A crumbling island eco-resort off the coast of north Queensland that has sat in ruins for the best part of a decade could soon be brought back to life, if a West Australian businessman has his way.

The rundown resort building was destroyed by fire in August 2015. ( Audience submitted: Yvonne Winter )

Since its closure in 2010, the largely forgotten resort site on Hinchinbrook Island has almost been consumed back into the natural environment.

It was the only accommodation on the national park island, but over the past eight years has been smashed by Cyclone Yasi, looted by vandals and destroyed by fire.

But WA businessman Adam Tree wants to turn the resort site into an international glamping drawcard and has entered into negotiations with the Queensland Government.

Mr Tree said he was inspired to rebuild the eco-resort after first visiting four years ago.

"I fell in love with the place and it didn't matter how dilapidated it was, it's just incredible — this island and what it has to offer the world — and I just can't believe no-one had taken it up," he said.

"Every time I come back here it's more and more degraded. Somebody has to take control of it, somebody has to step up.

"There are so many things here that I could see when I first walked in from WA that I said, 'This is me, I don't need any more'."

The gutted remains of the Hinchinbrook island eco-resort administration building and pool. ( ABC News )

Mr Tree has a background as an electrician and currently owns a company supplying products to the mining and resources industry.

He said he planned to rebuild the site for glamping-style tents that could be packed away in the event of a cyclone.

"Nothing is set is stone but there are a number of different glamping style options. You've got bell tents, Springbok tents that are from South Africa, you've got other Canadian-style tents," he said.

"We want to bring it back and rehabilitate the area because it's clearly in a state that it shouldn't be, and hopefully build it to be a world-class eco-resort."

Mr Tree has entered into a contract with FTI Consulting, which has handled the resort lease since former owner Williams Corporation collapsed in 2013.

The beach closest to the former eco-resort on Hinchinbrook Island. ( ABC News: Josh Bavas )

Island encumbered with past debt

But acquiring the lease means also dealing with hundreds of thousands of dollars of incumbrances owed to state and local governments from previous owners.

Mr Tree said it should not be up to new owners to pay for someone else's debts.

Adam Tree said he hoped the old debts would be waived. ( ABC News: Josh Bavas )

"We're looking at this — [the lease] has a rates and levy incumbrance for the past 10 years of nearly $800,000," he said.

"So not only is it $800,000 but we've got to rehabilitate this area.

"If we kept getting treated like a business that has to pay for someone else's problems and debts and legacies, then we can't move forward on some of the innovative things we'd like to do."

A Department of Natural Resources Mines and Energy spokesman said Mr Tree's request to waive the fees was being considered.

"The department supports responsible and sustainable development on Hinchinbrook Island," the spokesman said.

Of the 20 resorts operating on perpetual leases over state land, five are currently in rental arrears.

'We need a tourism boost'

Cassowary Coast Councillor Glenn Raleigh said they were also open to discussions with Mr Tree.

"We're certainly welcoming a lot of investors to the region at the moment. We're hopeful a new player in the region wants to do great things," he said.

Councillor Raleigh said Cardwell would benefit from a tourism boost if the plan went ahead. ( ABC News: Josh Bavas )

"We're certainly supportive of those people as long as they can give us the details and that everything falls into line with legislation and planning instruments that we have in place."

Councillor Raleigh said the nearby town of Cardwell needed a tourism boost.

"Having the island back to its operation again is very important to the town for employment opportunities and also for the attraction of tourists, not only from domestic markets but from international markets as well."

Margaret Moorhouse from the Alliance to Save Hinchinbrook said while she respected Mr Tree's plans to restore the site she would rather see it returned to national park.

"We want the island returned to its natural state which would mean no more lessees on that lease," she said.

"The proposals that Adam Tree has made are certainly of a very different character to a previous developer, so in one way we are pleased that's the case.

"He has said he would keep — what he's calling the retreat — within the bounds of this area, so like everybody else, we live in hopes of that respect."