Mildura will soon be the homeport for a spectacular $7.75 million five-star paddlesteamer which will draw thousands of international visitors a year while injecting an estimated $5.8 million into the local economy annually.
The breakthrough announcement by Murray River Paddlesteamers follows the company's successful application for Victorian Government funding to build the Australian Sky, which was supported by Mildura Rural City Council.
Councillor for Economic Development and Events and Tourism, Rebecca Crossling, congratulated Murray River Paddlesteamers on its successful application through the Victorian Government's Regional Tourism Investment Fund.
"This is a major coup for our region as once the Australian Sky is completed, it will become the first five-star overnight cruise vessel to homeport in Mildura in decades," Cr Crossling said.
Once operational in late 2027, the Australian Sky will offer unforgettable journeys of three to 11 nights between Mildura and Adelaide, a first for Tropical North Victoria.
"This amazing vessel will offer truly memorable experiences for passengers and is expected to generate a $5.8 million annual economic boost for our region, drawing an estimated 4,000 additional domestic and international visitors each year," Cr Crossing said.
"Tropical North Victoria is already making waves nationally and internationally as a premier Australian tourist destination with our year-round sunny climate and the recent opening of the eagerly anticipated Trail of Lights.
"The Australian Sky will add yet another powerful element to our region's tourism offering when it hits the water in 2027."
Murray River Paddlesteamers Director Craig Burgess said the expansion marks a new era for Australian river cruising.
"Australians love cruising – and they love the Murray River, but there's been a clear demand for a world-class, five-star product that matches what you'd find on Europe's iconic waterways. That's what Australian Star and now Australian Sky are delivering," Mr Burgess said.
"The strong demand we've seen for Australian Star – with 85% of sailing already sold or chartered for 2025-2026 – confirmed that there's an appetite for premium, overnight cruising.
"Australian Sky will help us meet that demand, grow regional tourism, and put Mildura firmly on the map as a luxury river cruise destination.
"We are incredibly grateful to the Victorian Government for backing this bold vision for the future of regional tourism on the Murray."
Mr Burgess said the Australian Sky would attract a "different clientele" to the region.
"This will be a hero product for the region," he said.
"It bounces off Bruce Munro's Trail of Lights at Lock Island and FOSO in Wentworth, so it compliments that world class installation with a world-class hero product.
Mr Burgess said the Australian Star, which is currently being built at Baldwin Boats at Bruce's Bend, was expected to depart Mildura for Echuca in July this year as an unfinished boat, with construction on the new vessel to begin in October.
About the Vessel
A refurbished vintage wood-fired steam engine/diesel electric engine will power the vessel with construction set to begin in October 2025, with bookings expected to open in mid-2026.
While modelled on traditional paddlesteamers, the vessel will feature a sleek, contemporary interior including:
- 19 river-view staterooms with ensuites, air-conditioning, and private deck access
- Panoramic bar, lounge and viewing deck
- A fine-dining venue
- Passenger lift to all accommodation and decks
- Expansive outdoor relaxation areas
- Complimentary Star-link Wi-Fi
- Premium onboard inclusions
Australian Sky is the third vessel in the growing Murray River Paddlesteamers fleet, joining:
- PS Emmylou – a boutique, wood-fired paddle steamer for 16 guests, offering cruises from Echuca (to be chartered by Travelmarvel from September 2025)
- Australian Star – launching in spring 2025 with three to seven-night itineraries from Echuca (already experiencing strong advance bookings through 2027)
- Australian Sky – launching in 2027 from Mildura
