Switch for Gay Resort in Doldrums

One of the world's leading gay tourist destinations is going straight after the expected numbers of "pink-pound" holidaymakers failed to materialise.

The Liberty resort, an exclusive rainforest retreat near Australia's scuba-diving capital, Cairns, is broadening its scope after failing to fill more than a third of its £100-a-night rooms since opening in 2002.

It offered a spa, cinema, twin pools linked by waterfalls, and even an on-call plastic surgeon to provide liposuction and botox treatment. But after 15 months in the doldrums it is remarketing itself to straight tourists.

"It was a bold and courageous concept that didn't work," said Liberty's owner, Alistair Brown. "I think we focused too much on the Sydney party crowd and not enough on the more eclectic gay market."

The global gay travel market is estimated at £31bn. But Mr Brown said the Australian market was not big or rich enough to sustain the business.

Initially, the Liberty resort met fierce opposition from conservatives in northern Queensland: Kuranda, its location, is one of the heartlands of the far-right One Nation party.