A $40,000 glamping site will be developed at Clarence Point, following a decision on Tuesday by the West Tamar Council.
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The activity is a growing trend, and is a slang term for glamorous camping.
The council approved the proposal for 41 Sunset Boulevard, which will include 12 tee-pee style tents with wooden floors, on six sites.
The proposal received five representations, including noise abatement, cooking and catering, and its proximity to the Tamar River riparian zone.
West Tamar councillor Tim Woinarski said the proposal was innovative, and popular on the mainland.
"The fact is that some people out there would love to see more than four or five stars when they go out on holiday, but don't really want to chuck a pack on their back for the camping experience," Cr Woinarski said.
"I think these kind of small businesses should be encouraged on the West Tamar."
The council approved the development unanimously.
The council has also backed out of a $90,000 land purchase proposal at Beaconsfield, in light of the decline of the town's mining industry.
The council had allocated the funds in its budget, and will instead opt to save the funds in favour of other projects.
Cr Carol Bracken said there were no other uses for the land now, and that the council should continue to invest in its Legana and Exeter structure plans.
