Regional Touring manager Duane McDonald, who is responsible for such concerts as The Red Hot Summer Tour and Lakeside Twilights, said it was only a matter of time before more musicians bypassed Ballarat, especially with Bendigo set to have a new 1000-seat venue built by mid-next year.

The new $25.8 million complex will feature a two-tier theatre complete with a large stage, fly tower and dressing rooms along with music, dance and drama studio spaces, general learning areas and a commercial learning kitchen.

"Tour managers these days are looking for bigger venues, so Ballarat needs to keep on its toes otherwise it will miss out more and more," Mr McDonald said.

"With suitable pub venues, you have Karova Lounge but that's where it stops.

"If an act outgrows Karova, you've got nowhere that seats between 300 and 1000 people.

"The next step up is the cinema, but some acts don't prefer that environment.

"You can't do a raging, screaming, rock act in a cinema."

Karova Lounge venue booker Shaun Adams said there were instances when he wished there were larger venues available in Ballarat.

"Our venue is definitely limited in what it can do," he said.

"We are only really open four nights a week and we try to get the right mix of bookings, giving opportunities to local acts and national touring acts to perform.

"This means there are some shows we can't cater for and in some cases the venue isn't suited for the act."