Indigenous community leaders in Vanuatu have raised concerns over plans by the cruise operator Royal Caribbean to build a private beach club on the island of Lelepa, arguing environmental impact assessments by the company are “incomplete” and “misleading”.

The community leaders outlined the issues in a letter sent to Royal Caribbean on 26 February, which has been seen by the Guardian. The leaders also said the development could harm fragile ecosystems and a nearby Unesco world heritage site.

Royal Caribbean has leased parts of Lelepa, a 5km-long island home to about 500 people in Vanuatu – to develop a resort capable of hosting up to 5,000 visitors a day. The project is due to open in 2027. Cruise ships will take passengers from Australia to the resort in Lelepa, as part of a tour of the Pacific.

Construction has not yet commenced, but Royal Caribbean’s promotional material said the development will have 10 bars, two eateries and two private beach resorts, including an adults-only area.

“There needs to be lots of consultation so every person here understands what they are doing and can approve the work to go ahead,” Lelepa’s paramount chief Ruben Natamatewia III said. Natamatewia III is the highest-ranking customary leader on the island and a signatory to the letter.

In the letter, Lelepa’s council of chiefs, which represents several customary landowners on the island, criticised an environmental impact assessment (EIA) commissioned by Royal Caribbean. They said the report was inadequate and local communities had not been properly consulted as part of the process.

“The current EIA is incomplete, misleading, and does not meet the standards required under Vanuatu law,” the letter said.

The chiefs are calling for construction work not to go ahead until outstanding assessments and consultations are accepted by the chiefs and customary owners, the letter states.

The council has also called for a cultural heritage assessment to ensure customary sites are not affected by Royal Caribbean’s plans. Chiefs raised concerns with the Guardian about Fels Cave, a culturally significant world heritage site to the island’s south that contains ancient rock art.

Natamatewia III said the Royal Caribbean project was “a good thing”, but worried the environmental assessment was not “realistic”.

“There needs to be more consultation with the communities,” he told the Guardian.

Natamatewia said he was unhappy that the island had been advertised as a private beach resort despite these outstanding issues.

Chief Tungulman Albert Solomon Peter Manaure, an Australia-based representative of the council, said while landowners broadly supported tourism development many remained concerned about the potential impact of the resort on turtle nesting sites and fishing grounds.

Manaure, who also owns a tourism business on Lelepa, said: “The ocean and the land are our bank – that’s where we harvest our resources, where we turn it into food or into cash.

“If Royal Caribbean wants to do this project on Lelepa, we want to make sure it is done in the right way, with the environment properly protected,” he said.

In response to questions from the Guardian, Royal Caribbean initially said it had submitted its EIA and “ensured it complies with Vanuatu environmental regulations”, adding that its development was “at the opposite end of the world heritage site”.

After further questions, Royal Caribbean said it was still incorporating feedback from public consultation “into the final EIA ahead of submission”, and that this would include “matters related to environmental protection and waste management”.

“Royal Caribbean is progressing all necessary permits in relation to the EIA to support and advance the Royal Beach Club Lelepa development,” a spokesperson said.

The company said it was working with government, chiefs, environmental organisations and local people to “ensure the natural environment is protected”. Royal Caribbean said it would “prioritise the protection of Lelepa’s natural ecosystems”, and that it worked closely with the government and custom landowners to secure leases for the development.

Lelepa has been a regular stop-off port for Royal Caribbean cruise ships, with passengers ferried ashore to take part in beach visits, hikes and cultural activities as part of its Pacific tour. The company has been in discussions with local landowners since at least 2018 about establishing this permanent tourism facility on the island, similar to its exclusive beach clubs in the Bahamas.

Vanuatu’s government was contacted for comment but did not respond to the Guardian’s questions.

The environmental impact of cruise ship travel has come under greater scrutiny in recent years, with several European port cities introducing restrictions on cruise ships amid concerns over pollution and overtourism. Nevertheless, the sector is booming, with more Americans travelling on cruise ships in 2025 than in any other year on record.

Joseph Cheer, a professor of sustainable tourism and heritage at Western Sydney University, said developments of this scale often highlight the tension small island nations face between attracting tourism and protecting local environments and communities.

“Cruise tourism is often criticised for its adverse environmental impacts, questionable economic impacts and the way it wields power and influence over small island countries,” Cheer said. “With good governance of the sector, it is possible to overcome evident friction points.”