Wagga will see up to 10,000 visitors in the first major event since the pandemic started but the COVID Safe restrictions have continued to force cancellations.
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Monday saw another event lost with the cancellation of Wagga's World Championship Gumi Race and Mighty Murrumbidgee River Duck Race for 2021.
NSW Touch Association general manager Dean Russell said the Junior State Cup Southern Conference would bring thousands of players and supporters to Wagga in late February.
"Even though our numbers are down, we still estimate a cash injection between $2.9 million and $3.1 million into the economy over the course of three days," he said.
"Even though we have only got 3000 people in the venue at any one time, we're still bringing close to 10,000 people into the region."
The conference will also see fewer teams taking part and 90-minute 'buffer zones' for groups to enter and leave the venues.
The Gumi cancellation was announced by South Wagga Apex's Joshua Paul, who said it was a sad day for Wagga beachgoers.
"This has been an extremely hard decision for our members to make, as we strongly believe the [Gumi and Duck Race] is an event the Wagga community is extremely proud of and...brings our community together," Mr Paul said.
"We do however have full faith that in the coming months and into the 2022 these events will come back bigger and stronger."
Mr Paul said it was "not impossible" to go ahead under the current rules, but said that it was prohibitively difficult to meet all regulations.
Mr Russell said COVID Safe rules had affected the Touch conference with higher costs and lower revenues, including for fencing and manned entry checkpoints.
"Our infrastructure costs have risen and unfortunately our numbers a little bit down and we have to be able to fit the competition for this particular year," he said.
Wagga business chamber business manager Serena Hardwick welcomed the return of major events.
"The flow-on effect of that will be additional money to our economy and supporting businesses that were probably hit hardest during COVID: hospitality and accommodation," she said.
Ms Hardwick said the Touch conference was demonstrating Wagga's capacity to host major events but "mass gatherings are going to be a concern for the foreseeable future" due to "challenging" restrictions.
Wagga Best Western and Ambassador Motor Inn owner Tony Neale said the Touch conference had brought more bookings but the risk of border closures was putting off tourists and other events.
"Just saying the border is open is not sufficient, that does not undo the uncertainty and smashed confidence," he said.
Rotary Club of Wollundry Wagga Club president James Ross said the main difficulty with events such as Gears and Beers and the Food and Wine Festival ahead was the infection risk.
"We're protective of the community. We don't want to be responsible for bringing the virus to Wagga," he said.