The loss of the Three Counties Show in June is a further blow to a tourism sector already under pressure.
Oswald Dockery, owner of the Malvern Hills Hotel at British Camp, said the cancelling of accommodation booked by exhibitors was "another nail in the coffin" for the industry, already suffering from of the decision to scrap the Cheltenham Gold Cup and the closure of the hills.
"We would normally be full throughout the Three Counties," said Mr Dockery, adding that the sector was "living from day to day".
Helen Thomas, co-owner of the Foley Arms Hotel in Malvern, said it too would lose the business of exhibitors and visitors the show brings.
"It generates a lot of business around the area in the evening, people eat in the hotel and drink in the bar. It's a busy week in Malvern and we'll miss that," she said.
Ms Thomas said that although any decision to re-open part of the hills may come next week, it is probably too late to salvage the bulk of the Easter trade.
"But anything is better than nothing, at least we can say things are slowly beginning to return to normal," she said.
At the Abbey Hotel, general manager Patrick Jones said the effect on the venue was a lot less and a decision on the re-opening of parts of the Malvern Hills was the thing most eagerly awaited.
"Once we have a glimmer of hope there we can start the process of spending money to bring more people to the hotel and the town," he said.
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