The owner of a hot air balloon banned from the Canberra Balloon Spectacular over its "racist and offensive" name and facade says she never intended to upset anybody.

Key points: The Black Magic balloon resembles the Golliwog character, which is considered a racist caricature

The Black Magic balloon resembles the Golliwog character, which is considered a racist caricature Owner says she has never heard a complaint about the balloon from anybody

Owner says she has never heard a complaint about the balloon from anybody Events ACT consulted with Indigenous bodies before decision

The balloon, named Black Magic and also known by the nickname "Golly", depicts a smiling black face resembling the Golliwog character, which is considered by many to be a racist caricature.

The ACT Government has announced the balloon would be excluded from next week's balloon spectacular, citing concerns it could offend sections of the community.

Owner Kay Turnbull said her balloon had flown at the event for decades without issue.

"I was devastated. Absolutely devastated," she said.

"It's never been our intention to offend anybody, ever. And in fact in 20 years of flying this design of balloon we have never had a single complaint from anyone.

"I love my balloon and nobody's ever had a problem with it. It's fun!"

The hot air balloon Black Magic has flown at the Canberra Balloon Spectacular for 20 years. ( Facebook: Events ACT )

Events ACT director Jo Verden said it wasn't until the balloon's nickname "Golly" was raised that staff began to question the balloon's inclusion.

"It came through as the name of the balloon being 'Black Magic', also commonly referred to as 'Golly'," Ms Verden said.

"It was primarily the 'Golly' … which brought it to our attention that it was possibly considered to be racist and offensive by many people in the community.

"The facade of the balloon is concerning because it does visually depict the Golliwog, and that's clear by the eyes... the mouth and the bowtie on the balloon.

Ms Verden said Events ACT had consulted with the Aboriginal and Torres Strait Islander Elected Body, the ACT Government and others before making its decision.

But Ms Turnbull said she had never heard a complaint about the balloon's design — but understood some people could be offended by the design.

"I do respect the fact that it potentially could cause offence, although it never has before to my knowledge," she said.

"There's no point in getting angry about the whole thing.

"We personally don't want to cause anybody offence."

Ms Turnbull said she would continue to fly the Black Magic balloon at other events, but would rent another balloon to fly at the Canberra Balloon Spectacular.