The Kooljaman campground has announced it will close due to major upgrades, following one of its most successful seasons.
According to the ABC, an email was sent to operators and tourists announcing the closure, due to major upgrades needed to meet compliance standards and meet the expectations of guests.
A second email said the infrastructure around the Cape Leveque Lighthouse had begun to fail.
In a statement made to the ABC, the Australian Maritime Safety Authority (AMSA) rejected claims that the lighthouse and associated infrastructure had been allowed to deteriorate.
"The iconic lighthouse, a local landmark, was extensively refurbished in 2018, and remains in excellent condition and working order," the AMSA spokesman said.
Owned by the Djarinjdin and One Arm Point communities, the closure is a negative for the communities, especially with the recent influx in visitors following the sealing of the Cape Leveque Road.
The campground was well known for its pindan red cliffs and clean, pristine beaches, with the communities also running an eco-wilderness experience with cultural input from Bardi Jawi locals.
The campground is currently in contact with all accommodation bookings past 1 November, which will be refunded.
All cultural tours and activities in the area, however, are still running.