Rottnest Island revamp in tatters
Plans to redevelop Rottnest Island and take advantage of the increased number of visitors coming there have been thrown into turmoil with the developer throwing in the towel.
The Karma Group, which had been planning a $20 million, 90-unit redevelopment, has announced its intention to surrender its lease on the popular holiday accommodation.
Rottnest Island Authority chairman John Driscoll said he had been notified of Karma’s decision by email.
Karma have indicated several reasons why they have chosen to walk away from the lease,” Mr Driscoll told the West Australian. “One of the reasons was that they felt there were too many new accommodation developments being proposed for the island.”
Karma’s shock decision has rocked the authority which had been trying unsuccessfully for the last decade to get high quality accommodation on to the island.
Two earlier attempts failed when plans to secure a five-star hotel on the northern side in 2006 and 2010 went nowhere with one developer saying it was “financially unviable” to build on the island.
All this is coming at a time when the number of visitors to Rottnest Island has risen by an unprecedented level year to date with an additional 90,000 visitors arriving by private boat and by ferry.
Well over 600,000 this number of visitors is the highest ever level in the Island’s 105 year history.
Mr Driscoll said the authority was “encouraged by the active interest in accommodation developments on the island, and will be going out to market to seek a new developer to take over this prime site when the current Karma lease expires in 2018.”
The authority is in advanced lease negotiations with island businesses Rottnest Express and Hotel Rottnest looking to increase accommodation on the Island.
There has also been an expression of interest in additional accommodation at South Thomson. That would give the Island 1000 additional beds within 5 years.
by Leon Gettler, April 26th 2016
