City mayor Shigeru Horiuchi announced on 6 February the two-week festival would not run this year to "protect the living conditions and dignity" of the local residents.
"The flipside of our beautiful scenery is that our residents’ peaceful lifestyles are being threatened, and I strongly feel that this has become a crisis situation," he added.
According to local media, complaints from residents include severe traffic congestion, trespassing on private property, littering in residents' gardens.
The city, which lies in the Yamanashi Prefecture 110 kilometres outside Tokyo, receives as many as 10,000 visitors a day during peak cherry blossom season.
