The Queensland Government has issued a proposed call-in notice on development plans for a major mixed-use project put forward by Coast Entertainment Holdings (ASX: CEH) that will expand the company’s Dreamworld theme park site on the Gold Coast to include hotels, restaurants, function centres and residential towers.
The project, which plans to increase the Dreamworld precinct from 55ha to 85ha with the addition of ancillary amenities that will support the business, represents the biggest transformation for the theme park site since it was developed in 1981.
The call-in was referred to the government by Gold Coast Mayor Tom Tate who was informed this morning by Premier David Crisafulli that the state would consider reviewing the merits of the project and ultimately decide its fate.
Since lodging the development application in 2023, Coast Entertainment has been lumped with what it considers to be unworkable conditions by the council and the State Assessment and Referral Agency (SARA) for the project.
The government has given stakeholders – including the council and Coast Entertainment - 20 business days to present their case on the merits of calling in the project.
Tate this morning reiterated his support for the plans by Coast Entertainment to invest in its property, while brushing aside infrastructure concerns raised around the project.
“The advice so far (from city planning officers) is that they are very happy with it, but it's just the timeline involved,” he says.
“To shorten the timeline and get this project going it sends a great signal, not only for Dreamworld, but for other theme parks as well.
“There’s confidence in the city and it’s time we invest more in this sort of offering.”
Development plans have been mooted for decades for the vacant land which has been owned by Dreamworld since inception more than 40 years ago.
The state government points out that Dreamworld has poured $180 million into its business over the past four years, which has supported more than 1,000 jobs directly.
The proposal put forward by Dreamworld for its surplus landholdings is split into four key areas including a “major tourism core, nature-based tourism precinct, gateway precinct and town centre transition precinct”.
The major tourism core accommodates the existing Dreamworld and WhiteWater World theme parks while the nature-based tourism precinct offers Coast Entertainment an opportunity to create low-impact eco-tourism developments including viewing platforms, eco-tourism cabins and boardwalks.
The gateway precinct is anticipated to become an extension of the theme park allowing for short-term accommodation, a resort complex, hospitality and entertainment venues, while the town centre transition precinct will provide other residential and accommodation opportunities.
“Dreamworld has been an icon of the Gold Coast for more than four decades and this major mixed-use tourism and housing precinct development is set to future-proof the theme park for decades to come,” says Jarrod Bleijie, the Deputy Premier and Minister for State Development, Infrastructure and Planning.
“In partnership with the Gold Coast City Council, the Crisafulli Government is reducing red and green tape to fast-track more investment into Queensland’s tourism offering.
“We are getting on with the job of backing industry and local councils to supercharge job-creating investment.
“This proposed call-in notice will take into consideration the tourism benefits of this development along with the critical road infrastructure required to keep the northern Gold Coast moving.”
Coast Entertainment sought a call-in of the project by the government in June this year, citing its commitment to investing in its theme park portfolio “to deliver significant benefits for the Gold Coast region, to support the Queensland Government’s Destination 2045 tourism strategy and to provide critical needed infrastructure such as accommodation for the Brisbane 2032 Olympic Games”.
The company this morning confirmed receipt of a proposed call-in notice from the government which the company says indicates it is proposing to “assess and decide the application on the basis that it affects the economic and environmental interests of the state”.
However, the company adds that it has not made any decisions or commitments regarding the proposed use of the land if its application is approved.
Dreamworld CEO Greg Yong has welcomed today’s call-in announcement by the government.
“As a listed company with a proven track record of investment in Queensland, we stand ready to deliver transformational projects which will address these key issues,” says Yong.
“This progress gives us tremendous confidence to support significant investment in Queensland.
“Capital flows to where it's welcomed, and the Deputy Premier's intervention sends a clear signal; Queensland values job-creating investment that benefits communities."
Coast Entertainment posted a 10.5 per cent increase in ticket sales in FY25 as visitor numbers grow 11.2 per cent.
Operating revenue of $96.4 million was up 10.8 per cent year on year, while consolidated EBITDA, excluding specific Items, from continuing operations surged 275 per cent to $4.1 million.
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