Regional travel within NSW will be allowed from June, but some businesses fear capacity limits will still slow tourism revenue.

Businesses have less than a fortnight to prepare for increased tourism after the NSW government announced on Wednesday morning that holiday travel would be allowed to regional areas.

Deputy Premier John Barilaro told said the decision accounts for regional communities that have suffered from tourism numbers dwindling.

“By June will be a greater appetite to reboot the economy, create jobs and support our regions,” Mr Barilaro said.

Regional pub owner Adam Cryer said the eased travel restrictions may not be enough to support  Picton’s historic George IV Inn with capacity limitations still in place.

“Unlike cafes and small eateries or restaurants, where 10 or 20 people might put them at a capacity, for us, we are used to a full venue. So although the travel restrictions allow for Sydney siders to come out, we still can’t accommodate for them as we can only have 10 people in our venue at one time,” Mr Cryer said.