Tourism Industry Council Tasmania chief executive officer Luke Martin believes the $80 million Fragrance Launceston five-star hotel proposal would help the region meet an expected growth in the premium tourism market in Tasmania.
Tasmania only has one five-star hotel, and the 289-bed, 11-storey Fragrance hotel would be the largest proposed for the state.
Mr Martin said few regional cities in Australia had a five-star hotel of this scale, and it was being designed with the future in mind, rather than the present.
"This will be opening in three or four years time when Launceston needs more of this accommodation," he said.
"We need this pipeline of new hotel rooms to come online in five to 10 years. The market will respond, and is responding.
"Most importantly, we want to see developments that add to Tasmania's character as a world-leading visitor destination that touches on the quality, scale and uniqueness required, and does justice to Launceston and Hobart as two great regional cities."
Mr Martin said the Fragrance proposal was designed for the modern market in the same way that Wrest Point and Country Club Tasmania were designed for 1970s and 80s market.
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The hotel has been in the works since Global Premium Hotels purchased the old Clarion site for $7.2 million in 2016. The development application is expected to be put out for public comment in the coming days.
Tasmanian coordinator-general John Perry said it was pleasing to see the proposal approaching the next stage.
"We've been working closely with the proponent of the Clarion project for a number of years since we first showcased Launceston's potential to them and right through the planning and design process," he said.
"We believe this transformational proposal for Launceston will deliver a true five-star hotel option for the city that is sympathetic to height and the surrounding built environment and which preserves all of the heritage of the existing buildings.
"A project like this, with the likelihood of a big-name international brand coming on board, will go a long way to addressing Launceston's lack of high-end accommodation options as well as attracting more large scale events and conferences to the region."