But Australian Hotels Association ACT branch general manager Anthony Brierley said the industry could ultimately emerge more sustainable, with less business turnover.

Appearing before an inquiry into the ACT's response to the coronavirus pandemic, Mr Brierley said many Canberra businesses would never reopen.

"In ordinary times the hospitality industry operates on pretty slim margins," he said.

"I think we're going to see a much smaller industry on the other side."

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He said even when venues are allowed to have up to 10 patrons to dine-in it would be "unworkable" for the industry.

Many Canberra businesses would not open until they were allowed to return to full occupancy, he said.

"It's hard enough making money when you've got 100 per cent occupancy," he said.

While recognising it would be unviable for many businesses, he said the association would like to see a staged approach to easing restrictions, which began with allowing venues 25 per cent of usual occupancy.

Speaking before the prime minister announced a plan for businesses to reopen on Friday, Mr Brierley said the industry desperately needed a timeline.

Clubs ACT CEO Gwyn Rees said the reopening of businesses needed to happen "sooner rather than later".

He said businesses forced to closed were not able to "hibernate", but continued to pay rates, gas, electricity, insurances, rents and wages.

Mr Rees said both federal and territory assistance had been helpful in addressing clubs' short term financial distress.

But he said reports from some groups that hospitality businesses were successfully pivoting to other models, for example takeaway, were not true representations of the situation.

"They are naively or rather recklessly at times presenting a positive where none exist," he said.

"In most cases it's a loss making exercise. So many businesses will not survive under current conditions, particularly once JobKeeper ceases."