A major transformation of Townsville’s transport system is one step closer, following the announcement of $3.5 million in funding towards the Townsville Marine Tourism Precinct development.

The development will replace the current Breakwater Transport Terminal and will include new ferry berths, facilities for buses, a commercial precinct and a brand new 90-room hotel.

Tourism Industry Development Minister Kate Jones said the funding was awarded under the $48 million Attracting Tourism Fund.

“This government is investing in tourism to create jobs in North Queensland – and that’s exactly what this project will achieve,” she said.

“This is about attracting tourists who spend more and stay longer when they come to visit North Queensland.”

The new precinct will connect the Townsville CBD to major tourism offerings like Reef HQ Aquarium, the Museum of Tropical North Queensland and the proposed new Museum of Underwater Art to the water.

The project could also create opportunities in the development of Palm Island through the creation of reef tours and indigenous experiences.

Member for Townsville Scott Stewart said the project has the potential to attract an extra 200,000 visitors, generate $28.7 million for local businesses and boost gross regional product by $13.1 million.

“Tourism is an important pillar of the North Queensland economy,” he said.

“This development will significantly contribute to jobs growth in the region.”

Pending necessary development approvals, the project is expected to be operational by 2021.

The Queensland Government’s support is conditional upon a $15 million contribution from the Australian Government.