IT MAY be splitsville for Murwillumbah's much-loved Banana Festival without the support of a new not-for-profit organising group.

After co-ordinating the festival for 10 years, the Rotary Club of Murwillumbah Central announced yesterday it would no longer run the 61-year-old Banana Festival, held on the last weekend of August.

The club's executive secretary Denis Hallworth said it was an expensive project and the club had decided to let go of the reins after the volunteer organising committee quit last week in protest after a possible festival name change was suggested to boost sponsorship.

"The initial report was that the Banana Festival was seen as dated and sponsors not willing to assist, but a change to another name such as Harvest Festival would receive sponsors' support,” Mr Hallworth said.

"Change is always hard and tensions arose that resulted in the entire working party of volunteers walking out.

"This walkout alone has significantly reduced Rotary's ability to hold the festival this year, but the ensuing public vendetta has rendered our club's position untenable.

"A vote at our meeting resulted in a decision to terminate our club's involvement with the management of the festival.”

Mr Hallworth said that meant unless another not-for-profit group or club took over, the festival would not run this year.

"The (club) will not proceed with any planning for activities for any future Banana Festival,” he said.

"We hope that another not-for-profit organisation will step forward to accept responsibility to run the Banana Festival.”

Mr Hallworth said Rotary had already received inquiries about running the festival but warned interested parties should consider the cost of insurance for public liability.

"Any not-for-profit club or group wanting more information is asked to contact (the Rotary club) as soon as possible,” he said.

Mt Warning Tours director Michael Simmons, who also represents the Tweed Experiences Network, said there was still hope for the festival.

"The fact is, it's salvageable if there's no more community division,” Mr Simmons said.

"People are working proactively to turn this into a real opportunity for bringing the community together."