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February 20, 2026 — 10:56am
A controversial multimillion-dollar tourist attraction on the Mornington Peninsula has been approved by the state government, ignoring concerns from the community about environmental and landslide risks.
The project on Arthurs Seat – a 300-metre summit 85 kilometres south-east of Melbourne – was granted a permit from Planning Minister Sonya Kilkenny on Thursday.
Part of a redevelopment project that is set to cost $25 million, it will include an outdoor luge and a 34-metre observation tower.
Arthurs Seat Eagle CEO Matthew Mulkearns said the major development would inject more than $1.8 billion into the area’s local economy.
“This upgrade lets us share the magic of the Mornington Peninsula in bold new ways … We’re building a truly world-class experience worthy of this incredible landscape,” Mulkearns said.
But the development has faced fierce opposition from locals and environmental activists. Resident Kylie Greer from activism group Save our Seat said adding “Luna Park attributes” to a state park was an irresponsible decision.
“A luge is not an appropriate activity centre for a state park. It will ruin the hill,” Greer said. “Save our Seat are not anti-tourism. We are not anti-development. We’re for sensible tourism on the hill.”
“Minister Kilkenny will go down in history as the person who signed off on the destruction of the natural heritage and beauty of one of Victoria’s most treasured places.”
The original plans for the attraction were adjusted in July 2025 following community concern. Changes included shortening the luge track, removing a pedestrian bridge and redesigning the 34-metre observation tower.
The final permit includes a long list of conditions, including maintaining the natural slope, retaining existing vegetation along the luge corridor and regular consultation with Parks Victoria about impacts to local trees and flora.
Landslide and erosion risks were also assessed by a qualified geotechnical expert, according to a government letter. Arthurs Seat is a 10-minute drive from McCrae, which dealt with a major landslide incident last January. A controversial interim erosion management overlay plan has since been introduced to the Mornington Peninsula.
Environment Minister Steve Dimopoulos said in a statement that the development would strengthen Victoria as a long-term tourist destination.
“The upgraded Eagle shows exactly how Victoria can create new tourism and recreation experiences while protecting the natural environment that defines our state,” Dimopoulos said.
Mornington Peninsula Shire councillors were divided when it came to the major development. During a meeting on December 2, the council ultimately voted against a formal objection to the plans despite being recommended to do so by officers.
The officer report raised concerns about the limited detail provided around landslide susceptibility, vegetation clearance and the impact on wildlife on the proposed site.
The council had no authority to make decisions about the project, but could only give recommendations to the planning minister.
The planning permit application was originally lodged with the Department of Transport and Planning by Arthurs Seat Eagle in September 2024, before undergoing a period of community consultation.
The project was submitted under the government development facilitation plan, which aims to fast-track projects which meet specific criteria.
Arthurs Seat Eagle has a 50-year lease agreement with the state government, which it signed in 2015. The company is owned by billionaire Peter Gunn and NAB director Simon McKeon.
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