One of the café owners on Macquarie Street has spoken about rampant vandalism of their outdoor spaces, they would like to see punishment and penalties for those caught doing it.

The city's hospitality business owners have been given a $5000 incentive to enable them to use outdoor spaces for dining, which include parks and car parks, without the need for a separate Council application.

Outdoor dining is popular in major cities and the NSW minister for hospitality and racing, Kevin Anderson, is extending the incentive first introduced last year and now extended for the next 18 months to regional city centres such as Dubbo.

"This sign board outside has been kicked many times out there," Sharon Campbell of Real Food Café said. "They've broken [my signage with a] parrot, they broke my carrot too.

"I've tried putting café barrier [around the outdoor tables] but they just come past it, kick it, destroy it or steal it...they should be punished."

Ms Campbell said she and other café owners in the city are attracted to the idea of alfresco dining when it was introduced to the hospitality industry as physical distancing measure as part of COVID-19 restrictions.

Ms Campbell said most of the businesses would want to see the Dubbo Regional Council set up or allocate permanent outdoor seating spaces or dining space barriers for their diners.

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"We love alfresco dining...if we can make alfresco dining as comfortable as possible and meet weather elements such as outdoor heaters [in winter] or wind protection blinds.

"Look at London or Sydney, Melbourne or anywhere and there's many of them dining outdoors.

"They don't close just because it's raining or snowing, they just make it work."

Ms Campbell said to maintain their outdoor tables along Macquarie Street they pay the council an annual fee for every table they set up outside their indoor premises.

The alfresco incentive is however temporary until the end of December next year for those who want to take it up, and only to accommodate those who are voluntarily doing physical distancing.

Since the incentive was introduced, 582 licensed venues such as cafes, restaurants and coffee shops have taken up their temporary alfresco options.

"The temporary measure has been incredibly successful and a huge boost to the industry so extending them will give hospitality business greater certainty for at least another 18 months, " Mr Anderson said.

"The uptake has largely been in the CBD but we would love to see more regional venues take up this opportunity and consider permanent options that reflect the community's desire to dine outdoors year-round."