"We thought of doing takeaway, but we're a bit out of the way for that," he said.

"At the beginning of COVID, I basically had my head on my chin for two weeks not really knowing what to do."

Mr Virieux has long planned to construct a marina at Rosevears, but COVID has made that too risky.

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The sudden loss of interstate and overseas travellers took out 50 per cent of his clientele, so there was only one way forward: make the Rosevears Hotel a one-stop shop for Tasmanians.

The hotel is undergoing at least $300,000 in renovations, fixing some of the "flow" issues by moving the public bar to the entrance, having a wine bar next to it which then flows into the a la carte restaurant with outdoor dining. A new beer system was installed, murals were given a touch up and a front deck is under construction, while the flooring was also replaced.

Works have been under way for months, with the hotel to reopen on August 3.

"The locals were saying to bring the public bar back to where it once was, so that's what we've done," Mr Virieux said.

In a further attempt to bring in more local traffic, he bought the equipment from recently-closed Elphin Continental Cakes to create an open-plan bakery at the rear of the pub. Once the hotel renovations are complete, attention will turn to fitting out the bakery, should it gain council approval.

Mr Virieux said COVID was clearly a crisis for the hospitality industry, but it also presented an opportunity - using no interest loans and other government support - to enhance businesses at a time when visitor numbers were down.

"You could just curl up in the fetal position and wait for it to be over, or you could have a go," he said.

The Rosevears Hotel is just one of a range of food and hospitality businesses in the North to undergo significant renovations during COVID, including The Irish's front bar, Charcoal Chicken and more.

Having gone 60 days without a coronavirus case in Tasmania, and with testing numbers remaining satisfactory for public health authorities, Small Business Minister Sarah Courtney is urging Tasmanians to back local food and hospitality businesses.

She launched the Welcome Back campaign on Thursday as a collaboration between Tourism Tasmania and the Tasmanian Hospitality Association.

Ms Courtney said it was an opportunity to rediscover nearby hospitality venues.

"This is a wonderful opportunity to get out and about, experience your local venues and say 'thank you' to someone else," she said.

"Now is the time when the community needs to come back in and back their hospitality venues, whether that's the local cafe, the pub, the restaurant, the bakery.

"It's also a great opportunity to reconnect with those in the community."

In addition to Welcome Back, a Make Yourself at Home campaign has been running since June encouraging Tasmanians to holiday locally.