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North Qld tourism developments still in tatters after GFC and Cyclone Yasi

The shattered remnants of the pool area at Hinchinbrook Island Wilderness Lodge. - ABC

Years after the combined impacts of man-made and natural disasters, the once-famed Hinchinbrook Island Wilderness Lodge in north Queensland is a shell of its former self.

It was a resort in the middle of paradise, established on a rare lease in the midst of a national park.

But in 2010, in the wake of the global financial crisis (GFC), the lodge closed down.

Several months later it was smashed by the category five force of Cyclone Yasi.

The abandoned eco-resort has since become a scar on the otherwise pristine island environment.

The developer Williams Corporation has gone broke, and both Cassowary Coast Regional Council and the State Government say the mess is not theirs to fix.

Administrators are dealing with both the resort and the region's other failed tourism project, Port Hinchinbrook marina in Cardwell.



The wilderness lodge was built by tourism entrepreneur Keith Williams in 1978, after he struck a deal with the Bjelke-Petersen government.

Administrators are making moves to place the lodge on the market within weeks but say there is no money left for repairs.

The developer's son Ben Williams was in charge of the resort when it closed, and was unable to sell the property.

He has told 7.30 Queensland that without air access the island lodge is not a viable proposition.

Resort ransacked by looters and vandals

Its crafted timber cabins now lie in ruins.

Hundreds of cane toads have inhabited the swimming pool.



Local resident Kenny Parker says the site is a mess.

"This is a shame, it's a crying shame," he said.

"It was a magnificent resort. It was a beautiful place for people to come."

Mr Parker says the lodge has also been ransacked by looters and vandals.

"Everywhere you look, broken windows, broken glass, pieces of furniture removed down to the beach and you can see it is obvious what people were trying to do - they were trying to remove stuff," he said.

"I couldn't believe that you could leave anything inside a national park in such an abhorrent state with toads filling it.



"There are dead animals in it. It's absolutely disgusting."

Nearby beaches, once a backdrop for the Hollywood film Nim's Island, are strewn with computer parts and furniture.

Charter boat operator John Schmidt says local business owners have suffered since the demise of the wilderness lodge.

"At the end of the day, it should be cleaned up by the people that made it a mess," he said.

The 75-year lease for the island site includes 19 strict conditions.



Three months ago, locals took their concerns about the resort to the State Government.

Hinchinbrook MP and Natural Resources and Mines Minister Andrew Cripps has told 7.30 Queensland he has determined that there has been no substantial breach of the lease.

"The department will work with the administrators to address any duty of care issues," he said.

"Revoking the lease would not be helpful in the transfer of assets to a new owner and could lead to worse outcomes for this tourism facility."

'Resort should be removed'

Cardwell resident Margaret Thorsborne has spent decades fighting development in the region.

She believes the resort should be removed from the island.

"It should be run as a national park so that people can visit as they do on the rest of Hinchinbrook Island," she said.

More than 20 years ago, Mrs Thorsborne tried to stop Keith Williams' Port Hinchinbrook marina development in Cardwell, which is now also in liquidation.

It contains about 400 residential blocks, dozens of luxury homes and a public marina.

Previously protected mangroves were cleared for the site in the 1990s and it was built to be the only safe harbour between Townsville and Cairns.

Mrs Thorsborne says its construction was very controversial.

"A lot of people felt that development was going to be the most wonderful thing for Cardwell - well it never has been," she said.



Administrator FTI Consulting is also preparing Port Hinchinbrook for sale and is seeking an agent.

The tidal surge and strong winds from Cyclone Yasi filled the port with hundreds of tonnes of mud and it remains impassable at low tide.

The cyclone damage has resulted in sewage seeping into the ocean on several occasions, although administrators say that problem has since been fixed.

The property's former owner Ben Williams says maintaining the development in the past three years has been close to impossible because at least half of the property holders have not been paying their service fees.

He says Mr Cripps advised Cassowary Coast council that Port Hinchinbrook qualified for natural disaster relief funding, but that was never delivered.

Mr Williams says he has lost $100 million dollars on the failed project.

Real estate agent Lindsay Hallam says governments need to step in to help rebuild the infrastructure damaged by Yasi.

"You've got the global financial crisis that's impacted on everyone; you've got the developer of Port Hinchinbrook [who] are in serious financial problems and are obviously in liquidation and then you throw in Cyclone Yasi," he said.

"The [State] Government never paid for the infrastructure but they recognised how much it was needed.

"That's why they approved it. They sure as hell didn't approve it to put dollars in the coffers of the developer."

Katter: Qld Government should buy Port Hinchinbrook

Federal MP Bob Katter says the State Government should buy the port instead of waiting for a buyer.

"It's about time that someone took responsibility for what's taken place here," he said.

"These people are lovely people, they came here for retirement, a nice wonderful place to retire to.

"Santa Claus will come down, there's going to be [a] corporation come in and buy this out.

"Well we can sit around and wait until Doomsday for that to happen.

"Already, I would say, a tenth of businesses in this town have gone."

Cassowary Coast Mayor Bill Shannon says it is not fair for ratepayers to foot the repair bill.

"That is a private development - all the land, including the roads is owned by the developer," he said.

"They have to sort their own affairs out and I'm sure they will.

"It's just a matter of getting all the right systems in place to enable that to occur.

"It's around the structure of the company, the structure of the body-corporate, the payment of levies."

Hinchinbrook Island Wilderness Lodge and Port Hinchinbrook are not the only Queensland tropical developments to hit hard times.

Further south in 2008, Great Keppel Island's main resort closed down and is still awaiting redevelopment.

In 2011, administrators took control of Meridien Marina's $200 million Port of Airlie.

The much-anticipated Ella Bay Integrated Resort has state and federal approval but still lacks sufficient financial backing.

Dunk Island Resort, also wiped out in Cyclone Yasi, has been resold but not restored.

But the State Government says it has faith in the tourism industry, pointing to a recent $10 million redevelopment of Hayman Island and recent foreign investment into Lindeman and Double Island resorts.

It is also looking to approve up to three new world-class resorts, using casino licences as a sweetener.

The State Government is intending two of those projects to be developed in regional Queensland.


- ABC

© ABC 2014

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North Qld tourism developments still in tatters after GFC and Cyclone Yasi

20:51 EST Years after the combined impacts of man-made and natural disasters, the once-famed Hinchinbrook Island Wilderness Lodge in north Queensland is a shell of its former self.