Melbourne’s free tourist shuttle is at risk as city authorities look at ways to recoup – or ditch – some of its $1.4 million-a-year operating costs.

In October last year, City of Melbourne chief executive Kathy Alexander wrote to 26 local businesses requesting financial support to keep the service going. According to a report prepared for the council’s upcoming Future Melbourne committee meeting, none of those contacted were prepared to contribute.

Chris Buckingham, chief executive of tourism group Destination Melbourne, said it was ''beyond the remit'' of the industry to pay for operating costs, although they would gladly contribute to marketing the shuttle.

''We think that the service is a wonderful thing, we think that the City of Melbourne do a great job providing goods and services … but if the bus service was wound back or de-funded it would be a major step back in terms of Melbourne's growth as an international visitor destination,'' said Buckingham.

The Victorian Tourism Industry Council (VTIC) is supportive of the free tourist shuttle and hopes a solution can be found to continue the service.