Same thing is happening all over the US, Especially in places with large numbers of second homes owned by rich people from suburbs and cities. The official reasons are the limited number of local hospital beds as well as grocery supply lines not set up for off-season surges, but there is also a lot of latent resentment toward rich “summer people” that can now be freely exercised.

The big fear with these smaller remote-ish places is that their tiny hospitals will be swamped - Byron Bay hospital is pretty small, the next large hospital would be an hour's drive to Gold Coast. Other local holiday destinations in Australia have larger distances (Perth - Busselton 2 1/2 hours).

Holidaying sick people will quickly swamp the local small infrastructure as they can't easily be moved away!