Technically yes, they are in a position to do this, but only if they were at least 90% sure that it would fill enough seats, and on what days...
Operating a single engine aircraft on that route would (In my opinion) be a rather bad idea, using something more like a King Air, Beech 1900D, Cheifton, or to a lesser extend a 404Titan, would probably be a better choice... (open to better suggestions etc)
However, Its probably not a sensible idea to expand right now, SAW needs to get the current RPT's undercontrol, and place its feet in one place for now, Australia or Solomon Islands, you can make regional routes in Aus, and Solomons when your heading into financial troubles....
As for the resort, this is the first I have herd about it, and I think it could be a very good idea, it could work out very nicely if they play their cards right...
