The Woodford economy is set to benefit from a splendid financial injection with one of the country’s biggest music festivals set to relocate to the town.

Organisers of the Splendour in the Grass festival, one of the major national drawcards for fans of the alternative music scene, will relocate their event to the home of the Woodford Folk Festival for two years from next year.

Splendour in the Grass will move north from its traditional home in Byron Bay for the 2010 and 2011 events, after plans to create a new venue for the annual festival in northern New South Wales stalled.

Splendour in the Grass organiser Jessica Ducrou had hoped the festival would be permanently relocated from Belongil Fields to a purpose-built, larger venue at Yelgun, between Byron Bay and Tweed Heads, in time for next year’s tenth anniversary event.

But she said plans to develop a 660-acre site at the North Byron Parklands have hit a stumbling block during the approval process undertaken with the New South Wales Department of Planning and Byron Shire Council.

Ms Ducrou said the Splendour in the Grass organisers felt “honoured” to borrow the Woodfordia site – the home of the Woodford Folk Festival – which she noted had been “a great source of inspiration”.

“Given the size of the venue we will be able to accommodate almost all festival patrons in camping grounds onsite, giving more people the full festival experience,” she said.

“The purpose built venue also means that we can incorporate a broader range of arts and cultural experiences, which we have been wanting to do for many years.”

While crowd numbers at the two-day Byron Bay event are capped at 17,500 people, around 30,000 visitors are expected to come to Woodford for next year’s event, which will be held over three days.

“We have a great opportunity to grow our event and give people better access to the festival but at the same time keep Splendour In The Grass a unique and personal experience,” Ms Ducrou said.

Woodford Folk Festival Director Bill Hauritz said hosting the festival, which has played host to international and Australian acts such as Coldplay, Brian Wilson, Sonic Youth, Arctic Monkeys, Placebo, Lily Allen, Queens of the Stone Age, Powderfinger and The Living End, would be “a privilege”.

“Splendour is one of the best managed events I have observed, they are responsible, caring and disciplined organisers,” Mr Hauritz said.  “We can expect the best.”

Moreton Bay Region councillor Adrian Raedel (Division 12) said the festival’s arrival in Woodford would be a shot in the arm for local businesses.

“This is a fantastic event for the whole region and which builds on Woodford’s reputation as a festival destination,” Cr Raedel said.

“And it will be good for local business with early estimates suggesting it could generate up to $13 million for the area’s economy.”

Moreton Bay Mayor Allan Sutherland said the Queensland Government had provided $280,000 for works to increase the capacity of Woodfordia’s camping grounds and amphitheatre.

“We have worked hard to attract this signature celebration of music and culture to Woodford, an area that already has the runs well and truly on the board when it comes to hosting quality music festivals,” he said.

The first Splendour in the Grass festival at Woodford will be held from 30 July to 1 August.