However, representors against the Gorge Hotel are likely to submit an appeal to the Resource Management and Planning Appeal Tribunal. A petition against the hotel is still running.

Tasmanian Tourism Industry Council chief executive Luke Martin said he was pleased for the hotel's developer Josef Chromy and JAC Group's managing director Dean Cocker.

"Credit where it's due, Jo. When you look at what he's done around Launceston for tourism and hospitality they haven't got it wrong, so why wouldn't we encourage more of it," he said.

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Launceston is defining itself and getting an identity, he said.

"I think this will reaffirm some confidence, that plus having the Silos and the Verge and hopefully more to come ... it's exciting."

He criticised those that see development as a bad thing for a city, after comments were made during the City of Launceston council's meeting on Thursday.

"Launceston is pretty unique and having quality investment and quality hotel development is actually something that defines cities as much as anything," Mr Martin said.

Tourism Northern Tasmania's chief executive Chris Griffin said the key thing for them is the calibre the hotel would bring.

"Our support of the development is because it's filling the gap in regards to giving us great capacity to accommodate the top end of the market in terms of a five-star hotel," he said.

Mr Griffin said Launceston's need for accommodation during peak seasons was widely misunderstood by residents.

"Five star, through to backpackers, through to AirBnbs, we need the full accompaniment of choices so visitors can make the accommodation choice they prefer rather than just pick what's available," he said.

The JAC Group proposal was approved 10 votes to one at Thursday's council meeting.

The 145-room hotel is expected to take about two years to build.

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