Revealed: The entire Australian island that has gone cashless - sparking major backlash as thousands vow to boycott for good

An entire Australian island has gone cashless - sparking backlash from thousands who are threatening to boycott the tourist destination for good.

The decision to refuse physical currency on Hamilton Island, north of Mackay in North Queensland, was first made during the Covid pandemic, but has remained despite the relaxation of restrictions.

Hamilton Island provided three reasons for its decision to remain cashless: health and wellbeing, convenience, and security.

'Cashless payments facilitate seamless, contactless transactions, promoting a hygienic environment for the well-being of both guests and staff,' the privately owned island explained on its website.

'Embracing cashless payments provides a hassle-free and efficient way for our guests to make payments, eliminating the need to carry cash or deal with change.

'Prioritising your safety, cashless transactions significantly reduce the risk of loss or theft, offering secure and traceable financial transactions,' it said.

However, Hamilton Island's decision to go cashless did not sit well with many Australians.

'I guess I won't be going to Hamilton Island,' one said.

Another added: 'One place I definitely won't be re-visiting.'

A third said: 'Goodbye Hamilton Island,' while another called for a 'complete boycott'.

Adding to the sentiment, another declared: 'I got married there years ago. Have been wanting to do back, but certainly won't be now.'

A sixth declared: 'Plenty of other better places to go that take cash.

Visitors to Hamilton Island opting to pay via credit or tap-and-go with credit or debit cards incur a 1.25 per cent surcharge.

However, no surcharge is applied for those who insert their cards and select the cheque or savings option.

Additionally, tourists have the option to withdraw and deposit cash at the island's Australia Post office and load it onto 'pre-paid or top-up Mastercards' so they can spend it on the island.

Hamilton Island, purchased by renowned winemaker Bob Oatley in 2003, has transformed into a top tourist spot thanks to its close proximity to the Great Barrier Reef.

During peak season, it welcomes up to 5,000 visitors at once, with some spending as much as $1,920 per night.

Despite having an operational airport, 18-hole golf course and a marina, the nearest bank is back on the mainland in Airlie Beach.