The bushfire-affected regions of the South Coast and Southern Highlands may be open again, but tourists are continuing to stay away.
Illawarra Business Chamber Executive Director Adam Zarth said the regions - which rely on summer tourism to boost their businesses for the rest of the year - were feeling the effects of cancellations and a lack of forward bookings after the fires.
Mr Zarth welcomed measures announced by Prime Minister Scott Morrison, but said some did not go far enough to help the region, which the IBC said had been "plunged into a cashflow and visitation crisis".
With reports holiday accommodation businesses in some towns were facing a cancellation rate of 80 to 100 per cen, Mr Morrison announced a package to support small businesses.
This includes loans of up to $500,000 for businesses that have suffered significant asset loss or loss of revenue, interest free for up to two years, and an extension of already-introduced grants of up to $50,000 for impacted business premises.
"The announcement of the no-interest loan scheme, the grants and the temporary tax relief will provide some comfort to the many businesses that we know are struggling across the southern region of NSW," Mr Zarth said.
"However I note that the grants will not be available to businesses other than those suffering direct property damage, and the tax concessions provide short term relief through deferrals of liabilities that may later still be applicable once businesses return to profitability."
"The government needs to ensure that all those businesses suffering in the current downturn can access some form of assistance ... by implementing the widest possible eligibility criteria."