Tropical cyclone Owen crossed the south-east Gulf of Carpentaria coast between Kowanyama and the Gilbert River Mouth about 3am as a category 3 on Saturday despite predictions it would intensify to a category 4.

Sweers Island Resort co-owner Lyn Battle said she was fearing the worst, listening to the warnings of copping a potential category 4 cyclone, which would have passed through before heading towards Kowanyama.

"We were very nervous because we have never gotten anything higher than a category 3, so we were very prepared," she said.

"All of our boats were out of the water, cabins were locked up, cyclone shutters were on the house and our shipping container used to take cover was ready, but thankfully we didn't need it.

"We even had the plumber and electrician on standby.

"The resort is our home and our livelihood, and I was very concerned about severe damage."

Ms Battle said she was relieved there was no damage or high wind gusts as the cyclone passed over.

"The highest wind gusts were 34 knots and we received 22 millimetres of rain in three days, which is not a lot, and we also had no beach erosion that was expected with the tides," she said.

Ms Battle said residents had to prepare because they would never know how quick and dangerous a cyclone could be.

"We were hit with Cyclone Nora earlier this year and that was bad," she said.

"That was the first time I can recall seeing a cyclone come from such a distance and with a gallop towards us.

"That's why we were prepared for Owen, you can't ever take these things lightly."

The Bureau of Meteorology said the cyclone was downgraded to a category 2 but severe weather warnings and a flood watch warning for north and Central Queensland were still in place.

Destructive wind gusts of 130 kilometres per hour close to the centre of the cyclone were continuing as it moved inland north-east of Normanton.

The cyclone is expected to wreak havoc for several days as it tracks across the cape and then down Queensland's eastern coastline over the next few days.

Premier Annastacia Palaszczuk said there was no damage to the Pormpuraaw and Kowanyama communities.

"We expect everyone to be back to their normal course of business over the coming few hours," she said.

"However, Tropical Cyclone Owen is still a category 2 system and is still moving across Queensland."

Ms Palaszczuk said wind gusts were expected to affect south of Palmervile, Atherton and Ravenshoe before reaching the Innisfail and Ingham area on Sunday.

A Bureau of Meteorology spokeswoman said they were expecting the cyclone to weaken below category 1 by the end of the day, with heavy rainfall anf strong winds.

"With those locally heavier totals, we could see 100-200 millimetres in some parts over the next 24 hours as well as a risk of damaging winds even once that system has weakened below 1 category intensity," she said.

"At this stage, were expecting it to move out past the Cardwell area and there is a low chance of it redeveloping but regardless the impacts are still going to be significant so keep your eye on that severe weather warning as it evolves."

Queensland Fire and Emergency Services Assistant Commissioner Kevin Walsh urged residents to stay indoors until they were told by emergency authorities if it was safe outside.

“Our priority is to help those who need assistance, and we will be on the ground as soon as it is safe for our crews to venture out,” he said.

“There is likely to be a number of hazards including fallen trees, power lines, debris and even possible structural damage to infrastructure, and it is vital people do not go sightseeing and avoid damaged buildings.

“If you can return home, ensure you use only the recommended routes and under no circumstance should you attempt to cross flooded creeks or causeways.

“If electrical appliances in your home have been wet, do not use them until they’re checked for safety.”

Mr Walsh said residents should contact their local council if a home or property was destroyed because of cyclone damage for assistance.

“Parents are urged to keep a close eye on children who may be tempted to explore the area and play in floodwaters," he said.

"In Queensland, young lives have been lost from children playing in and around flood water.”

Mr Walsh said State Emergency Service volunteers had been out in force since first light to assist the community.

“If your situation is life-threatening, ensure you call Triple Zero (000) immediately,” he said.

“Due to the demand on their workload, it could take some time for SES crews to reach you, so please remain patient.”