Scurr said the society tried to delay the decision for as long as possible but time was running out to set up the show.
"In the current climate, this event would have provided a much-needed cash injection to hundreds of trade exhibitors and, importantly, to our local accommodation and hospitality businesses, plus local community groups," Scurr said.
Lake Wanaka Tourism general manager Tim Barke said the cancellation was incredibly tough for everybody, in the events industry particularly and for all the businesses which relied on show-goers visiting.
Barke said the Warbirds over Wanaka cancellation had already had a significant impact on the community.
Although it was positive that the Prime Minister had announced a five-step process to open borders, there was no firm commitment as to when self-isolation or quarantine requirements would be removed, he said.
"That's what the majority of travellers are basing their decisions on. And it would be nice for Kiwis to come home and students to be able to come back. We can't expect people to start visiting until that is sorted."
The A&P show was a huge, celebrated event and "a real piece of Kiwiana," Barke said.
"The biggest challenge is the amount invested in preparation. That's where things are tipping over. That's where it is all or nothing ... They have to consider whether to invest in a maybe or a not," Barke said.
Wanaka A&P Show event manager Jane Stalker said the cancellation was saddening because many people were willing the show to carry on.
"Every year, we get told that the show is a great community event," she said.
The show was founded in 1934 and was only cancelled between 1939 and 1945 (World War 2). It is now one of New Zealand's largest agricultural and pastoral events.
Other Wanaka events to be cancelled this year include Warbirds Over Wanaka (April), Challenge Wanaka (next week), the Ruby Swim (January), Contact Epic (April), the Motatapu (March), and the Aspiring Conversations Festival (March).
Because of the timing of lockdowns and restrictions, the A&P show had been able to carry on in 2020 and 2021.