Wallis and Futuna has pulled out of the 2012 Pacific Festival of Arts in Solomon Islands due to be held in July.
It is the only delegation to withdraw officially, just days after the Northern Marianas said it lacked the funds to attend.
The festival director, Robert Au, says 27 countries are expected but some are yet to confirm.
"Due to financial constraints, they will not make it - which Wallis and Futuna. All the other countries are confirmed, 21 so far. We're waiting on the others to come and given them a deadline of the end of this month to confirm they are participating at the festival in July."
Robert Au says the festival preparations are behind schedule.