But amid a relaxing of restrictions in the capital region, and the continuation of international and some domestic border closures, the local tourism market is starting to show small signs of recovery.

Industry figures are crediting Sydneysiders for a steady rise in hotel bookings and visitor numbers to the region's attractions and venues, including the wineries north of Canberra.

The ACT government isn't seeking to discourage visitors from Sydney despite the latest COVID-19 outbreak in the city's south-west fringe, although local authorities remain on high-alert to the rapidly evolving situation.

The government is forcing anyone who has been in specific locations in south-west Sydney to self-isolate for 14 days from the day they were there.

Chief Minister Andrew Barr welcomed news of a bump in hotel bookings and expected Canberra would continue to see more "drive visitors" as it solidified its standing as a "COVID-safe destination".

Ken Helm, owner of Helm Wines in Murrumbateman, said sales and visitor numbers had been double normal levels since his winery reopened in early June, which coincided with the lifting of a regional travel ban in NSW.

Mr Helm said almost all of the patrons were visitors from Sydney, who had chosen the area for a short getaway. Their reasons for choosing the capital region differed, he said.

Some had been forced to abandon interstate travel plans due to border restrictions, while others had to look for other options because they couldn't find accommodation in popular regional NSW destinations, such as the Hunter Valley.

Mr Helm said all were "so relieved" the state's intrastate travel ban had been lifted that they couldn't wait to temporarily flee the city.

"We keeping saying, 'we don't think there is anybody left in Sydney'," he said.

"But you have to realise that the district and the attractions of the wineries, and having Canberra on our doorstep, makes it a very attractive destination for people in Sydney."

Mr Helm said most visitors appeared to be staying in Canberra, where they spent time visiting the city's attractions before heading north to the wineries near Yass and Murrambateman.

Their presence, and money, has been a timely boost for the veteran winemaker, who has battled the triple-whammy of drought, bushfire smoke and the COVID-19 shutdown in recent times.

The winery's prospects were "pretty bleak", Mr Helm said, before the recent turn in fortunes.

He is keen to capitalise on the mini-boom - to "make hay when the sun shines" - knowing any new outbreak of COVID-19 could force the re-introduction of restrictions.

Australian Hotel Association ACT general manager Anthony Brierley said Canberra's hotels were recording the highest occupancy rate of any capital city in the country, with bookings steadily increasing since early June.

But at just below 50 per cent, Mr Brierley said the numbers were still "dire". He said at that rate, and without the federal government's JobKeeper wage payment, many hotels would be unviable and forced to mothball.

He expected Sydneysiders to continue travelling en masse to Canberra while the various border restrictions remained in place. But he warned the competitive advantage Canberra was enjoying was not sustainable.

Canberra Region Tourism Leaders Forum chairman David Marshall said the ACT had a "big opportunity" to capitalise on the Sydney market.

"We have 5.5 million people right on our doorstep," Mr Marshall said.

"The surveys are showing that people want a safe destination, they want to drive there and they want open spaces - Canberra ticks all of those boxes".

Mr Barr has committed to rolling out the largest domestic tourism marketing campaign in the ACT's history in a bid to spur the sector's recovery.

He hasn't put a time frame on the campaign, saying only that VisitCanberra was "preparing material to further promote Canberra as place to visit when the time is right".