Club Med will close its only Australian property, Queensland's Lindeman Island resort, in January.
Club Med Australia and New Zealand general manager Quentin Briard said it was an extremely difficult decision for Club Med to make, as the resort is a firm favourite with its Australian and New Zealand guests.
"But our on-going research shows that more and more, our guests want our new premium all-inclusive product, and Lindeman's three trident [three-star] status... was not in that category," Briard said in a statement.
"So in order to meet our customers' expectations, we have to now seek a new resort in Australia."
No forward bookings have been taken by Club Med after the proposed closure date of January 31, so no guests will be inconvenienced, he said.