The tourism industry has welcomed mining mogul Clive Palmer’s purchase of the Hyatt Coolum on Queensland’s Sunshine Coast, saying it will put the state in a good light as it battles to fight off problems caused by this year’s floods and pressure from the high dollar.
The comments came weeks after the Queensland Government dedicated a significant portion of its budget to tourism as operators continue to struggle following negative impacts of January’s floods and cyclone.
Tourism & Transport Forum chief executive John Lee said this morning the purchase will project a good impression of Queensland Tourism.
“Clive Palmer is one of Australia’s most successful businessmen so we see this purchase as a positive endorsement of Australia’s tourism potential,” he said.
“This is not the sort of investment you make on a whim and clearly Mr Palmer has made a favorable assessment of the resort’s capacity to deliver a healthy return.”
The transaction, reported to be worth between $40-60 million, comes after a number of tourist businesses in Queensland collapsed during the past year, including Couran Cove and the Bale resort in Port Douglas.
Palmer told the Australian Financial Review today he bought the hotel from Lend Lease and Japanese company Sekisui House because he believed it was a bargain at the bottom of the current cycle.
“It’s not a big risk for me with the money I have got, but as I say, I really think Queensland has enormous tourism potential and we have bought at the right time in the cycle,” he says.
“We have plans to increase the occupancy of the Hyatt Regency and make it one of the best resorts in the world.”
Palmer considered buying the Sheraton Mirage in Port Douglas but chose the Hyatt instead.
The Hyatt was purchased by Lend Lease in 2003 and was placed into a joint venture with Japanese company Sekisui House last year.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
