Regional benefits as beds are filled across Launceston

“We are in the middle of our peak summer season but with a major event like Festivale happening it pretty much sells what rooms were left,” he said.

Mr Griffin said the average visitor to Tasmania spends about $197 dollars a day and multi-day events served as an extra economic boost to the city.

While not having a place to stay could have the potential to deter event-goers, he said it was not an issue Tourism Northern Tasmania had identified.

“We do have a sharing economy with Airbnb as well and a whole raft of accommodation from holiday cabins through to hotels, but what we tend to find is that when the city gets busy people stay further out,” Mr Griffin said.

“They’ll fill up Grindelwald or even got out as far as Peppers at York Cove and fill up some of those outlying towns, so when the city is busy the region benefits from the overflow.”

Tasmanian Hospitality Association general manager Steve Old said millions of dollars would be spent in Launceston at the weekend.

“One of the things that the government and industry are doing well, with local councils, is supporting and aiming for more local events like Launceston has with Festivale this weekend,” he said.

“The North of the state, in our occupancy statistics over the past 12 to 18 months, has actually improved on previous years which is a fantastic result.”

Mr Griffin said businesses participating at Party in the Paddock at the weekend would also receive a good income, but the effect of those visitors to Northern Tasmania may not be as obvious in the heart of the city.