Cloud over development of town centre hotel
Plans for a five-storey hotel in the South Hedland town centre have been thrown into doubt after developers confirmed they were still trying to secure an operator to run the facility three months on from when it was originally scheduled to open.
The lengthy delay has attracted criticism from Mining and Pastoral Region Labor MLC Stephen Dawson who said it would be a "great shame" for Hedland if the hotel did not eventuate.
The hotel site, situated next to the South Hedland Library, forms part of the State Government's $77 million South Hedland town centre redevelopment plan.
In April, Regional Development and Lands Minister Terry Redman travelled to South Hedland for the sod-turning and, at the time, boasted the hotel would stimulate tourism and increase employment opportunities.
Last week the minister and LandCorp would not be drawn on whether the land, which is under a conditional contract and yet to be settled, would revert back to the State if developer Hickory Group failed to start construction soon.
"The market issues are challenging and the Hickory Group are working through a number of matters before they can proceed with development," Mr Redman said.
A spokeswoman for Hickory Group said the company was in discussions with potential operators.
But Mr Dawson was disappointed the project was yet to get off the ground.
"Our tourism industry in the Pilbara has suffered as a result of (inflated accommodation costs during) the boom," he said.
"The State Government really needs to do more to ensure that the industry can pick up again and take advantage of the tourists that used to drive through Hedland to the next place because they couldn't afford to stay here."
The hotel site is one of 22 lots earmarked for mixed commercial and retail and residential development under the South Hedland town centre redevelopment plan.
LandCorp chief executive Frank Marra said the plan had already attracted about $85 million of private sector investment including the Charter Hall shopping centre expansion and BHP Billiton's Quattro housing estate.
