Business bosses in Bradford city centre have expressed disappointment after it was revealed that this summer's International Market Festival will not be going ahead.

When it was last held, the four-day August extravaganza saw more than 700,000 visitors flood into Bradford as the streets were transformed with 500 stalls, operated by traders from as far afield as Italy, Belgium and Germany.

But businesses in Bradford say they have been notified that the 2008 market festival, expected to build on the success of the 2004 and 2006 events, has been "cancelled" due to lack of funding.

Mike Cartwright, policy executive at Bradford Chamber of Commerce, said: "City Centre management have confirmed to me that it is cancelled this year. It's disappointing.

"The event brought in lots of new visitors to the city. If the cost does not justify putting on the event then fair enough, but we were assured in the past that it did. I hope that the Council will review the situation next year to see if there's any way it can return."

Councillor Andrew Mallinson, the Council's executive member for regeneration, said any future international markets of the scale held previously would only happen if funding could be secured from other partners including the private sector.

He said: "The Council does recognise the success of the International Market held in 2004 and 2006 and needs to work with partners including the private sector to be in a position to run the event in future years.

"Investment in the markets service continues to grow and expand the range of markets and their localities and to offer value for money.

"There will be a continental street market held across the city centre to run alongside the Bradford Classic Car Show in July and a Christmas market event this year, and a number of other themed markets throughout the district which follow on from the success of the Bingley Fine Food Market earlier this month."

But Debbie Leach, of the Chino Thai restaurant in Centenary Square, said: "We are very disappointed that the Council has cancelled the international market.

"We gathered it was going to be held last year but was cancelled due to lack of funding, but they said it would definitely be held this year. Now we are told it has been cancelled again because of lack of funding.

"This event brings 750,000 people into Bradford who wouldn't otherwise be here."

Val Summerscales, secretary of Bradford Chamber of Trade, said: "It's disappointing if a big event is not taking place for whatever reason. But we have always had concerns that the feedback from traders suggested they didn't see a lot of benefit from the international market.

"It's a high-profile event that brings people to Bradford, but it's not good for the existing businesses if everyone spends all their money at the international market. It's a fine balancing act to ensure everyone is happy as a result of it being hosted by Bradford."