Worldwide travel insurance advised as Oz islands fall victim to recession

Cheap travel insurance could be among the best ways to avoid being left short-changed by struggling tourist resorts in Australia.

Booking fears have been raised following news more than 30 islands off the Queensland coast are up for sale in a bid to stave off financial troubles, reports the Australian.

The Hunt Resort on Fitzroy Island, located 22 miles southeast of Cairns, already went into receivership earlier this week.

Other popular backpacker destinations in turmoil include Dunk Island.

The newspaper reports it is being flogged for just AUS$25 million (£12 million), less than half of its previous sale price of $51.8 million.

According to the island's website, backpackers can enjoy a string of outdoor activities in the area, including rainforest walks, snorkelling, paddleskiing, horse riding and skydiving.

The island, which boasts a campsite as well as a more exclusive resort, is located four kilometres off the Australian east coast, opposite Mission Beach.

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