The 18-day celebration was due to begin on February 19, the Lunar New Year.
Wu Cheng, the district's deputy director, said the cancelation should be widely publicized, but security and strict fire prevention measures would remain in place.
Many thousands gathered at the Bund to welcome in the new year not knowing that the light show that had been staged since 2011 had been canceled.
Wu ordered the Lantern Festival cancelation during a visit to the Huangpu Tourism Bureau yesterday to discuss preparations for the Lunar New Year.
The 20th Lantern Festival was held at Yuyuan Garden last year.
Listed as intangible cultural heritage, the display covering about 5.3 hectares features giant hand-made lanterns in the shape of Chinese zodiac signs, pavilions and mythological figures as well as lantern riddles.
Different lantern groups bear auspicious blessings for the new year.
In addition to carrying lanterns, watching shows and guessing lantern riddles, visitors enjoy sweet rice dumplings, buns and other snacks.
About 600,000 people packed the garden on the night of Lantern Festival on February 14 last year, and more than 1.5 million people attended the display between February 22 and 24 in 2013, when the Lantern Festival fell on February 24.
During the seven-day Spring Festival holiday in 2013, more than 3 million people visited the show, making it one of the busiest places for visitors in the east China region.
Festival organizers charged 50 yuan (US$8) admission to control the crowds and used fences on the zigzag bridge to maintain order. Long queues formed at snack stores.
The festival is regarded as an important cultural event displaying Shanghai customs and folk culture and the cancelation will be a disappointment for many.
"The show bears a piece of warm memory for me as my grandmother took me there when I was a child, and I still remembered how beautiful the lanterns were, which was a fun experience for me," said Ye Jiaqi, a white-collar worker in her early 20s.
"I hope it could be kept as it is a festival option," she said.
In online comments, some said the cancelation was an overreaction. "What is needed is to enhance safety and eliminate hazards rather than blocking it, which is rude and simple, and tradition should be maintained," was one comment.
Others praised a "wise decision." "There were too many people packing the area, and such measure is a wise decision," one said.
A smaller Lantern Festival celebration at Guyi Garden in Jiading District has already been canceled for "safety reasons."
Meanwhile, another of the people injured on the Bund on New Year's Eve was allowed home yesterday. Thirteen people now remain in hospital, two of whom are said to be in a serious condition, while another remains critical, the Shanghai Health and Family Planning Commission said.
Police are still investigating the cause of the tragedy.
Source: Shanghai Daily
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