are one step closer to coming down after the advancement of eviction action against Benny Wu and intervention by the Land Court.

Double Island Resort

No trespassing signs warning Double Island visitors to keep out are one step closer to coming down following the advancement of eviction proceedings against Benny Wu and intervention by the Land Court.

Ramshackle and virtually abandoned the resort at Double Island off the coast of Palm Cove was acquired by Mr Wu’s firm Fortune Island Holdings in 2012.

But since then the island has been closed to visitors meaning the Hong Kong-based company is in breach of a state government lease conditions that state the island must be used for tourism purposes.

Double Island lessee Benny Wu has failed to meet a March 31 deadline to have day use facilities for the public open and for the resort to be operational. Picture: Supplied
Double Island lessee Benny Wu has failed to meet a March 31 deadline to have day use facilities for the public open and for the resort to be operational. Picture: Supplied

On Monday the Department of Resources notified Fortune Island Holdings by mail that it will ask the Land Court to determine whether its lease over the island should be forfeited.

In August last year the Department of Resources presented Mr Wu with an ultimatum to be open for tourism or be kicked out in a crackdown on terms of the lease, that states the resort and day use facilities must be operational.

That deadline for compliance passed on March 31.

The Department of Resources claims Fortune Island Holdings has not undertaken adequate work to return the island to tourism and the Land Court will now determine if the lease should be forfeited.

Millionaire 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. Picture: Brendan Radke
Millionaire 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. Picture: Brendan Radke

It’s understood the department has not received confirmation from Mr Wu that he was in receipt of the letter sent earlier this week.

Barron River MP Craig Crawford welcomed the advancement towards stripping Mr Wu of the lease.

“Double Island was a jewel in Far North Queensland’s tourism crown but has been left for too long so this news will be appreciated by the community,” he said.

A 12-month inquiry into the Reef’s shuttered resorts made recommendations urging a “use it or lose it” approach to languishing tourist destinations and last month Great Keppel Island resort owners Tower Holdings had their lease cancelled after racking up an overdue rental bill of $878,000.

Deputy Mayor Terry James, Chinese property tycoon Dr Benny Wu and Mayor Bob Manning in 2015. PICTURE: ANNA ROGERS
Deputy Mayor Terry James, Chinese property tycoon Dr Benny Wu and Mayor Bob Manning in 2015. PICTURE: ANNA ROGERS

However, Opposition Natural Resources spokeswoman Pat Weir claimed on Friday the Palaszczuk Government had failed for “many years” to enforce lease conditions.

“There is no greater example of this government’s island management failures than the abandoned Double Island,” she said.

Resources Minister Scott Stewart said the government was committed to the responsible development of island resorts, together with jobs and business opportunities they create.

Dilapidated shelters on the beach at Double Island. Picture: Supplied
Dilapidated shelters on the beach at Double Island. Picture: Supplied

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

The lavish resort at Double Island once hosted celebrities such as Madonna, Guy Ritchie and Keanu Reeves but being exposed to tropical elements for 10 years has left the resort dilapidated and in decay.

Mr Wu has been contacted for comment through Fortune Island Holdings.

peter.carruthers@news.com.au

Originally published as Land Court rule on stripping Wu of Double Island lease

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Original URL: https://www.goldcoastbulletin.com.au/news/cairns/land-court-rule-on-stripping-wu-of-double-island-lease/news-story/b11ccc7138dd97a0df2bd78b9a1b7b1e