NSW Premier Dominic Perrottet said funding provided through the government's 'Event Saver Fund' would be a "a critical lifeline for major event organisers who have had to cancel, postpone or vary their events, providing them the financial security and certainty to plan and deliver their future events".

"Major events are a key economic driver that create thousands of jobs across the state," Mr Perrottet said.

"The Event Saver Fund will ensure that organisers aren't left high and dry as we work through this latest phase of the pandemic and sends a strong signal that the Government is here to support business."

The announcement follows last week's cancellation of the Grapevine Gathering music festival, which was set to take place in Pokolbin from Saturday, January 15.

"This is a devastating blow not only to the live music industry, but also to regional tourism," the organisers of the festival said in a statement announcing the cancellation.

"A projected loss of over $5.2 million to the greater Hunter Valley region is expected from this cancellation."

"Over 1400 jobs are now lost across our artists, food vendors, security, production crew, ticketing staff and more who were deep in preparation for the weekend."

NSW Treasurer Matt Kean said the funding announcement was recognition of the importance of major events to the broader NSW economy.

"Festivals and major events are huge drawcards and they have been significantly disrupted by the latest Omicron wave of COVID-19," Mr Kean said.

"It is vital we provide them the support they need when their event is impacted by a Public Health Order. That is exactly what this funding commitment does."

The NSW government said from today, major event organisers will be able to pay suppliers, staff and recover other costs where an event is cancelled or significantly disrupted as a result of public health orders imposed as a response to the COVID-19 pandemic.

More information on the 'Event Saver Fund' is available at the website of Create NSW.