Plan adjustments made in mid-2025 responded to community concerns, including shortening the luge track, removing a pedestrian bridge, and redesigning the observation tower.

Proponents claim the project will significantly boost the local economy, with Arthurs Seat Eagle projecting more than $1.8 billion in economic impact for the area.

The final permit includes environmental safeguards, such as preserving natural slopes, retaining vegetation along the luge corridor, and mandating ongoing consultation with Parks Victoria regarding impacts on trees and flora.

Locals and environmental activists oppose the project, arguing it threatens natural heritage and would introduce amusement-park-style attractions to a state park, potentially harming the hillside and ecosystem.

A geotechnical assessment considered landslide and erosion risks due to the site’s proximity to prone areas, referencing recent regional landslides and an interim erosion management overlay plan.

Mornington Peninsula Shire Council members were split and voted against formal objections, though their role is advisory and not binding on the planning minister.

The decision unfolds amid ongoing public debate over balancing tourism development with environmental conservation on Victoria’s Mornington Peninsula.

A controversial $25 million redevelopment at Arthurs Seat on the Mornington Peninsula has been approved by Planning Minister Sonya Kilkenny, signaling a major tourism push that includes an outdoor luge and a 34-metre observation tower.

Arthurs Seat Eagle holds a 50-year state lease and is owned by billionaire Peter Gunn and NAB director Simon McKeon, adding magnitude and investor interest to the project.

Environment Minister Steve Dimopoulos defended the project as a long-term boost to Victoria’s tourism while pledging protection of the natural environment.