The curtain has fallen on the popular Stage Challenge and J Rock school competitions, leaving many Otago schools shocked and disappointed.
The Stage Challenge Foundation relies on government and corporate sponsorships, grants, participation fees and ticket sales to cover the cost of producing the events.
However, foundation chairman Lester Taylor said the organisation had found income from this year's planned shows would not cover their costs.
Major production costs, such as venue hire, staging, lighting and sound, had increased over the years.
''The current economic conditions would make it extremely difficult for the corporate sector to sponsor the event.''
Otago Girls' High School has been one of the more successful schools at Stage Challenge in recent years.
Principal Linda Miller said her pupils loved the competition, and she was surprised to learn of the decision yesterday.
''I'm really disappointed and I'm sure the girls will be really disappointed.
''It was an amazing opportunity for students to show leadership in the creative arts, and for that whole bonding of students across year levels.''
However, she understood the financial pressures of the event.
She said it was getting more expensive for the school and its parents to attend each year, but the increasing costs had been worth it because participating pupils were getting NCEA credits for it.
''The girls were getting NCEA credits for the choreography, the dance, designing the costumes and making the costumes.
''It had incredibly good educational outcomes, both in terms of NCEA qualifications, but also in terms of all those soft skills that are so important for the world of the future, like collaboration and leadership.''
Ms Miller suggested Otago schools could work together and create their own event.
Stage Challenge allowed secondary school pupils to incorporate performing arts such as dance, music, design and drama in an eight-minute performance. J Rock was the primary and intermediate school equivalent.
Each year about 200 schools, 16,000 participants and an audience of 25,000 people would turn out for the events, held at venues around the country.
Ministry of Education early learning and student achievement acting deputy secretary Pauline Cleaver said the ministry had a funding contract with the foundation from 2016 to 2019 and gave $267,000 a year.
''We understand this covered about a third of the total annual cost.
''Late last year, the Stage Challenge Foundation informed us that they were going to end their contract with us. We know that this will be extremely disappointing for the thousands of young people, their parents and the wider community who have supported these events.''
The ministry encouraged schools to continue to take part in other national performance events such as the Smokefree Rockquest and the Sheilah Winn Shakespeare Festival.
Although Mr Taylor was also disappointed the events would not continue, he was proud of the events' history.
''We are proud and honoured to have had more than 500,000 students benefit from the opportunities provided by their participation during this time.''
