The developers behind a $300-million hotel slated for Port Douglas in Far North Queensland say the project will go ahead, despite occupancy rates in the seaside town being at an all-time low.
The Chiodo Corporation plans to build a five-star, 253-room resort with several restaurants, a bar and wedding reception area, on Old Port Douglas Road.
The Melbourne-based company has signed a hotel management deal with Accor, with construction work set to begin in the middle of next year.
Developer Paul Chiodo said he was not concerned about the current bleak tourist outlook for the town, long favoured by several US presidents and celebrities including singers Ed Sheeran and Kylie Minogue.
"This project will be completed in the next three years, and we think that things will go back to normal, after COVID," Mr Chiodo said.
"There is going to be a massive boost in domestic travel, particularly from Melbourne.
"We plan to bring the bling back to Port Douglas."
Tourist town hard-hit by COVID-19
The tourist town has been hard hit by travel restrictions imposed as a result of COVID-19.
Tourism Port Douglas Daintree CEO Tara Bennett said hotel occupancy rates were around 50 per cent.
She said the new hotel was a vote of confidence in the town.
"This will fill a massive gap in terms of five-star hotels in the region," Ms Bennett said.
"It couldn't come at a better time, and by the time it launches we will be in a much better situation."
Hotel block's chequered past
It is not the first time the block of land has been earmarked for development.
The remnants of a failed hotel bid by a different company still remain on the site.
"It's definitely an eyesore, and it's had numerous developers that have tried to do something with the site," Mr Chiodo said.
"We are very confident that this will go ahead, we have active projects in Melbourne, we have our own property fund with over 400 investors."
He said the development application was still in the hands of the Douglas Shire Council, but a demolition permit had been granted, to clear the site.
