A desire to cash in on the popularity of eco-tourism has resulted in some state governments seeking and approving private tourism developments in national parks.

Key points: Protesters are concerned about the lack of public consultation when it comes to building in national parks

Protesters are concerned about the lack of public consultation when it comes to building in national parks A recent proposal to a build a private heli-fishing development in Tasmania's Lake Malbena was taken to the Federal Court

A recent proposal to a build a private heli-fishing development in Tasmania's Lake Malbena was taken to the Federal Court The court told the Federal Government to reassess the application, with state and territory governments watching the case closely

It's forced those fighting against such ventures to take their cases to the courts and the protesters are having some success.

A development at Halls Island on Lake Malbena, in Tasmania's Walls of Jerusalem National Park, has become emblematic of the fight over development and will likely set a precedent across the country.

Last weekend protesters showed their opposition to the helicopter fly-fishing development at a rally on the Central Plateau, with more than 150 people braving cold, wet and windy conditions to have their say.

A private heli-fishing development at Halls Island in the Walls of Jerusalem National Park has been met with fierce community opposition. ( Supplied: Rob Blakers )

Adrien Butler from the newly formed Tasmanian Wilderness Guides Association told the rally the proposal was misguided.

"Our current State Government has a particular vision for Tasmania, and we believe that this vision is short-term, self-serving, and neglects wilderness values," Ms Butler said.

Tasmanian nature photographer Dan Broun is concerned about a lack of public consultation of private developments in national parks. ( ABC News: Jess Davis )

Wilderness photographer Dan Broun organised the rally, which was followed by a number of protesters walking into Lake Malbena to symbolically "reclaim it for the Tasmanian people".

"This development, unfortunately, while it seems small scale will actually set a precedent that will open the floodgates to development in our parks," Mr Broun said.

Federal Court win

Last week the Federal Court ordered the Commonwealth Government to reassess the application, as it found the original decision that no approval was required to be flawed.

It's a win of sorts and has been touted as a precedent setter, with other states and territories carefully watching the case.

Bushwalkers, fishers and environmentalists braved the rain and wind to protest against a proposed private development at Lake Malbena. ( ABC News: Jess Davis )

Leading the challenge on behalf of the Wilderness Society was principal lawyer for the Environmental Defenders Office, Nicole Sommer.

"The law doesn't deal with how we should develop national parks and that's because national parks were there to be protected — we didn't expect to have development," she said.

"The Halls Island project will be a test for how the Commonwealth Government deals with development in World Heritage Areas. It will say whether it's going to wave through development."

Lawyer Nicole Sommer says the Lake Malbena case will set a precedent for how governments deal with private development proposals in national parks. ( ABC News: Jess Davis )

In a statement to the ABC, Federal Environment Minister Sussan Ley said she accepted the decision by the court and it will be re-assessed in due course.

"We balance any commercial opportunities within our parks with strengthening the resilience of our ecosystems and the benefits for Traditional Owners," the Minister said.

Booming industry

While private developments do exist in Tasmania's national parks, they are rare.

But with the popularity of eco-tourism on the rise, governments and businesses are beginning to recognise the potential to cash in.

In Tasmania, Queensland and South Australia, state governments are not just accepting applications, they're actively seeking them through Expressions of Interest (EOI).

The Australian Walking Company runs private walking tours with luxury accommodation in pristine wilderness areas, like Tasmania's Overland Track. ( Supplied: Australian Walking Company )

The Australian Walking Company (AWC) has been running a private walk with luxury huts on Tasmania's Overland Track for more than 30 years and is now rapidly expanding — benefitting from the EOI process.

"We've recognised a growth in the market, more opportunities coming online and we think there's an opportunity for sustainable growth within this niche tourism sector," general manager Heath Garratt said.

The company now has six walks available in Tasmania and Victoria and a further eight applications underway across the country — including at Uluru.

Heath Garratt believes private development in national parks can be appropriate and sustainable if done right. ( ABC News: Jess Davis )

"It's so important for the Government and also the tourism industry to ensure that that growth is sustainable and managed really well," Mr Garratt said.

"And I think that's what we're hearing from the community a lot, there's some concern that that might not be the case."

Kangaroo Island residents head to court

Caroline Paterson is the former ranger in charge on Kangaroo Island and is fighting to stop luxury accommodation in the Flinders Chase National Park. ( ABC News: Jess Davis )

On South Australia's Kangaroo Island, local community groups are taking the State Government to the Supreme Court, in a bid to stop the building of private luxury accommodation in the Flinders Chase National Park.

A development by the AWC has been approved on the Kangaroo Island Wilderness Trail, but community groups are angry that there was no public consultation process and say the areas proposed are too fragile.

The former ranger in charge at Kangaroo Island, Caroline Paterson, left her job earlier this year because she said her values no longer aligned with the department.

"It's all about making money and, unfortunately, I don't feel that there is enough value placed on the natural environment," she said.

A private development is planned for the Kangaroo Island Wilderness Trail, with luxury accommodation planned to be built on a coastal headland. ( ABC News: Jess Davis )

Ms Paterson said the community was upset about the proposed location of the development, but would be happy for it be placed away from sensitive coastal sand dunes.

"Some places are OK to open up to make it accessible for visitors and some places are not," she said.

"And if they're not the Government just needs to say no, because there are so few wild places left in the world."

But Mr Garratt refuted the claims and said he was confident they will get through the court case and start development.

"I also would hope that they understand there's a real benefit to what we do as a company, and that we're actually providing a great service to the lands that we're actually operating on," he said.

"We would never trash the environments we're working in, because we rely so heavily on them."

Growing movement

Local residents are concerned about the impact a private development would have on native vegetation in the Flinders Chase National Park. ( ABC News: Jess Davis )

The opponents at Kangaroo Island have support across the country and are forming an alliance with other groups, including the opponents of Lake Malbena.

The Wilderness Society told the crowd at the Lake Malbena rally it would be launching a national campaign next year, bringing together various fights.

Wilderness photographer Dan Broun said it was important that governments listen and engage with the public on these proposals.

"It is not a commodity to be sold off. It is not there to be traded for some deal with some developer and that goes for all of our wild places," he said.

"All of our national parks belong to the nation, the World Heritage Areas belong to the globe."

In a statement to the ABC, the Tasmanian Government said the EOI process was delivering benefits to the economy.

"We understand that to lock in growth for the future we must protect what is special about Tasmania and we've said from day one that new attractions in wilderness areas and National Parks must be sensitive and appropriate. And we continue to stand by that commitment," the statement said.