The Phillip Island Hot Springs project, a 13-hectare geothermal bathing facility, is due to open by the end of the year on the south coast of Phillip Island in the Bass Coast Shire, Australia.

Approximately 100km from Melbourne, the project is owned by the Onsen Group, a group of health and wellness-focused investors. Hatcher Advisory is managing the development. These two firms became involved in the project in late 2024, though the project was first reported to be in development in 2019. 

Wellness tourism 

More than AUS$60 million (US$39.0 million, €36.0 million, £30.0 million) has been committed to the project, which has been designed in collaboration with Australian landscape architecture firm Orchard Design.

This includes AUS$5.2 million (US$3.4 million, €3.1 million, £2.6 million) from the Victorian State Government, provided via the Regional Tourism Investment Fund and the Enabling Tourism Fund. The investment will support expanded facilities, coastal experiences, and future facilities to boost regional tourism and create jobs.

The project has been designed as a sustainable, year-round destination that celebrates Phillip Island’s natural beauty and capitalises on the growing demand for wellness tourism. 

The site will diversify its offerings and encourage extended stays in alignment with the Phillip Island and San Remo Visitor Economy Strategy 2035, to strengthen the regional economy through sustainable tourism.

Lagoon Bathing Precinct

The first stage of the development to open will be the Lagoon Bathing Precinct, which will have views of the Bass Strait. It will be the flagship offering at the facility, with what the developers are calling “Australia-first geothermal experiences”.

Key features include a variety of geothermal pools, including cave-style bathing, reflexology walks and family-friendly zones. 

There will be a range of saunas, steamrooms, cold plunges and outdoor relaxation areas.

An apothecary featuring marine minerals and Australian botanicals will also be included in the offering.

A healthy dining venue will also be on offer, following the redesign of an existing restaurant on-site, called The Cape Kitchen.

The landscape is also being regenerated, with 100,000 indigenous trees and shrubs planted so far. This will transform the site into a coastal haven for relaxation and connection to nature.

Further stages include the development of an extensive menu of spa treatments and accommodation is also in the design phase.

The project is being built with accessibility in mind and sustainable travel options will be possible (with EV charging station installation and public transport options).

More than 100 operations jobs will be advertised towards the opening date.

Details of memberships, multi-visit passes or wellness packages will be announced closer to the opening.

Natural water

Phillip Island sits on top of a deep granitic aquifer that naturally heats groundwater to geothermal temperatures reaching a maximum of 70 degrees Celsius. 

The bathing facilities at the project will use a blend of this naturally mineral-rich geothermal water, seawater and fresh water to create diverse experiences – including cooling and contrast pools.