Festival organisers Associação Ideias com Sol and major event sponsors Lagoa Câmara agreed to postpone the event until June next year.
Organisers said: “Both parties are of the opinion that the present economic and social climate prevents many people, especially families, from buying an €8 ticket, even for an event of this quality.”
The ‘Obrigado Portugal’ festival, held for the first time last year, is organised by members of the foreign community as a tribute to their country hosts.