BILLIONAIRE Clive Palmer has announced his United Australia Party will contest the next local council election in Townsville.

Mr Palmer said the party had resolved at an interim national executive meeting to contest the next election, due to be held in 2020.

"Townsville is an example of how poor local government has destroyed an economy," he said.

"The region has so much potential but needs guidance from its local government.

"It is time to draw a line in the sand and fight back, which is what the United Australia Party vows to do."

Mr Palmer said the current Townsville City Council and the Queensland Government had "no idea" how to create or save jobs.

"The region is suffering from the loss of Tiger Airlines' Melbourne to Townsville service, accounting for some 23,000 visitors on top of losing weekly international flights to Bali,'' he said.

"This is a negative endorsement from business resulting from damaging comments made about Townsville by the mayor and her administration."

Mr Palmer said he believed the council had created a negative environment resulting in an "unprecedented" lack of confidence from the business community.

"In the coming months and years, the United Australian Party will put in place a powerhouse team to rejuvenate Townsville," he said.

"A revolution is coming."