Organiser Secret Sounds on Wednesday confirmed the cancellation of the key Byron Bay gathering which began in 2001 and was also postponed in 2020 and 2021 due to the COVID-19 pandemic.
Australian Festival Association managing director Mitch Wilson said the soaring price of running a large music event was making it increasingly difficult for the industry to operate.
"The Australian music festival industry is currently facing a crisis and the flow-on effects will be felt across the local communities, suppliers and contractors that sustain our festivals and rely on them to support their livelihoods," Mr Wilson said.
"If we all step back and let market conditions determine our future, cancellations will continue."
The association called on state and federal governments to bolster funding and grants in upcoming budgets to help keep the sector afloat.Â
The current poor strength of the Australian dollar and high travel costs were other major factors impacting festivals, Mr Wilson said.
Additional obstacles included climbing overheads such as insurance, as well as extreme weather, while many punters were dealing with impacts of the cost of living crisis.
Peter Noble, director of Bluesfest, which kicked off on Wednesday at Byron, said he was sad one of his competitors had bit the dust.
"This is a triple-0 call people. It's an emergency," he told ABC radio.Â
"Hopefully, with the demise of Groovin the Moo and now perhaps Splendour we will see government sense that they are in a critical situation."
Mr Noble called for urgent government support to the level during the COVID-19 period to help the industry weather the storm.Â
The NSW government offered financial support to help Splendour proceed but it wasn't enough.
SITG, this must have been a difficult decision. 😢 I was so looking forward to being there and all of us having the best time. Oz, I'm looking forward, now more than ever, to be home and playing shows for you.— Kylie Minogue (@kylieminogue) March 27, 2024
Held annually at the North Byron Parklands in northern NSW, it was due to be staged from July 19 to 21.
Tickets went on sale on March 21, with Australian pop superstar Kylie Minogue among the artists booked to perform.Â
In a social media post she said the decision to cancel the festival would have been very difficult.
"I was so looking forward to being there and all of us having the best time," she said.
"Oz, I'm looking forward, now more than ever, to be home and playing shows for you."
Organisers said "unexpected events" led to the demise of the festival this year and promised refunds for ticketholders.
"This festival has always been a huge community effort and we'd like to thank everyone for their support and overall faith," Secret Sounds said in a statement.
Splendour's postponement comes after Groovin the Moo organisers were forced to ditch the event's 2024 tour in February due to insufficient ticket sales.
More than 25 music festivals across Australia have been cancelled since 2022 - nine of them in NSW - according to data from the Australian Festival Association.
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