Picnic Island Tasmania Reopens as One of Australia’s Most Exclusive Private Island Retreats

Off the coast of Coles Bay, just 800 metres from shore, a small island with a resident penguin colony has quietly re-entered Australia’s luxury conversation. Picnic Island Tasmania has reopened following extensive renovations, repositioning itself as one of the country’s most exclusive private island retreats.

The scale remains deliberately intimate. The island accommodates up to eight guests across four separate spaces, including a newly constructed primary suite and two renovated copper-clad structures. The architecture sits low against the landscape, allowing the granite peaks of Freycinet National Park and the shifting light across Great Oyster Bay to remain the focus.

What distinguishes Picnic Island is not size, but limitation. The property will operate for just 100 nights each year, a decision designed to protect the island’s ecosystem, including its resident Little Penguin colony, and to preserve the sense of complete seclusion that defines the stay. Guests book the island in its entirety, arriving by private boat and settling into a rhythm dictated less by itinerary and more by tide, weather and appetite.

The experience is fully inclusive. A dedicated host and skipper remain on hand, alongside a private chef whose menus lean heavily on Tasmania’s produce, seafood and cool-climate wines. Marine excursions and transfers are handled by a custom-built Tasmanian vessel, turning even the short crossing from the mainland into part of the theatre. Days might include guided walks, oyster tastings, wildlife encounters or long lunches that stretch into late afternoon.

The island operates off-grid, powered by solar systems with rainwater collection, a practical choice as much as a philosophical one. Owners Mark Israel and Elisa Yu describe the project less as a hotel and more as a place for reconnection, where privacy and space are allowed to do the work that design often tries to overcompensate for.

Its reopening comes as Tasmania continues to attract travellers seeking smaller, more considered stays, properties that prioritise landscape and experience over scale. With Wineglass Bay and the walking trails of Freycinet within easy reach, Picnic Island offers access to some of the state’s most recognisable scenery, without the need to share it.

Rates start at AUD $16,000 per night for exclusive use of the island, with a three-night minimum stay. Bookings are now open for 2026, though with only 100 nights available annually, availability is intentionally limited.