Christmas in the City 2021 opened on Tuesday with a program of events and installations including a giant Christmas tree, performances from the Canberra Symphony Orchestra and on-street DJs.

"We would expect to bring hundreds of thousands of extra dollars into the city each day. And so over a four-week period, you're talking millions of dollars of extra spending in the CBD," Mr Barr said.

City Walk has been transformed into a festive wonderland with a brand-new design for the Christmas tree and complementary decorations including flags, banners, a mural and an interactive Christmas installation for children and adults alike.

Chief Minister Andrew Barr said Christmas in the City was about supporting ACT businesses, as well as being merry.

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"This has been a challenging time for everyone so we really wanted to give Canberrans something to celebrate and a reason to get back to the city," he said.

"We know it's a time when many retailers make a significant amount of their yearly earnings. And so it is important that we have events and activities that will attract people into our central business and central entertainment districts."

City Renewal Authority CEO Malcolm Snow said while he didn't expect crowds of people in the city and other areas of Canberra would take the territory "back to the darker days", the event was COVID safe.

"We've designed a program that takes account of all of the things that we need to comply with. We hope that we don't revert back to the darker days, so to speak," he said.

"We're confident that our event planning can take account of any unseen, unforeseen eventualities that might arise."

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