Global festival skips Australia as state funding pulled

The Australian leg of a well-known global conference has been cancelled despite what organisers say were growing attendance and economic impact.

South By South West Sydney said it worked through options with both its parent company Penske Media Corporation and the NSW government, before "prevailing market conditions" forced it to cancel its 2026 edition.

The state government's tourism agency Destination NSW was not set to invest towards running this year's conference.

The Texas-born festival debuted in Sydney in 2023 and ran three editions, with its local staff boasting in a farewell statement that it attracted more than 345,000 attendees last October.

"It's bittersweet to be saying goodbye while the momentum is so high," a statement from the SXSW Sydney team read.

"We're still celebrating the success of this past year - one that saw total attendance ... representing a 15 per cent year-on-year increase."

The three conferences generated an estimated $276 million in total economic impact, according to its directors.

A Destination NSW spokesman said SXSW had played an important role in showcasing Sydney's creative and innovation sectors.

"Following a review, it was agreed not to proceed with the event in 2026 and 2027," they said.

"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."

Sydney was the first international city to host the global SXSW brand that was born in Austin, Texas some four decades ago.

Organisers conceded before the Australian debut it might take time for Sydney to understand the nature of the event, describing it as a screen festival, music festival, futurist and tech conference all at once.

The 2025 edition included more than 400 conference sessions, 150 professional development sessions, 400 music performances and film screenings and 150 games.

Headliners included OpenAI's chief global affairs officer Chris Lehane, Google's first chief innovation evangelist Frederik G Pferdt and Grammy-winning artist Teddy Swims.

Young professionals and tech bros flocked to October's main conference, with many streaming into TED Talk-like seminars about ways to optimise every aspect of their lives and careers through generative AI.

Bean bags were strewn across conference rooms transformed into "co-working spaces" for those needing a break.

The conference segregated attendees through different coloured lanyards for music, games and screen industries, with only a few in possession of the coveted $1495 Platinum pass.

Some events, including a weekend festival, were free to the public.

Publishing giant Penske owns a string of powerful brands including Rolling Stone, Billboard and the Golden Globes.