The man behind a controversial "luxury" camp proposal which sought to fly guests in and out of the Tasmania's wilderness plans to appeal the knockback by the local council, saying they "failed in their role" to assess the project on planning merits.

On Tuesday, the Central Highlands Council rejected the proposal, by RiverFly1864 fishing tour company operators Daniel and Simone Hackett, to build a camp on Halls Island at Lake Malbena, inside Tasmania's Wilderness World Heritage Area, voting six to three against.

Key points: The plan, to establish a privately owned camp on an island at Lake Malbena in Tasmania's central highlands, was voted down six to three by the local council

The plan, to establish a privately owned camp on an island at Lake Malbena in Tasmania's central highlands, was voted down six to three by the local council The proposal had been approved by the Tasmanian and Federal Governments, with the final say falling to the Central Highlands Council

The proposal had been approved by the Tasmanian and Federal Governments, with the final say falling to the Central Highlands Council One councillor said he was physically ill at the prospect of the vote, due to community anguish over the proposal

The project would provide for 30 trips a year of six guests and two guides to the area, flown in and out by helicopter.

About 100 people packed into the meeting at the council chambers at Bothwell — with the vast majority opposed to the project.

Speakers voiced concerns for almost two hours before councillors began debating the proposal.

The council decision was set to be the final step in the approvals process for the project, barring legal challenges.

'Horrible decision' to make: councillor

A number of councillors spoke with anger about being forced to make the final decision, with some saying they felt let down by other levels of government.

Miena shack owner Robyn Lewis said helicopter noise was not welcome in the area. ( ABC News )

Councillor Anita Campbell said it was a "horrible decision" to have to make.

"It's unfortunate that the final decision has been left to the lowest level of government," Ms Campbell said.

She pointed to the action being taken by the Wilderness Society and Tasmanian Greens, who are seeking to overturn the Federal Government's approval for the project.

"It's frustrating that we can't wait until after the [Wilderness Society's] court case," Ms Campbell said.

A map of the proposed camp at Hall's Island, showing camp footprint (pink), existing 1950s hut (aqua), walking path (green) and approximate helipad location, with vegetation protection areas (blue). ( Supplied: Dept Environment and Energy )

On Wednesday Mr Hackett said he planned to appeal the decision "in due course".

"While we sympathise with the passion shown on the day, the council had a single, clear role, to assess the DA [development application] against the planning scheme," he said.

"Despite the best of efforts and advice of the council planner, and having the required information and resources, we feel strongly that a number of councillors failed in this role."

Shouting, jeers at meeting

Miena shack owner Robyn Lewis said she was concerned about the impact of helicopters flying tourists to the standing camp.

"I don't believe that the type of development being considered is appropriate for the region," Ms Lewis said.

"I have a farm down at Hobart Airport, helicopter noise is a huge issue down there, and it's the sort of thing I don't want to see happening up in the Great Lakes area and particularly in the western country."

Lake Melbena in Tasmania's Central Highlands region ( Supplied: Tasmanian National Parks Association )

Brett Smith said he regularly used the area recreationally and had been "vehemently opposed since I found out 12 months ago".

"I've campaigned against this intrusive development which really does in the recreational users of the area."

During his address, Mr Hackett was highly critical of the Tasmanian Greens and conservationists who opposed the project.

At one stage he was shouted down by interjectors in the crowd, with councillor Robert Cassidy demanding the audience allow him to speak.

The Wilderness Society said despite the council's decision it planned to continue court action against the Federal Government in relation to the proposal.