The festival usually runs over a weekend in March and is a celebration of rock 'n' roll and all things 50s and 60s.

Ararat Rural City Council chief executive officer Dr Tim Harrison said the festival's cancellation was a significant loss to the community.

"The Jailhouse Rock Festival has been a staple of the Ararat Events Calendar for over 16 years now, and we are saddened to hear that the event will not be held for the 2021 year," he said.

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"COVID-19 has impacted the ability for event organisers to complete the long-term planning that is involved for events such as the Ararat Jailhouse Rock Festival.

"The festival is a great economic boost for the town, especially for our tourism and hospitality industry, who could use the additional support after the 2020 year."

Acacia Caravan Park is a former sponsor of the festival.

Park owner Kaylene Linsley said business had already been affected by the festival's cancelation.

"It's sad that the festival is not running this year and it's definitely had an impact," she said.

"Obviously it's going to affect all the cabins, so they're all sitting there relatively empty for that weekend at this stage, but it is still a little while away.

"We still have some people that were booked in for the Jailhouse Rock Festival and then (after its cancellation) decided to still come for the weekend."

Ms Linsley noted the cancellation of the Pitch Music Festival may have been even more costly for the business, as Acacia Caravan Park hosts the St Johns Ambulance volunteers and paramedics.

However, Ms Linsley said the loss from the cancellation of these events has been offset by the general increase in regional tourists.

"We have just come off a bumper Christmas and New Year," she said.

"We've been here four years and we've never been so busy."

Grampians Vintage Vehicle Car Club's Show us your Wheels normally coincides with the Jailhouse Rock Festival but has also been cancelled.

Club president Darren Jerram said the event did not rely on the Jailhouse Rock Festival to be held but had faced similar obstacles.

"It's the same reason as Jailhouse Rock, it's because of COVID," he said

"We would have run even without Jailhouse Rock, the only reason we're pulling the pin on the car show is because the man power required to follow the COVID guidelines is too much.

"So, it's just too hard to manage from our point of view."

However, Mr Jerram said there was a chance the event could still be held in 2021.

"We may even run the car show later in the year if things become a bit better," he said.

"Things can change quickly, which is why we were hanging out a bit longer."

There has been no suggestion from Jailhouse Rock Festival organisers that it could similarly return before 2022.

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However, Dr Harrison said council would eagerly help facilitate the event upon its eventual return.

"We look forward to welcoming the festival and its patrons back to Ararat in 2022 for the next Jailhouse Rock Festival," he said.

"Council welcomes all event organisers to contact us so that we can assist in preparing for the uncertainty they face through the COVID-19 Pandemic."

Ms Linsley said she similarly hoped COVID-19 affected events such as the Jailhouse Rock Festival would make a strong return.

"Hopefully all these events that have been cancelled get to come back bigger and better next year."

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