News of an upcoming development at Pandanus and Dougies blocks, set for mid-2025 construction, has sparked curiosity about the fate of beloved Dougies Backpackers Resort.

Although the development looms on the horizon, a decision has recently been made to keep Dougies operational until at least November 2024.

In a recent interview with Newsport, Steve Yarr, owner of Dougies, shared insights into their journey since deciding to sell the business.

Decision to sell

It was in July 2021 when Steve and Heather Yarr, who have owned Dougies for a solid 25 years, decided to put their business up for sale as a going concern.

Their decision was influenced by a desire to reduce their workload and spend more time with their children, and the impact of Covid also played a role.

“We recognised that after Covid, the town would rebound, making it attractive to prospective buyers,” Mr Yarr explained.

“Dean Laidlaw, who is the owner of Pandanus Caravan Park next door, entered the scene as a potential buyer, and after negotiations, he bought Dougies as a going concern.

“We then also came to an agreement for me to lease the property back for 12 months, allowing us time to celebrate Dougies one last time with the community.

“In the meantime, Dean entered a joint-venture with Tim Gurner to develop a mixed-use project on Pandanus and Dougies’ blocks.”

The 12-month lease was set to end in November, but Steve and Heather Yarr, along with Mr Laidlaw, agreed to extend it until at least November 2024, providing a temporary reprieve before the anticipated development.

More than a backpackers resort

Mr Yarr is relieved that Dougies will remain open for another year but also acknowledges that the uncertainty surrounding its future puts pressure on the community.

“It will have a significant impact on the town, there will be less short term accommodation and Dougies has been part of town for a long time,” he shared. 

“The Davidson is a classy and luxury development that appears to be in line with the town plan and so we wish Dean and Tim all the best for their project.

“In the meantime, we will continue to enjoy our time at Dougies looking after visitors to town until the end of 2024.”

*Newsport reached out to Dean Laidlaw for this story but he was unavailable for comment.