Scarborough Borough Council, working with the emergency services, has advised Whitby Town Council that a severe weather warning, with high winds and high seas expected, has been issued for Friday and Saturday, which make the continuation of the Festival Market and entertainment impossible.
The opening of Whitby's ice rink has also been delayed until 10am on Sunday November 28, with tickets sold for Friday and Saturday refunded.
A rescheduled display from the Billingham Skaters will take place at 6.45pm on Sunday.
A post on the Whitby Christmas Festival's Facebook page reads: "We have taken the decision, with much regret, that it would be unsafe and unwise for this year’s festival to go on.
"We apologise deeply for the disappointment that this will cause, but the safety of everyone involved is our priority, based on the advice we have received.
"We are contacting the traders, stall holders and entertainers who had been booked to support the Christmas Festival and we have made a formal announcement of the cancellation through the festival facebook page, but we need the message to spread to everyone who had planned to attend to let them know that the weekend will not be going ahead this year.
"Once we have assessed the impact on everyone involved, we will announce our plans for 2022."
Town mayor, Cllr Linda Wild, expressed the council’s disappointment, saying: “We are devastated, this is the worst news we could have imagined.
"I am devastated for all the volunteers, led by Phil Trumper, our traders and entertainers and the council’s own staff, who have worked so hard to bring this year’s event together.
"The extreme weather warning and the advice we have received from the borough council have left us with no alternative.
"On behalf of the town council, I apologise for this disappointment.
"We are so, so sorry.”