Victoria’s events industry is now focused on preservation and damage control following the shock announcement that the 2026 Commonwealth Games has been cancelled.

The decision, blamed on a cost blowout, was announced on Tuesday, sending reverberations throughout the state. Victoria prides itself in hosting large-scale and significant events, especially in the realm of sports.

The initial budget was projected to be A$2.6 billion (US$1.8 million), with the Games held across five locations over 12 days in regional Victoria. The multi-city model would’ve been a first for the Commonwealth Games and thrust regional Victoria into the international spotlight, which was aimed at enhancing its tourism reputation, creating thousands of jobs and leaving a legacy for its future.

That was until the state government received a revised cost estimate of more than twice the original quote.

“We were pleased to be asked to host the 2026 Commonwealth Games, but not at any price. I think all Victorians would agree that more than A$6 billion is just too much,” Victoria’s premier Daniel Andrews said.

Within the events sector, initial shock and disbelief at the decision is giving way to regret and consolidation.

“I think (on Tuesday) there was this whole mix of emotions (ranging from) shock to frustration and disappointment. It felt like we went through the five stages of grief all in one day,” said Felicia Mariani, CEO of Victoria Tourism Industry Council.

“The decision has already been made to withdraw from hosting the game so our key concern (at this point) is that Victoria works very hard to protect its very precious reputation as a preferred destination for hosting major international events here in Australia.

“We need to work in collaboration as much as we can, with the International Organising Committee to ensure a smooth transition to the next city for this event,” she shared with TTGmice.

At press time, no city has been announced to take over the 2026 Games, but the eventual host will have less than three years to prepare, compared to four to six years for previous host cities.

But while the cancellation has upset Commonwealth Games organisers and caused some embarrassment within the events sector, the news has not entirely surprised Chris Porter, executive officer of Business Events Victoria.

“While it came as a shock, as an organisation we weren’t entirely caught off guard. We were aware of the challenges they were facing in hosting the Games across five regional centres, including the complexities and costs of building necessary infrastructure in today’s climate, plus accommodation supply problems,” he said.

“But the reputation issues are probably where we’re most concerned, especially on the international scene. With this cancellation as a backdrop now, would larger events start to reconsider where they will host their (future) international business events?” Porter stated.

“We hope that the reputation is carefully managed over the next six months or so to ensure that we don’t lose the ground we have formed over many years to successfully deliver great business and major events,” he added.

Porter also noted that while some of regional Victoria’s key destinations that were to host the Games “will be greatly impacted” by the cancellation, the effects will be mitigated by government support measures. A government funding package of A$2 billion has been announced, including a A$150 million Regional Tourism and Events Fund.

Meetings & Events Australia (MEA) has also released a statement stating that it is “dismayed and disappointed” about the cancellation of the 2026 Commonwealth Games, calling it a “blow for the Victorian events industry”, as many operators are still in the recovery phase.

Calling it a “significant missed opportunity for the regional Victoria events sector”, MEA members also expressed concern that the cancellation could potentially damage the state’s and nation’s reputation, which could lead to the loss of future event bids.

Meantime, Peter King, chair of the newly formed peak events body the Australian Business Events Association, provided a conciliatory position on the issue.

“As part of the events industry we understand the blow this decision would be to the army of people who were working on the comprehensive design and delivery of this complex event, as well as the athletes, community, and fans. There are major long-term economic, social, industry and tourism benefits to hosting events, especially ones that would be watched by the world,” he said.

“We want to see governments continue to invest in events as a vehicle for economic and social prosperity. We will continue to work with governments to invest and attract business events, and support the workforce skills and capability to provide a solid base for the future, to ensure Australia retains its position as a leader in delivering major events,” King added.