University of Tasmania pulls out of commitment for tourism and hospitality school at Kangaroo Bay

A key part of an $80 million project on Hobart’s Eastern Shore has been thrown into doubt, with an education provider pulling out of the deal. DETAILS >>

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THE University of Tasmania has pulled out of a commitment to deliver a tourism and hospitality school as part of an $80 million development on Hobart’s Eastern Shore.

UTAS said the effects of Covid-19 were behind the decision to withdraw from the project, with closed borders, restricted travel and global tourism constrained.

“We have decided it is not responsible for us to commit to the establishment of an internationally focused tourism and hospitality school as part of the Kangaroo Bay project,” a UTAS spokesman said.

“The University of Tasmania continues to be committed to the tourism sector and tourism education in Tasmania for Tasmanians.”

The development of the five-star hotel and hospitality college project at Kangaroo Bay is backed by developers Chambroad Australia.

Clarence Mayor Doug Chipman said the council was formally advised by UTAS of its decision on Friday.

An artist’s impression of the proposed tourism and hospitality development at Kangaroo Bay. Image: Robert Moris-Nunn / Chambroad Australia

Earlier this year, Clarence City Council granted Chambroad an unconditional 20-month extension for substantial commencement of the project to begin by October 2022.

A buy-back clause exists on the council-owned land.

“Under the current sale and development agreement, Chambroad have until 13 October 2022 to commence substantial works on the site. If substantial works are not commenced at that time the buy-back clause will come into effect,” Ald Chipman said.

“The (agreement) did not specifically mention UTAS, simply referencing an education provider, and therefore council’s understanding is that Chambroad can seek another education partner and stay within the current (agreement).

“Council will be meeting with Chambroad in the coming weeks to understand how they are progressing in finding another education partner and other options they are considering for the project.”

Chambroad Australia director and general manager Finely Zhang. Picture: RICHARD JUPE

Chambroad Australia said it remained committed to the project despite the news.

“Obviously, Chambroad is disappointed with the decision by the University of Tasmania to withdraw from the project,” the company’s director and general manager Finely Zhang said.

“Chambroad Australia has until October 2022 to commence substantial works on the Kangaroo Bay site.

“We will now sit down with the Clarence City Council in coming weeks to discuss options, including a new education provider and a community-friendly project on the site.”

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