Skiers gather during last year's event. Photo: Supplied
The 10-day Winter Pride festival had already been scaled back when the travel bubble with Australia was closed, and again when the lockdown was announced last week.
Organiser Martin King said he was still hoping to hold a four-day event, but yesterday's announcement means this is no longer possible.
He said he feels for the Queenstown businesses that will miss out on the associated income.
"Millions, millions and millions of economic impact lost. We're the largest festival in Queenstown between now and the end of the year.
"We make a significant economic contribution to their economy."
King said while the festival will be able to refund some of the ticket price, most of it is non-refundable.
