$5M Sanctuary Villas Set to Transform Kangaroo Island Tourism
Plans are underway to develop a $5-million sustainable tourism project, Sanctuary Villas, at 3728 Hog Bay Road, Pelican Lagoon on Kangaroo Island. Proposed by Arthur Investment Holdings, the project aims to deliver luxury, eco-friendly accommodation while supporting South Australia’s growing tourism industry.
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Located between Penneshaw and Kingscote, the development site sits along Kangaroo Island’s main touring route, connecting key infrastructure including the SeaLink Ferry Terminal and Kingscote Airport. Sanctuary Villas will consist of 20 high-end, self-contained units designed to blend with the natural environment. Each villa will feature a kitchenette, ensuite bathroom, outdoor spa bath, fire pit, and deck. Two units will cater specifically to guests with mobility restrictions, and one will be allocated for worker accommodation.
To minimise environmental impact, the villas will be grouped into two clusters and accessed via existing tracks. Energy-efficient construction materials, including timber cladding, composite decking, and aluminium-framed windows with low-emission glazing, will be used throughout. Off-grid solar panels and battery generators will power the site, while waste and water management systems will ensure sustainability.
Pelican Lagoon, the backdrop for the project, is a significant ecological site on Kangaroo Island’s north coast. Established as South Australia’s first marine protected area in 1914, it remains a haven for pelicans and other marine life. Developers have worked with Gama Environmental Pty Ltd and CIRQA Pty Ltd to ensure the project aligns with the region’s environmental values.
A 70-seat restaurant showcasing seasonal, locally sourced produce and regional wines will complement the accommodation. Additional amenities will include walking trails, in-room minibars stocked with local goods, wellness packages, and outdoor activity areas with barbecue facilities.
Construction is expected to take 12 months, creating 22 local jobs. By its third year of operation, Sanctuary Villas is projected to generate $4.3 million annually in accommodation and restaurant sales, supporting 37 ongoing jobs. The development aligns with the South Australian Visitor Economy Sector Plan 2030, targeting high-yield domestic and international tourists, including those from North America, Singapore, and China.
With its commitment to sustainability and luxury, Sanctuary Villas is poised to elevate Kangaroo Island’s reputation as a premier eco-tourism destination.
Images via The Urban Developer
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Plans are underway to develop a $5-million sustainable tourism project, Sanctuary Villas, at 3728 Hog Bay Road, Pelican ...