There will be no Festivale next year, with organisers forced to pull the pin citing COVID risk during the February event.

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The potential of another year without a traditional Festivale on the calendar emerged late in September.

That came just days after an announcement the event would push on, and days before tickets were due to go on sale.

But the event was thrust into uncertainty, and chairman David Dunn has now announced the final decision to call it off.

Mr Dunn said pushing on with planning for the an event riddled by COVID uncertainty could prove to be a financial blow.

It was understood the event would likely have been capped at 5000.

Festivale committee treasurer had previously said the event had a budget of about $1.4 million, and cost about $50,000 per hour to run.

He said the likelihood of COVID cases emerging throughout Tasmania in February, when the event would go ahead, was too much of a beast of burden.

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"We cannot take the financial risk of planning an event for early in 2022 where there is a significant risk of us having to cancel or make significant changes close to the event," he said.

"Imagine, this decision has not been made lightly as the committee have already spent months in the initial planning stages, including securing an entertainment line-up that would have been the talk of the town."

Late in September stallholders and others affected by a possible cancellation expressed concern about how they would fill the void of a loss of income.

Mr Dunn said while Festivale would not be going ahead next year, the committee would be seeking options to fill that void later in 2022, and hoped the main event would return in 2023.