A decision on whether this year's Sydney to Hobart yacht race will go ahead is expected on Monday, with the state government meeting with race operators to discuss the event.
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Tourism, Hospitality and Events Minister Sarah Courtney said they are hopeful the race would proceed on Boxing Day.
"We are obviously very hopeful that this iconic event will be able to go ahead," she said.
"We know that it drives a huge spotlight onto our beautiful waterfront in Hobart and helps support lots of businesses in that area."
With border restrictions and safety the main concern, Ms Courtney said conversations with organisers were required, however, the government would be keeping a close eye on border closures and case numbers in NSW.
"We are doing a great job with our vaccinations here in Tasmania and the mainland is coming along really strongly as well and for hospitality and tourism operators across Tasmania it will be great to be able to see visitors come in around Christmas time," she said.
With the event drawing in large crowds and racing crews, she said the event had enormous benefits for tourism in Tasmania and businesses.
"It's exciting for the people that love watching the boats, but importantly also supports those operators of Hobart throughout that New Years period," Ms Courtney said.
"The decision can be made quite close to the event, however it would be good to provide certainty obviously for competitors as well as businesses in Hobart."
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