Palm Island's only motel gets $1m government funding boost

The only motel on Palm Island, off Townsville in north Queensland, will more than double in size after a State Government grant of more than $1 million.

The money has been allocated from the local government grants and subsidies program and will see the motel go from 13 rooms to 23.

The Palm Island council will put forward around $300,000 for the project.

Townsville MP John Hathaway says the funding coincides with the State Government's plans to open up tourism on the island and boost the local economy.

"It also presents obviously with greater capacity for more people to stay there - they'll need to go out for dinner, supplies, go to the restaurant and the like, so it starts creating that demand," he said.

"This infrastructure will go a long way in giving Palm Island the opportunity for future economic development."

Another $2 million in State Government funding has been allocated to other north Queensland councils for local projects.

The Palm Island council will put forward around $300,000 for the project.

Palm Island Mayor Alf Lacey says he hopes the island's only motel will soon be privately owned, instead of being run by the council.

Councillor Lacey says he would eventually like to see the motel sold to someone on the island to increase economic development.

"We'd probably gauge the community and put an expression of interest out in terms of someone eventually in the town talking it on and having it as a private business and running it like a normal motel is run throughout the region," he said.

"I think the new injection of funds into the Palm Island council from the State Government is certainly welcomed with expanding it even further.

"Eventually we'd hope a local in the town would then take it on as a business to promote economic development in the community."

Source: ABC News, 19 July 2013