The ambitious plan to resurrect the iconic Double Island resort off the coast of Cairns has hit a major roadblock, casting serious doubt over the site's future. Negotiations between the leaseholder and a prominent Gold Coast developer have collapsed, leaving the proposed $1.2 billion transformation in limbo.
Negotiations Collapse, Future Uncertain
Leaseholder Double Island Pty Ltd has confirmed that exclusive discussions with a significant development partner have ended without a deal. While the company has not publicly named the developer, sources indicate it was the Gold Coast-based Sunland Group, known for its Q1 tower project. A spokesperson for Double Island Pty Ltd stated the parties could not reach mutually acceptable commercial terms, leading to the termination of talks.
This breakdown is a severe blow to the long-awaited revival of the island, once a glamorous destination that hosted celebrities like Mick Jagger. The current lease, held by Double Island Pty Ltd, is set to expire on December 31, 2026. With the development timeline estimated at three to five years, the window for securing a new partner and commencing work is narrowing rapidly.
A Grand Vision Now in Jeopardy
The stalled project envisioned a world-class transformation for the 101-hectare island, located just a 20-minute boat ride from Palm Cove. The master plan, which received preliminary approval from the Queensland Government in late 2022, included:
- A luxury resort with up to 250 suites and villas.
- Residential accommodation comprising 150 apartments.
- A refurbished marina facility.
- Multiple food and beverage outlets.
- Extensive leisure and wellness amenities.
The development was touted to create over 1000 construction jobs and 500 permanent operational positions, representing a major economic boost for the Far North Queensland region.
Local Leaders and Industry React
The news has been met with disappointment from key figures in Cairns. Cairns Mayor Terry James expressed his frustration, labelling the situation "very disappointing" and emphasising that the city cannot afford to let the island remain dormant. He urged the state government to consider its options if the current leaseholder cannot progress the project.
Paul Scurrah, a director of Double Island Pty Ltd and former Virgin Australia boss, remains cautiously optimistic. He asserted that the company is committed to the development and is actively pursuing other avenues and potential partners to bring the vision to life. The company maintains it has invested substantially in planning and approvals for the site.
Tourism operator Riley Callaghan, whose family has historical ties to the island, voiced the community's sentiment, hoping a resolution is found to restore the island to its former glory as a premier tourism asset.
The impasse leaves one of Far North Queensland's most prime tourism locations in a state of prolonged uncertainty. All eyes are now on Double Island Pty Ltd and whether it can attract a new development partner with the capability and vision to finally unlock the potential of Double Island before the clock runs out on its lease.
