Asbestos Crisis Shuts Two Bunbury Hostels, Dozens Left Stranded
Asbestos Closes Bunbury Hostels, Dozens Stranded

Asbestos Contamination Forces Closure of Two Bunbury Hostels

Dozens of travellers have been left stranded without accommodation after two popular hostels in Bunbury were abruptly closed due to urgent asbestos contamination, posing a severe health risk to residents and visitors. The closures, which occurred following inspections on 20 January 2026, have disrupted the plans of many backpackers and workers in the South West region, where short-term housing options are already limited.

Inspections Reveal Critical Health Hazards

The City of Bunbury identified asbestos at the Dolphin Retreat and its sister venue, the Wander Inn, located approximately 170 kilometres south of Perth. After alerting the owners and receiving no evidence that the asbestos risks and other compliance issues had been resolved, the council took decisive action to shut down the premises. A spokesperson for the City of Bunbury stated, "In the weeks that followed, the City received no evidence that the asbestos risks and other compliance issues had been addressed. This left the City with no option but to serve formal closure notices."

The spokesperson emphasized that the safety of residents is paramount, noting, "The identified asbestos contamination means the premises cannot be safely occupied while remediation works are undertaken. The safety of residents must come first." As a result, residents were forced to vacate the hostels immediately, scrambling to find alternative lodging in an already tight housing market.

Health Experts Warn of Lifelong Risks

Melita Markey, CEO of the Asbestos Diseases Society of Australia, highlighted the grave dangers associated with asbestos exposure. "You can’t take back an exposure. Once you have it, it’s with you for life," Markey told 7NEWS. "That’s why it’s so important to be careful and prevent exposure." She praised the council's proactive measures, stating, "To oppress relief so strongly and to look at prosecuting is actually a very proactive measure," underscoring the importance of stringent safety protocols in such situations.

Council Provides Support and Guidance

The City of Bunbury has confirmed that it is offering guidance to the hostel operators on how to bring the properties back into compliance with safety standards. "The priority remains the health and safety of all residents and visitors to our community. We will not compromise on safety, but we are committed to supporting those affected through this transition," the council said. Additionally, backpackers impacted by the closures are being connected to housing support services and local businesses to assist them during this challenging period.

For urgent assistance, affected individuals can contact Crisis Care on 1800 199 008 or Entry Point on 1800 124 684. The operators of both hostels have declined to comment on the closures when approached by 7NEWS, leaving many questions unanswered about the timeline for remediation and potential reopening.

Regional Housing Crisis Exacerbated

The sudden closure of these hostels has intensified the existing housing crisis in the South West region, where affordable short-term accommodation is scarce. Dozens of workers and visitors now face significant challenges in securing alternative housing, further straining local resources. Community organizations are mobilizing to provide support, but the long-term impact on tourism and local economies remains a concern.

As remediation works begin, the focus remains on ensuring the hostels are safe for future occupancy, while the immediate needs of displaced travellers are addressed through coordinated efforts between the council and support services.