The Lost Trades Fair organisers said that Bendigo was the "best fit" for the event next year as the city's racecourse was confirmed as the venue - and not Ballarat as had been previously hoped.
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It also emerged that Bendgo - which will now host the fair for three consecutive years - was only a late runner as a potential host, with Ballarat remaining a possibility until very close to the final decision.
The fair had been held in Kyneton since 2014 but organisers decided to move with crowds and the amount of exhibitors outstripping the venue size.
Terry Karamaloudis, a manager for the City of Greater Bendigo council's tourism and major events department, said they only had contact with the organisers a few weeks ago.
It's important to note that at no stage was Ballarat confirmed to host the event, so it was not ours to lose.
- City of Ballarat's director of development and planning Angelique Lush
He said the venue was probably the "critical" matter in the decision. Organiser Glen Rundell said the new location would allow the fair "to spread out a little more and allow more people to see more of the artisans and have a better experience... what it came to was also being able to present the best possible fair that we can in a timely manner," he said.
The event has traditionally taken place on the Labour Day weekend in March - which is when the Begonia Festival is normally held in Ballarat. Organisers were considering a change of dates to the Easter holiday weekend, but ultimately decided to keep it on the same day in an alternative different location.
The City of Ballarat's director of development and planning Angelique Lush said: "We'd reiterate that it's terrific that the Lost Trades Fair will continue to be hosted in regional Victoria."
"It's important to note that at no stage was Ballarat confirmed to host the event, so it was not ours to lose."
She said the council would work closely with local industry to develop a "diverse and exciting events schedule". Ms Lush cited the Ballarat International Foto Biennale, AFL at Mars Stadium, and the return of White Night to Ballarat as events taking place within the next few weeks.
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