A Supreme Court decision allowing the $50 million Gorge Hotel development has highlighted the "serious deficiencies in our state's planning system", according to the woman behind a marathon legal battle against the project.
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But in a decision published on Monday, Supreme Court Justice Stephen Estcourt dismissed all five of Ms Cai's grounds of appeal against the developer, TRC Multi Property Pty Ltd - a company ultimately controlled by Launceston developer Josef Chromy.
"We will seek advice on any further legal options we may have, and any decisions we make to pursue further avenues of appeal we will make together as a family," Ms Cai said.
Her appeal was centred on whether the Civil and Administrative Tribunal had erred in its classification of the uses of the proposed hotel, including ruling that non-core functions such as retail, the spa and health centre and car parking spaces were 'ancillary' to the development.
But Justice Estcourt ruled that there had been no error of law, writing in his decision that there was "no substance" in any of the five grounds of appeal.
"Each of the appellant's grounds of appeal having failed, the appeal is dismissed," he wrote.
Ms Cai said she was "disappointed" with the decision.
"As I have said before, Tasmania's planning laws are stacked in favour of big developers.
"It takes an extraordinary amount of effort to stand up to a developer with deep pockets, even when your lifestyle and livelihood are threatened."
She said fixing the imbalance between big developers and ordinary people should be a priority focus of the next government.
"We need to put the power back in the hands of people whose lives impacted by inappropriate development, and who want to defend the heritage and unique way of life that makes Tasmania special."
She thanks her friends and the community for helping her fund the legal campaign.
Her Gofundme page had raised $5206 of a $30,000 goal by this week.
The proposed nine-storey, 145-room hotel would be the same height as the city's Silo Hotel and sit on the corner of Paterson Street and Margaret Street.
It would feature a function or conference area, multiple bars, a wellness centre and a multi-level car park.
The existing TRC Hotel would be partially demolished, while the nearby bottle shop would be completely demolished.
