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Posted on: 9 December, 2019

Livingstone Shire Mayor's Desk - 07 November, 2019

Delivering backbone infrastructure including power, water and telecommunications services to Great Keppel Island (GKI) as a catalyst for tourism and regional economic growth was one of the seven priority projects recently put forward in Canberra by the Central Queensland Regional Organisation of Councils (CQROC).

The clear message that was given to Deputy Prime Minister Michael McCormack was that the Great Keppel Island backbone infrastructure is a strategic and integral part of the long-term plans for driving economic growth here in Central Queensland.

Despite both the Federal and State Governments giving the ‘green light’ with approvals for redevelopment in 2013, to date, the significant challenges presented by GKI not having backbone trunk infrastructure connected has been a major impediment to getting the project underway.
To put that into perspective, without the investment in power, water and telecommunications infrastructure, those costs will represent more than 25% of the total operational costs of running a resort, compared to a 7% industry standard for mainland resort operations.

That competitive disadvantage in costs has been a contributing factor to the challenge of attracting a major investor to take on the redevelopment and revitalisation of the island.

At this point in time Queensland investor, Altum, has signed a conditional contract to purchase the GKI Resort development, subject to passing Queensland Government due diligence, but has said the enabling backbone infrastructure project is a critical key to their planned investments in taking on the GKI Revitalisation project.

Another major benefit of connecting this critical infrastructure to GKI is that every other island business will be able to connect as well. This will insure our island business sector will be more competitive and more resilient to both financial pressures and natural disasters.

The return on investment is a ‘no-brainer’. A redeveloped Great Keppel Island Resort with power, water and telecommunications will generate up to approximately 1400 jobs while stimulating both the local and regional economies as well as supporting an increase in domestic and international tourism throughout the region.

Currently the Queensland Government has stumped up $31.8 million in total for the infrastructure project. The request that Livingstone and the other CQROC Councils are making, with the support of tourism and economic development organisations, tourism operators, local residents and the business community, is for the Federal Government to also contribute $25million toward the project.

The importance of revitalising GKI is highlighted in strategic tourism documents including the Capricorn Destination Tourism Plan and is also identified in the State Infrastructure Plan. The project also aligns with the Invest Capricorn Coast Region Economic Development Plan and the Capricorn Coast Smart Region Strategy.

With the preliminary design phase now almost complete, a co-investment by the Federal Government would allow the project to get underway in the New Year giving GKI and the Central Queensland tourism industry the major boost that our region now needs.

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