The figure was released following the COVID-19 relief package announced by the federal and state governments this week.

"The Western NSW community is not in lockdown, but the impact to our business community has been strongly felt through cancellations, reduced capacities, income loss and a lack of forward bookings," Business NSW Regional manager Vicki Seccombe said.

"We have been surveying our members throughout Western NSW, and initial high-level results suggest business revenue is down by at least 40 per cent in some sectors."

Tourism and hospitality are the two biggest hit industries.

"It amazes me the impact felt here, considering we're not even in a hotspot, or anywhere near one," Local Coffee owner Karen Payne said.

"Before this lockdown, we had lifted to a 15 - 20 per cent reduction from pre-Covid levels. That dropped to 36 per cent in the first couple of days. We have lifted again but it goes to show the working from home impact is massive."

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It's a similar story at Short St Store Cafe.

Manager Tayla Hallinan said, "We've lost half our trade. I think a lot of local people must be too nervous to come out, lunch time for us has dropped off a lot, people might come and get takeaway but aren't staying."

Both could benefit from the NSW business support package, which includes:

Member for Dubbo Dugald Saunders welcomed the package.

"I'm pleased the new arrangements have been expanded statewide, because there are businesses all over regional NSW, particularly in the tourism sector, that have shut down temporarily due to a reduction in visitors," he said.

More information on the business grants is expected to be available on the Services NSW website this week.

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