Accommodation Crisis Sparks $98.5m Rottnest Development

The Rottnest Island Authority has unveiled plans for a $98.5-million workers’ accommodation development on Western Australia’s premier tourist island, addressing a critical housing shortage that has hampered tourism growth in the area.

The plans are part of the $150-million infrastructure upgrade promised in the WA Government’s 2024-25 Budget this year.

The initiative represented one of the largest infrastructure investments in Rottnest Island’s recent history, the Rottnest Island Authority said, and reflected the growing importance of the state’s tourism sector.

The development aims to resolve operational challenges faced by island businesses, so they can extend operating hours and attract and retain skilled workers without impacting visitor accommodation.

Located on Parker Point Road south of Thomson Bay on Wadjemup/Rottnest Island, the accommodation hub would house up to 336 workers in 149 self-contained homes, comprising a mix of one-bed studios, and one, two and three-bedroom units.

Funded by the WA Government, construction is due to start in late 2025 and would be delivered in stages before completion in 2030.

The Rottnest Island Authority will develop and manage the accommodation complex.

The project forms part of the Rottnest Island Management Plan 2023-28, which identifies staff housing as essential infrastructure to support tourism growth.

The new accommodation will be leased exclusively to commercial businesses operating on the island, governed by the Rottnest Island Authority Worker Housing Policy.

Environmental and cultural considerations feature prominently in the planning process. The development requires a clearing permit from the Department of Water and Environmental Regulation, with geotechnical investigations yet to be completed.

▲ Hundreds of workers will call Rottnest Island home by 2030.

While Aboriginal cultural heritage surveys have found no significant sites within the development footprint, consultation with Traditional Owners is ongoing.

The Rottnest Island Authority has confirmed that construction will be managed to minimise disruption to tourism operations, with work restricted to standard hours.

A Construction and Traffic Management Plan will be implemented to manage impacts on visitors and businesses.

The development will proceed through an open tender process, with construction packages to be advertised on TendersWA once design elements are finalised.

The project’s staged approach aims to optimise logistics and costs while minimising disruption to island operations.

Alongside the $98.5-million investment in new staff accommodation, the package allocates $15.8 million for wastewater infrastructure upgrades.

A further $31.9 million will fund the relocation of barge and freight operations from the Main Jetty to South Thomson Bay, including Army Groyne redevelopment, while $4.3 million will improve Rottnest Airport with runway resurfacing and perimeter fencing.

The funding complements a $168.7-million infrastructure-improvement program across the island.