The man was airlifted with critical wrist and leg injuries to Mackay Base Hospital, where he was rushed to surgery upon arrival.
Whitsunday Police are interviewing witnesses to the incident and will use this information to prepare a report for the Coroner.
The 33-year-old, who police say is from Victoria, was paddle boarding with friends when he was attacked just after 5.30pm on Monday.
In September, two tourists were attacked in the same body of water within 24 hours of each other, resulting in the culling of six sharks.
The Queensland Police Service extends its sympathies to the deceased man's loved ones at this hard time.
Cid Harbour, located in north Queensland's idealic tourism hotspot the Whitsunday Islands, has recently become notorious for shark attacks following the mauling of two people in September this year. "It's just - the injuries were so severe". The scene is what you would imagine a shark attack to be like.
A 46-year-old tourist, Justine Barwick, was attacked on September 19 while swimming from a yacht in Cid Harbor and is recovering.
The last shark attack in the Whitsunday Islands before the latest spate took place on February 13 2010, off Dent Island, where 60-year-old tourist Patricia Trumbull survived lacerations and major blood loss.
A man has been killed by a shark in the Whitsundays.
Four tiger sharks were culled from the waters following the attacks and drum lines, which are unmanned aquatic traps used to lure and capture sharks with baited hooks, were additionally laid out by the Queensland state government.
Prof Colin Simpfendorfer, from James Cook University, said shark attacks were "extremely rare" in the Whitsundays, but no theories had "so far been supported by real substantial information" to understand the spike in shark activity.
Professor Colin Buxton from the University of Tasmania told Australian magazine StabMag: "The pros are that drum lines kill sharks and thus reduce the number of sharks in an area and this reduces the statistical chance of a shark encounter with humans".
Temporary signs would be urgently installed and permanent signs would follow deterring people from swimming in the popular anchorage location, according to the statement.
"I feel devastated for the family and friends of this young man, I know that he would have received the best of care available from the Queensland Health Service, including RACQ CQ Rescue helicopter crew and my heart goes out to all involved", Craig Barwick said in a statement.