It is true, and important, that government lends assistance here and there, but if not for the entrepreneurial spirit driving big ideas and bold projects the city would simply be a moderate-sized regional service centre.

This reliance on private sector investment is self-evident across the many years since the first foundations of European settlement were laid back in 1810. Since the confluence of the North and South Esk rivers became the northern capital it has been private money rather than government largess that has grown Launceston.

As Launceston emerges from the agricultural, industrial and manufacturing base, which formed its mercantile genesis, the visitor economy will lead the new surge of investment in the city.

Developers are now looking towards building high-quality hotels rather than metals, timber or textile processing sites.

In recent days we have learnt of the innovative plans for the gasworks site while the Verge Hotel rises steadily from the ground and the Gorge Hotel proponents are batting off the last parts of the appeal.

And now the city learns, albeit by accident, that the international hotel powerhouse Fragrance has lodged a development application with City of Launceston council.

This news is very welcome indeed, no matter how we heard about it.

Fragrance is a large Singaporean business that has developed significant five-star hotel holdings across the globe.

The company has many properties ear-marked for development across Tasmania, notably in Hobart, where repeated attempts to progress developments through Hobart-based councils have been controversial and somewhat less than successful.

It is an interesting contrast to see the stuttering progress of anything to do with Fragrance in Hobart to the seemingly smooth discussions between council and developer here in Launceston.

Launceston has, by and large, always understood that private-sector development is the only key to our regional economic prosperity rather than the public-sector driven economy of Hobart.

The Launceston Chamber of Commerce understands that the Fragrance proposal here in Launceston has been carefully worked through with City of Launceston council over a lengthy period. This is good process that allows council officers to ask questions and seek clarifications; no doubt there will be more work done before the full development application comes before the public process for assessment.

While the mechanism for the Fragrance application coming to light is perhaps less than ideal, it does reinforce the growing attractiveness of Launceston to investors.

Despite what some may think about capacity in Launceston, there is a real need for more five-star rooms in Launceston as well as larger conferencing and event space.

This new Fragrance development will, by all accounts, feature nearly 300 five-star rooms - a bold vote of confidence in the northern region. Tasmanian Government research shows that over the next few years Launceston will be short of capacity by nearly 400 rooms with the clear trend for demand in the four to five-star range.

There is no doubt that the north misses significant numbers of high-yield visitors simply because visitors can't get a five-star room here. Organisations, such as Business Events Tasmania, are constantly saying that these constraints on capacity are holding back the attractiveness of the north for those crucial small to medium sized business conferences. The Fragrance proposal from an aesthetic perspective will push some boundaries and no doubt a vocal group (or groups) will rise in opposition to it - perhaps before they have even seen what it looks like.

Notwithstanding the huge economic benefit derived for the city during construction, a hotel of this scale would employ hundreds of people and provide the opportunities for many entrepreneurs to create new businesses in the hospitality and tourism space: the importance of this to our regional economy should not be understated.

Ongoing growth in Launceston will depend greatly on this city being seen as open for business and willing to meet and beat the competition.

Embracing new developments on their merits instead of pre-conceived bias will lead to a more prosperous and competitive city, one in which we can build a solid future for many generations to come.

Launceston cannot afford to stand still in an era of increasingly competitive regional cities, technology-driven commerce and countless other options for investors' capital.