Orange City Council says it is powerless to stop people from coronavirus hotspots visiting the city despite community fears more visitors will raise infection risks.
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Councillors said while there was community opposition to visitors, travel restrictions were set by state and federal governments.
Cr Jeff Whitton said it was not a local government power.
"We don't, as a council, have the authority to stop Australians coming to our city," he said.
The matter came to a head on Tuesday when council deferred funding for the Orange Wine Festival in October.
Councillors said the community was concerned about any risks the festival, which attracts people from outside the region, would pose to safety.
We don't, as a council, have the authority to stop Australians coming to our city.
- Cr Jeff Whitton
It also deferred funding to September 15 to allow more time to see whether the event could go ahead.
It came as Orange vignerons were also hit this week when export trade to China was threatened by a Chinese anti-dumping inquiry into Australia's $1 billion wine exports.
Orange Region Vignerons Association president Nicole Samodol said all major festival events, including the Orange Wine Show, had been cancelled.
Ms Samodol said visitation numbers would be down on previous years and only small events would be held at cellar doors.
She said they wanted to promote the Orange region and wineries had COVID measures in place for community and staff safety.
"It's difficult. There is still some community sentiment out there that is very anti," she said.
Ms Samodol said several Orange wineries exported to China and were worried about the impact of the trade move.
"China is an important export market for a number of producers in the region. I think it is definitely concerning," she said.
Ms Samodol said a delegation of Orange wineries attended a wine expo in Hong Kong in 2018 to seek trade.
Mortimer's Wines owner Peter Mortimer said they had been exporting small shipments to China with the latest pallets going this month.
He said he believed the impact would be minimal. "They're just trying to flex their muscles," he said.
Orange mayor Reg Kidd said he did not support social media talk about stopping people coming to Orange during the pandemic.
"Where do you draw the line and say who's to visit Orange and who's not to visit Orange? I would like a lot more direction from government."
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David Fitzsimons
I am a senior journalist at the Central Western Daily concentrating on council, government and real estate issues. Before moving to Orange I filled senior roles at the Daily Telegraph, Daily Telegraph-Mirror and the Daily Mirror in Sydney. They included being an editor, news editor, chief of staff and reporter.
I am a senior journalist at the Central Western Daily concentrating on council, government and real estate issues. Before moving to Orange I filled senior roles at the Daily Telegraph, Daily Telegraph-Mirror and the Daily Mirror in Sydney. They included being an editor, news editor, chief of staff and reporter.
