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Australia's ghosted islands, resorts abandoned and under siege
A shocking tale of neglect and abandoned opportunities is unfolding in one of Australia's most cherished regions as a dozen once-thriving island resorts lie in ruins.
Critics warn the derelict properties are a blight on the pristine beauty of the Great Barrier Reef, left to decay by absentee owners who have turned their backs on resorts that were once jewels of the tourism industry.
From cyclone-ravaged Double Island, once held by billionaire Benny Wu and now under state control, to the ghostly remains of Hinchinbrook Island Resort, these islands are a haunting reminder of what could have been.
The Queensland government, under Premier David Crisafulli, is cracking down – issuing ultimatums to negligent owners to either revive their properties or face losing their leases.
The economic impact is undeniable, with a government inquiry into island resorts warning such long-abandoned sites represent a colossal missed opportunity for the economy and the tourism industry. Pressure is building with the world spotlight set to focus on the region in a little over a handful of years when the Olympics are hosted in the state.
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Queensland Tourism Industry Council CEO Natassia Wheeler expressed her dismay: 'It's disappointing to see so many of Queensland's island resorts closed. Island tourism put Queensland on the map decades ago, and whether or not visitors choose to stay on an island, these destinations remain critical to positioning Queensland as a leading holiday destination.'
She said the need for investment was dire.
'Reinvigorating island resorts will require significant investment, particularly in infrastructure including transport to ensure accessibility, along with a reduction in red tape.'
'The industry that we represent tells us that streamlining operational and approval processes is essential to the long-term success of the state's island resorts.'
But there's a glimmer of hope. New investors, like Annie Cannon-Brookes - wife of billionaire co-founder of Atlassian Mike Cannon-Brookes - who bought the beleaguered Dunk Island – are being heralded as offering a chance to breathe new life back into forgotten paradises.
Ms Wheeler said there are strong examples of success to draw from.
'Hamilton Island, InterContinental Hayman Island, and Daydream Island in the Whitsundays continue to perform well thanks to major investment, strong brand presence, and reliable access.'
'In Central Queensland, Heron, Wilson, and Lady Elliot Islands are thriving with eco-focused models that offer unique Great Barrier Reef experiences. Further north, Orpheus Island near Townsville stands out as a high-end, sustainably operated resort attracting premium travellers.'
1. Double Island (Cairns Region)
Status: Abandoned; resort in ruins.
Ownership: Previously owned by Benny Wu; now state-owned.
Current Status: Queensland government issued an ultimatum to redevelop or forfeit lease.
2. South Molle Island (Whitsundays)
Status: Resort devastated by Cyclone Debbie in 2017; remains abandoned.
Ownership: Previously purchased by a Chinese company; now under state control.
Current Status: Up for sale; expressions of interest sought for redevelopment.
3. Lindeman Island (Whitsundays)
Status: Club Med resort abandoned; uninhabited for nearly a decade.
Ownership: Recently bought after 10 years of vacancy.
Current Status: Restoration efforts began in early 2024.
4. Hook Island (Whitsundays)
Status: Abandoned after Cyclone Anthony in 2011.
Ownership: New owner plans eco-lodge development.
Current Status: Development application for $40 million eco-lodge lodged.
5. Brampton Island (Mackay Region)
Status: Resort closed; infrastructure deteriorating.
Ownership: Owned by United Petroleum since 2010.
Current Status: Resort remains abandoned; future uncertain.
6. Great Keppel Island (Yeppoon)
Status: Resort deteriorating since 2008 financial crisis.
Ownership: Ownership changes; current status unclear.
Current Status: Efforts to revive resort ongoing.
7. Laguna Quays (Near Airlie Beach)
Status: Resort closed shortly after opening due to bankruptcy.
Ownership: Ownership and future plans unclear.
Current Status: Resort remains abandoned.
8. Capricorn Resort (Yeppoon)
Status: Closed in 2016 due to neglected facilities.
Ownership: Ownership and future plans unclear.
Current Status: Resort remains abandoned.
9. Keswick Island (Mackay Region)
Status: Resort inactive; Chinese leaseholder controversies.
Ownership: Owned by Chinese company; leaseholder issues.
Current Status: Queensland government threatening to seize control.
10. Dunk Island – QLD
Status: Iconic resort wiped out by Cyclone Yasi (2011).
Current: Remains in ruins; several failed redevelopment attempts.
Ownership: Privately owned (recently sold in 2022); no confirmed rebuild.
11. Hinchinbrook Island Resort – QLD
Status: Luxury wilderness lodge closed after Cyclone Yasi.
Current: Site vandalised and collapsing.
Ownership: Privately owned; no development activity.
12. St Bees Island – QLD
Status: Not necessarily rundown as under-utilised. Resort facilities are unused, the island is leased long-term.
Current: Known for rock wallabies; tourism infrastructure inactive.
