Director of Health Protection Dr Jeremy McAnulty said there have been a total 122 Omicron cases recorded in NSW, which highlighted the importance of preventative measures.

"The emergence of the Omicron variant of concern clearly shows the importance of booster shots in maintaining high levels of protection against the COVID-19 virus," Dr McAnulty said.

"We are urging people to get a booster shot as soon as they are eligible."

Boosters are available for anyone who received their second shot five or more months ago.

Daily cases rose by 380 cases from 1,360 on Wednesday to 1,742 on Thursday, which Dr McAnulty described as a "rapid surge".

"We are continuing to see a rapid surge in numbers of cases in NSW with transmission occurring as a result of high numbers of people gathering for social functions in venues such as pubs and clubs," Dr McAnulty said.

"Some of these gatherings have led to super spreading events."

The doctor said Newcastle residents in particular should seriously consider postponing gatherings until after Christmas amid the current outbreak.

"We are particularly urging people in the local Newcastle community to seriously consider deferring any social events in Newcastle until after Christmas in order to keep family Christmas gatherings in case and to protect loved ones, the vulnerable and essential workers," Dr McAnulty said.

The Cambridge Hotel is the latest in a string of Newcastle night spots to be named by NSW Health as a 'venue of concern'.

It follows a big bump in cases linked to an Argyle House event, a medical ball at NEX on Friday night, and another high risk exposure at Finnegan's Hotel.

Anyone who attended The Cambridge Hotel in Newcastle between 6.30pm on Friday, December 10, until 2.30am on December 11 is a close contact and must immediately get tested and isolate for seven days.

There were no COVID-related deaths recorded in the 24 hour period to 8pm Wednesday.

There are currently 192 people in hospital with the virus, including 26 requiring intensive care.

Testing rates remain high as Omicron continues to spread, with 143,938 tests taken in the 24 hour period.

The demand for testing was so high that drivers were turned away at the Wickham Histopath Pathology Clinic in Newcastle on Wednesday.

The line for vehicles was so long that it backed up out of the carpark onto Honeysuckle Drive, disrupting nearby traffic

Clinic workers told motorists to drive around the block and return to the facility to keep the traffic moving.

Once returning and securing a spot in the vehicle queue, motorists could expect a 45 minute to one hour wait time, meaning the total wait could be well over an hour.

Meanwhile, pedestrians waited in a long line without any cover on a dry 28C day with similar wait times.

The second dose vaccination rate has inched higher again, hitting 93.3 per cent, while 94.8 per cent of the population aged 16 plus have had at least one dose of a vaccine.

Meanwhile, 77.8 of people aged 12-15 have had two doses of a COVID-19 vaccine, and 81.4 are fully vaccinated.

Premier Dominic Perrottet is urging people to shift the focus from infections to the number of people in hospital.

While hospitalisations generally lag infection spikes, Mr Perrottet has "complete confidence" the hospital system will cope.

The explosion in cases coincides with an easing of restrictions, with unvaccinated people now allowed to mingle with the fully jabbed at shops and hospitality venues for the first time in three months.

QR code check-ins have also been scaled back and masks are only required in high-risk settings such as public transport and planes.

While masks are no longer required, Chief Health Officer Kerry Chant says her "clear advice" is for people to keep wearing them in indoor settings.

- with Australian Associated Press