The clean-up is under way at the derelict Cape Richards Resort on the northern tip of Hinchinbrook Island, in far north Queensland.
Tourism Industry Development Minister Kate Jones said funding from the Palaszczuk Government's $25 million Great Barrier Reef Island Resort Rejuvenation program was being used to clean up the resort and return the area back to national park.
"Queensland's biggest selling point is its natural beauty," she said.
"This project is all about restoring the land and adding to the national park on Hinchinbrook island.
"This resort was closed in 2010 after the global financial crisis and has been subject to cyclones, vandals and a fire, and has been need of a clean-up to return it to national park."
Following a tender process, undertaken by the Department of Environment and Science, a local Townsville company was awarded the contract for the clean-up work.
Minister for Environment and the Great Barrier Reef Leeanne Enoch said the clean-up was essential to ensure public safety and return it to a condition suitable for a world heritage listed National Park.
"The Palaszczuk Government is committed to protecting Queensland's natural assets so they can be enjoyed by future generations," Ms Enoch said.
"The work to restore this site is now underway and is expected to take about two months to complete.
"Traditional Owners, the Bandjin and Girramay people, have been consulted and are engaged in the clean-up project.
"The works will help return this unique national park area to its world heritage-listed natural state, and will complement further contemporary, environmentally appropriate opportunities on the island."
The former Cape Richards resort closed when the owners went into liquidation after the global financial crisis. It was surrendered to the State Government last December.
Work that is occurring includes removing the remaining building and rubble from the Cape Richards site to enable natural regeneration.
