Feature

Clock is ticking: The Australian island facing an uncertain future

Once home to the most profitable casino in the world, a vibrant phosphate mine, and a multi-million-dollar detention centre, Christmas Island is fast becoming the forgotten island off the Western Australian coastline.

Aerial view of Christmas Island including water, mining and roads

The remote Australian territory of Christmas Island in the Indian Ocean is 2,600km away from Perth. Source: SBS News / Christopher Tan

The clock is ticking for Christmas Island, the remote Australian territory in the Indian Ocean facing an uncertain future.

Situated more than 2500km north-west of Perth, Christmas Island is home to 100 million red crabs, who make a picturesque migration each year. It is known among nature lovers as the "Galapagos of the Indian Ocean".

But among Australian mainlanders, it is better known as the site of an immigration detention centre, which opened in 2008 and was emptied in October 2023.

Others might be familiar with the island’s economically significant phosphate mine, which has a lease expiring in 2034.

And some may even recall the heady days of its casino, which generated more than $5 billion a year in profits for four years during the 1990s.

Christmas Island’s identity

According to the Australian Bureau of Statistics, Christmas Island’s population is rapidly decreasing.

In the past 10 years alone, hundreds of people have left, and despite local reports suggesting a much lower number, the latest Census data indicates a population of just over 1,600.

Twenty-two per cent of the island's inhabitants are of Chinese ancestry.
People gather around a table, some are using chopsticks to toss noodles
Parts of the Christmas Island community tossing noodles for good luck at a Lunar New Year event in February 2024. Source: SBS News / Christopher Tan
Despite being detached from the mainland, Christmas Island has a Western Australian postcode, and the federal government has the power to enforce state-level laws in addition to federal laws.

There is a local government, but no state-level representatives. Residents are still required to vote in federal elections and referendums, including the recent Indigenous Voice to Parliament referendum.

Even though the island formally became part of Australia in 1958, residents were not permitted to vote until 1984.

Immigration detention centre

Asylum seekers who arrived in Australia by boat without a valid visa were detained on Christmas Island from the 2000s to 2010s.

The Christmas Island Detention Centre was built at a cost of $396 million with hundreds of millions of dollars per year spent on Australian immigration officials and Navy and Australian Border Force personnel to operate the facility.
Aerial view of immigration detention centre surrounded by trees and the ocean.
The empty Christmas Island immigration detention centre in February 2024. Source: SBS News / Christopher Tan
It became notorious for its protests and riots, most notably in October 2015 after Kurdish-Iranian inmate Fazal Chegani Nejad escaped. His dead body was found close to the centre’s fence with a ligature compression of the neck.

The centre was closed in 2018 after a decade of use but reopened by Scott Morrison's government in the lead-up to the 2019 federal election at a cost of $26.8 million.

It continued operating in 2020 and was used to evacuate and isolate Australian citizens from Wuhan in China, during the onset of the COVID-19 pandemic.

Despite its stigma, the detention centre became an important stimulus to the island’s economy, increasing local employment and spending.
It was emptied in October 2023, when Anthony Albanese's government returned the centre to a "hot contingency state of operation". The facility has not been closed and still operates at a cost of $350 million a year.

"A hot contingency state, rather than full closure, offers versatility and better long-term value for money in terms of the requirement for operational readiness," an Australian Border Force spokesperson said in February in a statement to SBS News.

"The environmental conditions on Christmas Island mean facilities quickly go into a state of disrepair if they are not maintained.

"The facility on Christmas Island can be reactivated at short notice, if needed, to alleviate pressures within the mainland Immigration Detention Network."

Phosphate mining

Lucrative phosphate deposits have been the envy of neighbouring nations, including Japan, which occupied the island during World War Two in order to access the mineral.

It remains the island’s most valuable resource and source of income for households.
Phosphate mine infrastructure pictured along the coastline
Phosphate mining has been underway for over a hundred years on Christmas Island and remains the island's main economic driver. Source: SBS News / Christopher Tan
Phosphate mining generates approximately 280 full-time jobs, representing 40 per cent of the island’s total labour force.

On its own, the industry injects approximately $27 million into the local economy each year.

But Christmas Island Phosphates’ (CIP) permit to extract phosphate from its mining leases expires on 15 September 2034.

While CIP has not commenced the formal process of seeking an extension of its current mining lease of 18.1 hectares for extraction, it is a process it will be undertaking in due course.

But locals believe there is very little chance of it being approved due to environmental impacts.

An abandoned casino

The Christmas Island Resort, often called the Christmas Island Casino, is just one of a number of other abandoned buildings dotted around the remote territory.

It’s been 26 years since the dice were last rolled at what was once the world’s most profitable gaming floor.
A gambling table in a dark room with Christmas Island font printed on it
Christmas Island's casino once generated over $5 billion a year in profits. Source: SBS News / Christopher Tan
The opening of the Christmas Island Resort in 1993 provided, for the first time, a true tourism base for the island.

This helped diversify the economy after the mine was abruptly shut by the Commonwealth in 1987 due to drought and low phosphate prices. It would remain closed until 1991.

Tracks Tavern co-owner Peter Griggs helped set up the casino during that period.

"It is frustrating (today), because the people who were here remembered that when it was operational, it was a brilliant venue," he said.

"It employed 400 people full time, there were flights five days a week, and it grew the population from 800 to 2,700 in less than five years."
Nine slot machines in a dark room, with a staircase beside it.
When the Christmas Island Casino operated, the facility included 43 slot machines and 23 gambling tables. Source: SBS News / Christopher Tan
The resort sits on a 47-hectare block of land with a crown lease not expiring until 2088.

It consists of 156 guest rooms and suites, including a restaurant, nightclub and swimming pool and last operated in February 2014 to house detention centre workers.

What’s next for Christmas Island?

Without a detention centre, phosphate mining or a casino resort, and with a dwindling population, there are questions about the island's future.

Christmas Island Shire president Gordon Thomson remains positive and says work to transition the island onto the next economy has already begun.

"We believe the disturbed land from mining, could be put to good use for agriculture and horticulture," he said.
A middle-aged man in a light blue shirt sits in front of a computer in an office.
Gordon Thomson has been Christmas Island's Shire president since 2003 and says the island has an agricultural future. Source: SBS News / Christopher Tan
Last December, the shire took its Christmas Island-Singapore strategy to Canberra to meet with representatives from the prime minister’s office.

Thomson says that, after talks with tertiary institutions in Singapore, the shire has plans to repurpose the island’s sports hall into a sustainability hub for research.

"We’ve been in talks with Temasek Polytechnic and Murdoch University (in Singapore) in doing significant research into the growing of plants, for both food and traditional Chinese medicine," he said.

"It’s very difficult to get your agenda up in Canberra, which is a very long way away.

"The next stage is that we are hoping the Commonwealth will advocate for us, to tell Singapore this is (also) part of Australia’s plan … and not just the shire’s."

What about tourism?

According to the Christmas Island Tourism Association, 5,741 visitors arrived by flight in the last financial year, a figure that has held steady throughout the past four years.

Destination marketing manager Sarah Coote says the island's natural attractions are a big drawcard.
Red crabs scattered all across the ground, as part of their migration journey from the ocean to the forest
The over 100 million red crabs living on Christmas Island are one of the main drawcards for tourism each year. Source: SBS News / Christopher Tan
"It’s a place where it is not overdeveloped and so nature takes centre stage," she said.

"Beyond that, we have a myriad of different cultures coming together here, which is really beautiful."

In March 2022, the Christmas Island Marine Park was established by the Commonwealth, meaning 60 per cent of the island is now protected as a national park.

The coverage of 277,016 square metres of ocean and sea floor provides protection for more than 680 species of fish in the region; opportunities for recreational activities like boating, diving and snorkelling; as well as in investment in educational research.
THE SWIMMING POOL AT THE CASINO RESORT SITTING DERELICT. CREDIT_ CHRISTOPHER TAN.jpg
The swimming pool at the Christmas Island Resort sitting derelict. Source: SBS News / Christopher Tan
Coote says the certainty has enabled the association to plan forward and ramp up its social media presence.

"It means that people can enjoy this place for generations to come, where we have some of the best diving spots, and some of the most incredible clear (warm) water all year round on the planet," she said.

Why are people staying?

Kim (Ya-Ju) Sung was once a newcomer from Taiwan; it was a family breakdown that led her to search for a sea change.

"On this island, they don’t care about whether you are a lesbian or gay," she said.

"Sometimes when I tell them I don’t have a family, they say 'Who says you don’t have a family?'

"The neighbours here are very nice. Sometimes if they cook, and when there is a special occasion, they will always cook for me."
Two women wearing orange hi-vis shirts sit on a couch inside a property on Christmas Island
Christmas Island couple Araya Thongson and Kim (Ya-Ju) Sung. Source: SBS News / Christopher Tan
Sung was one of a number of others who lost their jobs when the detention centre was emptied.

But instead of leaving the island, she chose to stay and find other work in garden maintenance in and around the island.

One resident who has witnessed the waning and waxing of the Christmas Island population is Zainal Abdul Majid.

He is one of a few remaining life-long residents, having stayed and opened the island’s first and only Malay Muslim convenience shop.
A shop owner wearing glasses and a T-shirt stands behind the counter at his convenience shop.
Zainal Abdul Majid opened the island’s first and only Malay Muslim convenience shop. Source: SBS News / Christopher Tan
Majid, who also previously worked at the mine, hopes that operations will continue beyond 2034.

"As long as there are still people on this island, I’ll be here," he said.

"We’ve been on lots of holidays to the mainland and even overseas, and the (busy) lifestyle is just not something we can get used to.

"Nothing quite beats this island life."

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9 min read
Published 6 April 2024 6:38am
By Christopher Tan
Source: SBS News


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