The event planned for November normally draws between 17,000 and 20,000 people.

Bendigo National Swap Meet committee chair Neil Athorn said the group decided to cancel after restrictions were tightened on Monday night.

He said it was best to make a decision now, so everyone knew where they were going.

Read more: Thousands flock to 2019 Bendigo swap meet

"Because of the way that COVID is happening at the moment in Victoria, just doesn't allow us any room," Mr Athorn said.

"As we saw on Monday there was changes made... if that happened in the week before the swap we would be overcommitted.

"It's best to make the call well before the event so everyone knows where they're going."

Mr Athorn said cancelling was bad for Bendigo's economy, but the committee had to take into account everyone's health.

He said the group had wrestled with the question of cancelling for some time.

Mr Athorn said the list of things that needed to happen - sanitisation, registration of guests - just went on and on.

But he said he was disappointed to cancel after 44 years of the event.

Mr Athorn said the committee would transfer 2020 bookings automatically to 2021, unless stallholders got in touch.

He said about 80 per cent of swap meet sites were booked for the November event.

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