Tourism industry lashes out after Star’s AUD 529 million-project faces rejection in Sydney, Australia

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Sydney Opera House, Australia

Sydney (TAN): The Independent Planning Commission (IPC) of New South Wales, Australia has rejected Australian gaming and entertainment company Star Entertainment’s plans of building a 237-metre hotel tower in Sydney, causing a stir in the country’s tourism industry.

The Tourism and Transport Forum Chief Executive Officer Margy Osmond was quoted as saying by media reports that the “decision by the Independent Planning Commission sends a message to local and international investors that Sydney, the Gateway to Australia is closed for business”.

The IPC rejected the AUD 529 million-proposal (USD 359 million approximately) on the grounds that it was “overly obtrusive” and will “result in unreasonable and unacceptable impacts with respect to view loss, visual impact, and overshadowing”.

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Star Entertainment’s plans to build a 220-room, six-star Ritz-Carlton hotel and 204 residential apartments, basement car parking and a neighbourhood centre took a blow after the IPC decided it was “inconsistent with current strategic planning for the site and locality and fails to promote the orderly use and development of land”.

“This is a sad day for Australian tourism,” Osmond said.

“After four long years and millions of dollars invested on extensive consultation with the government, the community and stakeholders, for an unelected planning body to arrive at a decision like this is simply short-sighted. The city is crying out for more hotel accommodation and we can’t get enough luxury beds built,” she added.

Others from the industry criticised the move saying that the city could lose investors and further development as a result of this decision.

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“This decision is disappointing, as Sydney really needs new six-star hotels to attract the luxury traveller to keep our status as a global city. This is a lost opportunity, especially in the midst of the revitalisation of the Sydney CBD with light rail and the proposed removal of the lockouts,” Michael Johnson, Chief Executive Officer, Tourism Accommodation Australia was quoted by a report as saying.

The construction in Pyrmont was reportedly rejected by the New South Wales Planning Department in July, although Star Entertainment relentlessly pursued its plans.

“We just hope this does not prove to be a lost opportunity for Sydney,” a spokesperson from the Star Entertainment Group was quoted by The Sydney Morning Herald as saying.

He added that they wanted to “spend more than AUD 500 million on helping NSW drive tourism” which would “create around 1000 jobs” apart from other economic benefits. He said they were “still digesting the full findings before we announce next steps”.

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