For the first time ever, Burning Man is canceled.

Organizers announced Friday evening that the arts festival in Northern Nevada's Black Rock Desert would not take place due to global efforts to limit the spread of the COVID-19 virus.

The event draws about 80,000 people to Nevada each year, many of them from out of state and out of country. Burning Man is a major economic driver for the Silver State, pulling in $60 million each year, according to Burning Man's own economic analysis.

Related:Burning Man's main ticket sale postponed indefinitely due to COVID-19 pandemic

"After much listening, discussion, and careful consideration, we have made the difficult decision not to build Black Rock City in 2020. Given the painful reality of COVID-19, one of the greatest global challenges of our lifetimes, we believe this is the right thing to do. Yes, we are heartbroken. We know you are too," a statement on the Burning Man Journal said.

Burning Man tickets to be reimbursed

While the event's main ticket sale was scheduled earlier this month, the San Francisco-based nonprofit initially postponed the sale to buy further time to evaluate whether the event should be canceled. Most tickets to the event cost $475, on top of $140 vehicle passes.

While some attendees already purchased tickets through smaller sales earlier in the year, those tickets will be reimbursed, though the organization pleaded its followers to make the contribution if they were able to the organization.

In order to keep the organization afloat, Burning Man Project will have to move forward with "substantial staff layoffs, pay reductions, and other belt-tightening measures," the Friday statement said.

Spokeswoman Megan Miller said the number of layoffs and reductions would depend on how many ticket payments the nonprofit retained and how many contributions the nonprofit receives. The organization also has a $10 million rainy day fund, according to public tax documents.

The Burning Man Project also noted that it would be continuing the spirit of Black Rock City in the "multiverse," but it is unknown what that will look like. The "Multiverse" was the original 2020 event theme.

The late Larry Harvey and friends started Burning Man on San Francisco's Baker Beach in 1986 but they moved the event to two hours of north of Reno in 1990 after a run-in with the law.

The event, which grew from a few dozen people to tens of thousands, has never been canceled despite monsoon rains, serious injuries and deaths on site and an arson in which the "Man" effigy burned down early one year.

Participants spend approximately $50 million and the organization spends about $10 million in Nevada alone, the Burning Man Project has reported. For many grocery and hardware stores in the Reno area, August is one of the top sales months of the year.

'It's a tough decision to make'

The Reno-Tahoe International Airport also sees the most volume at its site during the Burning Man season, with about 18,000 passengers flying through the airport en route to and from Burning Man, according to airport officials' previous reports. In the past, passengers have come from nearly 40 countries around the world.

"We hate to lose it, and we always look forward to each year," said airport spokesman Brian Kulpin. "It will just fit in with this incredible drop off a cliff that air traffic has taken."

Kulpin said airport officials have been wondering about whether Burning Man would continue without interruption.

"It’s a tough decision to make, but it’s where we’re at right now," Kulpin said.

Burning Man over the years has enriched not only the economic prosperity of Northern Nevada, but also the cultural fabric, according to EDAWN President and CEO Mike Kazmierski.

"They open up our community to tens of thousands of creative, innovative that otherwise may not come to our region," said Kazmierski. "Clearly, the attendees come early, stay late, buy a lot of their supplies here, live in the community and many times they fly in and out of our airport."

The city of Reno is dotted with Burning Man art installations and the nonprofit also has a satellite office downtown. Additionally, Burning Man owns the Fly Ranch property near the Black Rock Desert and has been seeding ideas on how best to develop the lush hot springs site.

Burning Man is just of one of the major events that has been casualty to the rapid spread of the COVID-19 virus around the world. Other events that have been postponed or canceled include Coachella, South by Southwest music festival, the Olympic Games in Tokyo and professional sporting events worldwide.

Bureau of Land Management officials said they were proud of Burning Man for making an extremely difficult decision, but it was the right decision to make.

"Months down the road, it could be different, but it would be a huge risk," said Heather O' Hanlon, a BLM spokeswoman." We’re really pleased with them,

It’s an extremely remote location, and it would be a huge challenge.

The BLM, which oversees the event, rakes in several million dollars annually from fees and the largest special recreation permit in the country.

O'Hanlon said, however, that most of the funds cover the BLM's costs and it will free up staff's time to work on other projects.

Jenny Kane covers arts and culture in Northern Nevada, as well as the dynamic relationship between the state and the growing Burning Man community. She also covers the state's burgeoning cannabis industry (Check out her podcast, the Potcast, on iTunes.) Support her work in Reno by subscribing to RGJ.com right here.