The announcement that Falls Festival would not return to Marion Bay has been met with a mixed response from stakeholders.
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A statement released on the festival's Instagram said the festival would return in summer 2022/23 at certain locations, but Tasmania would not be included.
"After 27 years in beautiful Lorne and 17 years in fabulous Tassie, it is with mixed feelings that Falls Festival moves on to its next chapter," the post read.
"It has been a privilege to operate Falls in such beautiful locations ... we'll always be grateful to the community for your long-time support."
Tourism Industry Council Tasmania chief executive Luke Martin took to Twitter to share his thoughts on the Falls Festival cancellation.
"Let's not give up on the concept of a musical festival at Marion Bay. Perhaps even a more strategic different time of year? Different event ... the Marion Bay Blues Fest," he tweeted.
"Surely, Walshy will throw open the yard for a good cause."
In line with Mr Martin's thoughts, many took to social media to question whether another event could take the place of Falls Festival.
Vibestown director Ryan Limb said the team behind Party in the Paddock, The Basin Concert, and Party in the Apocalypse were already juggling a lot of events.
"We have a full summer of festivals planned for Tasmania as is so we're certainly not in a position to jump onto any new projects just yet, but Vibestown is a community-driven organisation and we will go where the people want us to," he said.
Mr Limb said Vibestown was "devastated" to see the cancellation of Falls at Marion Bay.
"It has been an iconic event for Tasmania and an event that is close to our hearts, being one of the inspirations of why we do what we do at Vibestown," he said.
"We saw last year what a hole it left for many Tasmanians, it will definitely have a resounding impact on Tassie artists, audiences, and the industry."
Luca Brasi's Tyler Richardson said it was sad to lose an institution like Falls, which helped musicians get the experience playing in a festival with a "world-class set-up".
Richardson said Falls at Marion Bay would always hold a special place in his heart, as the band had performed there multiple times over the years.
"I hope it gets picked up [by someone]. The space is too special not to," he said.
Events Minister Sarah Courtney said the government acknowledged the decision by Falls Festival organisers to not return to Marion Bay was disappointing for many Tasmanians.
"We have engaged closely with the organisers of Falls Festival through Events Tasmania in recent months, and we understand that this hasn't been an easy decision for them following the impact of the pandemic on their business," she said.
Ms Courtney thanked Falls Festival for their investment in Tasmania over the past 17 years, which had attracted thousands of visitors to the state and boosted the economy.
The 2022-23 Falls Festival will be held at Pennyroyal Plains in Victoria, North Byron Parklands in New South Wales, and Fremantle Oval in Western Australia.