The ultimate family holiday: Meet swimming elephants and superstar echidnas

Enjoy a break at the Wildlife Retreat at Sydney's Taronga Zoo.

My daughter screeches to a halt. "Mum, watch out, there's a DRAGON!" Peering over my shoulder, I jump. There is indeed a dragon, albeit a small one, scaly with a ridged flume and snaking tail, frozen mid strut by the footpath. This sturdy metre-long Lace Monitor (or tree goanna) is no fire breather, but still something you wouldn't want to meet in a dark alleyway or step on, which I was about to do.

In my defence it's hard to focus when you're surrounded by marsupial mayhem, a veritable disco of wildlife behaving like it's 2am and the bar's about to close. While I'm almost reversing onto the prehistoric-era lizard, an echidna is nuzzling my daughter's shoe and a pademelon is attempting to break into someone's stroller seeking toddler crumbs. The catch is that the toddler is still in it. Just another wild (life) day in The Sanctuary at Taronga Zoo's luxury offering, the Wildlife Retreat at Taronga.

The Sanctuary is a zoo within a zoo. It's a native habitat in Taronga Zoo created exclusively for Wildlife Retreat guests staying in the 62 rooms, which wrap like arms around the enclosure with floor-to-ceiling retractable windows. From above, The Sanctuary presents as a lush Jurassic Park oasis complete with waterfall. But it's at ground level on a guided tour (between 3pm and 5pm) that it's revealed as a bustling neighbourhood, complete with resident characters.

Taronga's ethos is strongly anchored in conservation and education (and because it's a not-for-profit, your stay helps fund key programs safeguarding wildlife), so on the 40-minute zookeeper-guided stroll we meet many animals. The echidna is the unexpected superstar. These slow-moving spiky mounds are Ninjas in disguise. Not only can they climb (the sheer walls are to keep them in) but due to their webbed feet they are fast swimmers. They also have 18-centimetre tongues, which could lick one of James Bond's martinis dry in moments. Eventually, one holds us hostage, blocking an exit gate. The 10 of us wait until the appropriately-named Spike ambles away and we all make a dash for freedom.

This up-and-close animal experience goes far beyond any "normal" zoo encounter. If the aim is to make conservation citizens of us all, it's succeeded.

"I want to be a zookeeper," decides my six-year-old, and guide Mandy gives her a high five, telling her it's the best job in the world.

Meanwhile, I've decided I'd like to move into the Cox Architecture-designed Wildlife Retreat. The reconstituted timber and metal buildings meld sympathetically with the native bushland surrounds and the room qualifies as a destination all by itself. It's high-tech luxury - from the USB ports and mood lighting to the freestanding bathtub and safari-style bed with willowy drapes. It's also huge, big enough for a family of four with a pull-out couch, which even when extended doesn't block the view of the kangaroo enclosure below.

The fact it's drizzling only adds to the atmosphere and gives us a surprise bonus on a Family Night Walk. Heading to the Asian Elephant enclosure, we hear them before we see them.

"It sounds like they're having a pool party!" says Mandy. And they are, these two night swimming elephants. They prefer to swim when spectators are gone and, explains Mandy, "especially when it's raining. I guess it's like when we get soaked in a downpour, you may as well just have fun."

We also discover sleeping Sumatran tiger cubs and see Rodney the capybara who was nursed back to health. Being alone in the zoo after dark is thrilling, with the guides sharing the enthusiasm of the guests and helping the kids spot animals with non-disturbing infrared lights.

The cherry on the cake is dining at glass-wrapped Me-Gal restaurant (named after the Cammeraygal word for "tears", referencing the harbour's saltwater). If you're seeking a gourmet experience, with the best views in town and a little walk on the wildside, this is destined to be one of Sydney's famed restaurants. Local produce and native flavours are heroes and the views of the Sydney cityscape are incomparable as icons obediently line up beyond a silky swathe of blue harbour and ever-changing sky. It opened to non-Wildlife Retreat guests in April, meaning my parents can join us for dinner to be regaled with stories from the grandkids without staying the night or zoo-ing. It's at this point I realise I would stay here even if not going to the zoo. But the fact we are here allows us to have the most relaxing of zoo days, exploring in two-hour stints before retreating for snacks, being the first to climb at the Wild Ropes Treetop Adventure and visiting the newly opened Nura Diya Australia area within hop of our accommodation.

Getting Here: Parking is free for Wildlife Retreat guests. If taking public transport, the Taronga Zoo ferry from Circular Quay takes 12 minutes. The connecting 238 bus will be waiting to take you up the hill to the Zoo.

Staying there: There are a number of packages on offer, such as the Ultimate Package (from $824 per couple, per night), which includes an afternoon tour of The Sanctuary, an exclusive night tour and morning tour, dinner and breakfast at Me-Gal, zoo access and parking. All rooms offer views of animal habitats, the harbour or both.

The writer was a guest of Taronga Zoo.