Tropical fever: Island sales lift hopes for Queensland resort rebound

Once jewels in the crown of tropical Queensland’s tourism industry, a swathe of tropical islands have sat dilapidated and dormant for up to a decade after Cyclone Yasi tore through the region in 2012, followed by Cyclone Debbie in 2017.

The latest deal, in which Annie Cannon-Brookes splurged $24 million on the beleaguered Dunk Island, followed years of stalled and unsuccessful sales, prompting the local community to try to rebuild their reputation without the famous island.

“Before Cyclone Yasi came through the region 10 years ago, Dunk Island and the resort was the flagship for the whole Cassowary Coast region,” says Patrick Bluett, the chief executive of Cassowary Coast Tourism.

Occupancy rates were high as flights and cruise ships delivered tourists daily. It was a major driver of the mainland economy and supported jobs throughout the entire region. But since 2012, the resort has been dormant, with only a slice of the island open to visitors for camping and bushwalking.

“It’s had a huge effect on tourism within the region and just the general economy,” Bluett says. “Dunk Island is an iconic brand – take that away and it’s significant. We’ve been living in the shadows of Cyclone Yasi since.”

So it was big news when the wife of tech billionaire Mike Cannon-Brookes was revealed as the new buyer of Dunk Island last month.

“Initially everyone was very excited that it was a private investor, self-funded, an Australian investor,” Bluett says.

In the weeks since, however, that feeling has turned to scepticism and trepidation. “There’s no obligation to return it to a commercial entity. Will they use it for private use? Will they land-bank?”

There has been no word from Cannon-Brookes on her plans, other than a spokesperson saying she had “the intent to preserve its natural beauty for years to come”.

Overall, Bluett is confident that the Dunk Island sale will be positive for the region, which has enjoyed a strong rebound in tourism over the past 18 months. “Positivity breeds confidence and confidence breeds investment,” he says.

“My personal opinion is, I don’t think we’ll see a traditional 3.5-star resort built geared toward families. If there is a development, I think it will be an eco-style sustainable development, which would suit the region perfectly.”

Even at a 100-room capacity, those guests would require food and beverage providers, catering and transfers to and from the island. “It will add another layer to the whole economy,” Bluett says.

In nearby South Mission Beach, the Elandra resort, also closed since Cyclone Yasi, has been snapped up by a local business entity with plans to rejuvenate. Meanwhile, JLL is handling the sales campaign for the beachfront Castaways Resort & Spa, with a DA in place to expand operations.

Local agents are already spruiking the Dunk Island sale. Ray White Mission Beach director Dick Williams says a viable and vibrant Dunk Island is “expected to put Mission Beach well and truly on the map again” and will be “irresistible to investors”.

Williams hopes the prospect of a Dunk Island resort will lure buyers to a tranche of vacant commercial and residential lots he recently listed for sale in Mission Beach, alongside Tropical Property director Susie England. 

“While the island doesn’t necessarily impact the charm or demand for property in Mission Beach it does stimulate commercial investment,” England says.