Tasmanian Economy Faces Million-Dollar Weekly Loss After Boag's Closure and Hawthorn Departure

The loss of two mainstays of northern Tasmania's economy could cost the region a million dollars a week, local leaders say.

Tuesday's announcement that Boag's plans to stop beer production in Launceston after 145 years followed news that AFL club Hawthorn would not be extending its relationship with the city beyond 2027.

Now, business and community leaders have vowed to "get to work" to shore up the region's economic future.

It comes as 42 local jobs face the axe.

'I don't want to leave Launceston'

Adrian Hinds has worked at Boag's Launceston brewery for almost 23 years.

He said there was a "rollercoaster of emotions" after being told on Tuesday morning that the company planned on closing its Tasmanian operation.

"Disappointed, angry, frustrated," he said.

"It's been a slow process over a 10-year period that gradually reduced our workforce.

Aware of the pressures facing the company, Mr Hinds said Launceston staff had worked tirelessly in recent years to be as efficient as possible.

He never thought the "Tasmanian icon" would shut its doors.

"For us to work that hard to keep this place open and then for them just to close the doors was very disappointing news," he said.

The 53-year-old said he did not know what his future held beyond November.

"I don't want to leave Launceston."

Brewery, Hawks to leave city

On top of the impact on workers and their families, the loss of Boag's is a blow for the region's tourism industry.

Brewery tours have long been one of Launceston's major tourist drawcards.

Last month, Hawthorn Football Club announced it had been forced to "transition out" of the state ahead of the Tasmania Devils' AFL entry in 2028.

The Hawks have played "home" games in Launceston since 2001.

Local councillor and business owner Alex Britton said the dual departure of both Boag's and the Hawks could cost the city more than $50 million a year.

"It's a million dollars a week. It'll definitely have a massive impact," he said.

While blindsided by the Boag's closure, Launceston community and business leaders are moving swiftly.

Launceston Chamber of Commerce chief executive Alina Bain said Boag's departure would be a focal point of a member event on the city's economic future being held next week.

"First and foremost is the 42 people who work for Boag's and how we as a business community can support them," Ms Bain said.

"The second point is businesses in the supply chain, and understanding the impacts on them.

"The third topic is what are the plans from Boag's, as owner of that site, and what role can we as businesses, and our civic leaders, play in influencing the sale and or development of that site?"

Options for 'prominent' site

Overlooking the North Esk River, the Boag's brewery is in a "very prominent position".

Ms Bain said there was a "high level of emotional attachment" to the building in the state's north.

"It's a beautiful heritage site and it's really important that people in Launceston have a say in how that site is developed … there is some interest in that,"

"Would that be a good location for a conference centre? Would it be a good location for a hotel? How about we gather some microbreweries together?"

Northern Tasmanian developer Errol Stewart said properly revitalising the Boag's site would require "plenty of courage and plenty of energy."

"It's probably going to be a 10-year program and it's probably going to involve a hundred million dollars," Mr Stewart told ABC Northern Drive.

"The government has got to sit down with council and some developers, whoever that might be.

Launceston Mayor Matthew Garwood said the council had various "levers to pull" regarding zoning for the site.

The Tasmanian government on Wednesday announced it would be reinvesting the $1 million returned by Lion "directly into the future of Launceston and Northern Tasmania".