Paradise lost: Why luxury Queensland resorts lie abandoned

Hundreds of hectares of land were set aside to build luxury, money-making resorts. Now the abandoned sites are reminders of one state’s big problem.

It’s been sitting dormant for 15 years, but now a slice of paradise on the Capricorn Coast is on the market, ready to be snapped up. But whoever buys this pocket of Queensland’s coastline will need big ambitions.

The 3.37 hectares that make up Lot 5 Haven Road, Tanby Point in Yeppoon has a bit of a reputation. Since 2001, plans for a wellness resort have been in the works. But a series of problems have left nothing more than a few Balinese-style huts on hectares of bush and weeds.

Despite the problems of the past, the land has a lot going for it. According to the listing with real estate agent Savills, approval has already been granted for construction up to 2028, with the possibility to build up to “201 residential dwellings, plus commercial” buildings on the land.

With phrases like “booming tourism locale”, “hot eco-tourism area described as the new Byron Bay” included in the real estate listing, and a location just 30 minutes from Rockhampton Airport, there appears to be plenty of potential for the block.

So why hasn’t anything been built on it before now?

Lot 5 Haven Road, Tanby Point boasts ocean views and could become the new ‘Byron Bay’. Picture: Savills Real Estate

From Pearl Resort to ghost town

According to Cordell by Core Logic, plans for a Pearl Wellness Resort have been in the works for the Tanby Point block since June 2001.

The first project had an estimated value of $800,000 where a number of “2x2 person villas” with thatched roofs and decking were scheduled to be built. Amenities also included a swimming pool, car park and paving.

However those plans fell through shortly after and it appears it wasn’t until six years later that the vision to turn the land into a million-dollar resort came back to life.

Site plan for The Pearl Resort. Picture: Channine Design

In 2011, Pearl Wellness Resort and Spa was approved for development. It was to feature 201 units with a combined total of 333 bedrooms.

Proposed facilities included a 50-seat upper class restaurant, conference room, lounge bar, indoor sports area and health spa retreat.

Developers Moondaze Pty Ltd purchased the block for $5.96 million and had only recently had a “provisional” liquor licence issued to serve alcohol.

However construction never commenced.

Director of Moondaze Harry Nicol told The Courier-Mail that an accumulation of unfortunate events including the global financial crisis, economic downturn, other resort closures and Covid-19 all played their parts in preventing the development.

Pearl Wellness Resort and Spa was expected to look like this, before plans came to a halt. Picture: Supplied

And Pearl Wellness Resort isn’t unique.

There are a host of other potential resorts in the area around the southern Great Barrier Reef that have been beset by problems. They sit in tourism hotspots, but remain abandoned by developers.

Great Keppel Island Resort

It was only last month that the Australian mining magnate Gina Rinehart pulled out of purchasing a resort on the once-famous Woppa-Great Keppel Island, putting its future in limbo.

It’s unclear why Australia’s richest person withdrew from the rumoured $50 million project, but some aren’t surprised with the abandoned resort sitting in a cyclone hotspot.

But despite development approvals to build a 250-room hotel, 300 luxury apartments, 285 villas and 9000sq m of retail shops, the land remains deserted.

Great Keppel Island Resort was supposed to bring new life to the island, until Gina Rinehart pulled out of her plans. Picture: Supplied

Zilzie Resort

The Great Barrier Reef International Resort in Zilzie, south of Yeppoon, was another multimillion-dollar project that had great potential, but it also nosedived.

With an anticipated value of $150 million, it was supposed to boast conference facilities, hillside condominiums, a water sports centre, two golf courses and residential lots.

But after its completion in May 2006, the resort closed eight years later, despite being refurbished in 2013.

There were high hopes for Zilzie Bay Resort, as it boasted one of the largest synthetic golf courses in the world. Picture: News Regional Media

Rydges Capricorn Resort

Once a luxury resort, Rydges Capricorn in Yeppoon permanently closed in 2016 without warning.

Having opened in the late 1980s, visitors attended the top tourist destination in droves while Japanese businessmen were jetted into the resort by private plane.

But as the resort started to show its age, visitor numbers plummeted with owner Iwasaki Sangyo Co deciding to shut up shop.

Unlike the other resorts mentioned, it’s anticipated Rydges Capricorn Resort may eventually reopen with the developer revealing a $600 million redevelopment plan in November last year.

Rydges Capricorn International Resort at Yeppoon, Queensland boasted Hawaii vibes, until it was closed suddenly in 2016. Picture: Supplied

What is Queensland doing wrong?

The rising cost of living, Covid-19, inability to keep up with refurbishment costs and repairs as well as weather events, are all factors challenging Queensland’s resort scheme.

But there’s hope that with tourism bouncing back after a two-year hiatus, business will once again boom and demand for new resorts will surge.

In the meantime, Queensland Premier Annastacia Palaszczuk is inviting tourists to come and enjoy what the state currently has on offer.

“Queensland is the tourism capital of Australia, confirmed by a Tourism Research Australia report out today,” Ms Palaszczuk tweeted last month.

“My favourite tourism spots in Queensland (are) the Barrier Reef, the Outback and Straddie

What are yours?”