Penguin's Sam Jones had booked accommodation at the Country Club Tasmania for Saturday, August 28.

Mr Jones said he received an email advising him of the cancellation on Wednesday at noon.

The email said the government was closing the villas from Friday onwards for a week to use as a quarantine facility.

Mr Jones questioned how could it be a quarantine facility for just the week.

"Do we really need the AFL in the state?" Mr Jones asked.

He said he had booked the accommodation months in advance to go on a holiday.

"We can't go anywhere for two years because of COVID-19, and now the AFL finals takes it away."

Mr Jones said they had not been offered any alternative.

"To not be offered accommodation in Launceston in a time where you can't get accommodation is a real inconvenience too."

Country Club general manager Ross Hannah said they were working with the state government and the AFL to make the "historic opportunity to host finals footy in Tasmania a reality".

"To do this, the Country Club Villas have been made available for the exclusive use of the AFL from Friday, to ensure the safety of players and the Tasmanian community," Mr Hannah said.

"Unfortunately this has come about very quickly and it does impact existing bookings.

"We know this will be disappointing for some people and our team is individually contacting customers to ensure their accommodation needs are provided for."

The state government have been contacted for response.

COVID Co-ordination Centre spokesperson said they were working to identify additional hotel quarantine options for approved people to enter the state.

"Some cancellations of existing bookings have been required to ensure availability of entire hotels, as they cannot be used for commercial guests and quarantining guests simultaneously. This includes for the purpose of quarantine by AFL teams," the spokesperson said.

"AFL teams have been permitted to enter Tasmania under strict conditions."