THE cancellation of this year's FKG Tour of Toowoomba is expected to impact the Garden City's economy by more than $1 million.

This year's event was postponed until 2017 due to financial pressures.

The cancellation is expected to have an impact on motels, restaurants and shops.

Toowoomba Cycling Development president Mac Sterling said research had shown the economic benefit to the region of last year's event was $1.2 million.

Mr Sterling said major sponsor FKG Group and other contributors were fully behind the event.

"The reality is this sort of event puts Toowoomba on the map and there is an enormous benefit to the community both financially and in building a robust community," he said.

Active tourism events like the tour had the potential to bring big tourism dollars to the region.

The Tour Down Under brings about $80million to the Australian economy each year and Mr Sterling said while the Toowoomba event was a long way from that, the long-term vision was to take the opportunity for growth seriously.

He said Toowoomba was well-placed, with its proximity to Wellcamp Airport providing the potential for teams to fly directly to the event.

The city's tourism councillor said the cancellation was disappointing.

Cr Geoff McDonald said hoped it would return bigger than ever.

He said council would strive to continue its help in the form of sports tourism grants.