The proposed development by Melbourne group Cambria Green Agriculture and Tourism Management will see 70 villas, 240 units and a 120-room luxury hotel built on 3,185ha at Dolphin Sands, 148km south of Hobart, if a request to rezone the land is approved by the local council, making it the largest tourism development in the state.

The group, which represents a mix of Chinese and Australian investors, bought the two main properties in March 2015.

The huge development would also feature a large village, two golf courses, 80 apartments, function and conference facilities and an 80-bed palliative care unit – designed to appeal to the Chinese market where the “erosion” of the extended family has led to growing demand.

However locals say the plan will face stiff opposition from the community.

“I’ve been here long enough to see that some of these developments are pie in the sky sometimes,” resident John Austwick told the ABC.