Tourism Northern Tasmania chief executive Chris Griffin said Mona Foma calling Launceston home was an “absolute win” for the region.

“There will be a notable economic return of visitors being attracted to the city during mid to late January - a period of our summer that traditionally sees the city seeking to fill rooms post the Christmas holiday rush,” he said.

Mr Griffin said the state government’s support for Festivale and other cultural events was equally exciting.

“These extra resources can encourage event organisers to be more innovative, invest in performances and installations which may have been otherwise out of reach. Accumulatively over time this will mean more visitors attracted to the region across the whole year,” he said.

MONA co-chief executive Mark Wilsdon said the funding would help organisers support the regional dispersal of inbound visitors to the state.

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“We’re working closely with Launceston’s arts, tourism, education and business communities as we plan for our next festival, and it seems that everybody is up for it,” he said.

“We’re working to set up new collaborations between local artists and international acts and have already commenced talks with the broader Launceston arts community about major projects for festivals in future years.”

Launceston Chamber of Commerce executive officer Neil Grose said the funding would allow Mona Foma and Festivale organisers to "do what they do best” and draw thousands of people to the region.

“Festivale has been part of the cultural calendar in Launceston for a long time and the state government is to be congratulated for ensuring the ongoing sustainability of this showcase of Tasmania’s world-class food and beverage scene,” Mr Grose said.

“The brief glimpse of potential that last summer’s Mona Foma event in Launceston shows what can be done when the arts community gets strong support.”

The state government committed $6 million in funding as part of its events and arts package for Northern Tasmania, some of which will go to Festivale, as well as $1.75 million a year for three years for Mona Foma.