Images via Nic Design Studio.
A stunning array of 20 eco-cabins, set amidst beautiful Pelican Lagoon, and accompanied by an expansive restaurant, has been proposed for Kangaroo Island.
The $5 million sustainable tourism project is set to transform a rural stretch of Kangaroo Island into a luxurious eco-retreat, according to plans lodged by Arthur Investment Holdings. The Sanctuary Villas venture, planned for 3728 Hog Bay Road near Pelican Lagoon, aims to provide high-end environmentally friendly accommodation, creating a top tourism destination.
The proposed plans include 20 self-contained villas, each designed with luxury amenities including a kitchenette, ensuite bathroom, outdoor spa, fire pit, and private deck. Two of the villas will cater specifically to guests with mobility needs, while another unit is designated for staff accommodation. In keeping with its sustainability goals, the villas will be constructed in clusters to minimise environmental impact, and internal roads will utilise existing tracks.
The development will feature a 70-seat restaurant showcasing locally sourced, seasonal ingredients paired with KI wines. Guests can also enjoy nearby walking trails, wellness packages, and outdoor spaces equipped with barbecue facilities.
Strategically positioned between Penneshaw and Kingscote, the island’s largest town, the development sits along the primary tourist route connecting the SeaLink Ferry Terminal and Kingscote Airport.
Pelican Lagoon is known for its rich birdlife and is amongst South Australia’s oldest protected marine areas. The lagoon enhances the eco-focused appeal of the project, with Sanctuary Villas offering a luxury experience deeply rooted in the island’s natural beauty and conservation ethos.
Sustainability is central to the project’s design. Villas will be built with energy-efficient materials such as composite decking and low-emission glazed windows. The retreat will operate off the grid and be powered predominantly by solar. It will employ advanced waste and water management systems to ensure minimal environmental footprint.
The project is expected to generate significant economic benefits for the region. Construction, anticipated to take 12 months, will create 22 local jobs, while ongoing operations are projected to contribute $4.3 million annually in revenue by its third year, supporting 37 full-time positions. The initiative aligns with the South Australian Visitor Economy Sector Plan 2030, targeting travellers from interstate and overseas.
The project highlights Kangaroo Island’s continued evolution as a prime SA travel destination, blending sustainable tourism with modern luxury and deep respect for the environment.
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