Stanley named Australia's third best small town for tourists

That's according to Ship Inn Stanley owner and Circular Head Tourism Association vice president Kerry Houston following the Australian Tourism Industry Council awards on Thursday.

"It is wonderful for Tasmania that our little town of Stanley will get that extra promotion," she said.

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West by North West chief executive Tom Wootton said Stanley coming in third place behind Berrima and Port Fairy was a reflection of what could be achieved when members of the tourism industry worked together.

"In our submission, we focused on the appeal of Stanley being remote, isolated and peaceful - creating an opportunity for mindfulness and human interaction with warm hospitality from salt-of-the-earth Tasmanians," Mr Wootton said.

"I think there was a time when Stanley locals believed it was the Nut that made their destination special, but they now realise the dramatic backdrop is only the beginning."

Ms Houston said operators had felt like a "punching bag" throughout the COVID pandemic with cancellations coming in everyday.

"It hasn't been easy, but we have been more fortunate than places like Melbourne that have been shut down," she said.

Ms Houston is looking forward to the return of interstate tourists when borders open on December 15.

"From our experience we do really well in February, March and April so to have the borders open and everything established for that period will be wonderful."