The fines were issued by the newly formed Alcohol Licensing Enforcement Command (ALEC), which was formed in July last year by NSW Police to tackle to the root of alcohol related violence in licensed establishments.

Officers from the southern region command of ALEC visited the Highlands using both covert and overt methods.

Goulburn Local Area Command crime manger Inspector Ward Hansen said he met with members of the Southern Highland Liquor Accord and local hotels last month to outline the role of ALEC.

ALEC officers are allowed to drink on the job, as part of their cover, but they can't reach a low level concentration of alcohol in their system, Inspector Hansen said.

Inspector Hansen said while he understood the hotels fined and Day on the Green organisers weren't happy with the penalties it was vital hotels are safe and secure environments for patrons.

"They play an important role and are expected to act as good corporate citizens," he said.

Chairman of the Southern Highlands Liquor Accord and owner of the Grand Bar and Brassiere in Bowral John Griggs said it was important licensees and the police worked together on this issue.

"We happily co-operate and receive advice from the Goulburn Command on licensing issues," he said.

Both the licensees of the Bowral and Royal Hotels were unavailable for comment at time of press.

ALEC was formed to stem the tide of violence sweeping NSW licensed premises. Glassings, attacks using glasses or bottles, exceeded 1000 for the first time in the last financial year and 75 per cent of police calls involve alcohol, according to the Bureau of Statistics.

Alcohol related assaults have double in NSW over the last 10 years with one third occurring in licensed premises. ALEC currently has 50 officers but the State Opposition has questioned if these are adequate resources to tackle more than 20,000 acts of alcohol related violence that take place each year in NSW.