"Tough economic times call for stiff measures," Tony Fox, the owner of the White ****atoo resort in Mossman, in tropical Queensland state, told the Courier-Mail newspaper.

"It will be a hedonism resort, where anything goes for a month. It doesn't take rocket science to work out what it means," Fox said, naming March as the risque party month.

The controversial "clothes optional" resort made headlines three years ago when police were called to end partner-swapping parties after a swathe of public complaints.

"You've got to wonder what sort of people go and why. Where is the moral code of behavior and how do you stop jealousies and fights?" Cairns Catholic Bishop James Foley said after Fox's announcement.

But local regional Mayor Val Schier said she was not opposed to the event as long as no laws were broken.

"People in tropical north Queensland are extraordinarily creative," Schier said. "It is tough economic times and as long as it is with consenting adults, then there is no problem."

Australia's tourism in industry is being hit hard by global economic turmoil with official figures showing a 7.6 percent decline in overseas visitors in September.

Industry leaders expect holiday bookings may drop by up to a third in early 2009 and are planning a new international advertising campaign to coincide with the movie "Australia" starring Oscar-winning actress Nicole Kidman.

Fox said his resort was almost fully booked for the month-long rainforest party.

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