Warrnambool Racing Club chief executive officer Tom O'Connor said there were about 200 people working at the track, compared to about 1100 each day in 2019.

He said it was incredibly disappointing, but social distancing was a necessary measure to stop the spread of coronavirus.

"We're just pleased that we are able to continue to race and we're focusing on that and implementing all the protocols we need to," Mr O'Connor said.

"It's been smooth sailing so far."

He said the club was preparing for its biggest carnival ever next year.

Mr O'Connor said the support from the community had been overwhelming, with hundreds of people vowing to return to the track next year.

"There's people from far and wide who are disappointed they couldn't come to Warrnambool," he said.

"But they'll be back next year and it will without a doubt be bigger and better than ever."

Mr O'Connor thanked the majority of community members for staying away from the racetrack, but confirmed a handful of people had been asked to move on by security staff.

"There have been a small number of people moved on, but most community members have been respectful of the restrictions," he said.

Warrnambool City Council chief executive officer Peter Schneider said it was disappointing that so many businesses were being affected by the scaled back May Racing Carnival.

"This year's two-day carnival will be like no other, being closed to all spectators including members, owners and the general public," Mr Schneider said.

"As a result, there will be significant economic impacts felt by local businesses, particularly the accommodation, hospitality and retail sectors."

Mr Schneider said the traditional three-day carnival was one of the city's busiest times in the off-peak season, generating 30,000 visitor nights in the city.

"Tourism is a big part of our local economy and we look forward to welcoming visitors back to our city when it is considered safe to do so."

Last year the racing club revealed the carnival generated a total expenditure impact of $13.9 million - with $11.3 million of that spent in the city.

Total attendance over the three days was 28,543.

It also reported the carnival generated a total of more than 40,400 bed nights in 2019.

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