Controversial ‘Luna Park’-style outdoor luge approved on Mornington Peninsula
Sydney Morning Herald
by Gemma GrantFebruary 19, 2026
AI-Generated Deep Dive Summary
A multimillion-dollar outdoor luge project on Arthurs Seat, part of a larger redevelopment plan for the Mornington Peninsula, has been approved by the Victorian government despite strong opposition from locals and environmental groups. The $25 million project includes an outdoor luge track and a 34-meter observation tower, designed to boost tourism in the region known for its natural beauty. However, critics argue that the development risks damaging the area's environment, including landslide concerns and loss of native vegetation.
The project, spearheaded by Arthurs Seat Eagle CEO Matthew Mulkearns, aims to enhance the local visitor economy, which already generates $1.8 billion annually. While supporters view it as a world-class attraction, opponents like Kylie Greer from the activist group "Save our Seat" believe it is inappropriate for a state park and threatens its natural heritage. They warn that the luge will ruin the scenic hillside and undermine efforts to protect Victoria’s treasured landscapes.
Environmental concerns were addressed in revised plans, which include shortening the luge track, removing a pedestrian bridge, and redesigning the observation tower. The final permit also includes strict conditions to preserve natural slopes, retain vegetation, and consult with Parks Victoria on environmental impacts. Despite these adjustments, critics remain skeptical about the project’s long-term sustainability.
The approval has sparked a broader debate over balancing tourism development with environmental preservation. While Environment Minister Steve Dimopoulos claims the project aligns with efforts to promote sustainable tourism, local councillors were divided on the issue. Although they lacked authority to veto the plan, their internal divisions highlight ongoing tensions between economic growth and ecological protection.
Arthurs Seat Eagle, owned by billionaire Peter Gunn and NAB director Simon McKeon, secured a 50-year lease for the site in 2015. The company’s plans were fast-tracked under a government development facilitation program aimed at supporting projects that meet specific criteria. This decision has drawn sharp criticism from conservationists, who fear it sets a dangerous precedent for exploiting natural areas for commercial gain.
The controversy underscores growing concerns about large-scale tourism developments
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Originally published on Sydney Morning Herald on 2/19/2026