Melbourne Star, the giant observation wheel in the Docklands, closed for good today. Interstate and international tourists made up 45 per cent of the business, which could not weather the impact of Covid-19.

“It is with a heavy heart that the directors of Melbourne Star, Melbourne’s giant observation wheel at Docklands, today announce the iconic attraction will close permanently and the operating company, MB Star Properties Pty Ltd, will be placed into liquidation,” the company said in a statement. “The directors of the wheel are absolutely committed to doing the right thing by our dedicated team and have made arrangements to ensure all our employees will be paid their full entitlements.”

The wheel, originally christened the Southern Star, opened in 2008, two years behind schedule, and cost an estimated $100 milion to build. Just 40 days later it shut down after 14 cracks – some up to three metres long – were discovered in the structure. Engineers later blamed the original design.

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After extensive reconstruction and legal difficulties, the wheel reopened in December 2013 with new owners and today’s name.

While it’s since attracted 300,000 visitors a year, critics questioned its financial viability from the beginning. The London Eye, which Melbourne’s own wheel was at least partially inspired by, attracts about 10 times that many riders. Pre-pandemic, 21 million tourists visited London each year, while just three million came to Melbourne, underscoring the difficulty of maintaining such a large, expensive tourist attraction.

There’s no word yet on what will happen to the structure – whether it might be sold to a new owner to continue operating or simply demolished and sold off for scrap, as was partially the case with the original flawed design.