Luxury Eco-Tourism Resort Proposed for Kangaroo Island

A rural site on Kangaroo Island would be transformed into a $5-million sustainable tourism development under plans by Arthur Investment Holdings.

The Sanctuary Villas project, proposed for 3728 Hog Bay Road, Pelican Lagoon, would comprise 20 luxury accommodation units between Penneshaw and Kingscote, the island’s biggest town.

Pelican Lagoon is a seawater lagoon on the north coast of Kangaroo Island about 19km south-east of Kingscote. Named by Matthew Flinders in 1802, the lagoon is, unsurprisingly, home to large population of pelicans and is among the oldest marine protected area in South Australia, having been established in 1914.

Located on the main touring route connecting key regional infrastructure including the SeaLink Ferry Terminal and Kingscote Airport, the developers believe Sanctuary Villas is positioned to capitalise on SA’s growing tourism sector.

The project would offer self-contained accommodation with high-end specifications, a kitchenette, ensuite bathroom, outdoor spa bath, fire pit and deck area.

Two units have been designed for guests with mobility restrictions, while another will serve as worker accommodation.

The villas would be clustered in two groups to minimise environmental disruption, and internal roads would follow existing access tracks.

The plans show that the the units would be built using energy-efficient materials, including timber cladding, composite decking, and aluminium-framed windows with low-emission glazing.

▲ The project is aimed at appealing to priority inbound tourist markets including North America, Singapore, and China, the developers say.

Solar panels and battery generators would provide off-grid power, complemented by comprehensive waste and water management systems.

The 70-seat restaurant would feature indoor and outdoor dining areas, showcasing seasonal, locally sourced ingredients and regional wines.

Additional amenities proposed include walking trails, in-room minibars featuring local produce, wellness packages, and outdoor activity areas with barbecue facilities.

The construction phase, expected to last 12 months, is estimated to cost $5 million and would create 22 local jobs.

By year three of operation, Sanctuary Villas is expected to generate $4.3 million in accommodation and restaurant sales annually and provide 37 jobs.

▲ A render of the 70-seat restaurant that would primarily serve guests, showcasing seasonal local produce.

Aligned with the South Australian Visitor Economy Sector Plan 2030, the development targets high-yielding intrastate and interstate visitors, as well as international tourists from North America, Singapore and China.

The project team, including Arthur Investment Holdings, Gama Environmental Pty Ltd, and CIRQA Pty Ltd, has conducted comprehensive environmental assessments.

Meanwhile, the heritage-listed 1920s-built Seaview Motel on the island is in line redevelopment after fire caused $500,000 damage. Established in 1924, the site is to undergo restoration and expansion under owner Yen Aun Leow’s plans, adding 28 premium and 14 standard suites alongside reinstating its 100-seat restaurant.