The seven-day shutdown sparked by a confirmed case of COVID-19 was set to have a profound effect on weekend destinations such as the South Coast and the ski fields, which were relying on Canberra as its last free tourist market.

Labor MP for Eden-Monaro Kristy McBain said Canberra's snap shutdown would be the "nail in the coffin" for a number of businesses which had already seen a slump in bookings from the loss of travellers from Victoria and greater Sydney.

Ms McBain said there would be a number of pubs, hotels and businesses in the Snowy Mountains flinching from the loss of Canberra visitors, the last financial lifeline in the era of state border closures.

"I cannot imagine how businesses in the Snowy Mountains and down at the coast must be feeling right now," she said

"This will now be the third lockdown which has had an impact on the region.

"The ski fields were already down to 25 per cent of normal revenue. About 12 per cent of visitors come from Canberra and if they now get cut out there will be significant problems."

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NAB Economics data shows lockdowns cause consumption in the economy to fall by roughly 15 per cent. Operators in the hospitality and tourism sector suffer a 25 per cent drop in spending.

The South Coast has already lost out on two summers of normal trading because of the pandemic and the 2020 Black Summer bushfires.

"The coast has suffered the loss of two summers in a row. I think it is going to be extremely hard on businesses in the surrounding region who have already been struggling and for some may be the final nail in the coffin," Ms McBain said.

Some regional businesses relying on cross-border spending have qualified for the new reiteration of JobSaver payments.

However, it is understood workers and businesses in the Eden-Monaro electorate do not qualify for COVID-19 disaster payments or relief as the region is not deemed a virus hotspot.

Australian Hotels Association's ACT general manager Anthony Brierley said the ACT and venues in the broader region were already suffering from a 75 per cent disappearance in revenue from Sydney's lockdown.

"I think this situation changes the dynamic again for those businesses in and surrounding the ACT," Mr Brierley said.

"COVID-19 and its spreading throughout the NSW and ACT region will impact on people's desire to go out and certainly on their desire to book travel."

Mr Brierley noted specific support would be needed for hotels and hospitality if lockdowns were to be extended.

"Financial support always needs to be revisited so that it's calibrated to the restrictions on trade," he said.

"Now there are greater restrictions on trade, we need to make sure that the financial support is commensurate for that."

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