Sixteen people are in hospital but none are in intensive care. The state now has almost 7000 active infections.

Having spent almost 700 days behind a hard border, WA is poised to finally welcome back all vaccinated travellers.

About 5000 people will arrive on Thursday across 22 domestic flights and five international flights, with tens of thousands expected to follow in coming weeks.

The reopening is expected to have a negative net impact on tourism as West Australians embrace the opportunity to travel outside of the state.

But Premier Mark McGowan insisted WA's reputation had not been dented by almost two years of hardline border restrictions.

"Our reputation will be as the safest jurisdiction in the world that handled COVID the best in the world," he told reporters.

He said the approach had been further vindicated by new figures showing WA's domestic economy grew by a nation-high 6.6 per cent last year.

But the premier faces growing backlash over strict "level two" statewide public health restrictions that come into effect from Thursday.

Children as young as eight will be required to wear face masks in public, while home gatherings are limited to 10 people under rules expected to remain for at least a month.

New capacity limits also threaten the viability of some larger hospitality venues and events, with live music venue Freo Social announcing it will close until the restrictions are lifted.

Mr McGowan on Wednesday announced a further $72 million in compensation, including grants of up to $50,000 for businesses facing reduced turnover.

He acknowledged the new rules would not be tightly policed but said there had been high levels of compliance during the pandemic.

WA's health system has moved to "red alert", reflecting widespread COVID-19 transmission.

Healthcare workers across all clinical areas will be required to wear N95 face masks, while there will be greater use of telehealth for outpatient services.

Fewer category two and three elective surgeries will be performed at both public and some larger private hospitals across the next month and there will be greater use of rapid antigen tests.

Public hospital visits will be further restricted, although exemptions may be granted on some family and compassionate grounds.

The only remaining level is black alert, indicating the system is at capacity.

Rehabilitation centre Shalom House meanwhile revealed it had entered lockdown after 74 positive cases were detected at the Swan Valley facility.

In a Facebook post, the centre indicated none of its cases was severely unwell.

Almost two-thirds of eligible West Australians have now received their third vaccine dose but the number is below 30 per cent for Indigenous people in regional areas.

Health staff will fly to the Kimberley, Pilbara, Midwest and Goldfields in coming weeks to bolster a vaccination drive in those regions.

Australian Associated Press