Organisers of this month's ill-fated AIA International Hot Air Balloon Fest were advised more than a week in advance that they should warn visitors it was unlikely they could ride the balloons as planned, the government said on Thursday.

Secretary for Culture, Sports and Tourism Rosanna Law told Legco that the results of the organisers' on-site hot air balloon demonstration on August 20 were unsatisfactory and there were concerns about safety.

At a meeting eight days before the September 4 start date for the "mega event", organisers were told that time was running out for a permit to be issued for the rides, even if a subsequent test was successful, Law said.

"The relevant departments clearly stated to the organiser at the meeting that, due to the tight time schedule, the chance of granting approval was extremely slim, and recommended the organiser to publicly announce the cancellation of the carrying passengers part as soon as possible and arrange refunds or other compensation for those who had already purchased the tickets," she said.

Law said another test was carried out on September 3 and organisers were given permission for the balloons to go on display, but not for them to take passengers.

Several days later, organisers announced refunds for those who paid to visit the balloon display and were left disappointed that no rides were possible.

Law said in future, the government might issue written replies at meetings with event organisers to better protect consumers.