Bali's tourism industry is hoping for an uptick in business after Covid-19 social restrictions were eased for the resort island, with the government beginning to formulate plans to allow foreign travel to resume.

The country's once thriving holiday hotspot has been eerily quiet amid Indonesia's Covid-19 outbreak — one of the worst in Asia — with hotels, restaurants and beaches shuttered, Reuters reports.

But cases in the Southeast Asian nation have declined significantly in the past month after peaking in mid-July.

Senior government ministers said on Monday restrictions would be downgraded in Bali to allow for some tourist destinations to be opened and cinemas to operate at 50 per cent capacity.