Cruising Yacht Club Australia announced late on Saturday night that the historic sailing spectacle would be cancelled due to Tasmania's borders shutting to areas of NSW.

This would mark the first time in 76 years the event would not go ahead.

Tamar Yacht Club life member Ken Gourlay had initially planned to set sail for the race aboard his new double-hander Green, which he purchased especially for racing.

"This was the first year that they were having a double-handed division," he said.

However, Gourlay said he decided not to participate in the Sydney to Hobart in late October, opting to participate in the Launceston to Hobart instead.

"I had the boat on the slip in Launceston for three months to get ready - I fed it new instruments, two new autopilots, a new sail ... we did a lot of preparation for it," he said.

"We would have had to leave by December 10 so we made the call just before the entries for the Launceston to Hobart closed in late October."

Gourlay said while the decision was neccessary, the cancellation of such a significant event would have impacts beyond the sport.

"It is a big shame, it's not just a sailing race - it's the dollars that get spend throughout the community, getting the boats ready, then it's all the dollars that come to Hobart at the end of it," he said.

"It's a huge event in the sporting calendar of Australia, not just for sailing ... it has ramifications right through.

"There'll be bookings cancelled at hotels for crew, family and friends in Hobart which is dreadful."

Gourlay said he knew of Tassie crews in the Sydney to Hobart who would now steer their ships home to participate in the Launceston to Hobart, which is slated to set sail on December 27.

"This is our sport so it's not the end of the world for us," Gourlay said.

"But at the end of the day, there are so many more important things and there's the livelihoods of people in Sydney and Hobart that aren't going to get the business the race brings."

"That's more important, to a degree, than the sailing aspect of it."