A MAJOR Scenic Rim tourism operator has taken another big hit following fires and coronavirus, finding that his insurance premiums have trebled to $1.3 million.
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This comes as the Binna Burra resort works towards rebuilding after the Beechmont tourist hot spot was completely destroyed in the September bushfires.
O'Reilly's Rainforest Retreat managing director Shane O'Reilly said insurance increases were so large they might spell the end for struggling tourism businesses.
He said he was shocked to find that his premiums had more than trebled from $380,000 last year.
He was backed by Mount Barney Lodge operator Innes Larkin who described the increase as frightening.
"In the last 12 months I have been presenting at global conferences, to organisations like Adventure Queensland, Ecotourism Australia, Chambers of Commerce and Scenic RIm Regional Council about the potential insurance risks that climate change will present to our tourism industry and it terrifies me that these impacts are coming to bear on some of our industry leaders right now," Mr Larkin said.
"Our industry needs all levels of government to firstly act decisively on the short term solutions for the insurance impacts, but secondly and more importantly act on the climate emergency that enhances these risks to create a vibrant environment where all sectors of the economy, environment, and society can thrive."
O'Reilly's was evacuated during the September bushfires.
"Last year ... the sum insured was $70 million to cover us in the event that all the buildings were lost," Mr O'Reilly said.
"This year our broker has confirmed the premiums will cost us about $1.3 million and that will only cover us for $10 million."
O'Reilly's insurance broker, Gallaghers, was contacted but declined to comment.
Campbell Fuller from the Insurance Council of Australia said he could not comment or hypothesise as to why insurance premiums could increase so dramatically.
"Normally one-off natural disasters are unlikely to have a significant impact on insurance premiums," he said.
"Insurers are conscious of affordability but I would encourage the state government to reduce the punitive state tax on insurance."
Mr O'Reilly said he believed the move was opportunistic and nothing to do with risk.
"This is a huge problem for the future of tourism. There are some businesses who either can't get insurance at all or the insurance is totally unaffordable.
"For us it means our entire profit will go towards insurance premiums.
"We need someone in government to apply some rigour as to how this can be managed."
Scenic Rim MP Jon Krause blamed the state government, saying it had put up hurdles for O'Reillys by stalling the Green Mountain campgrounds.
"When a hugely respected tourism operator like O'Reilly's is faced with this issue, they are like the canary in a coalmine for tourism in Queensland and the first cab off the rank for policy renewal," he said.
"The government is going to need to address the issue of massive hikes in insurance premiums resulting in a huge proportion of revenue being eaten up in costs, especially considering the other headwinds faced by the tourism industry- including the coronavirus."