Leases cancelled, big fines: Plan to save Qld’s rundown island resorts

Developers who let Queensland’s idyllic islands fall to rack and ruin face having their leases cancelled under a plan to fix the state’s dilapidated island resorts.

• Inside Qld’s dilapidated island resorts
• Analysis: Time to end rot

Developers who let Queensland’s idyllic islands fall to rack and ruin would have their leases cancelled under a new “use it or lose it” clause the government is being urged to pull the trigger on to fix the state’s dilapidated island resorts.

Tourism heavyweights and conservationists are calling on the Palaszczuk Government to action the key recommendation from a 12-month inquiry into the Reef’s shuttered resorts to revive the ailing international tourism market and protect the environment.

The abandoned Great Keppel, South Molle and Brampton island resorts were a large focus of the report, which was handed down on Friday just one month after QWeekend Magazine exposed the shocking conditions on numerous Great Barrier Reef islands left to rot.

The damaged and run-down Great Keppel Island resort.

The inquiry uncovered years of neglect by certain leaseholders and a failure of the Department of Resources to recall leases from tourism operators who had reneged on their responsibilities.

The government has been urged to ensure island lessees were obligated to “use it or lose it”, and recommended the government immediately cancel the leases of non-compliant island operators and clean up the mess left behind.

“It is reasonable to wish to avoid making Queenslanders bear the costs of remediation and removal of the damaged and abandoned infrastructure that is present on many of these islands,” the report found.

“But given the deficiencies of the current legislation, that might be an unfortunate reality for some of the currently existing tourism leases.”

New laws to create the ability to issue fines – proportionate to the damage – to leaseholders who do not comply with public health and safety and environmental regulations were also recommended.

Nature is starting to reclaim buildings on Brampton Island.

Submissions made to the inquiry accused the state of not recalling development leases for failing to comply with lease conditions in an effort to avoid being burdened with the liability.

Four out of five audits of GBR tourism leases during 2021/22 were found to be non-compliant – yet the Department of Resources advised the inquiry a GBR lease had never been revoked.

Former Queensland Tourism boss and Professor of Practice at the Griffith Institute for Tourism Daniel Gschwind said the government should have the right to revoke or terminate leases to protect the “very precious assets” - and in some cases, it could be a matter of urgency.

“So I think we should expect that the lease holders meet the expectations that come with that lease and the responsibilities of being the guardians of such precious assets,” he said.

“There are obviously complex legal issues at play in some cases, you know, we have to make sure it’s done legally and appropriately.

“I think in each individual case a proper process needs to be followed to give the leaseholder an opportunity to rectify any issues. However, I understand in some cases that it has been going on for years without resolution. That will require more definitive action.

“And, yes, presenting those assets in the best possible way is a matter of urgency, especially as we are trying to revive our international tourism markets.”

Piles of debris at Great Keppel Island resort.

Capricorn Great Keppel Island Alliance’s Michael Powell said the report had made it clear it was time for the government to take a number of leases back.

“Unfortunately there is no guarantee that any of these recommendations will be enforced,” he said.

“But they have blindsided us – we expected this to be a destructive document, but at face value the recommendations would have a positive impact.”

A large number of submitters also accused leaseholders of “land-banking”, with the Mackay Regional Council stating “the current rental charges that apply to the leases are not of a high enough value to land-banking”.

Overall the report made 18 recommendations to the state government, noting the impact damaged infrastructure was having on the region.

It also recommended future tourism lease head lessees should be required to pay bonds, and create new laws to future-proof the state government from being liable for costs to repair or clean-up abandoned resorts.

“Many of the owners of these resorts have made a commercial decision to sell, leaving outdated and dilapidated infrastructure to degrade in the tropical Queensland climate, risking damage to land and marine environments,” the report found.

“While many of these resorts are present-day iconic success stories, such as Hamilton Island, Hayman Island, Lady Elliot and Lizard Islands, other resorts that have previously enjoyed instant international recognition, such as (part of) Great Keppel, South Molle and Brampton Islands, remain shuttered and abandoned.”

An empty pool on South Molle Island in the Whitsundays.

Resources Minister Scott Stewart said the government would carefully consider all the recommendations.

“The Queensland Government is committed to the responsible development of our island resorts for the jobs and business opportunities they create in regional Queensland,” he said.

“The Department of Resources continues to work with lessees and key stakeholders to facilitate redevelopment and rejuvenate our island resorts.”

The committee found a series of extreme weather events had caused significant damage over a number of years and while some had reopened, many remained closed and in significant states of disrepair.

But it also found evidence that the legislative capacity of the Department of Resources to regulate the compliance of island resorts with their lease conditions “does not appear to be up to the challenge”.

Inside a trashed villa at Great Keppel Island resort.

It found under the current Land Act, leases had little incentive to repair or remove damaged and dilapidated infrastructure.

“Lessees are not required to pay a bond to meet the cost of any damage they might do to a location, in the same way that typical renters are required to,” the report found.

“All of this points to a legislative framework that is not working to support the economic, social and cultural benefits that come from sensible, sustainable development of the fantastic natural asset which is at Queensland’s doorstep.”

LNP Resources spokesman called on the Minister to commit to “implementing all of these recommendations as soon as possible”.

“For eight years the Palaszczuk Labor Government allowed these islands to be run into the ground,” he said.

“Concerningly, conditions of state government leases have not been adhered to.

“The Government failed to take appropriate action following lease breaches and failed to alleviate the concerns of residents living on these islands.

“Queensland should be promoting its world class offering to the world, maximising the benefits of tourism and economic development.”

Originally published as Leases cancelled, big fines: Plan to save Qld’s rundown island resorts