NSW Government Explains Decision to End SXSW Sydney After Three Years

Destination NSW has confirmed the reason SXSW Sydney will not continue, saying it “agreed not to proceed” following a review.

The NSW Government has provided further clarity on why SXSW Sydney will not continue beyond its third edition, despite the event reportedly delivering significant economic and cultural outcomes during its short run.

In a new statement, the state’s tourism and events body Destination NSW confirmed it had “agreed not to proceed” with SXSW Sydney following a review. The decision brings the Australian edition of the festival to an early end, despite an original plan for a five-year agreement that would have run 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 said. “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.”

SXSW Sydney launched as the first international expansion of the long-running Texas-based SXSW and was positioned as a major pillar of Australia’s creative industries strategy. The event combined music, screen, technology, gaming, and innovation programming, spreading across multiple venues and precincts throughout the city. The first edition was held in 2023, and saw guests including Troy Baker and Black Mirror creator Charlie Brooker in attendance.

Figures released by promoter TEG during an email confirming SXSW Sydney wouldn’t go ahead again highlighted the scale of the festival’s impact. According to TEG, the event generated an estimated $276 million in total economic impact over its three-year run. The event also attracted more than 63,000 out-of-region attendees and recorded a 35 percent year-on-year increase in international visitation between 2024 and 2025.

Attendance numbers also continued to grow. In 2025 alone, SXSW Sydney reportedly drew more than 345,000 attendees, representing a 15 percent increase compared to the previous year. Across its three editions, the festival hosted a wide range of international and local figures from music, film, and broader culture, including Chance the Rapper, Tyra Banks, Brennan Lee Mulligan, Teddy Swims, The Kid LAROI, and Paul Feig.

While the decision to cancel the event came as a surprise to many, no specific shortcomings were outlined in the government’s statement. It is understood the call followed the same performance assessment process applied to other major events funded or supported by the state.

Destination NSW indicated that the decision does not signal a retreat from major event investment more broadly. “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,” the statement concluded.