Tours of Tasmania's Cadbury factory could have been a bigger drawcard than the Museum of Old and New Art (MONA), tourism industry chief Simon Currant says.

His comments came after the chocolate maker abandoned plans for a new visitor centre and factory tour, withdrawing from the grant process because it could not meet Federal Government criteria.

Mr Currant, who is the head of the Tourism Council, worked with Cadbury on its business case for the grant.

He said he could not understand why the grant had conditions relating to a 20 per cent increase in chocolate production volumes.

He said he expected the criteria to relate to tourism.

"The research that I did and the business case showed that it would exceed MONA," he said, of the potential for a factory tour to draw visitors.

"It's bigger than MONA, in excess of 400,000 a year when it's up and running.

"Of course, it had to be something of real scale, which $16 million would have delivered."

The Federal Government will spend the $16 million in Tasmania, but has not yet said where it would go.

'Glass half full' for Tasmanian Government



Sorry, this video has expired Cadbury a bigger drawcard than MONA ( Annah Fromberg )

The State Government is remaining positive despite the major tourism venture falling through.

Primary Industries Minister Jeremy Rockliff said while "disappointing" it opened new possibilities.

"It's extremely disappointing, it's a decision that Cadbury has made alone," he said.

"What is good however is that the $16 million remains in Tasmania."

Mr Rockliff said the State Government would have input into where the money went but it would not be rushed to make a decision.

"I don't think we need to be too specific about where the $16 million is spent," he said.

"What is important is that it's spent wisely."

Federal Employment Minister Eric Abetz said the criteria were designed to get value for money.

"As good stewards of the taxpayers' money we were determined to ensure that we got the best possible value from our investment," he said.

"Private investment is on the cards, public investment might be on the cards, but I'm not going commit myself one way or the other."

Senator Abetz said Cadbury itself flagged the increase in production as part of its planned factory upgrade.

Lobbying begins to secure funding

Politicians, industries and organisations are scrambling to have their voices heard on why they deserve the $16 million slated for Cadbury.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 3 minutes 27 seconds 3 m 27 s Tasmanian Tourism Council calls for chocolate money to be used in national parks ( Felicity Ogilvie ) Download 6.3 MB

The tourism industry claimed the state's national parks were significantly underfunded, while several regional mayors said their communities affected by the demise of the forest industry should be given priority.

Other suggestions for the funding were the Three Capes Track, which is still waiting on federal funds to be completed, or irrigation schemes that need another $50 million from the Commonwealth.

Mr Currant said with plans to open up national parks to more tourism developments, the decision was easy.

"Our parks receive from the federal government $3 million a year," he said.

"The Northern Territory receives $30 million a year to look after their World Heritage Area."

Cradle Coast Authority chief executive Brett Smith wants the funding spent on a new visitor centre at Cradle Mountain, which is part of the World Heritage Area.

He said the temporary centre, which is at the start of the world famous Overland track, visited by 8,000 people a year, was in the middle of a gravel car park and resembled a truck stop.

Unions say the funding should be spent on resourcing the Parks and Wildlife Service, which is about to shed 30 employees because of budget cuts.

The Cadbury funding was part of an election campaign promise by Prime Minister Tony Abbott.

The Federal Government hopes to make a decision about the $16 million as soon as possible.