The chairman of Rally Australia says he will step down from the role in protest against the World Rally event moving to Coffs Harbour.

Last week the Confederation of Australian Motor Sports announced the change in venue from the Tweed and Kyogle to the Coffs Coast.

Alan Evans has resigned as chairman of the Rally Australia board but will stay on with the Confederation of Australian Motor Sports.

He says he has been fighting to keep the motoring event on the far north coast of New South Wales.

Mr Evans says his heart is not in it now that the event has moved to Coffs Harbour.

"If you lose an argument you shouldn't try to make a go of it, you get someone in who is committed to the area," Mr Evans said.

There are also concerns about a protest movement starting around Coffs Harbour.

"I think similar things will happen there," he said.

But the main concern is about the financial viability of the event now that it has moved further south.

"I don't think it will be as successful as in the north," Mr Evans said.

"You've got a great catchment area in south-east Queensland, I think we've got the enthusiastic support of tens of thousands of people in the north which would have seen even more people coming to the event in 2011."

Mr Evans said the fight is not over and he will try and bring a new motoring event to the far north coast.

"I might spend some time up on the north talking to various groups to see if we can get something like a Targa Tasmania up there, because clearly people want to see some motor sport events there," he said.

"I will work with the local community there to make sure that we're not dictated to by a very small minority."