Fiji's Environment Department has reportedly revoked Freesoul Real Estate's Environment Impact Assessment approval, following substantial environmental damage to the island.
The headman at Solevu Village on Malolo, Orisi Vuninavanua, said more than 20 tourism operations were on Malolo.
There was not enough space for more development, Mr Vuninavanua said.
The alleged damage caused by the firm to beaches, mangroves and reefs had left landowners angry and they would seek compensation from the company, he said.
