Hotels and tourism operators in the ACT will be able to claim up to $75,000 in rebates, as part of a territory government support package to help the sector which has been hard hit by border closures.
Accommodation providers and privately operated tourism venues that have suffered a financial loss of at least 30 per cent this month, compared to April, will be eligible for the rebates.
The rebates will be applied to water bills, and can be claimed before the end of the year.
ACT Chief Minister Andrew Barr said an average accommodation provider would receive about $30,000 in rebates under the program.
Businesses likely to spend less $15,000 on water costs, will be able to apply for a $15,000 reimbursement on expenses such as rates, fuel and mortgage repayments.
Canberra's tourism industry has suffered due to the Sydney Covid outbreak, which has greatly curtailed travel to the nation's capital.
Mr Barr said about 90 accommodation providers and 20 privately owned tourist venues would be eligible for the payment.
"The tourism industry has been one of the hardest hit since the pandemic began and, while the local sector had been recovering, the recent developments in Sydney have had a significant financial impact - particularly for accommodation providers and small tourism operators," Mr Barr said.
As part of the package, registration costs for hire cars and charter buses will be waived for another six months until March 30, 2022.
Sydneysiders are currently banned from coming to Canberra, with exemptions only given in the most extenuating circumstances.
Travel is also restricted between the ACT and other states, with Victoria, South Australia and Western Australia all imposing some form of restrictions on travel to the territory.
Mr Barr said restrictions would likely be in place until the end of winter.
Canberra tourism businesses have reported losses of up to 90 per cent as a result of the Sydney outbreak.
Questacon and the National Zoo and Aquarium also reported lower numbers during the July school holidays.
