THE city's accommodation is booked out as the Port Lincoln Racing Club hosts its Cup Carnival this week.
Port Lincoln Visitor and Information Centre co-manager Di Dennis said there was no accommodation available in Port Lincoln this week, because of the Port Lincoln Cup week and Country Music festival this weekend.
Accommodation was put under more pressure, after Navigators Motel and Restaurant closed on Thursday, February 22 after the managers did not renew the lease agreement with its owners.
Mrs Dennis said the closure had put extra pressure on existing accommodation services in Port Lincoln.
She said Navigators Motel had 11 rooms, which would cater for at least 22 people.
"Until the new hotel is finish it's another 11 rooms we haven't got to offer," she said.
The Navigators Motel and Restaurant has been managed by Julie and Bill Higgins for the past five years.
Mrs Higgins said they chose not renew the lease for personal reasons.
She said all guests had been notified of the closure beforehand.
The building is owned by Howard and Shirley Harris from Tasmania and a sign has been placed on the building by Coates Port Lincoln Barristers and Solicitors on behalf of the owner, which states; "As of 5pm February 22, Pine Mist Pty Ltd, the owners of this property have distrained for unpaid rental and unfulfilled tenant obligations pursuant to the lease commencing February 22, 2002..."
Limani Motel co-manager Moira Golding said they had people coming to see them for accommodation after the Navigators Motel closed down.
Ms Golding said their motel was "completely full" today, tomorrow and Thursday and accommodation was full everywhere in town.