Economy
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Agriculture[edit]
The economy is mostly agricultural (grapes, honey, wool, meat and grain). Traditionally, sheep grazing has been the key element in agriculture on the Island; however, in recent times, more diverse crops, such as potatoes and canola, have been introduced. Cattle farming has grown as well, with good quality beef cattle being raised in the higher rainfall areas. Tourism and fishing also play significant roles, with the island experiencing over 186,000 visitors per annum, and some of the best southern rock lobster being sourced from the island's rugged south coast. Kangaroo Island has South Australia's only eucalyptus oil distillery, with oil distilled from the endemic Kangaroo Island narrow leaf mallee. The future of over 19,000 hectares, which had been planted (or were due to be planted) with blue gum for future harvesting, is now in doubt, following the collapse of Great Southern Plantation Ltd. in May 2009.
Wine industry[edit]
Main article: Kangaroo Island wine region
The island has 30 wine growers and 12 wineries. The first vineyard was planted near Eastern Cove in 1976 and the first wine made in 1982. This was blended with Tolleys Barossa wine and sold from the cellar door of Eastern Cove Wine as KI-Barossa blend. The Florance vineyard was established under supervision of B. Hayes, who produced its first wine – Eastern Cove Cygnet – and introduced it at the University of South Australia in 1990. The wine carried a Kangaroo Island appellation label as first wine 100% of the region.
Ligurian bees[edit]
Kangaroo Island is noted for its honey and its Ligurian honey bees. The island has the world's only pure-bred and disease-free population of this type of bee. The exporting of pure-bred queen bees is a notable industry for the island. For this reason, there are significant quarantine restrictions on bringing bee products and bee-handling equipment onto the island. It is the world's oldest bee sanctuary.
The Advertiser, 24 December 1883, reported "A few weeks since the Chamber of Manufactures forwarded an order to Mr. Carroll, a bee master, near Brisbane, for a swarm of Ligurian bees." The American Bee Journal, 25 November 1885, stated "Several pure colonies were reared from this one, [the first hive from Queensland] and two of them were sent to Kangaroo Island, where they appear to thrive well." An almost word perfect report in the British Bee Journal, 1 November 1885, added: "They came from the apiary of Mr. Chas. Fullwood."
A. E. Bonney quickly commenced queen bee breeding near Adelaide at his Upper Kensington apiary in January 1884. In the South Australian Advertiser, 7 March 1884, Bonney stated "About three weeks ago I divided the original colony, and the Chamber of Manufactures now possesses three good swarms of Ligurians; two of these will probably be ready to send out towards the end of the month." And on 9 May 1884 "To show that I think highly of the Ligurians, I may say that in March I imported two more colonies from Queensland. ... During Easter holidays Mr Justice Boucaut took one queen [bred and mated in Adelaide] in a full colony to Mr Buick, of American River, Kangaroo Island." From the South Australian Advertiser, 1 August 1884 "On June 25 the original hive of Ligurian bees, imported by the chamber from Queensland, was sent safely to Mr Turner, at Smith's Bay, Kangaroo Island."
In September 2025, authorities became concerned about the varroa destructor parasite, capable of wiping out hives of bees, had been found on mainland SA for the first time, after having previously been found in New South Wales, Victoria, Queensland, and the ACT.. Extra biosecurity measures have been put in place, including the placement of sentinel beehives and extra checks on passengers arriving by ferry.
Tourism and recreation[edit]
Remarkable Rocks
Admiral's Arch
Eucalyptus cneorifolia along Cape Willoughby Road, Kangaroo Island
Kangaroo Island is one of South Australia's most popular tourist attractions, attracting over 140,000 visitors each year, with international visitors, primarily from Europe, accounting for more than 25% of these visits. There were 114 businesses operating in the sector in June 2016 and the visitor expenditure reached $123 million in December 2017. The expenditure is expected to reach the mark of $168 million by December 2020. Some of the most popular tourist spots are:
Seal Bay Conservation Park with ranger guided walks among basking Australian sea lions.
Flinders Chase National Park which includes Remarkable Rocks, Admiral's Arch, lighthouses at Cape Borda and Cape du Couedic, and multiple walking trails and camping areas.
Cape Willoughby
Kelly Hill Caves
Little Sahara
Little Sahara, huge sand dunes on the south coast.
The lookout Mount Thisby (officially designated Prospect Hill in 2002 to honour Matthew Flinders' original naming) with a 360-degree view around the island.
Murray Lagoon with its abundant aquatic bird life.
The Kangaroo Island Wildlife Park at Duncan includes local wildlife like koalas, kangaroos, little penguins and reptiles, but also animals such as brown capuchin monkeys, common marmosets, dingoes, meerkats and serval.
Kangaroo Island Penguin Centre (formerly Kangaroo Island Marine Centre) at Kingscote is now closed but a local tour operator, Kangaroo Island Hire a Guide, is still organising nocturnal tours from Kingscote.
Raptor Domain (In-flight bird of prey presentation and reptile show)
The Hanson Bay Wildlife Sanctuary koala walk and Nocturnal tour offer visitors a chance to see the local wildlife.
A number of farms that sell honey from the Ligurian bees
The Emu Ridge Eucalyptus Oil Distillery which manufactures eucalyptus oil using a very old furnace
Kangaroo Island is also considered to be one of South Australia's best locations for scuba diving, with many popular locations along the north coast. Many of South Australia's iconic marine species can be seen there, including the Leafy seadragon. Penneshaw jetty is known for its Gorgonian corals and there are many other timber jetties and shipwrecks that can be dived and enjoyed around the island.
Murray Lagoon
Safe swimming is possible on the northern beaches, such as Emu Bay, Stokes Bay, or Snellings Beach, and at Island Beach on the Dudley Peninsula. The south coast has dangerous undertows and is more suitable for stronger and experienced swimmers only.[citation needed] An ocean pool with easy shore and pontoon access exists at Kingscote and is free to use.[citation needed] The island is home to the Kangaroo Island Football League and has several other organised sporting competitions.[citation needed]