Bendigo Tourism Board chair Finn Vedelsby said the amendments to state planning laws allowing restaurants to more easily establish outdoor dining areas was welcome.
But he said rushing to set up the temporary dining areas could be take away from the customer experience.
"Some restaurateurs are really happy (to set up outdoor areas) but there have also been comments (from businesses) that it looks pretty ugly," he said.
"If they are going to be in place for a year, maybe we could think about it a bit more (and create) something that looks more permanent and is in line with the beautiful architecture of Bendigo."
Mr Vedelsby said some businesses would be hesitant to create something due to a lack of finance.
"Right now restaurants have zero cash to beautify a space," he said. "Even if we come back to some sort of normal, (some places have had) zero customers for year. So there is a fair bit of catching up to do.
"(There could be) limited motivation for a business with no income, turnover or savings, to make an investment in a space that will be taken away from them in a year."
Mr Vedelsby said there were benefits in creating significant outdoor dining areas.
"What I think city needs to do is activate outside areas anyway," he said. "We're lucky to have the greatest weather compared Ballarat and Geelong and when people are dining outside in places that are inviting, it creates a good community feeling.
"If we can manage to have outside areas as well as have other restrictions relaxed, there will be more bums on seats that could mean more turnover (for hospitality businesses)."
OUTDOOR spaces may become a key feature of Bendigo's hospitality trade, after the state government amended planning laws.
Eateries will be able to expand their dining options outdoors more easily after the planning minister introduced an amendment to planning laws.
It comes as Victorian hospitality businesses are restricted to hosting a limited number of people indoors, currently a cap of 10 people per space in regional Victoria.
Read more: Victoria records three new COVID-19 cases
Planning Minister Richard Wynne announced on Wednesday that the government would remove any planning hurdles to allow hospitality businesses to expand their operations outdoors.
Mr Wynne said the government had put an amendment to the planning scheme to allow any business with an outdoor permit
He said there was "extraordinary" interest among hospitality venues looking to thrive in new ways.
"People are looking for incredibly innovative ways to ensure that they can get up and go, and ensure that their outdoor venues are appropriate," Mr Wynne said.
He suggested carparks in the evening could be one innovative way to provide outdoor space for dining.
He said the amendment would be implemented for an initial 12-month period, then reassessed.
Victorian Premier Daniel Andrews suggested the change may become a permanent feature of the state's dining culture.
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