"We're in a pandemic, and we know how quickly Delta spreads so it is a concern," Mr Lyon told NCA NewsWire.
"I understand that there have been extra resources dedicated to our hospital system so that we can prepare for that."
Despite the concern of a potential Covid-19 cluster, Mr Lyon said he was confident that Byron's double-dose rate would catch up to the rest of NSW soon.
"We had a very low supply of Pfizer up until about six weeks ago. Since we've had the supply of Pfizer, our vaccination rates have increased very rapidly," he said.
"I think that issue is kind of gone away. When you look at our first dose rates, we know we're on a par now."
With accommodation fully booked across the shire, Mr Lyon said Byron was looking forward to hosting visitors from across Australia as life gradually goes back to normal.
"We're looking forward to welcoming people here … it's been a hard year for everyone, I'm sure a lot of people need a holiday," he said.
"At some point, you have to strike the balance you have to start beginning to live with Covid and I think a good balance has been struck."