Blue Mountains Tourism president Jason Cronshaw is taking the virus advice from the state and federal governments "very seriously".
Mr Cronshow, who is also the director of the Blue Mountains Explorer Bus/Fantastic Aussie Tours (FAT), has closed the Explorer Bus in line with government restrictions and said "sadly many Mountains shops, hotels and other attractions" have had to close.
"Our industry is taking the advice very seriously and supports social distancing to help slow the spread," he said. "We will all work to ensure that as soon as we are able, we will again promote Australia's most accessible wilderness and welcome Sydneysiders back into our hotels, B&Bs, restaurants, pubs and attractions."
He made the statements as Scenic World announced they were temporarily closing from March 24 "until further notice".
"As a third-generation family business who has been at the forefront of Australian tourism for 75 years, it is with a heavy heart that we temporarily close the doors of Scenic World for the foreseeable future," said managing director Anthea Hammon.
But Mr Cronshaw said he was "very confident that when we do re-open we will be looking at a local tourism boom as our city cousins will have been locked up for a while and be itching to get away".
"Initially they won't want to jump on a plane, it will be an ideal opportunity."
FAT usually employs about 40 staff, and made two staff redundant after the bushfires. He said head office staff would now have their hours "dramatically reduced". Charter work was "95 per cent down" and not helped by the cancellation of the Indian Pacific (they transported passengers to Mountains attractions from Mt Victoria station). Visitors on the Explorer Bus had fallen from 250 on a weekend to eight.
"Some drivers will be stood down, some will maintain skeleton shifts for some rail replacement work and emergency charters ... we are still available for private transfers for singles in smaller vehicles or larger vehicles with less people for social distancing."
Mr Cronshaw said many larger operators in the Mountains had had good forward bookings for later in the year, which people were now cancelling.
Last week he admitted business was down 60 per cent on the previous business year on year, due to the aftermath of the fires and "then last weekend everything halved again. Some operators now have no one staying in their hotels. B&Bs, Airbnbs and guesthouses are calling asking if they should just close for good".
The Gazette has been inundated with responses from businesses to its Facebook post on operating in the new restrictive climate.