Abel Point Marina at Airlie Beach and the Port of Airlie development have been handed over to receivers McGrathNichol, after Bank of Scotland International pulled the plug.
Tourism Whitsundays chief Peter O'Reilly says the $750 million Port of Airlie project, promoted as a gateway to the Great Barrier Reef, ran into a long series of troubles.
These included the GFC reducing the risk appetite of its lenders and unseasonal rain during development leading to delays, which then gave buyers the opportunity to contest their acquisitions given a slump in property prices nearby.
But O'Reilly says it's business as usual at the Port of Airlie and the troubles haven't had a huge impact locally despite the project being only partly completed. In fact, Whitsundays tourism is seeing some positive signs.
"The youth adventure backpacking market is soft, but the mainstream is there," he says. "Operators who are good marketers have got business."
"Some say they have had five months of consecutive growth on last year, but last year was an ordinary year as a base."
"It's coming back, but it's challenging, especially the international market."
"But the Townsville, Mackay market has been reasonable, as well as Brisbane, Sydney and Melbourne."
Still, the Port of Airlie development was seen as one that would "raise the bar for the whole of Airlie Beach," O'Reilly says.
"We're not going to see the hotel development and the other retail development go ahead, which is unfortunate," he says.
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