Huge Kangaroo Island tourist resort plans are revived with plan to secure water supply from American River

Plans for a major tourist resort on Kangaroo Island have been revived, featuring a hotel and villas in buildings up to five storeys high.

Plans for a major tourist resort at Kangaroo Island’s American River have been revived amid a $48m project to bring a secure water supply to the area.

City & Central Consulting and CCD Hotels and Resorts have completed revised plans, featuring a four or five storey development with 134 rooms.

The plans lodged with the State Planning Commission include a 102-room hotel, 16 two-bedroom villas, a conference area, spa and staff accommodation village.

A report by consulting firm URPS says the resort will offer horseriding, bushwalking, bird watching and conservation programs.

An artist's impression of the American River Tourist Resort.

The resort is a scaled-back version of the $22m plan approved in 2017, which never got off the ground, featuring 323 rooms spread across buildings up to seven storeys high.

Kangaroo Island Tourism Alliance chairman Pierre Gregor said the island needed more places for tourists to stay, along with conference rooms, and developments factoring in staff accommodation were critical because of a shortage.

“American River is a good location for that sort of development – it has a lot of appeal because of the seaside village atmosphere it has and there’s a lot of wildlife around.”

“The challenge will be making sure that demand and visitation is increased because COVID has impacted internationals and even interstate visitation.”

Mr Gregor said residents had been concerned about the height of the buildings planned under the project’s previous iteration.

Kangaroo Island Mayor Michael Pengilly in Kingscote. Picture: Matt Loxton

URPS’s report said the visual impact of the Thomas Road project was “significantly reduced” under the new plans because it would have 34 fewer buildings and their height would be much lower.

Buildings are also set back further from Thomas and Redbanks roads.

“The proposed amendment is believed to be an improvement to the original design in a number of ways, delivering a better commercial outcome, improved design and consequently a better planning outcome for the land and locality,” it said.

Kangaroo Island Mayor Michael Pengilly said the project was targeted around the introduction of a new water supply to American River through a $48 desalination plant at Penneshaw.

“We welcome investment but it's got to be in the best interests of the island,” Mr Pengilly said.

“It would do a lot for American River should it be built.”

The planning commission is seeking public submissions on the project until May 7.

The Advertiser has contacted the developer for comment.

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