Destination NSW Explains SXSW Sydney Cancellation

The NSW Government has revealed why SXSW Sydney has been axed after only three editions.

In a new statement, the State Government’s tourism and events arm Destination NSW confirmed it “agreed not to proceed” with the event moving forward after a review, despite originally having a five-year agreement planned through to 2027.

“SXSW Sydney has played an important role in showcasing Sydney’s creative and innovation sectors; however the decision has been made to not proceed with the event in 2026 and 2027,” the statement read.

“The event has delivered cultural, economic and industry outcomes for the city over the past three years. Following a review, it was agreed not to proceed with the event in 2026 and 2027.”

The festival – the first international version of the long-running Texas-based SXSW – was positioned as a cornerstone event for Australia’s creative industries strategy, combining music, screen, tech, gaming, and innovation programming across multiple Sydney precincts.

According to a statement from TEG made yesterday (January 14th), SXSW Sydney generated an estimated $276 million in total economic impact across its three-year tenure.

“The event attracted more than 63,000 out-of-region attendees and recorded a 35% year-on-year growth in international visitation between 2024 and 2025. In 2025 alone, the event attracted a total attendance of more than 345,000, representing a 15% year-on-year increase,” the statement read.

Across the three editions, SXSW Sydney featured a stack of high-calibre talent, including Chance the Rapper, Tyra Banks, Nicole Kidman, Teddy Swims, The Kid LAROI, and Paul Feig.

No specific reasons for the cancellation were publicly detailed, however, it is understood the decision followed standard performance assessments applied to all major events in the state. Destination NSW said it would continue to prioritise investment in a broad slate of major events.

“Destination NSW will continue to support a diverse, year-round calendar of major events that drive visitation and deliver benefits for NSW communities and businesses,” Destination NSW’s statement concluded.