The pro-am at the Otago Golf Club, and also played in parts at St Clair, started in 2010 and was staged again in February this year, but tournament manager Bill Medder, from the Otago Golf Club, said the tournament would not be played next year.
Medder said, with the state of the economy, it was too hard to get enough sponsors to support the tournament.
This year's tournament did not attract huge crowds, with the $45,000 three-day event barely breaking even, and the board of the golf club had decided it could not afford to stage another one next year, Medder said.
There was a pro-am on the first two days of this year's tournament, with a professionals-only competition at Balmacewen.
However, an amateur event with corporate teams will be played at the course in March 2012.
Professional Golfers' Association of New Zealand national events manager Jim Clelland said it was disappointing no event would take place in Dunedin.
He was looking to stage events in the South Island and had moved dates to accommodate an event in Dunedin, hoping to stage a one-day event in the city on February 10. He was already staging two one-day events in Queenstown earlier in February.
Clelland said it was a real shame there would be no event in Dunedin as golfers of the calibre of Davis, Mike Ferguson, Brian Jones, Harwood and maybe even Wayne Grady would be in the South Island to play in the events.
He felt the event at the Otago Golf Club this year had probably got too ambitious and failed to deliver for sponsors.
It would not be too difficult to put together a one-round event valued at $10,000 in Dunedin, he said.
A $10,000 one-day tournament in Cambridge in the North Island had been planned, which would return a profit of $7000 to the hosting club.
Clelland said he had talked to golf professionals Andrew Whiley and Alan Rose in Dunedin, but both were lukewarm about the idea.
Whiley said the idea of a one-day tournament had been considered, but it was not feasible.
"We would like to run something but, from what we have looked into and the research we have done, there is just not the interest there," Whiley said.
Whiley, the golf professional at Chisholm Park Golf Club, said the tournament was on during the same week as the Masters Games in Dunedin, which made it hard to attract money.
He felt it would be good to take a break for a year and then return in 2013.
Rose was of the same mind and said it was too tough financially to hold a tournament in such a short time.
Rose was turning 50 in January and intended to play in some senior events. He would like to have played a seniors tournament in Dunedin, but that was simply not possible.
