From celebrity hideaway to feral goat problems: What's next for these derelict island resorts?

Australia Broadcast Center

06-06-2025

Derelict Queensland island resorts that were once playgrounds for the rich and famous are facing a state government takeover, amid frustrations they have been used for land banking.
Premier David Crisafulli has issued his strongest warning yet to the owners of the crumbling island getaways — some of which have been left to rot, overrun by weeds and feral goats — saying it was now the time to "use it or lose it".
The Queensland government's bid to reclaim what were once the crown jewels of the state's tourism industry is part of a plan to revitalise the sector and double spending on tourism to $84 billion annually by 2045.
Mr Crisafulli has accused some operators of "land banking" — holding onto prime sites without investing in them, while waiting for land values to rise — and said the Department of Natural Resources had begun issuing notices to those not doing the right thing.
"These are assets that belong to the people of Queensland. I'm just not comfortable that in many cases, international corporations come in, buy the rights, sit on it, and just see an appreciation in its value," Mr Crisafulli said this week.
The government can cancel or reclaim leases if operators fail to meet their obligations.
At the top of the government hit list is Double Island off Cairns, once a celebrity hideaway for the likes of actors Jennifer Aniston and Brad Pitt. It has now become an uninhabitable mess.
Last year, the then-Labor state government took the unprecedented step of launching court action to strip a Hong Kong-based developer of the lease, following years of decay and public access disputes.
The current government is now preparing to sell the 19-hectare island, but it will not simply go to the highest bidder — the state wants a buyer with the financial and managerial muscle to return it to its former glory.
Across the Great Barrier Reef, once popular tourism destinations are now scarred by dilapidated infrastructure and environmental degradation.
A 2024 parliamentary inquiry found high operational costs, cyclone damage, and a lack of lease compliance enforcement had left several island resorts in disrepair — including those on Great Keppel (Woppa), Hook, South Molle, and Lindeman islands.
Brampton Island, near Mackay, was sold to United Petroleum in 2010 for $5.9 million. Today, its oceanfront pool lies unused, filled with sand.
The 1980s party paradise, Great Keppel (Woppa) Island, off the central Queensland coast, is currently battling a feral goat problem.
Keswick Island, just off Mackay, has faced stalled development and restricted public access for years.
The island's lease has been held by Chinese-owned Oasis Forest Ltd since 2019.
Resident Adrian Hayne said unreliable access had made life difficult.
Mr Hayne said a failed 1990s plan for the island promised a marina, resort and housing.
"We've had four separate takeovers of the island and all have been failures."
Mr Hayne said he supported stronger government oversight of island leases.
"Selling the islands is one thing, but making sure things get done is a whole other ball game."
Island broker Hayley Manville has sold half a dozen tropical islands, including Long Island, Palm Bay, Lindeman and Daydream.
Now she has begun marketing Double Island on behalf of the Queensland government and said interest was at an all-time high.
"You get a mix [of potential buyers] — billionaires, high-net-worth individuals, offshore investors from Singapore and Dubai, even not-for-profits looking to turn an island into a wellness retreat or rehab centre," Ms Manville said.
"Islands tend to draw in dreamers. We get a lot of inquiries, but a lot of people mix up ambition and ability.
She said Australian buyers had become more active since the COVID-19 pandemic.
"Australian investors have realised there's a real shortage of luxury resorts — and those are the ones that tend to thrive on these islands."
Australian businessman Christopher Morris has recently spent tens of millions of dollars reviving run-down resorts in north Queensland and said island tourism was anything but simple.
"It probably costs double to run a resort on an island compared to the mainland. You've got no utilities. Power, water, waste — everything — has to be generated or brought in," he said.
Mr Morris bought Pelorus Island near Townsville just over a decade ago and said he had spent upwards of $25 million on refurbishments, including a solar installation and backup generators.
Guests now pay $18,500 a night for the entire island.
He then bought nearby Orpheus Island in 2017. A night there starts at $2,000.
Mr Morris said it had taken years to see a return.
"You're probably looking at three years before you make any money. It's about building the brand, getting overseas visitors, and working with travel agents," he said.
Mr Morris said he linked his properties with private boats, helicopters and other tourism experiences.
The billionaire said he had his eye on Double Island and had submitted an expression of interest for the site.
He said the state government could do more to support credible island resort operators and pointed to insurance costs and red tape, such as complex approval processes and infrastructure challenges.
As the billionaires circle, Keswick Island resident Adrian Hayne said he would like to see the islands remain open for everyone to enjoy.