Launceston Heritage Not High-Rise member Jim Collier confirmed he would ask the Resource Management Planning Appeals Tribunal to overturn a City of Launceston council decision to approve the Global Premiums Hotel development.

"We've only been able to afford this because of public donations," Mr Collier said.

"We're still looking for additional funds [$15,000] which we need so we can have an expert witness as part of our appeal."

Mr Collier said the grounds of appeal were yet to be finalised, however, the height of the hotel [43 metres] and an allegedly inadequate assessment process would form part of the appeal.

"We have no objection to hotels, but they've got to be an appropriate size... and suitable for the area they're going to be in. We agree that we need the jobs, but excessively tall buildings are not the answer."

Northern Tasmania Development Corporation chief executive Mark Baker expressed frustration the "much-needed development" could be delayed or stopped by an unelected tribunal.

"Like the Gorge Hotel development, the Fragrance development was approved by all but one councillor, so it is exasperating that such a roadblock is presenting itself again," Mr Baker said.

"While I accept people's rights to raise concerns, the developer has worked with the City of Launceston council to present a plan that was confidently supported by an overwhelming majority of elected officials."

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Property Council chief executive Brian Wightman said: "some Tasmanians clearly have too much time on their hands".

"Asking citizens to raise $15,000 to stymie development while many of our family and friends lose their jobs or have been stood down, or can't access financial support, is insensitive and wildly out of step with the everyday realities of working people."