Cyclone Debbie: tourism sector may take years to recover

Queensland’s tourism industry could take years to recover from Cyclone Debbie, which battered three of island resorts.

Cannonvale near Airlie Beach, in the aftermath of Cyclone Debbie. Picture: Jono Searle.

Queensland’s tourism industry could take years to recover from Cyclone Debbie, which battered three of its key island resorts, ­including the billionaire Oatley family’s Hamilton Island.

“Of course, in the short-term there will be a significant effect on domestic and international tourist arrivals because of the cosmetic damage caused by the cyclone,” said the father of Queensland’s tourism industry, Don Morris.

Hamilton Island was closed after the storm wreaked its havoc and is preparing for a five-month stretch of repairs, although some areas will reopen next weekend.

Hamilton Island chief executive Glenn Bourke has laid out plans to recreate the parts of the resort island that were destroyed, while the ultra-luxury Qualia ­resort will shut for two months for repairs, with the owners of the ­island hoping to have all hotels fixed by mid-August.

Malaysian group Mulpha International said Hayman Island would be closed after it had ­“incurred significant damage” as a result of Cyclone Debbie.

Guests had to be evacuated by private charter as the storm hit and Mulpha said a project team it was sending in would assess the “full extent of the damage” in coming weeks.

This will help determine the timing of the resort’s reopening and Mulpha noted the property was insured for damage and up to two years of interrupted trading.

Warren Ebert, managing director of the Sentinel Property Group, owner of the Port of Airlie Cruise and Ferry Terminal, said many Airlie Beach properties had been badly hit.

“The whole place is wrecked and the worst is the islands,” Mr Ebert told The Australian, adding that his infrastructure had escaped the cyclone’s fury.

He predicted the backpacker hostels around Airlie Beach would bounce back as their guests only wanted basic accommodation but the full impact might fall on the luxury resorts. “For Hayman and Hamilton islands I don’t know how long they will be (closed),” he said.

The port of Shute Harbour was devastated by Cyclone Debbie and Mr Ebert reflected: “I just don’t know if they’ll rebuild it.”

Colliers International head of hotels Gus Moors foreshadowed shut downs of some hotels.

“If the damage is to the extent that it requires them to shut down it will take a while for that precinct to bounce back again.”

Mr Moors said hotels in other areas of Queensland, such as the Gold Coast, may benefit if there were closures in the once popular Airlie Beach area.

Tropical Cyclone Debbie may have attracted international media coverage but most tourism industry executives said the extent of the damage was unknown.

“It’s hard to ascertain things in Airlie Beach because we don’t have power and water,” said ­Mantra chief executive Bob East, who controls three hotels in the area. “Hamilton and Hayman ­islands have a fair bit of damage to assess,” he added.

Mr East said there was no denying that in pockets of Queensland it was hard to determine how long it would take to recover.

Mr East said one Mantra Hotel in Airlie Beach was evacuated while two traded the whole way through the cyclone but without power.

CBRE agent Wayne Bunz said he did not think Hamilton, Hayman and Daydream islands had ever incurred such substantial damage.

“It’s hard to understand the cost and level of the devastation. “(But) as unfortunate as the events are they are great for the local economy and will generate ­substantial employment in the construction industry and accommodation sector.

“A number of the properties at Airlie Beach were old and dated and the insurance claims will allow the offerings to be greatly improved.”

Mr Bunz was about to launch the marketing campaign for the Airlie Beach Hotel hoping for $25 million but said the property ­needed significant repairs before it could be re-marketed.

But not all of Queensland’s ­island resorts sustained damage.

Dunk Island owner Peter Bond, founder of Linc Energy, said there had been blue skies at his ­resort off Mission Beach for the whole week.

“We didn’t get any drops of rain,” Mr Bond said.

“We will have 52 suites ready fairly shortly. I would like to think they are opening in the next 12 weeks, given construction has started.”

Mission Beach agent Steve Wiltshire said there had been nothing more than a gentle breeze in the township south of Cairns with offshore islands such as ­Bedarra and Dunk unaffected.