"I think it's going to be a way of the future," he said.

"We don't want to be discriminatory, but then again, we've got to show due care to everyone involved."

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Mr Sheldon's Elm Cottage accommodation venue contains five cottages that house up to 30 people between them at any given time.

He said that regional tourism has taken a huge hit with the consecutive 2019-20 bushfires and the pandemic, and that businesses need to take proactive measures to help keep the industry alive.

"Instead of sitting back and waiting...we should actually lead the way and come up with a reasonable policy forward," Mr Sheldon said.

"We are lucky in Wagga and where we are in Tumut; because we've been safe so far we could really lead the way."

Elm Cottage will be rolling out its vaccination policy in line with the easing of restrictions in NSW.

The policy will require guests to prove they are fully vaccinated against COVID-19.

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Mr Sheldon said they would be making exceptions for people of age groups not yet eligible for the vaccine, and for people who medically cannot get it.

He sought legal advice on the matter and said he remains confident in the policy decision.

When asked how he would respond to those who say this policy is discriminatory, Mr Sheldon said: "There are other alternatives within the region for accommodation, and I would suggest gracefully that they approach them."

"The management decision here is no, we will not accept people who are anti-vaxxers," he added.

Lisa Coates, a lecturer in law at Charles Sturt University's Centre for Law and Justice, said that legislation surrounding vaccination is "a rapidly evolving legal landscape".

"We can expect, reasonably, further developments in this area of public health law and I think it's very difficult to say at this time where things are going to be," she added.

Deputy premier John Barilaro said there are rules being developed specifically around regional travel and vaccination as part of the NSW government's roadmap out of lockdown.

"When people leave Sydney to go to a regional visit from a tourism perspective, we're going to restrict it to that the host - whatever accommodation it looks like - all their staff must be fully vaccinated, and the customer must be fully vaccinated," Mr Barilaro said on Thursday.

He suggested that industries will lead the way, and the government will then follow with guidelines.

The deputy premier predicts that more businesses will "look to only dealing with vaccinated people" due to fears their reputation could be damaged if their venue inadvertently sparks an outbreak.

"[You] don't want to be that pub, that café, that Airbnb that has had an outbreak, because that will cause a closure of that business," Mr Barilaro said.

Ms Coates said the government will need to consider a number of important priorities moving forward, such as "needing to balance the public health and safety of the community, as well as the rights and liberties of the individual".

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