Tasmanian Hospitality Association chief executive Steve Old said the decision from the Falls Festival organisers to cease operation was disappointing news.

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"We don't expect there to be a negative impact on the casual workers who pick up work at Falls as there will be plenty of upcoming roles made available for people seeking summer employment within the hospitality sector," he said.

"While it will no doubt leave a gap in the live music market in the state, which itself has been battered during the COVID-19 pandemic, it also presents an opportunity for other groups or businesses to fill the void."

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Mr Old said an influx of tourists when Tasmania's borders reopen on December 15, would lead to job opportunities in hospitality.

Tourism Industry Council Tasmania chief executive Luke Martin said it was not unexpected to see Falls leave the state.

However, he believed the removal of Falls from Tasmania would have an immediate impact on many businesses and stallholders.

"I think Falls has done two things. Over the years it's encouraged a lot of people to come into the state ... we will see that loss ... but it has also stopped Tasmanians leaving," he said.

"We know events are really great for the state. When these events do fall over it's an opportunity for someone to fill the void."

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