Council Delays Decision on Contentious Whitsundays Resort

The Whitsunday Regional Council has called for more time to decide on a contentious waterfront hotel and resort at Airlie Beach in the Whitsundays.

The $80-million resort is proposed for a vacant 1ha site between 125-131 Shingley Drive, fronting Shingley Beach and the Coral Sea marina.

The 12-storey project has been put forward by a private entity, One Whitsunday Development, which is headed by Sydney-based developer Domenic Zappia.

In 2007, Zappia swooped on an elevated site previously earmarked for a high-end apartment project by socialite and former US president Donald Trump’s ex-wife, Ivana Trump.

In recent years, Zappia has been battling to get his 17,000sq m high-rise resort development off the ground and late last year submitted scaled-back plans for the project, reducing its height by four storey and visual impact in a bid to gain approval.

Previous plans for a 16-storey development were subject to more than 1000 submissions during the public consultation period. 

Community groups including Save Our Foreshore and Fight for Airlie also raised their concerns about the height of the resort, which exceeded the maximum building height allowed for the site under the local planning scheme.

Zappia argued for an exception to the height rule of the 160-key development because of the scale of economic and community benefits the development would bring to the region.

In its current iteration, the building height of the roof above the natural ground level, taken at the rear of the site facing Shute Harbour Road, is 16m, which is 2m above the maximum and permissible building height in the local zoning.

If approved, the project could generate more 150 jobs and $50 million during its construction phase and more than 100 jobs and $12 million in annual economic benefit to the region once operational.

▲ The development will include 131 one- and 8 two-bedroom suites as well as 21 villas, a 480sq m function centre on level three, multiple pool areas, and spa facilities.

The Design Workshop Australia-designed development was preparing to break ground with construction expected to take two years to complete. 

Councillors have instead asked for additional time to obtain further advice on issues relating to the impact the development would have on the intersection of Shingley Drive and Shute Harbour Road.

In recent years, the Whitsundays has been awash with some of the nation’s biggest property players looking to take advantage of Australia’s domestic tourism boom brought about by the pandemic. 

Australian mining billionaires Andrew “Twiggy” Forrest and Gina Rinehart are collectively poised to invest almost $100 million to acquire two of Queensland’s Island jewels to the north and south of the Whitsundays.

Forrest’s investment company Tattarang paid $42 million for Lizard Island while Rinehart is looking to buy Great Keppel Island for about $50 million and redevelop it.

On Hayman Island, the Australian arm of Malaysian property giant Mulpha is ramping up the resort’s accommodation mix with the construction of 12 beachfront pavilions.

Meanwhile, at Shute ­Harbour, plans for an ambitious $350-million ­resort development have also been put forward by a consortium of Adelaide-based businessmen—Mark Daniels, Mark McLachlan, Greg Phillips and Sam Wade.

The project, which also includes a 400-berth marina on a 28ha waterfront site, comprises 58 managed resort dwellings, each with their own private marina berths of 25 to 35-metres on their doorstep, along with managed apartments with resort club facilities.

It will also feature a 100-plus-key resort hotel, including function and meeting rooms, bars, restaurants, swimming pool and undercover parking as well as a new commercial hub as part of a masterplanned marina plaza, with new retail and commercial outlet.

The project, which has taken 15 years to gain all necessary approvals to proceed after being identified as a project of significance by the Queensland government in 2006, will be the first major marina and residential development in the Whitsundays since 2006.