Sky News has reported 130 people in The H10 Costa Adeje Palace, out of 700 locked down, can now leave.
They were initially asked to stay in their rooms on Tuesday (25 February) when an Italian guest, understood to be a doctor, tested positive for Covid-19.
People who arrived after 24 February, when the Italian man had gone to hospital, can leave, Sky reported.
There have been more than 400 cases in Italy – a 25% surge in 24 hours.
Jet2holidays and Tui confirmed dozens of their customers were among those at the hotel.
