The tourist industry has warned developers may walk away if the proposed new resort at Great Keppel Island, off the central Queensland coast, is rejected again.
Two earlier applications by Tower Holdings have been rejected on environmental grounds and it is still waiting for a decision on a third scaled-down version.
Mary Carroll from Capricorn Enterprise says the company cannot keep lodging applications forever.
"If Tower Holdings don't get approval for this third application they will walk away most probably," she said.
"That is tragic to say but it is the truth.
"They have spent in excess of $50 million on this proposal and holding costs.
"They really need an approval soon so that they can start this development next year." Ms Carroll says approval would be an ideal Christmas present for central Queensland.
"We've got international destinations like Bali and Fiji offering prices that we just can't compete with," she said.
"The only way that we can compete in Queensland in our tourism industry is best product, best service and best experience.
"Gee wouldn't it be a nice Christmas present to get the announcement of Great Keppel, the finalisation of the dual sector university."