On Tuesday, the NSW Government announced it would relax some restrictions to allow hospitality venues with outdoor areas and outdoor seated music performances to increase capacity in a COVID Safe way.

The eased restrictions begin on Friday.

Hospitality venues can now have one person for every two square metres outdoors (previously it was every four) and for outdoor concerts up to 500 people will be able to attend.

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Businesses and venues wishing to take advantage of the eased reconstructions must use electronic venue check ins.

Shoalhaven City Council tourism manager Coralie Bell said it would be exciting for council to see events happen on public land again.

"It means we start doing some permits again which is very exciting for us," she said.

"It means businesses can start running their commercial events again and the community can have their get-togethers.

"Council will continue to work closely with police to make sure event organisers do everything they can to be safe."

She said outdoor dining restrictions being relaxed would make a big difference to businesses, who were near capacity across the school holidays.

"What we've found is yes, there have been people everywhere, but people have got nowhere to eat because our capacity is significantly smaller," Ms Bell said.

"An increased number in hospitality will mean people aren't just wandering the street wondering where to get in."

The Friendly Inn Hotel, Kangaroo Valley manager Caroline Hayburn said as its main area is outside, the changes would have a significant impact.

"It will make a difference, we have a big outdoor area and our space inside is pretty limited because we're actually quite a small pub," she said.

"We've been very busy. If it was before school holidays it would have been a little easier."

It will also allow The Friendly Inn to put on more live music, now they hope more restrictions will be lifted soon.

"Hopefully the no standing rule is relaxed, it makes it difficult especially having an outdoor area and trying to make people sit."

Wildginger owner Kierrin McKnight said it was positive to see restrictions easing further, although the outdoor dining changes wouldn't make a big difference in numbers for his restaurant.

"It is nice to see things moving forward," he said.