Queensland has lost the $2 million a year Nude Olympics in part because of a crackdown on nude bathers. Credit:Reuters Queensland is the only state that does not allow its councils to vote and choose "clothing-optional" beaches. Negotiations have begun with Byron Shire Council to hold the 2017 Nude Olympics at Belongil Beach. Largely a social event, the olympics include an eight-kilometre marathon, tug of war and egg-throwing events. In the past 12 months at least six men, who had been swimming nude at Alexandria Bay beach, have been charged with wilful exposure by Noosa police, according to a submission to the Queensland government.

Noosa's "A-Bay", inside Noosa National Park, has for seven decades been a place where people swam nude, until police started to fine nude men with wilful exposure. Nude women were not fined. Now the Noosa surf life-saving club has decided it will no longer harbour swimmers at the Nude Olympics because it "will not support illegal activity". Australian Naturist Federation president Greg Serow told the Sunshine Coast Daily late last year the event generated $2 million for the Noosa economy. "They'd be mad not to do it," he said. Tourism Minister Kate Jones and Police Minister Mark Ryan have also been asked if Queensland's policy is correct.

ANF spokesman Stuart Whelan – who owns a naturists' retreat in New South Wales – said the decision meant several million dollars in accommodation and restaurant takings was now lost to Noosa. "We are talking several million dollars that will no longer be going through the local economy," Mr Whelan said. "That's hundreds staying two nights' hotel accommodation, food, restaurants, cafes, hire cars, petrol, all that sort of thing," he said. Mr Whelan said the police action had forced the ANF to change the venue. "It's just crackers," he said. "The last time I looked it was the 21st century.

"I've just had two people call from South Australia to ask if it was still on, because they organise all their holidays around it." He said shifting the event south of the border would benefit the Nude Olympics. "I think it will draw between 600 to 800 people because some of the locals will like to go as well." Mr Whelan said the ANF had always given a $700-$800 donation to the Noosa Surf Club to help cover the costs of lifesavers for the weekend, he said. "However the club now no longer wants to be seen as 'encouraging illegal activity' in Alexandria Bay," Mr Whelan said.

The Australian Sex Party said the closure of a nude beach in Hawaii in 1998 cost the local community more than $5 million a year. Their research – in a submission to the Queensland government – showed Florida's main nudist beach, Haulover Beach, contributed to nudist travel spending of between $140 million and $400 million a year. President Dr Mark McGovern, who lives at Mooloolaba, said the Queensland government had made a mistake. "This is just wrong," he said. "What the government needs to do is to allow local councils to decide on clothing-optional beaches," he said.

Dr McGovern said he had spoken to new Queensland Police Minister Mark Ryan on the Sunshine Coast two weeks ago about the issue. "He said he would look at it," he said. "But all we have received is a similar letter – almost word for word – to one from his predecessor."