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Kangaroo Island resort at American River given major project status

A FOUR-star, $35 million resort, including a marina and ferry wharf on Kangaroo Island has been given major project status.


A major resort is set to be built at American River on Kangaroo Island.

The resort, to be built at American River on the tourist island’s northeast about 30 minutes from the ferry port of Penneshaw, will feature 200 beds, shops, restaurants, a new ferry terminal and boat ramp.

The project, which is expected to create about 100 jobs, has been granted major development status by the State Government, but must still undergo public consultation.

Tourism Minister Leon Bignell said the 30ha resort would include 160 hotel rooms, 40 villas, two restaurants, bars, a spa, fitness centre, kids club, conference facilities and an outdoor activity centre.

Kangaroo Island Commissioner Wendy Campana said the 100 expected jobs would account for about a fifth of the total tourism employment on the island.

The resort is City and Central Consulting’s first venture outside of Thailand, where it has developed one of that country’s largest resorts on Phuket island.

CCD Hotel and Resorts chief executive officer Paul Mercer said the American River development would “enhance the reputation and profile of the island internationally and also act as a boost to the South Australian economy generally, helping to grow visitor numbers”.

It is understood a ferry operator has not yet been contracted.

Kangaroo Island Council Mayor Peter Clements said the project would help to sustain year-round business opportunities on the island. 

“The project is a much-needed boost for the island and ... demonstrates the building confidence of investors in the future of our island and community,” he said.

Mr Clements said the council would work to ensure that the development did not have an “undesirable impact on (the) pristine environment” of the island.

“A development of this scale requires much planning, care and sensitivity to ensure that ... all that is unique about our island is not lost or devalued in any way,” he said.

Ms Campana said the major development process was “the most rigorous” assessment available under the Development Act.

 

Opposition tourism spokesman David Ridgway said he expected it would be a “lengthy process” to gain final approval for the development, given the environmental considerations.

Mr Ridgway said the development would attract more people to the island, which would create more demand for access either by sea or air.

In February, the State Government pledged $3.5 million to upgrade the Kingscote Airport and asked the Commonwealth to contribute $13.5 million to the redevelopment.

A spokeswoman for Assistant Infrastructure and Regional Development Minister Jamie Briggs said the Kangaroo Island Council was preparing an application for funding under the Australian Government’s National Stronger Regions Fund, which closed at the end of July.