Industry representatives are speaking out against the capacity limits imposed on theatres. This follows the recent announcement of the Mamma Mia stage show being postponed for a second time due to the restrictions.
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Encore Theatre Company co founder Belinda King said current regulations allow producers to seat up to 50 per cent capacity, subject to density limits.
"It is simply not possible for us to present that show to that audience number and be able to break even," she said.
"For a big production to be viable in the Princess, we would need 75 per cent capacity with density limits dropped within the auditorium."
Tasmanian actor John Xintavelonis said the whole sense of community within the industry had been lost.
"It gives us an identity, a release. People need entertainment. It's been around for thousands and thousands of years."
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Visit Northern Tasmania chief executive Chris Griffin said the arts were central to the Tasmanian experience and for attracting people to the city during the "cool season".
"Some of the performances from the Princess are crucial to that."
He said events such as theatre have effects on other industries with people booking hotels, partaking in hospitality, or heading out to other events.
"We shouldn't be accepting any excuses for restrictions that get in the way of that."
Tasmanian Small Business Council executive officer Robert Mallett said the arts and entertainment industries have been silent giants within the community.
"Every single one of those people in it are micro businesses," he said.
"From Christmas Day we should consider relaxing all the venue density laws to allow theatres and cinemas to get back to making a genuine profit."
Arts Minister Elise Archer said the government acknowledged the performing arts industry was impacted by the COVID-19 pandemic but that the health and safety of Tasmanians is their first priority.
"Business Tasmania, Department of State Growth and Worksafe Tasmania are engaged in discussions with the performing arts industry and seeking advice from public health as required," she said.
The Minister previously reiterated Premier Peter Gutwein's statement that they will have more to say on the potential easing of restrictions next week.