Tourism and mining groups have welcomed a UNESCO recommendation that the Great Barrier Reef be left off the World Heritage “in danger” list, but environmental activists say it is still a red flag.

The draft decision from the United Nations’ conservation agency is being seen as a reprieve for the Queensland and federal governments, despite it flagging concerns about the reef’s poor outlook.

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UNESCO warned that the “in danger” label was not off the cards should progress not be made in the area.

The Queensland Tourism Industry Council (QTIC) said listing it as “in danger” would have been catastrophic for the tourism industry, discouraging tourists and threatening research programs.

The decision signals faith in Australia’s ability to manage the ancient environmental site, QTIC chief executive Daniel Gschwind said in a statement on Friday.

Whether the draft decision is accepted is another matter. It will be decided by the 21 nations on UNESCO’s World Heritage Committee at a meeting in Germany in a few weeks.

Greenpeace said it is a mistake to think of this decision as a reprieve for the reef.

“It is not a reprieve – it is a big red flag from UNESCO,” Greenpeace Australia Reef campaigner Shani Tager said.

“UNESCO has now also sent a clear signal that the Abbott government must fully protect the Great Barrier Reef and that means a reprieve from coal expansion.”

Greenpeace said it is calling on the federal government “to stop trying to prop up a dying coal industry and remove port expansion loopholes from the Reef 2050 plan”, as well as invest in a sustainable energy industry.

WWF-Australia CEO Dermot O’Gorman was also keen to point out the measures demanded of Australia in the draft decision.

“The Australian and Queensland governments must now deliver on their promises to better protect the Reef,” Mr O’Gorman said in a statement.

The Queensland Resources Council said the UNESCO recommendation recognises Australia’s huge strides in the management of the site.

“Pleasingly, the draft recommendation on the GBR (Great Barrier Reef) issued tonight in Paris is based on facts and science and was not diverted by the outrageous lies and distortions of certain activist organisations that have been campaigning relentlessly for the GBR to be placed on the ‘in danger’ list of world heritage properties,” council chief executive Michael Roche said.