The government has announced people will be able to stand up and drink alcohol and dance at indoor venues from this Friday.
Pressure has been on the government to lift restrictions on these two activities, particularly from the hospitality sector who have believed they have deterred patrons from visiting licensed venues.
Premier Peter Gutwein said gathering in homes would be able to increase from 40 people to 100 people from 5pm on Friday.
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He said dancing and stand-up drinking will be permitted from Friday at 5pm for up to 100 people in an indoor venue and 250 people at an outdoor venue.
Mr Gutwein said current venue caps were under consideration by Public Health and announcements were expected to be made on that next week.
Tasmanian Hospitality Association chief executive Steve Old said the ban on dancing and vertical drinking had been the biggest issues facing hospitality operators recently.
"Hospitality operators can now prepare to provide the premium hospitality experience locals and visitors have come to know and expect, and can take more confidence into the festive season that their businesses can remain viable into the future," he said.
Mr Old said the cap of 100 people would provide some challenges to the state's nightclub operators, although the government's caution was understood.
"The industry would appreciate a further roadmap out of the remaining restrictions and the industry compliance required to achieve unrestricted operation," he said.
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