Walsh plans high-rise hotel

The founder of Hobart's Museum of Old and New Art is planning to build a hotel at the Berriedale site as as tall as Wrest Point Casino.

Professional gambler David Walsh said he had settled his $40 million dollar dispute with the Australian Tax Office and would now go ahead with plans for a 72-room, high-rise hotel at MONA.

"I quite like the idea of bookending Hobart with the two tallest buildings so we tried to design one the exact same height as Wrest Point," Mr Walsh said.

Another alternative would be a four-storey hotel on the waterfront, with a tunnel to the museum.

David Walsh likes the idea of Hobart being bookended with the Casino at one end and a new MONA hotel at the other.

"I've got a feeling the community will lean towards the latter but I can't be sure," Mr Walsh said.

"There'll be some protesters, but some people object if you take your shoes off."

The hotel will be built near the old ferry landing at MONA and will cost about $20 million.

Mr Walsh, 51, said he was relieved that his tax troubles had been settled but would not discuss the terms.

The ATO handed Mr Walsh a $40 million dollar tax bill earlier this year after reassessing the activities of his Punters Club and finding it operated as a business and was therefore eligible to pay tax.

The ruling applied to earnings going back to 2004, meaning Mr Walsh owed millions in retrospective taxes.

Mr Walsh and his Punters Club colleagues challenged that in the Federal Court and came to an agreement with the ATO this week.

The Premier Lara Giddings welcomed the outcome.

"I'm relieved to see that David Walsh has managed to work his way through this one," she said.

The Tourism Industry Council's Luke Martin said MONA had proved a massive drawcard for tourists and a new hotel would only add to that.

"Hopefully this means that they now have the confidence and the certainty to proceed and we have a bigger and better MONA that continues to evolve," Mr Martin said.

Source: ABC News, 22 October 2012