Hotels in northern Tasmanian are under half full according to new figures released by the Tasmanian Hospitality Association, but Hobart and the north west are languishing even lower.
Data gathered by STR Global for the Australian Hotel Association showed an occupancy rate of a state leading 45 per cent through September.
In Hobart, the data showed an occupancy rate of only 35.5 per cent through September.
The figure is in stark contrast to the 88 per cent rate from the same time last year which was the highest rate of all capital cities at the time.
Hobart now has the third lowest occupancy rate in the country, behind only Melbourne and Sydney.
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The north west fared slightly better with 36 per cent of their hotel occupancy fulfilled.
Across the state the hotel occupancy rate is less than 40 per cent.
Vision Hotels director Brendon Deeley operates three hotels in Launceston and one in Scamander and said the figures were not surprising.
"Launceston would probably be worse," Mr Deeley said.
"Launceston has been exceptionally terrible, but that's to be expected."
Mr Deeley was hoping rates might start to increase once the state opens its borders to "safe states" on October 28.
"We only get many tourists from SA and WA so the impact from there will be negligible. Hopefully we'll get a lot of Queenslanders coming," Mr Deeley said.
In better news for the industry, the figures indicated an increase in occupancy rates from the period of August to September.
The THA said this was likely an indication of Tasmanians continuing to holiday at home.
Mr Deeley also said the travel vouchers offered by the state government were a great idea and did not have much impact on his Launceston hotels, but reflected strongly in Scamander.
THA CEO Steve Old said, "accommodation providers are among the worst-hit from the coronavirus pandemic".
"Venue operators are gaining confidence about business viability [going] forward [as] bookings slowly increase but we are urging Tasmanians to support local business and go out and enjoy the state's hotels and other accommodation," Mr Old said.
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