The idea has been reignited by the focus on Launceston's tourism industry.

Among recommendations in the city's new draft tourism report is the need for Launceston to differentiate itself from other destinations.

According to tram enthusiast Mike Oakley, Launceston's point of difference ``right under its nose''.

Mr Oakley is treasurer of the Launceston Tramway Museum, which has spearheaded the idea of running trams though the city as a tourist drawcard.

In 2005 Launceston City Council funded a feasibility study into the idea.

It found a tram ride could be profitable within three years.

The initial route would be between both Queen Victoria Museum and Art Gallery facilities, by setting out from Inveresk, across the North Esk via Black Bridge, through to Civic Square via Boland, Willis and Cimitiere Streets, before finishing at the end of Cameron Street near the Supreme Court.

Later routes could take in more tourist sites including the Boag's Brewery and Cataract Gorge.

Mr Oakley has travelled the world visiting tram-equipped cities and seldom finds them unpopular.

``I've been to a lot of places and they work, they drag in tourists by the hundreds and thousands,'' he said .

``It's all passion but it's fact that it could work.''

The museum's tour guide Cory Clark calls it a ``no brainer''.

``Look at San Francisco, they have made it part of their identity,'' he said.

Of course any tram ride wouldn't come free and Mr Clark estimated it could cost up to $8 million to see a tram running between Inveresk and Cataract Gorge.

The council, which backs the idea, has also flagged cost as the hurdle for a ticket to ride.

``It is a fantastic idea. It would add a great tourism feature. The only real downside is the actual cost of the infrastructure,'' council development services director Peter Button said.

``In the report, SKM said there was `a risk that the tramway could operate in a cash deficit for its first few years' even if 53,000 tickets were sold each year, and corporate sponsorship and advertising options were explored.''

To get your tram fix in the meantime, the museum is running a two-kilometre tram ride at Inveresk every day except Tuesdays and Thursdays.