Sustainable Timber Tasmania has started constructing roads in a forestry coupe alongside a popular Derby mountain bike trail with harvesting plans to be developed for the upcoming summer.
The coupe adjoins Krushka's mountain bike trail, with the logging plans drawing criticism from environmental group Blue Derby Wild.
Group co-ordinator Louise Morris said the forestry activity would negatively impact tourism for the trail network, which has received $8 million of federal grants.
"Logging the forests and natural assets that brings so many people to our part of the world is undermining these taxpayer grants, and the future of eco based tourism in the region," she said.

"Our forests are worth so much more standing for our town, our tourism industries, our biodiversity and wildlife."
Three trails - Krushka's, Atlas and Dam Busters - are adjacent to three coupes in the Permanent Timber Production Zone. Since their construction, the trails have helped Derby and surrounding areas to experience a boom in tourism.
The areas overlook the township of Derby.
An STT spokesperson said plans for harvesting in two areas adjacent to Krushka's trail "will be developed over the next six months".
The spokesperson said the forestry activity will "include retaining unharvested forest buffers to the mountain bike trails" and will apply selective logging methods elsewhere.
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"It is expected that there will be no impact to the trail during these operations," the spokesperson said.
"Road construction for one of these harvesting operations commenced in early March 2021, to enable future harvesting operations and improve emergency access to the trail network. This work is expected to be complete by the end of March 2021.
"Sustainable Timber Tasmania has been involved with the Blue Derby Trails since its initial conception, along with other mountain bike trails featured on PTPZ land across the state.
"Many mountain bike trails have been specifically located on PTPZ to enable both an amazing world class mountain bike experience and production forestry."
Blue Derby Wild is planning to protest the logging this weekend.