A traffic report commissioned by the developer, Fragrance Group, estimated about 1,079 extra vehicles per day would use roads around the hotel.

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The City of Launceston council's city development manager Richard Jamieson said the actual extra traffic generated would be lower than what was predicted.

"It is likely that the net traffic generation for the site will be less than proposed...because it does not appear to include the existing undercover parking use in the calculations," Mr Jamieson said in a report to council.

While he conceded the development was "expected to have a significant impact on the traffic network" Mr Jamieson said there was sufficient capacity on Cimitiere Street absorb the extra traffic.

"Only limited consideration should be given to future changes to the city," he said.

"The proposed development and its impact on the traffic network appears to be acceptable, but there should be thought put into the operation of the proposed hotel in order to minimise unnecessary vehicle trips and improve safety."

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Just 60 people contacted council with feedback about the proposed development and in response to concerns about the height of the hotel, Mr Jamieson said the building would be "perceived as several storeys lower when viewed across the city".

"A number of buildings, built on higher contours, for example Myer, will have a greater perceived height than what is proposed," he said.

"The proposed building is higher than the surrounding buildings. This in itself should not be taken simplistically to suggest it is prima facie inappropriate.

"The topography of Launceston is such that the CBD is overlooked from roads and public places and views of the river corridor are often from higher ground, for example, the surrounding suburbs such as West Launceston and Trevallyn or from Windmill Hill."

Mr Jamieson confirmed the new hotel would generate a shadow that would move across adjoining properties throughout the day.

"In midwinter the shadows will be significant on Cimitiere Street, immediately to the south of the development.

"The Albert Hall will not be in shadow from the proposed building until after 3pm, on the shortest day of the year, meaning it will have more than six hours of sunlight."

Mr Jamison has urged councillors to give the development the green light when they meet to decide its fate on Thursday.

"The redevelopment and long term replacement of underutilised or disused industrial buildings is important to evolution of the character of the area," he said.

"The proposal is directly in line with the council's strategic intent to attract a 5-star hotel to the city, to meet a documented gap in the tourism market, to enhance Launceston's attractiveness as a destination and to ensure it provides a contemporary offering for visitors"