Greater Sydney, Wollongong, the Blue Mountains and the Central Coast have been locked down in a bid to stem the breakout of cases in NSW, meaning would-be tourists have needed to drop all holiday plans.

Andrew Buik, the general manager of Wagga's Townhouse Hotel, said it was devastating to see all the cancellations coming through for the next couple of weeks, but he understood why the measures had to be taken.

"A large part of our business is based around Sydney travellers," Mr Buik said.

"There is certainly always the chance that lost rooms could be taken up by locals, but we probably need to put our health and safety first to see that we get through this resurgence.

"We understand that it will be a quiet couple of weeks and that people will be cautious."

Mr Buik said the flip side is the toll it has taken on the region's workforce.

IN OTHER NEWS:

"We don't have federal support around wages," he said. "The cancellation also flows onto the restaurant, so we have had to cut hours back across the board. We feel really bad for our staff."

Mr Buik said he hopes to see some financial measures introduced to help support regional areas that are not in lockdown but are still impacted by the new measures.

Louise Freckelton owns the Kestrel Nest EcoHut, just off the Hume Highway at Mount Adrah, and said she has had five cancellations.

Fortunately, Ms Freckelton had two regional couples snag the empty spots, but it has been yet another exercise is rolling with the punches.

She said their opening date was delayed in March last year to June, adding the two main lessons COVID-19 has imparted are to be "nimble on social media" and communicate her safety and cleaning measures.

Ms Freckelton encouraged Wagga residents to book a mini holiday at a regional accommodation spot.

Elsewhere, the eco huts on Kimo Estate have already been rebooked, but owner David Ferguson said their other business, the Flash Jacks at Gundagai, is struggling.

"It's very heavily reliant on the traffic from the Hume Highway," he said.

"It's been affected by Victorian lockdowns as well as this Sydney one. For the farm at Kimo, we have a lot of local people that have found an opportunity to sneak into our hut because they are usually booked 12 months in advance."

Mr Ferguson said it is fortunate they have a "varied business" with the farm and accommodation.

"We are a pretty diverse business, and that will help us immensely," he said. "We only incur costs if people stay, so we will be able to limp through."

Jenni Riethmuller has seen cancellations spike for her equestrian centre and farmstay, Belisi.

"We have had mass cancellations for the school holidays, which is disappointing as it's our busiest time," Ms Riethmuller said.

"We have had quite a few local people, normally people who have to wait up to 12 months, jump in. It's great to have that local support. We are so grateful for that."

Ms Riethmuller said despite this latest blow, they have been lucky as people who would have been travelling overseas have taken to regional holidays.

"We have had a 97 per cent occupancy rate, so we are pleased with that," she said. "All of us in regional NSW have been grateful to have that increased visitation."

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: