Tourism hit in Kangaroo Island bushfires

SeaLink Travel Group’s adventure-style Vivonne Bay Lodge was completely destroyed while its ferry bookings have plummeted.

A koala that survived rests in a burnt out area near Vivvone Bay. Picture: Brad Fleet

Kangaroo Island’s out-of-control bushfires have claimed another tourism scalp, with SeaLink Travel Group’s adventure-style Vivonne Bay Lodge completely destroyed while its ferry bookings have plummeted.

The destruction of the 16-suite Vivonne Bay Lodge along with its popular restaurant, which was used by SeaLink’s day trippers, comes as the listed group’s chief executive reports an 80 per cent drop in ferry bookings to the island off the South Australian coast.

“The Vivonne Bay property and the restaurant, which was a higher quality bush experience, have pretty well been destroyed,” outgoing SeaLink chief executive Jeff Ellison told The Weekend Australian on Friday.

Fires have cast a large shadow over the emerging tourism hotspot. Kangaroo Island has been quietly growing along with growth in experience tourism. Visitors had injected $126m into the island by the end of 2018. Prior to the bush fires, the South Australian government had expected tourism expenditure on the island to hit $168m by the end of last year.

Internationally, Europeans account for about 60 per cent of holidaymakers hitting the island, with Germans, presumably attracted by its abundant wildlife, making up 13 per cent of arrivals. Italians make up 11 per cent while Americans number around 15 per cent, according to SA government figures.

The remains of Vivonne Bay Lodge destroyed by fire. Picture: Brad Fleet

The Kangaroo Island bushfires also completely destroyed the 21- suite Southern Ocean Lodge last week. One of Australia’s most prestigious properties, it was developed by the Baillie family and is now owned in a joint venture arrangement with the US-based KSL Capital Partners.

Baillie Lodges chairman James Baillie told The Australian earlier this week it would take at least two years for Southern Ocean Lodge to be rebuilt.

Meanwhile, a SeaLink-owned house associated with Vivonne Bay Lodge on the south coast of Kangaroo Island, which was used as a short-term rental property, also sustained some fire damage, Mr Ellison said.

SeaLink has insurance over the buildings, furniture, fittings and stock but not a lot of income insurance, Mr Ellison said, adding that it would take at least 12 months for Vivonne Bay Lodge to be up and running.

Mr Ellison says he wants to re-start day tours to the island as soon as possible. “We will have to find someone else who can employ our staff to work there. We are fully committed to rebuilding our property, our accommodation and our restaurant,’’ said Mr Ellison, adding that Vivonne Bay Lodge employed 12 staff.

Most of SeaLink’s Kangaroo Island visitors hail from interstate, Europe and Asia and Mr Ellison said news of the fires was the lead story in European news.

While ferry bookings are down 80 per cent, Mr Ellison said he did not think that would continue for long. Once there was regrowth on the island visitors would return to Kangaroo Island, he said.

“We had a downturn for a significant time last time in 2007 when there were bushfires, which were about half the size of these. These fires have been more devastating to the community, the houses and the properties,” he said.

“However, people will start to return to the island.”

“There’s a lot of Kangaroo Island still open, it’s mainly down the western end like Remarkable Rocks that has been devastated.”

SeaLink said it did not consider the destruction of Vivonne Bay Lodge would have a material adverse impact on earnings.