04/05/2026
📣 FOR IMMEDIATE RELEASE
Project Update
Statement from the Managing Director, Reefsedge Resort and Waterpark
After more than five years of extensive planning, design and civil works, it is with deep regret that we announce the Reefsedge Resort and Waterpark project will not be proceeding.
This decision has been exceptionally difficult to make and has only been reached following careful and considered evaluation. Despite the project progressing to an advanced stage recently, with all civil works completed, key infrastructure components delivered to site (including water slide foundations), and construction imminent - a significant and rapid escalation in project costs has rendered the development financially unviable.
This outcome is deeply disappointing for all involved. Reefsedge was conceived as more than a development - it was a vision to create a landmark destination for Far North Queensland. The project aimed to deliver significant economic and tourism benefits, support local businesses, generate employment, and provide a unique and enduring experience for residents and visitors alike.
The last 16 months has seen costs rising significantly faster than inflation, however, the recent price shocks caused by the War in Iran have meant that the project is no longer financially viable. The ongoing impacts of this conflict have increased the project costs by just over $29 million, and heavily impacted supply chains for the materials required. To date, just over $21 million dollars has already been spent on the project.
Importantly, this outcome is not the result of any single decision or party. Rather, it reflects the impact of global decisions on our local economy and the construction sector. Ongoing supply chain disruptions, increased fuel and energy costs, significant rises in the price of key materials - including bitumen, concrete and petroleum derived products such as plastics, and piping have collectively driven costs up beyond feasible limits.
In July 2025 civil works commenced at the Kewarra Beach site and the project remained financially sound for the developer and bank right up until February this year. However, the sustained and compounding nature of these cost increases, alongside rising interest rates and tightening financing conditions, has made it impossible to deliver the project in a financially responsible manner without compromising the quality and experience originally envisioned. Maintaining the vision and standard of the attraction was non-negotiable.
Extensive efforts have been made to preserve the project. The development team has worked closely with consultants, contractors, advisors, stakeholders and industry specialists to explore all possible pathways forward, including design refinements and alternative delivery models.
Despite these efforts, a viable solution could not be achieved under current market conditions.
We acknowledge the disappointment this news will bring to the broader community. Reefsedge had the potential to become a major attraction for the region, and we share in the community’s sense of loss.
We extend our sincere gratitude to the many consultants, contractors, designers, engineers, advisors, banks and supporters who have contributed to the project over the past five years. The dedication, expertise and passion demonstrated by all involved has been extraordinary.
We also extend our sincere thanks to Cairns Regional Council and the state and federal government as well as the Cairns Chamber of Commerce, Advance Cairns and Tourism Tropical North Queensland for their ongoing support throughout the life of the project. Their collaboration, advocacy and commitment to strengthening the region’s tourism and economic future is to be commended.
While this chapter is coming to a close, we remain proud of the ambition behind Reefsedge and grateful for the strong support received from the Cairns and wider Far North Queensland community.
This statement can be attributed to:
Darren Halpin
Managing Director
Reefsedge Resort and Waterpark
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