Both the Gardens and Southcombe Park caravan parks have 400 sites, with each accommodating up to 3000 campers at their peaks.

Both parks are expected to be full during the Christmas - New Year period, with COVID-19 restrictions in place to keep all safe and in line with government regulations.

But with restaurants, hotels, cafes and shops having to operate with limited numbers due to the pandemic, the normal level of service that comes with a summer peak period will not be able to be delivered.

Entertainment will also be at a minimum, with the town's iconic Moyneyana Festival stripped back, with no public gatherings on its program.

That will mean no concerts or shows on Fiddler's Green and no New Year's Eve parade.

In one bright spot, the Moyneyana Festival committee will still be going ahead with a midnight fireworks display to bring in the new year.

Despite all the challenges ahead, Moyne Shire's manager of tourism and customer experience Adam Boyle believes the Port Fairy community is capable of bringing in a successful summer.

"We are confident the influx of visitors will be able to integrate easily and safely within the town," Mr Boyle said.

"We've got a very busy summer season ahead for our parks and the town more broadly are very excited to see benefit to local traders and business.

"In terms of COVID Safe measures within the town, our restaurants, cafes, retail outlets and general services have been preparing for this period for quite some time.

"They have been utilising outdoor dining permits, reconfiguring, and adjusting menus to include more takeaway."

While Port Fairy is open for business, Mr Boyle said the expected popularity of the shire's tourism jewel-in-the-crown would benefit nearby communities.

"We couldn't be more excited to accommodate these visitors, it is also not too late to book a summer getaway, with vacancies at Southcombe, Yambuk, Koroit and Mortlake," he said.