Katherine tourism operators who are located outside of the town's "green zone" for quarantine-free travel say the policy could "topple" the region's battered tourism industry.
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Although these zones include Darwin, Alice Springs and Katherine, the majority of Katherine's tourist attractions are not within the designated "green zone" meaning tourists are significantly less likely to visit.
One of Katherine's most popular tourist destinations, Katherine Outback Experience, is located right in the middle of two designated green zones in Katherine.
Director Annabel Curtain said she doesn't understand why her area has been excluded as it is only a few km from town and has 4G access.
She said the re-opening plan in its current form will "wipe out our market."
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"There's no real reason to come to Katherine unless you're visiting family and friends. That's our only market and it's not big enough to sustain tourism," she said.
"Pretty much the last two years of planning, marketing, working around it have gone out the door.
"It's pretty heartbreaking."
Ms Curtain, who is currently on tour in WA with her husband Tom, said she believes the plan was announced without any consultation with tourism operators.
"We've all done the right thing the last few years. We've followed the advice, we've been double vaccinated, it honestly just feels like we're being punished," she said.
"I was so proud of the Territory and we love the Territory. But just like that, we're kind of going 'there's nothing to come home to in 2022 if this is what's going to happen.'"
She said staff will also be majorly impacted by the plan.
"We were about to start advertising this way for 2022 staff. Yeah, we have a couple of staff with us on the road still. And they're already discussing staying in WA," she said.
"We can't even employ pay for now because we don't know. We don't know if we can pay them.
Other major tourist attractions which fall out of the zone include; the Katherine Gorge and Edith Falls, Kumbidgee Restaurant, Top Didj Cultural Experience & Art Gallery and a number of hotels and caravan parks.
One of these is Manbulloo Homestead. Owner Brian Hill said he also has no idea why his caravan park, which has 4G access, was excluded as well.
"We are going to be impacted severely," he said.
"If this continues on, and most of the other caravan parks in Katherine can have tourists stay there without quarantining, we're gonna be the ones left out."
Mr Hill said he doesn't think any industries in the area were consulted before the plan was announced.
"We weren't consulted at all. Yeah. I don't think anyone was consulted much at all - in the tourism industry or in the cattle industry or whatever," he said.
"I mean, as far as we're concerned, we don't pose any threat to any communities, we're separate from them.
"I'm just hoping that Tourism Top End and bodies like that, and the Cattleman's Association kick up enough of a stink that they've got to change it."
Speaking to media on Monday, Acting Chief Minister Nicole Manison said the government was re-evaluating the plan by talking to industry groups.
"We've been receiving a lot of feedback with regards to the post December 20 changes that have been made as we move forward through the COVID outbreak," she said.
"So we are taking some of that on board and we are having a look at it and looking at making sure that we can keep Territorians safe while having a system that is practical."
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