SailGP has withdrawn from its hosting agreement with ChristchurchNZ for season five of the event on Lyttelton Harbour in 2025.
The decision followed two years of the high-speed international catamaran racing being held.
SailGP had a four-year partnership with ChristchurchNZ, Tātaki Auckland Unlimited and New Zealand Major Events.
But the event in March on Lyttelton Harbour ran to a condensed format when one day of racing was cancelled after endangered Hector's dolphins were spotted on the course.
SailGP chief executive Sir Russell Coutts afterwards complained about the event costs, and signalled it was likely to never return to Christchurch.
He criticised local authorities, their fees and "unprecedented layers of bureaucracy and red tape".
Dolphin protection issues
ChristchurchNZ destination and attraction general manager Loren Aberhart said it was disappointing the city would not host a SailGP event next year.
"We've been working with SailGP over a number of months on what the options look like for 2025... there were challenges around dolphins on the course and under the Marine Mammals Protection Act SailGP was unable to proceed with racing and that has been part of the decision, but also it was sort of time to look at what the future brings for New Zealand and SailGP," she said.
Christchurch was still open to hosting in the future, Aberhart said.
"We've been working through what options under either technological solutions or the Marine Mammals Protection Act could allow racing to proceed based on different scenarios around the dolphins within the marine mammal sanctuary of Lyttelton Harbour," she said.
"We've also been working through costs and how we can eliminate some of the additional costs that are incurred with hosting SailGP - which are not unique to Christchurch they're within New Zealand- but because of some of the timeframes that we needed to work to, 2025 was really just cutting it too fine."
Aberhart commented earlier on Midday Report also that dolphins on the course were a part of the reason for the decision.
"There were challenges around dolphins on the course and under the Marine Mammals Protection Act, SailGP was unable to proceed with racing and that has been part of the decision."
She also said in the radio report that she could not say if SailGP would continue competitions in New Zealand.
However, Aberhart said ChristchurchNZ was still working on ways to be able to host another SailGP event.
That included looking at technological solutions and the Marine Mammals Protection Act to allow racing to proceed based in different scenarios around the dolphins within the marine mammal sanctuary of Lyttelton Harbour.
"We've also been working through costs and how we can eliminate some of the additional costs that are incurred with hosting SailGP, which are not unique to Christchurch, they are within New Zealand," Aberhart said.
"But because of some of the time frames that we needed to work to - 2025 was really just cutting it too fine."
Today's news was a "disappointing" outcome, she said.
"We've hosted two incredible events and we're so proud that SailGP put us on the international stage.
"We're still open to hosting in the future and we know that season 3 [in 2023] was voted the best venue, Christchurch as the best venue on the SailGP circuit by the sailors, and again this year we produced an epic event."
In a statement, ChristchurchNZ said with the original intention to host two events in New Zealand fulfilled, it accepted SailGP's decision to withdraw from the 2025 hosting agreement.
It said data showed the 2024 event generated a total visitor spend of about $3 million, based on about 6000 visitors from outside Canterbury.
According to the original agreement, Christchurch and Auckland would alternate as hosts between seasons three and six.
But that changed in 2023, when SailGP shifted from Auckland to Christchurch over land restrictions surrounding the venue.
In a joint statement, ChristchurchNZ and SailGP said a report of the March event by Deloitte showed its total economic impact was US$20.7 million (NZ$33m) for the host region, with a gross expenditure of US$9.5m (NZ$15m) by SailGP and competing teams.
It said the event was seen by a global broadcast audience of 74.6 million.