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No decision on Dreamworld reopening

AAP logoAAP 31/10/2016

Ardent Leisure's Dreamworld will remain closed, with management giving no time frame for reopening of the Gold Coast fun park after four people were killed in an accident there.

Dreamworld chief executive Craig Davidson announced on Monday that the company will review every mechanical ride at the Gold Coast fun park - separate to a police investigation into last Tuesday's fatal accident on the Thunder River Rapids ride.

Kate Goodchild, her brother Luke Dorsett, his partner Roozi Araghi and Cindy Low all died when their raft flipped at the end of the Thunder River ride.

Ms Goodchild's 12-year-old daughter Ebony and Ms Low's 10-year-old son were also on the raft but survived.

Mr Davidson said there was no time frame or decision with regard to the park's re-opening, despite having previously said the park will reopen after the victims' funerals.

Dreamworld remains a crime scene and the park had received public criticism over its initial plans to reopen on Saturday.

"We have commenced a systemic and methodical park-wide safety review of every mechanical ride in our park," Mr Davidson told reporters on Monday.

"This will include the appointments of arms-length and independent world leading mechanical engineering and workplace safety experts."

Dreamworld Theme Park on the Gold Coast © AAP Image/Dave Hunt Dreamworld Theme Park on the Gold Coast Bell Potter analyst John O'Shea has warned that Dreamworld's visitor numbers could plunge by as much as 20 per cent for the 2017 financial year when it does reopen.

He expects numbers will gradually improve in the following financial year.

Mr O'Shea said it remains unclear what the financial impact of the Dreamworld tragedy will be on Ardent but he estimated earnings for the group's theme parks business - which includes WhiteWater World, also on the Gold Coast - would more than halve from $34.7 million to $15 million in 2016/17.

"What is clear, is that if the park re-opens, attendances will be adversely impacted," he said in a research note.

"It remains unclear what financial and other penalties will be incurred if the company is found to be responsible in any way and how insurance cover fits into this scenario."

Investors again sold down shares in Ardent Leisure with its shares closing two cents, or 0.9 per cent, lower at $2.02 on Monday.

Before the tragic accident on October 25, Ardent's share price was around $2.67.

Ardent Leisure announced on Sunday that it has hired experienced natural disaster recovery expert Mike Mckay, a retired police inspector, to help rebuild public trust in Dreamworld following criticism of the way the company has handled the fallout from the tragedy.

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