Cairns coronavirus: Aquarium faces closure without rescue package

The Cairns Aquarium is at breaking point with the coronavirus shutdown set to drive the business to collapse unless urgent assistance is found.

THE Cairns Aquarium is at breaking point, with the coronavirus shutdown set to drive the business to collapse unless urgent assistance is found.

The $50 million enterprise had found its footing since its 2017 opening and developed into an iconic tourism offering.

But with heavy overheads and only two and a half years of operation, the business has not built up the reserves necessary to weather the total revenue collapse caused by the COVID-19 crisis.

Cairns Aquarium is at real risk of going under without financial support. PICTURE: BRENDAN RADKE

READ MORE

New test uncovers Cairns virus cluster

Virgin ‘not the answer’ to tourism woes: Cairns mayor

Rooftop bar plan as new Cairns hotel takes shape

Owner Daniel Leipnik said the risk of failure was very real.

“There are considerable running costs – it works out to roughly half a million dollars a month,” he said.

“There’s finance fees, cost of food and medicine, significant energy costs, staffing costs.

“Those are the big-ticket items, but there’s also repairs, maintenance and parts for all plant and equipment on site.

“It is a very expensive facility to maintain when there’s zero income – and the supply chain we support is huge.”

Dundee's General Manager Tina Wort and Cairns Aquarium CEO Daniel Leipnik. PICTURE: BRENDAN RADKE

The aquarium has shed staff numbers but still requires a workforce to ensure the health of its 16,000 living specimens.

Mr Leipnik said the Federal Government’s JobKeeper program was a godsend for staff costs but more was needed.

“We’re very much out of time,” he said.

Wildlife businesses across Cairns, the Far North and Australia are struggling to stay afloat with owners facing the devastating possibility of having to destroy their animals.

Leichhardt MP Warren Entsch said the Federal Government was “very close” to signing off on a zoo rescue package as part of a $1 billion COVID-19 response fund dedicated to tourism. He also called for support from government credit agency Export Finance Australia.

“We’re looking at more than one lever to pull on this one – this is something we can’t afford to lose,” he said.

Member for Leichhardt Warren Entsch and Cairns Aquarium CEO Daniel Leipnik. PICTURE: BRENDAN RADKE

“They can’t turn off the lights, lock the doors and come back six months later.”

Cairns MP Michael Healy said the State Government was aware of the struggles but a lot of businesses were in similarly dire straits.

“I’ve put it to the ministers and I am enormously sympathetic,” he said.

Tourism Tropical North Queensland CEO Mark Olsen said the State Government’s door was by no means shut and federal support was an option.

“It would be a real blow to the confidence of the tourism industry looking at recovery from the devastating effects of COVID-19,” he said.

“It would be a great loss to see a wildlife attraction and an innovative new experience leave our tourism industry.”

Originally published as Cairns coronavirus: Aquarium faces closure without rescue package