The Launceston City Council is considering doubling the height limits of buildings in the city.
In a plan that the public has about three weeks to comment on, the council is considering increasing building height limits from a maximum of 14 metres to 30 metres.
Launceston Mayor Albert Van Zetten said several developers were looking to build new hotels in town.
The Mayor said the Fragrance Group that has proposed building a tower at the Clarion Hotel site was yet to release the exact details as to how high the development was planned to be.
The Singapore-based developer floated a plan for a 70-metre-high tower on the site late last year, but has yet to lodge a development application.
The ABC understands the group has significantly reduced the height of the proposed building in response to community concern.
Mayor Van Zetten also said he understood local developer JAC group wanted to build a hotel around 40 metres in height near the Gorge.
He said the council wanted to hear from those in the public who supported taller buildings and those who were against them, "so that when we talk to developers we know exactly what the feeling of the public is".
"I'm sure that's going to help a lot of developers because most developers, when they come to us, want to know what the restrictions are and they do want to know that if they do go any higher would the public accept it," he said.
The council's current height limits in the city are not binding — buildings can be built higher on a case-by-case basis.
The tallest building in the CBD is the 25-metre tall Hotel Grand Chancellor.
Launceston's tallest building is the 46-metre tall Silos Hotel on the edge of the city.
'Why do we have to go so high?'
Developer Errol Stewart would also like to build an apartment block 15 to 24 metres tall next to his Silo Hotel to give residents views over the Tamar River.
He supported increasing the height limits.
"I think it depends on the type of building you build and the design of the building," he said.
"I think you can build a 30 to 40-metre building in Launceston and have a great design that would be fine."
President of the Heritage Protection Society of Tasmania Lionel Morrell said the current building heights were more than adequate and did not need to be increased.
He warned that if the changes went ahead Launceston would be "dominated by tall, inappropriate structures".
"Why do we have to go so high? There's plenty of floorspace," he said.
But the Mayor said the council would protect the heritage of the city.
The public consultation on increasing buildings heights closes on August 24.
