The decision was due to restrictions under the Covid-19 Red traffic light setting, Motatapu co-owner Craig Gallagher said.
"[We] tried to work through a few different plans and after consulting with MBIE [the Ministry for Business, Innovation and Employment] directly on those plans and retweaking and reforming them ... we thought we had something.
"Sadly, with the number of people we have, it was just getting too much and too hard."
Mr Gallagher said he was "deeply disappointed" to cancel the event two years running, but believed people would still travel to Queenstown that weekend and do their own running or biking missions, "which is great, and obviously that will help the district".
Entries from this year’s event could roll over to next year, or 70% of the entry fee could be refunded.
Mr Gallagher said the Motatapu was now being planned for March 4 next year — which is shaping up to be a bumper weekend for the Wakatipu.
On Tuesday the New Zealand Open golf tournament announced it, too, had decided to cancel due to the Red setting.
The 102nd edition of the Open is now scheduled for March 2 to 5 at Millbrook Resort, to include a full field of players from the PGA Tour of Australia, and the Asian and Japanese Tours.
