A TRAMWAY from Penny Royal to Launceston Seaport will be part of a planned $20 million tourism investment by Josef Chromy over three years.
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The proposal would see the historic number 16 tram run from Penny Royal, through Kings Park, Park Street, Royal Park to Home Point.
JAC Group bought Penny Royal for $4 million last year and managing director Dean Cocker said the tramway was part of plans to revamp the former corn mill site.
The redevelopment includes several upgrades, themed entertainment and a four-seat gondola style chairlift to the Cataract Gorge.
Mr Cocker said a convict-themed dark ride, similar to the Pirates of the Caribbean ride at Disneyland, would be built at Royal Park featuring animatronic characters _ plus ``Indiana Jones'' style walkways and a flying fox.
The old Sandpiper ship will also circulate once more.
He said the tramway would create a link between North Bank, Penny Royal and the gorge.
``At Penny Royal there will be a glass inclinator lift that will hold about 10 to 12 people that will take people to the top of the cliff above Penny Royal to a viewing platform that looks over Launceston,'' Mr Cocker said.
``People will be able to catch the chairlift to the gorge.''
He said a master plan was being finalised and expected the first stage Penny Royal upgrade development application to be submitted to the Launceston City Council in the next two to three months.
Mr Cocker said the second stage application for the chairlift would follow soon after and hoped the first two stages would be finished by December 2015.
``It is probably six to eight months away to put together a proposal in consultation with council for the tramway,'' he said.
``It is going through Royal Park so there will need to be a lot of consultation involved . . . and because a lot of it will be on council land, we think it will need to secure funding at the next federal election.
``Once you have that link, there would be few places in the world let alone Tasmania where within a city you have got such a seamless journey between the best tourist spots all along the route.''
Mr Cocker said 100 people would be employed during construction and a further 100 people in hospitality and tourism would be employed once complete.