Geelong's council will spend $500,000 on a giant floating Christmas tree in Corio Bay in a bid to stimulate tourism and retail.

The local council last night voted to go ahead with the extravagant Christmas installation, which would rival the 83-metre tall floating tree in the Rodrigo de Freitas Lagoon in Rio de Janeiro.

"The city's Christmas program is in urgent need of upgrading - Geelong retailers and tourism and hospitality operators are crying out for support," Geelong Mayor Darryn Lyons said.

"The vision for Christmas this year is to create an environment that stimulates tourism and retail and puts the wow factor back into our city heart."

Councillor Lyons says the tree would become world-renowned.

"We've just got to think outside the box - big, bold and beautiful is the catch phrase," he said.

But four councillors, including Councillor Andy Richards, voted against spending hundreds of thousands of dollars on the installation.

Cr Richards, who is also the Labor candidate for the seat of South Barwon in this year's state election, said the money would be better spent on employment programs, with the city facing widespread job cuts in the coming months from the closure of Alcoa's Point Henry smelter.

"I believe it's more important for council and the city to concentrate on creating jobs and employment in Geelong," Cr Richards said.

"I think the Christmas tree is nice to have and I would probably support it in the future, but at this stage I think it's more important that families can put food on the table and that's only done through making sure that people have jobs."

Cr Lyons defended the spending, saying last year's Christmas decorations in Geelong were "a disgrace."

"We can't do what we've done in previous years and neglect the CBD," he said.

"Christmas is a very special time but this is not all about Christmas - it's about brightening up, living and loving our city and it is all about children but it's all about getting tourism in here and getting people to spend.

"I'm fed up with hearing the words of previous councils of (Geelong being a) 'sleepy hollow'."

"The fact of the matter is it's a very exciting future we have down here and we've got to learn to love it and appreciate it."

The council plans to use parts of the installation for other events during the year.