Traditional owners say they fear a newly approved development set to become Queensland's largest five-star resort north of Brisbane will compromise the future of a picturesque stretch of foreshore.

Luxury hotel giant Sheraton Resort will operate the 18-storey development on the Hervey Bay esplanade, four hours' north of Brisbane, following the Fraser Coast Regional Council's decision last month to approve the project, which is being developed by Sunny Beach Land.

While the resort boasts tourism and investment opportunities for the small coastal town, members of the Butchulla community say they have been left in the dark over the development process.

"Sometimes I make the comment that [traditional owners] are considered as an afterthought, but we weren't even taken into consideration," Aunty Veronica Bird, general manager of the Butchulla Native Title Aboriginal Corporation (BNTAC), said.

Who was consulted?

The approval of the $450 million resort complex came in the face of fierce opposition from residents and the mayor. 

In celebrating its approval, celebrity spokesperson Jamie Durie told the media the developers had "worked very closely with Indigenous communities".

BNTAC is the prescribed body corporate representing the Butchulla people on cultural heritage matters on land, including where the resort will be developed.

Ms Bird said no one in the corporation had been approached.

"At an absolute minimum, I would have thought representatives … would have consulted the traditional owners," she said.

"I'd certainly like to know who was consulted."

Sunny Beach Land director Dan Cuda said the company had "consulted with a wide range of community members … over an extensive period".

He did not, however, elaborate on which traditional owners had been consulted.

Private developers are not usually legally obligated to consult traditional owners, but increasingly do so as part of the community consultation process.

Mr Durie has been contacted for comment.

Project approval sets precedent

The Sheraton Resort will be three times higher than the current tallest building on the Hervey Bay esplanade.

BNTAC ranger Tilly Davis fears the project's height will change the environment and disrupt marine life like dugongs, turtles and shorebirds.

"Increased light rubbish and chemical pollution is a big concern for a building that high," she said.

A 2015 study from the Australian Institute of Marine Science found that coral reefs rely on moonlight to reproduce, and the introduction of artificial light throws off their ability to spawn.

Changes the foreshore, mayor says

Fraser Coast Mayor George Seymour, who voted against the application, remains similarly troubled by what lies ahead.

Despite a compromise by Sunny Beach Land to lower its proposal by three storeys, the height of the resort towers is far beyond the maximum height of 20 metres allowed by the planning scheme for the area.

"My view is that this first building takes us over a threshold … moving us from one natural landscape-focused foreshore into one that is now going to be dominated by built form," Cr Seymour said.

Project to create jobs

The economic benefits forecast for the region by Sunny Beach Land are significant.

Consulting firm Urban Economics, engaged by Sunny, predicts the resort will bring 100,000 additional visitors to Queensland's Fraser Coast who will spend more than $25 million each year through local businesses.

The project is expected to create 900 construction jobs, with 270 ongoing jobs when the resort is operational.

Urban Economics managing director Kerrianne Meulman said the project would have flow-on effects.

"This is a strategic investment in Hervey Bay's future, boosting tourism, supporting local jobs and providing high-quality housing," she said.

Queensland's Tourism Minister Michael Healy said the ripple effects of large-scale resort and hotel projects were huge.

"Greater accommodation options have an incredibly positive impact on tourism, particularly in regional areas," Mr Healy said.

"Increased accommodation capacity has a flow-on effect through local communities with more visitors engaging with tour operators while filling local cafes and restaurants."

The Wide Bay and Fraser coasts have already experienced the largest growth in prices nationally over the past five years.

Fraser Coast Property Industry Association president Glen Winney said the resort's approval had quickly sparked interest from investors and local businesses alike.

"If somebody wants to spend $400 to 500 million in Hervey Bay, that tells the market that this place is going ahead and it's going to boom for years to come," Mr Winney said.

Sunny Beach Land has indicated it wants to start construction as soon as possible and estimates it will be completed by 2029.

The developer has a statutory applicant appeal period lasting until August 28 to appeal or make further representations to Fraser Coast Regional Council.

After the completion of this period, members of the public who made submissions to council about the development can submit an appeal against its approval to the Planning and Environment Court.