The cancellation of the Badminton Horse Trials will cost the local economy up to £2 million in lost turnover, a business chief has said.

Businesses across Wiltshire, including hotels, bed and breakfasts, pubs and traders, are set to suffer after the four-star international event, which each year attracts 250,000 people to the area, was cancelled because the course is waterlogged.

Rob Perks, chief executive of Wessex Chamber of Commerce, said: “It won’t be an exaggeration to say it will be a million to two million pounds in lost turnover.

“It’s a real shame for those businesses that have been affected by it, but it’s an act of God and there’s nothing anybody can do about it. It’s a real blow for some companies that rely on this weekend to get by.”

It is the first time the event, which was due to begin tomorrow and run until Monday, has been cancelled for rain since 1987, although it was called off in 2001 because of foot and mouth.

Hundreds of people living overseas who have booked and paid for their flights, car hire and accommodation to visit Wiltshire, will be among those bitterly disappointed by the announcement.

Emma Amati, of Dauntsey Park House, had 11 bookings for the event.

She said: “I am assuming everyone who booked will cancel now. Everybody is disappointed but not hugely surprised.

“It’s one of my key weekends as we get people coming for a nice long time, but you can’t beat the elements.”

Caron Cooper, of Fosse Farmhouse, Nettleton, who has people travelling to her from as far away as America, Norway and the Netherlands, said: “The only other time I have known it to be cancelled was the year I opened my businesses, which was 25 years ago.

“I remember it was the first customer I was ever going to have in the B&B and I was busy painting the night before they were due to arrive when I heard on the radio it was cancelled.

“Having gone through that I could remember how wet it was and I knew this time that something wasn’t right.

“I am sure it will bring a huge amount of disappointment for the people who are coming from far away.”

Trader Julia Andrews, of Katenegus.com bridleware, believes she, like other traders, will lose 20 per cent of her annual turnover from not exhibiting at Badminton.

“It’s tough, as you can imagine with buying stock in for the horse trial – the knock-on effect goes quite far because we will still have to pay our bills.”

In a bid to overcome the poor weekend, the firm is offering free postage on items ordered online in May.

Jayne Barker, of Stiling Hayes bed and breakfast, Malmesbury, said: “I’m assuming people will be cancelling now, which won’t be good for me.

“I only had two rooms, but they were fully booked for Badminton. It can’t be helped, but we probably won’t be able to fill those rooms now.”