RACT has extended its lease at the Freycinet National Park, but the state government will not yet reveal contract details.
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Set in the Freycinet National Park, RACT is refurbishing the existing staff and guest facilities.
Six guest units will also be replaced with nine architecturally designed waterfront pods and six adjoining pavilions.
While a lease extension has been signed, the state government will not reveal the length of the agreement.
The extension came as Parks and Environment Minister Matthew Groom also revealed several projects, funded in the May state budget, would be progressed.
In the next financial year $4 million will deliver 30 projects across the state at visitor sites such as Freycinet, Bruny Island, Mount Field, The Nut at Stanley and Fortescue Bay.
At Cradle Mountain, the Glacier Rock viewing platform that provides views of Dove Lake and Cradle Mountain, will be upgraded, along with improved access created.
Crater Lake boatshed and trailside museum works are also planned.
“They’re critically important to Tasmania’s sense of identity but they also underpin our economic activity and tourism and visitor economy,” Mr Groom said.