Queensland divers got an early Christmas present with the Fraser Coast winning the friendly war with North Stradbroke Island to be the new home for the state's next artificial dive reef, the HMAS Tobruk.
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Regional Development Australia Wide Bay deputy chairman Daniel Poacher said it would mean an extra $4 million a year for the region's economy.
"Isn't that just great news," he said on Friday.
"We are very, very excited for our region."
HMAS Tobruk will be scuttled "half way between Hervey Bay and Fraser Island", Mr Poacher said.
"It really means an additional $4 million into our Fraser Coast/Bundaberg economy a year," Mr Poacher said.
He said there was now very good potential to encourage divers coming to the HMAS Brisbane "Sunreef" dive site two kilometres off Mooloolaba up to the HMAS Tobruk as a joint dive package.
The Wide Bay/Burnett regional development authority has $1 million from the Fraser Coast Council and a further $1 million from the Bundaberg Regional Council to help fund the scuttling and promotion of the artificial reef.
The Commonwealth government on Friday afternoon advised it had accepted Queensland's recommendation that the Fraser Coast be chosen as the final resting place of HMAS Tobruk.
HMAS Tobruk has been stationed in Queensland since 1981 and was part of the flotilla of ships that escorted the Her Majesty's ship Brittania into Brisbane to celebrate the opening of the 1982 Brisbane Commonwealth Games.
Tourism Minister Kate Jones made the announcement on Friday afternoon afternoon, predicting it will boost tourism in the Hervey Bay and Bundaberg Region.
"This is a great win for the Fraser Coast area and a great win for Queensland as the chosen state to be the final resting place for the ex-HMAS Tobruk," Ms Jones said.
"This vessel has a strong connection to our state having first sailed in Queensland waters in 1981.
"The Fraser Coast offers an amazing array of activities including whale watching, ancient rainforest and stunning coastline and a world-class dive site will perfectly complement the tourism offerings in the region."
The artificial reef should be in place by late 2018.
The HMAS Tobruk supported peace keeping missions in Somalia, South East Asia and the South Pacific and was awarded a battle honour for actions in East Timor in 1999.
