Plans for a multimillion dollar turtle tourist attraction in Bundaberg have been axed, with the council blaming escalating costs and a flawed business model.

The project has been on the drawing board for about eight years and its location caused a dispute between the Bundaberg City Council and the Burnett Shire Council.

Bundaberg Mayor Lorraine Pyefinch says the project's budget had blown out buy up to $3 million because of building costs and the expense of paying scientists to look after live loggerhead turtles.

Ms Pyefinch says about $250,000 of ratepayers' money has been spent on planning the project.

"I can't see how any organisation in this current climate could even attempt to set up a business which relies solely on having live loggerhead turtle hatchlings as part of the attraction because as a business model it just didn't stack up," she said.