George Town Chamber of Commerce president Andrew Michieletto says tourism businesses need to adapt to meet a rise in demand.
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It follows a record summer period for the area, and a 30 per cent increase in visitation numbers over a one-year period.
Mr Michieletto said businesses had been operating the same way over the past 50 years.
“Some of the existing businesses need to be educated about how to operate when you get the demands of extra tourists,” he said.
Mr Michieletto said a tourism group called the Destination Action Plan had been formed to look at ways of promoting tourism in the area.
He said the Blue Derby Mountain Bike Trails in the North-East made the area an attractive tourist destination, and he argued George Town could do with its own attractions to boost tourism even further.
“Maybe something like an adventure boat trip down the Tamar River stopping off at places like Hillwood and taking tourists to the berry farms,” he said.
George Town council general manager John Martin said a number of strategic projects were on the agenda to improve tourism, including developing York Cove through landscaping and linking it to the CBD.
He said the state government had provided funding for the development of tourist hotspot Windmill Point, including car parking, a BBQ and new tables.
Linking the George Town region to the wider regional tourism network of Tamar Valley and Northern Tasmania has been identified as a priority for the council.