The proposed expansion of Freycinet Lodge by the RACT will not go ahead.
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RACT had submitted a proposal to expand the footprint of its lodge into the national park to accommodate an additional 12 powered sites as well as 12 cabins.
The proposal received opposition from some RACT members with a petition launched by the Freycinet Action Network group.
RACT chief executive officer Harvey Lennon said the organisation had consulted with concerned members as well as Parks and Wildlife and decided to limit any development to within the existing footprint.
“We intend to expand our offer through new experiences and establishment of additional spa cabins on our existing site,” Mr Lennon said.
“We recognise that any development at Freycinet Lodge must be sustainable and sensitive to the environment in which it is located.
“Any infrastructure enhancements at Freycinet will be in line with community expectations.”