UPDATE: 12:04pm, Thursday 10 March

Employees of Bale Resort in Port Douglas will receive money owed for their services, it has been confirmed by Port Douglas Resort's Alan Porteous.

"We're working on resolving the issues and doing the best we can for the employees. That part we've got resolved," he said.

Meanwhile, Mantra Group Public Relations Manager Susan Sullivan has advised that the Mantra Group had worked closely with Port Douglas Resorts without remuneration for the last 12 months in an attempt to avoid the closure of Bale Resort.

"Mantra Group tried to negotiate with the Body Corporate to buy the management rights (to Bale resort) but negotiations with Port Douglas Resorts broke down," Ms Sullivan said.

Ms Sullivan said the Peppers brand and business remained strong and the closure of Bale would have no impact on their business and holdings in the region.

"We've invested a lot of money to try and get people up there after the bad weather," she said.

END UPDATE

by Mat Churchill

Bale Resort, one of Port Douglas' most recognised resorts which has played host to some of the world's most popular celebrities has closed its doors.

Port Douglas Resorts Pty Ltd, owner of the management letting rights at Bale Resort in Port Douglas, have advised they are closing the property effective immediately.

Port Douglas Resorts' Alan Porteous, said financial constraints were the reason for the closure.

"Really it was a financial decision to close it. There has been some ongoing circumstance for a while that we were looking at possibly restructuring and running it with a different format, but that didn't work out and so we had to make the call to cease the operations."

Mr Porteous still holds hope that there is a future for the stunning resort.

"Bale is closed for the moment. The company which has been operating the management rights there has closed its operations and won't reopen them. However, that leaves some other parties, particularly the Body Corporate, open to looking at restructuring and reopening it slightly differently.

"There's a possibility that will happen and that the Body Corporate will look at opening it with a different operator," he said.

A number of staff are now left without jobs with little warning of the impending closure.

"The staff have all been advised and therefore their employment has been terminated. However, if it were to reopen with a slightly different structure through the Body Corporate, then what happens there I don't know," Mr Porteous said.

"But for now they've been terminated from that employer and whether those positions come back available, it's not up to me."

In a statement from the Mantra Group who owns the Bale trademark, they confirmed their company has no financial interest or control within Port Douglas Resorts Pty Ltd. 

Mantra Group’s Director of Operations Mark Hodge said his team is currently relocating guests to other properties within the portfolio.

“We are contacting all guests with forward bookings and presenting a number of options to them about their preferred options for their holiday plans.”

The news of Bale's closure comes as an increasing number of accommodation providers come under financial pressure.

A high vacancy rate and considerable drop in tourist numbers mean that many operators are holding out hope for an Easter influx of guests.