While it might seem harmless, the cancellation talk could impact tourist numbers, organiser Barry Harley said.

"Unfortunately bad news travels faster than good news, we've been conscious of these rumours for some time," he said.

"I think it's just coming from people who don't know and secondly the combination of prolonged drought, bushfires and the constant news that Tamworth is on Level 5 water restrictions."

A social media campaign has kicked off with the hashtag #2020TCMFItsON and everyone from country music stalwarts to artists and Tamworth Business Chamber president Jye Segboer have shared the good news.

The festival brings an estimated $50 million into the economy, beyond that it's one of the only music festivals in the country where emerging talent have an opportunity to perform to crowds on the streets.

It's the cornerstone of the Australian country music industry and started the careers of huge names like Keith Urban.

With the pressures of bushfire and drought, this year's festival will provide vital economic stimulus to Tamworth, Mr Harley said.

"It injects millions into the economy, that gives a lot of people a second Christmas that not many towns can boast about," he said.

"The second and most important thing is to still provide enjoyment and a sense of happiness, there's so much bad news around at the moment."

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Tamworth Regional Council have increased their marketing in Queensland and northern NSW to combat the rumours and have targeted the caravan world and grey nomads to encourage day trips too.

The Tamworth Country Music Festival is on January 17 to 26. The likes of Kasey Chambers, The Wolfe Brothers, Troy Cassar-Daley, The McClymonts, Lee Kernaghan, John Williamson, Paul Kelly, Cold Chisel and many more are set to perform at various venues.

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