"Well thankfully there's been no loss of life" While talking to locals, Scott Morrison forgot the father and son that died in Kangaroo Island fires.

Prime Minister Scott Morrison has been left red-faced after telling residents on Kangaroo Island it was lucky no one died in the region’s devastating bushfires last week.

Two people lost their lives when fires ripped across the island on Friday, destroying more than 150,000 hectares of land and the world-famous Southern Ocean Lodge.

Bush pilot Dick Lang and his youngest son Clayton, a leading plastic surgeon, died while trying to return to their family property, a statement from their family said.

But on his visit to the island with South Australian Premier Steven Marshall yesterday, Mr Morrison was captured on video telling locals “thankfully we’ve had no loss of life”.

“Two. We’ve lost two,” one person then replied.

“Two. Yes two, that’s quite right. I was thinking about firefighters firstly,” Mr Morrison said.

A spokesperson for the Prime Minister told ABC News the group had been discussing “firefighting efforts” at the time.

Kangaroo Island residents are bracing for another day of severe fire risk with fears the major blaze will jump containment lines and surge a second time.

The fire has already destroyed 160,000 hectares including most of the famed Flinders Chase National Park.

A total fire ban has been declared across the island on Thursday as both temperatures and winds rise, adding to the fire risk.

As a precaution, police and the Country Fire Service evacuated the town of Vivonne Bay on the south coast amid fears homes could not be protected should the fire move quickly into the area.

Made up of mostly holiday shacks, it’s thought less than 100 people live there at any given time.

During his visit, Mr Morrison also pleaded with Australians not to scrap upcoming holiday plans as the island was still very much open for business.

Mr Morrison said anyone contemplating asking for a holiday refund should reconsider.

“Can I also offer a request on behalf of tourism operators that have been affected: If you booked accommodation and you’re now seeking a refund, can you cut them a break?” he said.

“That’s in terms of, at the very least, the timing about when you might expect to receive a refund.

“These businesses have been hit very hard and their cash-flow positions are not going to be in a position where they’re going to be able to meet every request.

“I would particularly ask the international tourism trade industry to be mindful of that when they’re dealing with customers.”

– with AAP