Gold Coast theme parks impacted by failure to secure Federal Government loan deal

The Gold Coast's major theme parks have been impacted by the collapse of a deal which would have delivered financial relief from the Federal Government.

With Sea World set to become the first of the region’s theme parks to reopen following the Coronavirus shutdown, Brisbane newspaper The Courier-Mail has reported that "eight-figure loans earmarked for Village Roadshow and Ardent Leisure’s Dreamworld have been taken off the table" by the Federal Government.

With the attractions suffering ongoing losses during the COVID-19 lockdown - Dreamworld is reported to be losing $10 million a month - Queensland Tourism Minister Kate Jones reportedly described the collapse of the deal as a "kick in the guts".

However, Australian Tourism Minister Simon Birmingham rejected suggestions the Federal Government had turned its back on Gold Coast theme parks, pointing to the millions of dollars in JobKeeper payments to help employees during the enforced closures.

As reported by The Courier-Mail, theme park executive had been in talks for several months with Export Finance Australia about securing loans to help battle through the coronavirus crisis and as recently as last week were under the impression the money would be forthcoming.

However, those talks have now collapsed, leaving theme parks, among the Queensland tourism industry’s biggest employers, without access to millions of dollars.

Upset by the decision, Village Roadshow Chief Executive Clark Kirby told The Courier-Mail "for months we’ve been negotiating with Export Finance Australia to contribute funding to Village’s reopening plans (and) without warning, we were told last week that those negotiations were over.

“It’s disappointing to say the least.

“But the state government has been great.

“We continue to make positive progress with the state government regarding their funding support to help us get back to business.”

Dreamworld Chief Executive, John Osborne added "we were extremely disappointed.

“We had been working with them for three months and had every indication it was going to be successful.”

Osborne would not be drawn on the impact of the decision on Dreamworld’s future but would continue to seek other forms of assistance throughout the most difficult period in the park’s 38-year history, noting "we’re grateful that our staff are receiving JobKeeper and we’re still working with the Queensland government on various funding options."

Minister Birmingham defended the Federal Government’s support of the theme park industry, going on to say “the Federal Government is providing these two companies with more than $80 million in support via JobKeeper and other programs.

“With these attractions starting to re-open, the best way to support them would be to see some interstate visitors flowing through their gates.”

He also said the Federal Government’s $1 billion recovery fund to help industries ‘disproportionably affected’ by the Coronavirus pandemic had directly helped Queensland tourism businesses.

Sea World, along with the Currumbin Wildlife Sanctuary are set to reopen to the public today, with Warner Bros. Movie World and Wet’n’Wild Gold Coast to follow next month.

Dreamworld has yet to advise of a date when it will reopen.

Image: Sea World's Storm Coaster ride (top) and Clark Kirby at Movie World (below).