Pub owners and licensees are cautiously optimistic that a return to regular entertainment is in sight, as the NSW government further eases some COVID restrictions on Monday.
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Hospitality and retail venues and places of worship will be allowed to have one person per two square metres, with 25 people permitted before the rule applies.
However this does not include gyms and nightclubs.
A maximum of 50 people will now be allowed in gym classes and on the dance floor at nightclubs, but there will only be one person per four square metres allowed.
"When we reopened we didn't go back to music, only because it's pretty hard to tell someone they're not allowed to dance," said Royal Hotel co-owner Nelson Kelly.
"We've been waiting on this announcement.
"It's good news, and it's one step closer to being back to 100 percent normal."
Mr Kelly said it was time to start looking at putting on some solo acts and duos.
"We need to see what the appetite for it is," he said.
He said the pub would put a new COVID-safe plan in place to meet the new guidelines.
Publicans were still awaiting official advice and guidance from the Australian Hotels Association.
There are concerns within the industry about how pubs will be able to attract enough people under the partially relaxed guidelines to make investments in entertainment viable.
And also how they will monitor dance floors to ensure that only 50 people are on them at any one time.
In stadiums and theatres the new rules will allow for 100 percent seated capacity for outdoor events and 75 percent of capacity for indoors.
Up to 100 people will be able to be at outdoor gatherings, up from 50.
Up to 3,000 people can attend other organised outdoor events (community sport, outdoor protests), subject to the one person per two-square-metre rule.
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