Premier Peter Gutwein announced on Friday the island intends to ease border restrictions in four weeks, depending on public health advice.

He said close attention will be given to a recent COVID-19 spike in Victoria.

"As the circumstances stand, if we were opening up tomorrow, we would not be opening up our borders with Victoria," he told reporters.

"In term of our broader border position, I don't care who is calling for it, whether it be a lobby group, whether it be the prime minister.

"If the public health advice is we should maintain restrictions, then we will maintain our restrictions."

Mr Gutwein said reopening to select states, cities and even towns would be considered.

Tasmania has gone 41 days without recording a new COVID-19 case and is free of active cases.

The island shut its borders on March 20 and has since required all non-essential arrivals to quarantine for a fortnight.

An app is being developed to replace the current arrival form and better track the movement of visitors, Mr Gutwein said.

The state's peak tourism body said the border announcement was the first step in a long rebuild.

"Tourism business operators will probably have the best night's sleep they've had in months because of this decision," Tourism Industry Council of Tasmania CEO Luke Martin said.

"The industry will now be able to plan ahead with confidence."

Tasmania shifted to stage three of restrictions at midday on Friday, with up to 500 people allowed at outdoor venues and 250 at indoor ones.

The one person per four square metres rule has been eased to two metres.

Community sport and contact training have the green light while casino and gaming venues, markets and garage sales can resume.

However, a 20-person limit on household visitors remains in place.

Australian Associated Press