A Far North Queensland tourist island left lying in ruins for years will undergo a multi-million-dollar redevelopment in an effort to create an international tourism drawcard.

Key points: Australia-based Mayfair 101 has bought Dunk Island for $32 million

Australia-based Mayfair 101 has bought Dunk Island for $32 million It has been in disrepair since Cyclone Yasi in 2011

It has been in disrepair since Cyclone Yasi in 2011 The investment consortium has also bought 200 properties at nearby Mission Beach with the intention of drawing overseas tourists

A global private investment consortium forked out $31 million for the cyclone-ravaged island, but its vision goes well beyond rebuilding the resort.

Australia-based Mayfair 101 bought up to 200 properties in Mission Beach — about 20 minutes away from Dunk Island by boat — for around $150 million, with dreams to turn the region into "Australia's tourism mecca".

Managing director James Mawhinney said the company intended to pump $1.6 billion dollars into the Cassowary Coast over the next 15 years.

He said construction of multiple projects such as camping sites, family-style resorts and an ultra-luxury beach-club-style resort on the mainland at Mission Beach would create up to 10,000 jobs.

"We are delighted and humbled in being given the opportunity to restore the jewel in the crown of Far North Queensland," Mr Mawhinney said.

"One of the things that has really been lacking, we have found there have been a lot of operators have come in and just operated individual sites.

"Some have succeeded, others have failed.

The local council said the plans need to align with the council's eco-tourism vision. ( ABC News: Tom Orr )

"Part of our de-risking strategy was to make sure we had a much more broader, cohesive plan."

That plan includes building a golf course, three resorts on Dunk Island and upgrading the airport at Innisfail or Dallachy (near Cardwell) to accommodate international jets.

The company is keen to tap into the Asian market but is also in talks with airlines that can stop over in Dubai.

"Dunk Island is an iconic part of Australia's history," Mr Mawhinney said.

"We are very mindful of this region having two world heritage-listed sites."

The vision for the region, which has struggled to get back on its feet since Cyclone Yasi in 2011, has been welcomed with open arms by the local council and business owners.

Units at Dunk Island Resort were damaged by Cyclone Yasi in 2011. ( ABC News: Tom Orr )

Cassowary Coast Mayor John Kremastos said the resort had been left in disrepair.

"It has been a long, hard slog," he said.

"Tourist numbers have been down, it has had a negative impact on the growth in our area and the confidence, so this is just a complete turnaround."

But he said plans to upgrade the airport were unlikely to come to fruition any time soon.

"It will be a long and difficult process and there would be many hurdles going forward to extend the runway," he said.

"Having said that, I have a vision of creating an intermodal transport hub and I'd be supportive of having the capacity to bring larger jets into the area."

The island, which was also hit by Cyclone Larry in 2006, is divided into three parts — a national park area, a freehold area and the council-owned spit which is used for low-impact activities like camping.

Dunk was sold to Mayfair 101 by the Queensland-based Bond family.

Linc Energy founder Peter Bond had bought it "cheaply" in 2012 for about $7 million and the sale could not have come at a better time for the former rich lister.

He is engaged in an ongoing legal battle with the State Government over alleged contamination of his controversial underground coal gasification plant in south-west Queensland.

Linc Energy, which was once valued at $1.1 billion, went into liquidation in May 2016 with debts of $320 million.

Mayor John Kremastos believes the project will invigorate Far North Queensland. ( ABC News: Tom Orr )

'We don't want another Gold Coast'

Mr Kremastos said the redeveloped resort, combined with the natural appeal of the region, would significantly boost visitor numbers from overseas.

"It's massive, there is much capacity to bring a large number of international guests to our region," he said.

"The Cassowary Coast is stunning, we've got not only the islands and the Great Barrier Reef, we've got our natural rainforest, waterfall trails, there's so much to do here.

"Once the word gets out we'll see a whole new invigoration in Far North Queensland."

The Mayor added the multi-million-dollar investors would need to align with council's planning scheme which valued eco-tourism.

"We don't want another Gold Coast or concrete jungle, we want people to appreciate the beauty of our area," he said.

The rebuild is still subject to State Government approvals.