Organisers have cancelled next year's Bluff Oyster and Food Festival as a dangerous building adjoining the festival site can't be demolished in time.

The festival was due to be held in the seaside township on 20 May, 2023.

Bluff Oyster & Food Festival Committee member Kylie Fowler says since the festival was last held in 2021, the committee has provided an engineer's report to Invercargill City Council on the Club Hotel.

It issued Dangerous and Insanitary Building Notice was issued requiring demolition by 16 March 2023.

"We were confident we could achieve that and have the current site ready for the 2023 event," Fowler says, in a media statement.

"Our demolition contractor submitted a resource consent application. Unfortunately, Invercargill City Council amended their previous notice and the process now required will mean the dangerous Club Hotel will still be looming over the site in May 2023.

"The event is volunteer run and brings many promotional and financial benefits to the region yet we feel it would be inappropriate and impractical to invite 4000 visitors to celebrate in the shadow of the Club Hotel given the Dangerous Building Notice."

Fowler says the decision hasn't been taken lightly, following two tumultuous Covid-affected years, but the safety of volunteers and patrons is the priority.

"We are disappointed and greatly saddened that we cannot host the event. We will now be looking forward to making the 2024 event bigger and better."