The Israeli Opera cited the reason for cancelation as budget cuts, difficulties in raising funds from public and commercial organizations and ramifications of the economic reality in Israel.
Therefore, Opera officials stated, a different arrangement is required this year, as well as responsible and cautious management which will prevent the Opera from facing uncontrolled deficits.
As a result of the new arrangement, the Opera has decided to postpone the Masada Festival from June 2013 to June 2014.
"Unfortunately, despite the festival's huge success, we won't be able to hold it this year," said Hanna Munitz, general director of the New Israeli Opera. "It's a painful but inevitable decision, which reflects our responsibility towards the Opera, its employees and its audience. For now we will continue with productions at the Israeli Opera House."
The Israeli Opera Festival is the biggest cultural event to ever take place in Israel. More than 160,000 people have attended the festival events in the past three years. In addition, the festival has provided jobs for some 2,500 people, mostly from the Dead Sea area.
The Opera Festival, which was launched as an initiative to combine culture and tourism in a bid to bring a foreign audience to Israel, has attracted thousands of tourists since its inception.